Environment and Development Economics



Firm size diversity, functional richness, and resilience 1


AHJOND S. GARMESTANI a1, CRAIG R. ALLEN a2, JOHN D. MITTELSTAEDT a3, CRAIG A. STOW a4 and WILLIAM A. WARD a5
a1 South Carolina Cooperative Fish and Wildlife Research Unit, and Program in Policy Studies, Clemson University, Clemson, SC 29634, USA
a2 USGS – Nebraska Cooperative Fish and Wildlife Research Unit, University of Nebraska, Lincoln, NE 68583, USA
a3 Department of Marketing, Clemson University, Clemson, SC 29634, USA
a4 Department of Environmental Health Sciences, Arnold School of Public Health, University of South Carolina, Columbia, SC 29208, USA
a5 Center for International Trade, Clemson University, Clemson, SC 29634, USA

Article author query
garmestani as   [Google Scholar] 
allen cr   [Google Scholar] 
mittelstaedt jd   [Google Scholar] 
stow ca   [Google Scholar] 
ward wa   [Google Scholar] 
 

Abstract

This paper applies recent advances in ecology to our understanding of firm development, sustainability, and economic development. The ecological literature indicates that the greater the functional richness of species in a system, the greater its resilience – that is, its ability to persist in the face of substantial changes in the environment. This paper focuses on the effects of functional richness across firm size on the ability of industries to survive in the face of economic change. Our results indicate that industries with a richness of industrial functions are more resilient to employment volatility.

(Published Online July 13 2006)



Footnotes

1 The South Carolina Cooperative Fish and Wildlife Research Unit is jointly supported by a cooperative agreement between the United States Geological Survey-Biological Resources Division, the South Carolina Department of Natural Resources, Clemson University, and the Wildlife Management Institute. Support was provided by the James S. McDonnell Foundation 21st Century Research Award/Studying Complex Systems.