Some organization ecology theorists proposed a density dependent legitimation and competition hypothesis to explain the paradoxical effect of organizational population density legitimizing the rise in number of organizations. The dual role of organiza...
Some organization ecology theorists proposed a density dependent legitimation and competition hypothesis to explain the paradoxical effect of organizational population density legitimizing the rise in number of organizations. The dual role of organizational population density sheds light on population increase and the crisis of public organizations in the government sector. Since the 1970s, a few years after the establishment of KIST, government-funded research organizations (GROs) have continuously increased through spin-offs and establishment of new organizations, eventually becoming 27 in number. At the early stage, GROs` contributions in technology development legitimized the establishment of more such organizations. The high density of organizational population (i.e., the increased number of GROs), however, caused intensified competition and crises of existence. New institutions and restructuring were introduced and discussed to solve the problem of mutual penetration of the research domain by GROs. The increased population density of GROs weakened legitimacy and caused a crisis of existence.