Intermediate Selection on a Developmental Journey

We examine the joint processes of organizational development and population selection to highlight a dynamic interaction overlooked when considering the processes in isolation. Selection does not operate on quasi-stable traits directly, but rather on contemporaneous performance. Consequently, stable search strategies may be favored by selection on bases other than long-run performance, such as intertemporal performance stability and the rate of performance improvement. Using a computational model of firm innovative efforts guided by stable search strategies under alternative selection regimes, we find that the relative efficacy of alternative search strategies is reversed depending upon the inclusion or exclusion of selection.-2