WHY PERCEIVED SIZE MATTERS FOR AGENCY TERMINATION

Agency size is generally assumed to be positively correlated with survival: the bigger an agency, the less likely it is to be terminated. Yet, recent research finds a very small effect of size on survival. The reason, we argue, is that it only addresses size in terms of overall operating budget – what this article calls objective size. By contrast, we use an interpretive historicist approach to show how perceived size – the meanings and beliefs...