Niche-width theory: It defines two types of organizations: generalists and specialists. Per Hannan and Freeman, specialist maximizes its exploitation of environment and accepts the risk of experiencing a change in that environment. Generalist accepts lower exploitation in return for greater security. Specialization is favored in stable or certain environment. Efficiency resulting from specialism is partly derived from lower requirements for excess capacity. Generalism is favored in unstable and unpredictable environment, though not always