This research is based on organizational ecology theory to model the stochastic processes of organizational mortality. The sample consists of 1046 bicycle related factories in Taiwan. Yearly data from 1969 to 2000 are collected to analyze the significant determinants of the organizational mortality by using stochastic models. There are five major findings: (1) Organizational mortality rate increases with organizational age. (2) There is a U shape relationship between mortality rate and population density. That is, a negative relationship was found between mortality rate and population density at the low density level. The mortality rate decreases as population density increases, at least up to some point. Beyond that point, the mortality rate increases. (3) Organizational mortality rate has a positive relationship with the number of new establishments in the previous year. (4) Larger organizations present stronger competition pressure. (5) Economic growth rate and exchange rate are significant predictors of organizational mortality. Implications for both management practices and academic research are discussed.