From Categories to Categorization: A Social Perspective on Market Categorization

Durand, Rodolphe; Granqvist, Nina; Tyllström, Anna

doi:10.1108/s0733-558x20170000051011

Cited by 41 publications

(69 citation statements)

References 54 publications

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“…This study provides new evidence that categories act as a fundamental component of institutions (Durand, Granqvist, and Tyllströ m, 2017): the density and coherence of an industry category influence policy even after accounting for the industry's normative appeal. These characteristics constitute cognitive cues that enable emerging industry categories to become part of social reality and receive support from a political audience.…”

Section: Research On Categoriesmentioning

confidence: 86%

“…By viewing regulators as an audience, we also engage with the literature on categories (e.g., Navis and Glynn, 2010;Kim and Jensen, 2011;Durand, Granqvist, and Tyllströ m, 2017), examining whether the impact of industry category emergence on government policy depends on the structure of established industries. Most notably, we seek to broaden understanding of how nascent, relatively powerless industries can attain valuable state endorsement while operating in seemingly hostile environments.…”

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confidence: 99%

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Shine on Me: Industry Coherence and Policy Support for Emerging Industries

Georgallis

Dowell

Durand

2018

Administrative Science Quarterly

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Although the emergence of new industries is often attributed to state support, little is known about the conditions under which an emergent category of organizations comes to receive state support in the first place. We theorize how government support for a nascent industry is jointly determined by the industry's internal features and external forces and test our arguments by analyzing feed-in tariff policies for the emergent solar photovoltaics (PV) industry in 28 European countries from 1987 to 2012. We find that feed-in tariffs-policies that incentivize renewable energy-were more likely in countries with greater numbers of solar PV producers and where the industry was more coherent, containing fewer producers coming from industries with a contrasting identity, such as fossil fuels. Further, we find that the concentration of the incumbent (rival) energy sector in a given country enhances the effect of the number of PV producers on government policy support, but only when the emerging industry has a coherent identity. Our results shed new light on the relationship between public policy and the emergence of an industry category, and they extend our understanding of how new industries can attain valuable state support while operating in seemingly hostile environments.

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Section: Research On Categoriesmentioning

confidence: 86%

mentioning

confidence: 99%

Shine on Me: Industry Coherence and Policy Support for Emerging Industries

Georgallis

Dowell

Durand

2018

Administrative Science Quarterly

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“…After the emergence of a well‐identified organizational form in the 1950s and in the 1960s, MO companies began to defend their specificities within the general retail sector. We argue that connecting these dynamics with the historicity of statistics and nomenclatures explains the creation of a specific code in the French nomenclature of 1973, and enables to assimilate the categorizing process with a sociopolitical process (Durand et al, : 9–14).…”

Section: Empirical Setting: the Categorization Of A New Populationmentioning

confidence: 98%

“…To study this process, we depart from the dominant cognitive perspective of categorization, which focuses primarily on the cognitive models that audiences use to organize and interpret information to build a social evaluation (Durand et al, ). If market and industry are considered as categories, the challenge is not only to understand their effects on audiences but also the content of these categories and the processes that give rise to a new social space encapsulated therein.…”

Section: Categories In Administrative Nomenclaturesmentioning

confidence: 99%

“…At a theoretical level, several authors have recently argued for a better understanding of the emergence and creation processes behind categories, instead of focusing exclusively on their effects (e.g. Durand, Granqvist, & Tyllström, ; Durand & Khaire, ; Farjoun, Ansell, & Boin, ; Hansen, ; Kennedy & Fiss, ; Navis & Glynn, ; Rosa et al, ; Vergne & Wry, ). These authors point out that before considering the disciplining function of categories (Zuckerman, ), we need to understand how new organizations or products are recognized as elements of classifications systems (Kennedy & Fiss, : 1142).…”

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confidence: 99%

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Reintroducing public actors in entrepreneurial dynamics: A co‐evolutionary approach to categorization

Demil

2019

Strategic Entrepreneurship

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Research Summary Categories are important cognitive and social interfaces for entrepreneurs and new ventures. However, the categories forged by the state and public agencies have been largely overlooked by the literature. A historical narrative explores the categorization process to register French mail order companies in an administrative nomenclature. This categorization performs reality by providing legality to a new population and by producing enduring social boundaries. Moreover, the historical reasoning enables to assimilate the emergence of a new category with a co‐evolutionary process, avoiding the reification of categories by considering multilevel interactions. Finally, our narrative highlights the need to consider the interests of entrepreneurs and public actors symmetrically. Managerial Summary How do the state and public agencies categorize new activities? Such categorization can have substantial consequences for entrepreneurs in terms of subsidies, regulation, or control. A historical narrative is built to trace the emergence of the French mail order category in a public nomenclature. This narrative suggests that the categorization results from the convergence of three evolutions over time: a growing interest of public policy in retailing; the development of the French statistical apparatus after world war II (WWII); and the collective entrepreneurship of the mail order companies. Entrepreneurs should consequently dedicate attention to the tools for recording economic activity, be aware of windows of opportunity occurring in the categorization process and eventually take action to influence the way they are categorized.

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From farms to fuel tanks: Stakeholder framing contests and entrepreneurship in the emergent U.S. biodiesel market

Hiatt

Carlos

2018

Strategic Management Journal

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Research Summary Although scholarship has demonstrated that market categories offer important signals to entrepreneurs about which goods and services are valued, little research has considered how entrepreneurs make sense of and exploit opportunities when contestation over category meaning persists. Using the emergent U.S. biodiesel market as a context, we present a framework to explain how the salience of different stakeholder frames shapes entrepreneurs' perceptions of market opportunities and influences their market‐entry strategies. By showing how framing contests affect entrepreneurial outcomes, this study illuminates the underlying cognitive mechanisms that impact market meaning and offers important implications for the literatures on entrepreneurship, market‐category evolution, framing contests, and grand challenges. Managerial Summary Entrepreneurs entering new markets must consider how their products or services create value for customers. What customers value, however, is often shaped by competition between different stakeholders who seek to define problems and appropriate solutions. We argue and find that competing stakeholders influence what becomes valued in the market and shape the technologies and products developed by entrepreneurs. From the perspective of those promoting new markets, market growth requires a balancing act between maintaining control over market definitions and attracting new customers. In growing a new market, entrepreneurs and market pioneers may unintentionally attract other stakeholders who seek to alter or redefine market meanings, which can drive demand away from initial producers, foster the development and adoption of unforeseen technologies, and facilitate market entry of diverse organizations.

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From Categories to Categorization: A Social Perspective on Market Categorization

Cited by 41 publications

References 54 publications

Shine on Me: Industry Coherence and Policy Support for Emerging Industries

Shine on Me: Industry Coherence and Policy Support for Emerging Industries

Reintroducing public actors in entrepreneurial dynamics: A co‐evolutionary approach to categorization

From farms to fuel tanks: Stakeholder framing contests and entrepreneurship in the emergent U.S. biodiesel market

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