Selling Out: The Inauthenticity Discount in the Craft Beer Industry

Frake, Justin

doi:10.2139/ssrn.2620918

Cited by 22 publications

(57 citation statements)

References 44 publications

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“…When identity differences are based on origins or ownership, members may sometimes be categorically divided into 'outsiders' and 'insiders' (Frake, 2016;McKendrick and Hannan, 2014). In this case, when it comes to their competitors with an outsider position, insiders often believe that they possess what might be called an 'identity buffer'.…”

Section: Identity and Code Violationmentioning

confidence: 99%

“…As we will mention later, in their effort to look more Islamic to the relevant audiences, outsiders try to adopt certain visible practices that are often associated with being Islamic, but the primary division remains in the form of ownership. With this in mind, we distinguish actors' central identity feature in the Islamic finance category based on ownership structure (as in McKendrick and Hannan, 2014;Frake, 2016;Carroll and Swaminathan, 2000).…”

Section: Conventional-owned Islamic Banks As Outsidersmentioning

confidence: 99%

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Holier than Thou? Identity Buffers and Adoption of Controversial Practices in the Islamic Banking Category

Syakhroza

Paolella

Munir

2019

AMJ

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Existing scholarship on categories frequently highlights how some category members may violate codes that others diligently abide by. In this paper, we take into account the differences in identity across category members, and ask how these relative differences determine their response to a code-violating change. Taking a case where category members are identified as 'insiders' and 'outsiders', we argue that insiders' reaction to a code violation depends upon the extent to which they believe their identity to be distinct from the code violator's, who might be an insider or an outsider. Specifically, we suggest that it is the presence or absence of an 'identity buffer'i.e., a relative identity advantage-which determines insiders' reaction. We hypothesize that when a fellow category insider introduces a code violation, the focal insider will be more likely to refrain from the practice. When it is an outsider who introduces the code violation, insiders will be more likely to adopt the code violation as long as they can retain an identity buffer. We further posit that when outsiders adopt a code-preserving behavior, thus narrowing the identity buffer between insiders and outsiders, it will mitigate insiders' likelihood of code violation adoption. We test and find support for our hypotheses using data on Islamic banking industry in 12 countries (2003-2014).

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Section: Identity and Code Violationmentioning

confidence: 99%

Section: Conventional-owned Islamic Banks As Outsidersmentioning

confidence: 99%

Holier than Thou? Identity Buffers and Adoption of Controversial Practices in the Islamic Banking Category

Syakhroza

Paolella

Munir

2019

AMJ

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“…In contrast, this study explores how processes of legitimacy transfer may enhance the vitality of peripheral organizations in the market center thereby extending this literature. Finally, this article contributes to the work on organizational authenticity (Carroll & Wheaton, ), and how audiences make sense of and perceive authentic, or inauthentic actors (Frake, ; Hahl, ; Hahl & Zuckerman, ). We advance this by dimensionalizing demand side perceptions of authenticity for consumers across different market segments.…”

mentioning

confidence: 95%

Little Fish in a Big Pond: Legitimacy Transfer, Authenticity, and Factors of Peripheral Firm Entry and Growth in the Market Center

Verhaal

Hoskins

Lundmark

2017

Strategic Management Journal

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Research summary: How do peripheral firms compete and secure future growth? Building on literature in strategy and organizational theory, we test a model of peripheral entry and growth in the mainstream market segment. Using data from 289 craft breweries over 11 years, we find evidence that niche producers are increasingly entering the mainstream market and competing with market-center firms. We identify two mechanisms contributing to these actions: legitimacy transfer and cognitive claims of authenticity. As hypothesized, imitation of niche products by macro breweries facilitates craft beer entry into mainstream markets. Moreover, two authenticity-based identity codes are found to reliably influence craft brewery growth: a local identity (i.e., operating in one's local market) and a product proliferator identity (i.e., offering a more diverse set of products). Managerial summary:How can small niche firms compete with larger, more established organizations? By examining the rapidly expanding craft beer industry, this study explores how craft breweries are able to both enter the market space of these larger competitors and secure sustained patterns of growth. Specifically, we highlight two factors influencing the success of craft breweries. First, as major beer producers mimic niche products (i.e., faux craft beer), smaller niche firms are allowed to enter the market by exposing the typical consumer to the tastes of craft beer. Second, craft breweries enjoy increased success if they (a) emphasize the local elements of their company, and/or (b) offer a larger number of products.Management scholars have become increasingly interested in how individual industries are organized into market segments (also referred to as niches or submarkets), and the implications for firms as these segments evolve and change. Indeed, recent

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“…Other researchers have explored consumer perceptions of "authenticity," and found that craft beer drinkers have negative perceptions of beer produced by big brewers [11] (or even breweries that offer beer styles associated with big brewers [12]). There has been little research, however, on how these opaque patterns of ownership are reflected in "craft" beer selections at retailers.…”

Section: Introductionmentioning

confidence: 99%

Craftwashing in the U.S. Beer Industry

Howard

2017

Beverages

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(1) Background: Big brewers, which have experienced declining sales for their beer brands in the last decade, have been accused of "craftwashing" by some craft brewers and their aficionados-they define craftwashing as big brewers (>6 million barrels per year) taking advantage of the increasing sales of craft beer by emulating these products or by acquiring craft breweries, while also obscuring their ownership from consumers; (2) Methods: To estimate the prevalence of these practices, the ownership of U.S. mainstream and craft beer brands was decoded and visualized. In addition, an exploratory case study analyzed how these ownership relations are represented in the craft sections of selected retailers (n = 16) in the Lansing, Michigan metropolitan area; (3) Results: By October 2017 in the U.S., all but one big brewer had either acquired a craft brewery, or formed a distribution alliance with one-without disclosing these relationships on the packaging. In the study area, 30% of 4-and 6-pack facings recorded in craft beer sections (n = 1145) had ownership ties to big brewers; (4) Conclusions: Craftwashing is common in the U.S. beer industry, and this suggests consumers must exert substantial effort to become aware of their own role in reinforcing these practices.

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Selling Out: The Inauthenticity Discount in the Craft Beer Industry

Cited by 22 publications

References 44 publications

Holier than Thou? Identity Buffers and Adoption of Controversial Practices in the Islamic Banking Category

Holier than Thou? Identity Buffers and Adoption of Controversial Practices in the Islamic Banking Category

Little Fish in a Big Pond: Legitimacy Transfer, Authenticity, and Factors of Peripheral Firm Entry and Growth in the Market Center

Craftwashing in the U.S. Beer Industry

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