Strategic Management & Marketing Theory
Links between Articles
Legitimacy
- (Baum & Shipilov, 2006): From an organizational ecology perspective, which seeks to explain competition
by social, economic and political lenses, organizations benefit if the population density of the market (in
which they are operating) increases, due to the increased legitimacy. But if there are too many competitors,
your performance will decrease. Thus there is an n-shaped relationship between density and performance.
- (Kennedy, 2008): Author researched how press releases affected attention and eventually performance. He
found that if you name more rivals as an early entrant, cognitive embedding is enhanced which helps
audiences perceive your product and put you in a certain category. It creates legitimacy by naming the
competitors.
- (Glynn & Abzug, 2002): The authors research the effect of isomorphism on legitimacy. They found that
isomorphism, enables greater understanding, and legitimacy. However this is a double edged sword as it may
lead to homogenization, where no innovation is in place. The research also highlights the fact when firms in
an industry change their name, others are likely to do so in the same direction, to reach this legitimacy.
- (Fayard et al., 2017) Authors empirically test how Service designers distinguish themselves from competing
occupations. A service designer translates the goal of a firm into developing services using design principles.
They need to distinguish themselves from traditional designers and management consultants. They do this
based on holism, empathy and co-creation. This research highlights how in for instance values can approve
and thereby legitimate a new occupation.
- (Suarez et al., 2015) The researches propose that the optimal time to hop on an innovation is after the
dominant category has been established but before the dominant design is in place. This is also known as the
window of opportunity. When the dominant category is not in place yet, firms are still performing
technological experimentations which is in line with the dominant category. For example, the industry does
not agree what an iPad is, is it a computer, or a large mobile phone? When the dominant design is established,
chronological uncertainty is non existent. Hence, market agrees that an iPad is a tablet. Legitimacy is present
when the dominant design exists.
Categorization
- (Baum & Shipilov, 2006): Competition is needed to gain legitimacy, due to relation between performance
and population density, if there are more of you you will perform better, but too many leads to worse
performance. This means, that competition implies that a category comes to existence.
- (Kennedy, 2008): If you name more rivals as an early entrant, cognitive embedding is enhanced which helps
audiences perceive your product and put you in a certain category.
- (Hitters & Kamp, 2010) The authors research classification of local music via genres by big record
companies. The authors found that it is not the genre in particular that decides how the majors deal with the
local artist, but the market potential is important here. The research points out that genres can be used to be
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, part of a certain category, which decides how people will evaluate you. Emphasizes that categories are
important classification tools.
- (Glynn & Abzug, 2002): The authors research the effect of isomorphism on legitimacy. They found that
isomorphism, enables greater understanding, and legitimacy. This can be explained by the notion of
categorization, you are more easy to be perceived. However this is a double edged sword as it may lead to
homogenization, where no innovation is in place.
- (Suarez et al., 2015) The researches propose that the optimal time to hop on an innovation is after the
dominant category has been established but before the dominant design is in place. This is called the window
of opportunity. When the dominant category is not in place yet, firms are still performing technological
experimentations which is in line with the dominant category. Industry does not agree what an iPad is, is it a
computer, or a large mobile phone? When the dominant design is established, chronological uncertainty is
non existent. Hence, market agrees that an iPad is a tablet. Legitimacy is present when the dominant design
exists. The paper indicates that a firm needs to be placed in a dominant category, in order for the market to
evaluate you.
- (Wijnberg, 2004) Member of a group is important for economic reasons, and not only taxonomical
(categorization) convenience. Members of the same movement, are competitions, from an economic
perspective.
- (Fayard et al., 2017) Authors empirically test how Service designers distinguish themselves from competing
occupations. A service designer translates the goal of a firm into developing services using design principles.
They need to distinguish themselves from traditional designers and management consultants. They do this
based on holism, empathy and co-creation. This research highlights how values can approve the upcoming
occupation, and thereby create a new category.
More than just
- (Kogut, 2000): Kogut describes how networks are much more than relationships. Kogut describes two ways
of profiting in a network, the Burt rents view and the Coleman rents view. Where the first view emphasizes
having a special position in a network, named a structural hole, which gives you a kind of knowledge
monopoly. The latter view emphasizes the profit in terms of knowledge everyone who is part of the network
receives. Kogut demonstrates that networks are enabling knowledge sharing and understanding between and
within organizations.
- (Simon, 1991): Firms exist for more reasons than just minimizing transaction costs. The employees in firm
accept incomplete contracts because they in return receive a lot of organizational benefits, such as material
rewards, promotion and recognition. This is enabled by other organizational mechanisms such as authority
and loyalty.
Why do firms exist?
- (Simon, 1991): Firms exist for more reasons than just minimizing transaction costs. The employees in firm
accept incomplete contracts because they in return receive a lot of organizational benefits, such as material
rewards, promotion and recognition. This is enabled by other organizational mechanisms such as authority
and loyalty.
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