Title

Rivalry and the Industry Model of Scottish Knitwear Producers

Publication Type

Journal Article

Publication Date

6-1995

Abstract

In this paper we argue that market boundaries are socially constructed around a collective cognitive model that summarizes typical organizational forms within an industry. This model is produced when firms observe each other's actions and define unique product positions in relation to each other. Our study examines the question of how firms define a reference group of rivals when market cues are ambiguous and interorganizational variety is high and identifies the industry model underlying rivalry among Scottish knitwear producers. The data suggest that a six-category model of organizational forms best describes the common sense of competition in the industry and that an ensemble of attributes involving size, technology, product style, and geographic location forms the foundation for this ordering. The results also show how this industry model is reproduced within the rivalry network structuring imperfect competition in the industry.

Keywords

INSTITUTIONAL THEORY, MARKETS, SIMILARITY, HISTORY

Discipline

Business Administration, Management, and Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Administrative Science Quarterly

Volume

2

Issue

2

First Page

203

Last Page

227

ISSN

0001-8392

Identifier

10.2307/2393636

Publisher

SAGE

Additional URL

http://www.jstor.org/stable/2393636