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Studies of the social construction of markets have not determined which social environments, which we refer to as proximate social space, are most likely to trigger social construction processes. We find that U.S. nonprofit fiscal sponsors respond to greater potential for category emergence when proximate social space is defined by geography but not by market segment. Further, in addition to responding to potential claimants based on geographic peers, organizations also respond to actual claimants based on peers in the market segment. The pattern suggests that geographic social proximity triggers initial label claiming, which in turn triggers responses from market segment peers.

Drawing on the notion of imprinting, we develop a framework for understanding category emergence and durability by suggesting that the durability of a category reflects its emergence conditions. We propose four ideal-typical mechanisms – consensus, proof, fiat, and truce – that arise from differences in the degree of agreement and the centralization of the authority regarding category definitions. Our framework not only relates category durability to emergence but also highlights the role of category promoters and constituencies in an ongoing process of category maintenance. We discuss implications for understanding the dynamics of the categorization process in various social and product market contexts.

We examine the construction of “empty categories” – that is, categories created prior to the existence of producers and consumers – and their implications for industry emergence. Drawing on the case of the ji-biru category among Japanese microbreweries, we exemplify how external actors – including governments, the media, consultants, and other entities – frequently create empty categories that are “legitimate yet not legitimated” (Vergne & Wry, 2014). We show how such empty categories generate lower entry barriers, resulting in higher founding rates and significant innovation. We highlight how empty categories impede evolutionary forces by inhibiting shared understandings of what constitutes a legitimate category member.

Research on cultural entrepreneurship has explored the role of language in making and giving sense to novel ventures and market categories and in legitimating them. We analyze how an emerging de novo market category, quantum computing, is constructed through the use of analogies and metaphors. Through a multimodal analysis of interview and newspaper data, we find that in addition to using analogies and metaphors to highlight familiarity, actors also use such tropes to expound the weirdness of the new category, thus marking it as profoundly different and novel. Such tropes have a dual function; they draw the boundaries between science and laypeople but also arouse awe and curiosity among the audiences. Our study thus casts light on the cultural work during de novo category emergence.

Despite ample research on the topic of business model innovation, little is known about the cognitive processes whereby some innovative business models gain the status of iconic representations of particular types of firms. This study addresses the question: How do iconic business models emerge? In other words: How do innovative business models become prototypical exemplars for new categories of firms? We focus on the case of Airbnb, and analyze how six mainstream business media publications discussed Airbnb between 2008 and 2013. The cognitive process whereby Airbnb’s business model became the iconic business model for the sharing economy involved three phases. First, these publications drew on multiple analogies to try to assimilate Airbnb’s innovative business model into their existing system of categories. Second, they developed a more nuanced understanding of Airbnb’s business model. Finally, they established it as the prototypical exemplar of a new type of organization. We contribute to business model research by providing an elaborated definition of the notion of the iconic business model which is rooted in social categorization research, and by theorizing the cognitive process that underpins the emergence of iconic business models. Our study also complements research on the role of analogical reasoning in business model innovation. Finally, we complement the market categorization literature by documenting a case of the emergence of a prototypical exemplar.

In social theory, emergence is the process of novelty (1) creation, (2) growth, and (3) formation into a recognizable social object, process, or structure. Emergence is recognized as important for the existence of novel features of society such as new organizations, new practices, or new relations between actors. In this introduction to the volume on emergence, we introduce a framework for examining emergence processes and theories that have been applied or can be applied to each of the three stages. We also review each volume chapter and discuss their relation to each other. Finally, we make suggestions on the future of research on social emergence processes.

The analysis of unstructured information, particularly in the form of text, has long been a technique in the armory of social scientists, who have to deal with conversational records, historical documents, unstructured interviews, and the like. Unsurprisingly, a considerable amount of methodological literature has developed on the subject. The methods of “qualitative data analysis” have now spread to areas of information analysis as diverse as market research and legal evidence analysis. Related computer techniques, from database management systems and word‐processors to specialized qualitative data analysis software, have been pressed into use. This article discusses the information processing methodology and theory assumed by computer‐based qualitative data analysis software; and, in particular, describes and analyzes the methodology of the NUDIST system developed by the authors.

The purpose of this paper is to develop theory regarding reputation and legitimacy signaling by organizations in contested emerging fields characterized by category ambiguity. Because impression management becomes increasingly important as category boundaries become fuzzy, the authors examine how highly participatory audiences in contested emerging fields respond to organizational attempts to seek acceptance and manage impressions.

Using a database of web-based advertisements by 1,226 medical marijuana dispensaries, the authors test the effect that dispensary attempts to signal either legitimacy or reputation have on audience approval.

The authors find that audiences react differently to communication strategies intended to build reputation vs those intended to build legitimacy. Under conditions of highly contested category legitimation, audiences respond positively to signals of legitimacy but negatively to signals of reputation.

This study advances the understanding of category emergence and category building under conditions of contestation. The study adds to the growing body of work that suggests category creation involves unique collaborative processes between organizations and audiences, and the authors show that these processes constrain organizational attempts at impression management.

The concept of a “category” and the social process of “categorization” occupy a crucial place in current theories of organizations. In this introductory chapter to Research in the Sociology of Organization's volume on Categories in Markets: Origins and Evolution, we review published work in various streams of research and find that studies of organizational forms and identities, institutional logics, collective action frames, and product conceptual systems have key commonalities and predictable differences.