Search results

Studies have shown that actors who affiliate with multiple categories generally do so at their own peril. Still, category spanning is routinely observed, although it is less understood. We address this gap by a longitudinal study of category spanning among nanotube technology inventors. Our results highlight the importance of the evolving structure of category relationships, actor embeddedness within the structure, and interactions with other factors, including the attractiveness of related categories. When a category is relationally similar to others, associated inventors are more likely to engage in category spanning, whereas when a category is dissimilar, inventors are more likely to remain within it.

Recent research finds that producers assigned to multiple categories receive less attention and legitimacy and have lower chances of success and survival. We argue that the effect of category spanning on the reception from the audience depends on the fuzziness of the categories. When a set of categories lacks contrast (have very fuzzy boundaries), spanning them does not cause much additional confusion for the audience, thus the penalties associated with spanning ought to be slight. But, when the contrasts of the categories spanned are high, audience members will have difficulty interpreting the producer, so spanning categories will be devalued more. We study these processes using data from an online-review web site. Results show that audience members devalue organizations that span high-contrast categories more than those that span low-contrast categories. These effects are weaker for more active reviewers.

This article integrates two approaches – the “categorization as a theoretical tool” and the “typicality judgment” – that both emphasize audience confusion as a mechanism through which category spanners become devalued or ignored. However, the two perspectives differ in their specification of why confusion will likely lead to devaluation or ignoring. In this study, we consider the interplay of these two approaches in the setting of corporate law market. We find that spanning product categories has a U-shaped relationship with perceived clarity of law firm identity. Although neither of the two perspectives alone can explain our findings, they can do so together.

Consecration represents the most definitive form of legitimation in every cultural field. Complementing previous research focused on individual, contextual, and structural conditions underpinning consecration, this paper takes a sequence analytical perspective and explores whether diverse creative trajectories are more frequently associated with consecration. We introduce the notion of signature style and the pace of category spanning as key features for consecration. We argue that a consecrated signature style is just as likely to result from a producer’s adherence to a specific style over time or from a consistent (and fast-paced) category-spanning creative trajectory. The resulting identity will be specialist in the first case, eclectic in the second. We analyze the stylistic trajectories of 863 electronic music artists and find robust support to our hypothesis. The analysis is corroborated by further exploratory findings that identify intriguing questions for future research. By examining the organization of creative journeys in the career of cultural producers, this paper emphasizes the importance of considering the unfolding and rhythm of creativity over time. This temporal perspective sheds new light on the dynamics of distinctiveness and consecration in cultural fields.

The growth of research on the cognitive origins of market performance has focused on the impact of categories as a primary cognitive mechanism by which exchange occurs. In this research, performance outcomes are typically reduced when firms and products fail to meet audiences’ expectations about membership into categories. The ensuing literature has focused on spanning categories as evidence of not meeting audience expectations while largely ignoring the specific study of expectations themselves. This chapter argues that expectations for market behavior are important in their own right, and can impact market outcomes even when categorical boundaries are respected. Using the market for engagement rings as a setting, I show how lack of adherence to expectations can both increase and decrease market value even as the engagement rings adhere to categorical boundaries. Rather than simply focusing on category spanning as evidence that audience expectations have not been met, the findings suggest that expectations should be considered explicitly, with implications for competitive strategy.

This research paper aims to investigate detailed relationships between market selection and product positioning decisions and their associated short- and long-term product performance outcomes in the context of the music category: a cultural goods industry with high amounts of product introductions. Market selection decisions are defined by the size, competitiveness and age of market subcategories within an overall product category. Positioning decisions include where a product’s attributes are located spatially in the category (periphery versus the market center), whether a product resides within a single subcategory or spans multiple ones and what brand strategy (single versus co-branding) is used.

Data are from multiple sources for the US music industry (aka product category) from 1958 to 2019 to empirically test the hypotheses: genres (rock, blues, etc.) correspond to subcategories; artists to brands; and songs to products. Regression analyses are used.

A complex set of nuanced results are generated and reported, finding that key marketing decisions drive short-term new product success differently and frequently in opposing ways than long-term success. Launching into very new, well-established or very competitive markets leads to the strongest long-term success, despite less attractive short-run prospects. Positioning a product away from the market center and spanning subcategories similarly poses short-run challenges, but long-run returns. Brand collaborations have reverse effects. Short-run product success is found, overall, to be difficult to predict even with strong data inputs, which has substantial implications for how firms should manage portfolios of products in cultural goods industries. Long-run product success is considerably more predictable after short-run success is observed and accounted for.

While managers and firms in cultural goods industries have long relied on intuition to manage market selection and product positioning decisions, this research tests the hypothesis that objective data inputs and empirical modeling can better predict short- and long-run success of launched products. Specific insights on which song characteristics may be associated with success are found – as are more generalizable, industry-level results. In addition, by distinguishing between short- and long-run success, a more complete picture on how key decisions holistically affect product performance emerges. Many market selection and product positioning decisions have differential impacts across these two frames of reference.

The popularity of research into categories has grown in recent decades and shows no sign of abating. This introductory article takes stock of the research into two facets of categorization, addressing it both as a cognitive and a social process. We advocate a rebalance toward the social process of categorization, paying more heed to the entity to be categorized, the actors involved, their acts, and the context and timing, which informs these activities. We summarize the contributions to the volume in relation to these dimensions and briefly discuss avenues for future research.

Since initial demonstrations that categories are consequential for evaluation, scholars of organizations and markets have attended to dynamics in audience evaluations of category spanning. We consider how heterogeneity in evaluator engagement in a market may alter their evaluation of atypical candidates. In markets where evaluators self-propagate theories of diversification, atypical candidates are advantaged because they present a distinct and efficient opportunity to diversify. We argue that evaluator market engagement will (positively) moderate valuations of atypicality, as such evaluators will be better positioned to recognize atypical candidates and their alignment with prevailing theories of value. We find support for our contentions with data from an online peer-to-peer lending market, Prosper.com. Consistent with our hypothesis, we find that lender evaluation of these atypical borrowers is increasing in their market engagement: whereas lenders new to the market devalue atypical candidates, those who have made many evaluations evaluate atypicality positively.

With growing interest in the penalties associated with straddling market categories, it is important to develop a stock of evidence about the relative importance of consideration and valuation penalties in different empirical settings. In this chapter, we isolate the possible adverse implications for currently kosher Israeli wine producers that were established as non-kosher producers. Our analysis suggests that crossing the kosher categorical boundary exposes these producers to experience-based penalties that are reflected in lower product quality ratings. However, we find no evidence of additional penalties associated either with consideration (i.e., market access) or with the possession of a convoluted organizational identity.

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.