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Market actors are simultaneously constrained and enabled by the structures they operate within, which opens opportunities for strategic actors. We build on cultural entrepreneurship and market category research to advance an agency-based perspective that brings together research streams on positioning for optimal distinctiveness and shaping with category strategy. We distinguish legitimating narratives for an individual position from initiatives aimed at category construction, and propose that linking these is a basis for strategic advantage. Market transformation involves strategic actors crafting differentiating stories that make an individual position compelling, and then extending these narratives to construct an abstract schema that creatively combines cultural defaults. We further highlight that transformative agency requires an engaged audience, such that stakeholders are willing to consider a new narrative.

This article suggests that both producers and analysts are strategic about categorization. Producers use categorization to maintain a balance of differentiation and legitimacy, whereas analysts seek to influence categorization and clarify boundaries. Ideas are explored for software producers and Gartner, the preeminent high-technology analyst. Findings show evidence of strategic categorization. Producers move to proximate market categories in response to competition. Gartner reports on large categories and those that receive investment and stops reporting on categories that have fuzzy boundaries. Compared to analysts, producers may be more influential in category creation than previous research has acknowledged.

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.