Search results

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.

Using data from securities analysts, who are awarded status by the third-party organization Institutional Investor magazine, we examine the emergence of competition and articulate a model of competitive response among actors aware of the importance of status and some of the dimensions on which it may be gained. We predict analysts’ initiating or ceasing coverage of stocks in response to other analysts initiating coverage on stocks they cover. We find that competition can emerge because of status seeking rather than as a response to own capabilities or market needs, with compelling, and potentially negative, market implications for overt status seeking.