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Small- and medium-sized enterprises (SMEs) often do not have slack resources with which to develop internally a broad spectrum of capabilities and to observe in depth the firm's environment. Therefore, they need to carefully develop abilities to absorb knowledge from outside the firm's boundaries so as to have access to cutting-edge knowledge in spite of limited resources. One strategy is to establish knowledge management (KM) projects for this purpose. In this paper, we describe how KM projects and subsequently emerging KM routines in SMEs facilitate the enhancement of the firm's absorptive capacity (AC; i.e., the ability to recognize, capture, and assimilate external knowledge). Our results indicate the importance of recognizing potential knowledge providers prior to any absorption of knowledge from external sources. Furthermore, we emphasize the relevance of routines for absorbing knowledge and we distinguish between KM routines that are deliberately developed for absorbing knowledge and KM projects where knowledge absorption happens unconsciously. Finally, we point out that different stages of an AC process follow different logics (exploration vs. exploitation) and, thus, a skilful management of the AC cycle is necessary to leverage externally absorbed knowledge.

Previous research suggests that constructions of legitimacy play a central role in the development of markets, yet little attention has been given to how that legitimacy is constructed through the material practices of market actors. This paper aims to address this gap via an examination of cultural intermediaries in the fine wine market of Shanghai.

An interpretive thematic analysis was carried out on data from 13 semi-structured interviews with fine wine intermediaries based primarily in Shanghai (5 wine writers/educators; 5 sommeliers/retailers; 3 brand representatives).

The dimensions of the legitimation of wine were examined, identifying three key themes: the legitimacy of intermediaries as experts; the legitimacy of a particular mode of wine consumption; the legitimacy of the intermediaries as exemplars for not-yet-legitimate consumers. These findings suggest that cultural intermediaries’ personal, consuming preferences and practices are significant to the formation of a new market, and that they must negotiate potential tensions between interactions with legitimate, not-yet-legitimate and illegitimate consumers.

Limitations with regard to generalizability are discussed with regard to potential future research.

The focus on cultural intermediaries and dimensions of legitimation can be used to examine the case of other emerging markets to anticipate the pathways to institutionalizing new forms of taste and consumption practices.

The paper offers an empirical insight into the market dynamics of distinction in the Shanghai wine market and conceptual insight into the importance of cultural intermediaries as exemplar consumers.

Purpose: This paper adopts a practice-oriented approach to address gaps in existing knowledge of the significance of cultural producers’ and intermediaries’ practices of taste for the construction and organization of markets. Using the example of the cultural field of “natural” wine, I propose how taste operates as a logic of practice, generating market actions in relation to the aesthetic regime of provenance.

Methodology/approach: The paper sets out the conceptual relationship between aesthetic regimes and practices of taste. The discussion draws from interpretive research on natural wine producers and cultural intermediaries involving 40 interviews with natural wine makers, retailers, sommeliers, and writers based in New York, Western Australia, the Champagne region, and the Cape Winelands.

Findings: Three dimensions of how taste is translated into action are examined: as a device of division, which establishes a fuzzy logic of resemblance; as a device of operation, which provides an intuitive platform for shaping the means of production; and as a device of coordination, which enables an embedded experience of trust.

Originality/value: The paper’s discussion of dispositions, affect, intuition, and pattern identification provide new insights into the translation of taste into action, and the macro-organization of markets. I argue for attention to how cultural producers and cultural intermediaries are mobilized through their habitual sense of taste, shifting the focus away from consumers to those whose market actions are largely self- and peer-referential. This is important for understanding processes of market development and value construction.

We show how organizational forms shape job structures, specifically the variety and types of jobs employees hold, extending previous research on job structures in four ways. First, the social codes associated with wineries’ generalist and specialist forms constrain the number of jobs and functional areas delineated by job titles. Second, form-based constraints are weakened by institutional rules that impose categorical distinctions on organizations. Third, these constraints are stronger when there is more consensus around forms. Fourth, these constraints are contingent on the legitimacy and resources of organizations of varying ages and sizes.

The case of Wines Manufacturer from an Emerging Economy (WMEE) aims to provide a starting point for reflections and discussions about the influence of home country formal institutions on the internationalization process of an industry in an emerging market context.

The plot revolves around the Wines Manufacturer from an Emerging Economy project, which was created to promote the Brazilian wine industry in the international market. A qualitative-descriptive approach was applied to the study, and data collection was conducted through primary and secondary sources.

The context involves the difficulty of positioning Brazilian wines in both the domestic and international markets, especially fine wines. The relationship networks built during internationalization processes (in most cases promoted by formal institutions such as WMEE) help to shape strategies for Brazilian wineries.

Doing business in international markets has made Brazilian wine known worldwide and internationalized wineries can attain new levels of learning, which can be transposed into their domestic operations. If, on the one hand, institutions are important for promoting the industry and its internationalization process, on the other hand, it is equally true that the fragmented institutional structure and their overlapped roles generate many conflicts.

Diversified trading networks have recently drawn a great deal of attention. In the process, the importance of diversity has perhaps been overemphasized. Using the trade in port wine from Portugal to Britain as an example, this essay attempts to show how a market once dominated by general, diversified traders was taken over by dedicated specialists whose success might almost be measured by the degree to which they rejected diversification to form a dedicated “commodity chain.” The essay suggests that this strategy was better able to handle matters of quality and the specialized knowledge that port wine required. The essay also highlights the question of power in such a chain. Endemic commodity-chain struggles are clearest in the vertical brand war that broke out in the nineteenth century, which, by concentrating power, marked the final stage in the transformation of the trade from network to vertical integration.

Are radically novel practices more likely to attract recognition when the evaluating audience is composed of external evaluators? Our baseline argument asserts that radical novelty is more likely to be positively evaluated by an external audience and that peripheral (rather than core) producers have higher incentives to adopt novel practices that depart from tradition. Yet, because peripheral producers often lack the necessary support and legitimacy to promote novelty, audiences play a critical role in recognizing their innovative efforts. How can peripheral producers mitigate the challenges associated with novelty recognition? To answer this question, we explore how peripheral producers’ collaboration with acclaimed consultants affects the process of external audience recognition in the context of the Italian wine field from 1997 to 2006. Our findings suggest that radical novelty is positively received by an external audience composed of critics, although we do not find a significant difference between core and peripheral producers. However, external audiences are more open to recognizing peripheral producers’ use of novel practices when they collaborate with well-connected consultants. We find that the use of central consultants produces a “boosting” effect that accentuates the differences between evaluations of peripheral producers who embrace novelty and evaluations of those that follow the tradition. Our study thus advances theory by providing empirical evidence of the value of considering third-party actors such as consultants, who sit at the nexus between the agency required for innovation and external audiences’ recognition of novelty, when studying novelty evaluation and recognition.

We define diffusion as the spread of something within a social system. Diffusion is the most general and abstract term, and it embraces such processes as contagion, mimicry, social learning, organized dissemination, etc. (Strang & Soule, 1998). While the home territory of diffusion is innovation (see Rogers, 2003 for an authoritative review), more recent macro-diffusion research has developed, based on social movement and institutionalization arguments (Ansari, Fiss, & Zajac, 2010; Wejnert, 2002).

In this chapter, the author draws on a historical case study of the Australian wine industry to explore variations in collective agency. The inductively derived process model illustrates the emergence of a new profession of scientific winemaking, which unfolds in three phases. Each phase is characterized by a distinct form of agency: distributed agency during the earliest phase, coordinated agency during later phases, and orchestrated agency during consolidation. In addition to exploring the temporal shifts in agency, the study includes a detailed analysis of the early stages of distributed agency, examining how collective agency is achieved in the absence of shared intentions.