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Through the Looking‐Glass: The Impact of Regional Institutional Logics and Knowledge Pool Characteristics on Opportunity Recognition and Market Entry

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  • Siddharth Vedula
  • Jeffrey G. York
  • Andrew C. Corbett

Abstract

This study investigates how regional variations in institutions and knowledge pools impact new firm entry into emerging industry sectors. Using the cleantech industry sector as a research context, we hypothesize and find that supportive regional institutional logics – shared meaning systems in a community that confer legitimacy upon particular goals and practices – generate cognitive schemas (mental models) that facilitate opportunity recognition and increase new firm entry rates. Drawing from research on socially situated cognition, we demonstrate that supportive institutional logics have a greater impact on new firm entry when a regional knowledge pool is larger, but a reduced impact on new firm entry when the knowledge pool is more specialized. These findings integrate previously distinct perspectives from institutional theory and knowledge economics, while contributing to research on how new industry sectors emerge.

Suggested Citation

  • Siddharth Vedula & Jeffrey G. York & Andrew C. Corbett, 2019. "Through the Looking‐Glass: The Impact of Regional Institutional Logics and Knowledge Pool Characteristics on Opportunity Recognition and Market Entry," Journal of Management Studies, Wiley Blackwell, vol. 56(7), pages 1414-1451, November.
    • Handle: RePEc:bla:jomstd:v:56:y:2019:i:7:p:1414-1451
    DOI: 10.1111/joms.12400
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    Cited by:

    1. Yanjie Wu & Sujuan Wang, 2021. "Sustainable Market Entry Strategy under a Supply Chain Environment," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    2. Ramoglou, Stratos, 2021. "Knowable opportunities in an unknowable future? On the epistemological paradoxes of entrepreneurship theory," Journal of Business Venturing, Elsevier, vol. 36(2).
    3. Changchun Li & Sen Wang, 2022. "Digital Optimization, Green R&D Collaboration, and Green Technological Innovation in Manufacturing Enterprises," Sustainability, MDPI, vol. 14(19), pages 1-20, September.

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