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Firm Entry and Institutional Lock-in: An Organizational Ecology Analysis of the Global Fashion Design Industry

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  • Rik Wenting
  • Koen Frenken

Abstract

Few industries are more concentrated than the global fashion industry. We analyse the geography and evolution of the ready-to-wear fashion design industry by looking at the yearly entry rates following an organizational ecology approach. In contrast to earlier studies on manufacturing industries, we find that legitimation effects are local and competition effects are global. This result points to the rapid turnover of ideas in fashion on the one hand and the global demand for fashion apparel on the other hand. We attribute the decline of Paris in the post-war period to 'institutional lock-in', which prevented a ready-to-wear cluster to emerge as vested interested of haute couture designers were threatened. An extended organizational ecology model provides empirical support for this claim.

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Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2007-14.

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Date of creation: Nov 2007
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Handle: RePEc:esi:evopap:2007-14

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Keywords: Organizational ecology; fashion industry; creative industries; clusters; institutional lock-in Length 22 pages;

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References

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  1. Geroski, P A, 2001. "Exploring the Niche Overlaps between Organizational Ecology and Industrial Economics," Industrial and Corporate Change, Oxford University Press, vol. 10(2), pages 507-40, June.
  2. Leo van Wissen, 2004. "A Spatial Interpretation of the Density Dependence Model in Industrial Demography," Small Business Economics, Springer, vol. 22(3_4), pages 253-264, 04.
  3. Ron A. Boschma & Rik Wenting, 2004. "The spatial evolution of the British automobile industry," Papers in Evolutionary Economic Geography (PEEG) 0504, Utrecht University, Section of Economic Geography, revised Aug 2004.
  4. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
  5. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  6. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for Evolutionary Economic Geography: Industrial dynamics and urban growth as a branching process," Papers in Evolutionary Economic Geography (PEEG) 0701, Utrecht University, Section of Economic Geography, revised Mar 2007.
  7. Allen J. Scott, 1997. "The Cultural Economy of Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(2), pages 323-339, 06.
  8. Robert Hassink, 2005. "How to unlock regional economies from path dependency? From learning region to learning cluster," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 521-535, June.
  9. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
  10. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
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Cited by:
  1. Pattaresa Neawnan & Komsan Suriya, 2012. "Factors driving fashion design industry: Key success factors of Thai designers’ brands," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(2), pages 71-80, June.

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