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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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  • Rik Wenting & Koen Frenken, 2007. "Firm Entry and Institutional Lock-in: An Organizational Ecology Analysis of the Global Fashion Design Industry," Papers on Economics and Evolution 2007-14, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:esi:evopap:2007-14
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    4. Ron A. Boschma & Rik Wenting, 2004. "The spatial evolution of the British automobile industry," Papers in Evolutionary Economic Geography (PEEG) 0504, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2004.
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    3. Victo José da Silva Neto & Tulio Chiarini & Leonardo Costa Ribeiro & Igor Santos Tupy, 2022. "The global geography of digital platforms: towards platforms international locational determinants," Textos para Discussão Cedeplar-UFMG 650, Cedeplar, Universidade Federal de Minas Gerais.
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    5. Gong, Huiwen & Hassink, Robert, 2016. "What drives the geographies of creative industries? From literature review to research agenda," Papers in Innovation Studies 2016/9, Lund University, CIRCLE - Centre for Innovation Research.
    6. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    7. 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.
    8. Castaldi, Carolina, 2018. "To trademark or not to trademark: The case of the creative and cultural industries," Research Policy, Elsevier, vol. 47(3), pages 606-616.
    9. Gornostaeva, Galina, 2023. "The development of digital commerce in the fashion industry: The typology of emerging designers in London," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    10. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    11. Thomas Brenner & Johann Peter Murmann, 2016. "Using simulation experiments to test historical explanations: the development of the German dye industry 1857-1913," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 907-932, October.
    12. Francesca Imperiale & Roberta Fasiello & Stefano Adamo, 2021. "Sustainability Determinants of Cultural and Creative Industries in Peripheral Areas," JRFM, MDPI, vol. 14(9), pages 1-23, September.
    13. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    14. Richard Florida & Charlotta Mellander & Kevin Stolarick, 2010. "Music Scenes to Music Clusters: The Economic Geography of Music in the US, 1970–2000," Environment and Planning A, , vol. 42(4), pages 785-804, April.
    15. Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer & Lars Coenen & Koen Frenken & Bernhard Truffer, 2016. "Towards a theory of regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1617, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2016.
    16. Hao Ren & Rongrong Wang & Suopeng Zhang & An Zhang, 2017. "How Do Internet Enterprises Obtain Sustainable Development of Organizational Ecology? A Case Study of LeEco Using Institutional Logic Theory," Sustainability, MDPI, vol. 9(8), pages 1-21, August.
    17. Rik Wenting & Oedzge Atzema & Koen Frenken, 2011. "Urban Amenities and Agglomeration Economies? The Locational Behaviour and Economic Success of Dutch Fashion Design Entrepreneurs," Urban Studies, Urban Studies Journal Limited, vol. 48(7), pages 1333-1352, May.

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    Keywords

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