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Grown Local : Community Attachment and Market Entries in the Franconian Beer Industry

Author

Listed:
  • Margarita Cruz

    (EM - EMLyon Business School)

  • Nikolaus Beck
  • Filippo Carlo Wezel

Abstract

Geographic communities are often thought to support new ventures, particularly when newcomers are able to replicate incumbents' characteristics. This paper elaborates on the conditions under which geographic communities may hinder the action of newcomers. Particular attention is dedicated to the case in which incumbents' identities build on community traditions and rely on strong connectedness with community inhabitants, as these factors are difficult for newcomers to replicate. We explore this question within the context of market entries in the Franconian microbrewery industry. The results of our empirical analysis confirm that geographic communities exert an unfavorable effect on the entry of new organizations when incumbents are deeply attached to the community. Conversely, when incumbents relate poorly to the community, residential stability within the community displays a positive effect on founding.

Suggested Citation

  • Margarita Cruz & Nikolaus Beck & Filippo Carlo Wezel, 2018. "Grown Local : Community Attachment and Market Entries in the Franconian Beer Industry," Post-Print hal-02312057, HAL.
    • Handle: RePEc:hal:journl:hal-02312057
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    Cited by:

    1. Todd Schifeling & Daphne Demetry, 2021. "The New Food Truck in Town: Geographic Communities and Authenticity-Based Entrepreneurship," Organization Science, INFORMS, vol. 32(1), pages 133-155, January.
    2. Daphne Demetry, 2019. "How Organizations Claim Authenticity: The Coproduction of Illusions in Underground Restaurants," Organization Science, INFORMS, vol. 30(5), pages 937-960, September.
    3. Christophe Boone & Serden Özcan & Jia Li, 2022. "How are Competing Logics Combined in Managerial Teams? The Impact of Branch Founding Team Hybridity on the Growth of Islamic Bank Branches in Turkey, 2002–19," Journal of Management Studies, Wiley Blackwell, vol. 59(6), pages 1460-1492, September.
    4. Goldenstein, Jan & Hunoldt, Michael & Oertel, Simon, 2019. "How optimal distinctiveness affects new ventures' failure risk: A contingency perspective," Journal of Business Venturing, Elsevier, vol. 34(3), pages 477-495.

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