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Davids Against Goliath? Collective Identities and the Market Success of Peripheral Organizations During Resource Partitioning

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  • Min Liu

    (Durham University Business School, Durham University, Durham DH1 3LB, United Kingdom)

  • Filippo Carlo Wezel

    (Institute of Management, University of Lugano, 6904 Lugano, Switzerland)

Abstract

This paper contributes to the sociology of markets literature by arguing that collective identities sustain the market success of peripheral producers during the process of resource partitioning. Two conditions underlie the positive returns obtained by peripheral producers from their identity claims. First, the demise of near-center producers crystallizes the difference among classes of organizations which benefits the market success of peripheral producers. Second, individual peripheral producers (i) facing an audience that values their identity claims and (ii) exhibiting credible engagement with their claimed identity encounter greater market success. Our contributions to the literature are discussed.

Suggested Citation

  • Min Liu & Filippo Carlo Wezel, 2015. "Davids Against Goliath? Collective Identities and the Market Success of Peripheral Organizations During Resource Partitioning," Organization Science, INFORMS, vol. 26(1), pages 293-309, February.
    • Handle: RePEc:inm:ororsc:v:26:y:2015:i:1:p:293-309
    DOI: 10.1287/orsc.2014.0914
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    References listed on IDEAS

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    6. J. Cameron Verhaal & Jake D. Hoskins & Leif W. Lundmark, 2017. "Little Fish in a Big Pond: Legitimacy Transfer, Authenticity, and Factors of Peripheral Firm Entry and Growth in the Market Center," Strategic Management Journal, Wiley Blackwell, vol. 38(12), pages 2532-2552, December.
    7. Christophe Boone & Serden Özcan, 2016. "Strategic Choices at Entry and Relative Survival Advantage of Cooperatives versus Corporations in the US Bio-Ethanol Industry, 1978-2015," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1113-1140, November.
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