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New market creation through transformation

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  • Saras Sarasvathy
  • Nicholas Dew

Abstract

Is new market creation a search and selectionprocess within the theoretical space of all possible markets? Or is it the outcome of a process of transformation of extant realities into new possibilities? In this article we consider new market creation as a process involving a new network of stakeholders. The network is initiated through an effectual commitment that sets in motion two concurrent cycles of expanding resources and convergingconstraints that result in the new market. The dynamic model was induced from two empirical investigations, a cognitive science-based investigation of entrepreneurial expertise, and a real time history of the RFID industry. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
    • Handle: RePEc:spr:joevec:v:15:y:2005:i:5:p:533-565
    DOI: 10.1007/s00191-005-0264-x
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