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The logic of organizational markets: thinking through resource partitioning theory

  • Vermeulen, I.
  • Bruggeman, J.

    (Groningen University)

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    Resource partitioning theory claims that Increasing concentration enhances the life chances of specialist organizations. We systemati- cally think through this theory,specify implicit background assump- tions,sharpen concepts,and rigorously check the theory s logic.As a result,we increase the theory s explanatory power,and claim contrary to received opinion that under certain eneral conditions, resource partitioning and the proliferation of specialists can take place independently of organizational mass and relative size effects, size localized competition,diversifying consumer tastes, increasing number of dimensions of the resource space,and changing niche widths. Our analysis makes furthermore clear that specialist and generalist strategies are asymmetric, and shows that not concentration enhances the life chances of specialists but economies of scale instead.Under the conditions explicated,we argue that if scale economies come to dominate,the number of organizations in the population increases, regardless of the incumbents sizes.

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    Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 00B17.

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    Date of creation: 2000
    Date of revision:
    Handle: RePEc:dgr:rugsom:00b17
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    1. Jaap Kamps & Michael Masuch, 1997. "Partial Deductive Closure: Logical Simulation and Management Science," Management Science, INFORMS, vol. 43(9), pages 1229-1245, September.
    2. Peli, Gabor & Nooteboom, Bart, 1997. "Market partitioning and the geometry of the resource space," Research Report 97B40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
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