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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

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  • Koen Frenken

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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.

Suggested Citation

  • Rik Wenting & Koen Frenken, 2008. "Firm Entry and Institutional Lock-in: An Organizational Ecology Analysis of the Global Fashion Design Industry," Papers in Evolutionary Economic Geography (PEEG) 0801, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2008.
  • Handle: RePEc:egu:wpaper:0801
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    References listed on IDEAS

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    1. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    2. Allen J. Scott, 1997. "The Cultural Economy of Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(2), pages 323-339, June.
    3. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    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.
    5. Leo van Wissen, 2004. "A Spatial Interpretation of the Density Dependence Model in Industrial Demography," Small Business Economics, Springer, vol. 22(3_4), pages 253-264, April.
    6. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    7. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-181.
    8. Geroski, P A, 2001. "Exploring the Niche Overlaps between Organizational Ecology and Industrial Economics," Industrial and Corporate Change, Oxford University Press, vol. 10(2), pages 507-540, June.
    9. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 379-460, March.
    10. Robert Hassink, 2005. "How to unlock regional economies from path dependency? From learning region to learning cluster," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 521-535, June.
    11. Merlo, Elisabetta & Polese, Francesca, 2006. "Turning Fashion into Business: The Emergence of Milan as an International Fashion Hub," Business History Review, Cambridge University Press, vol. 80(03), pages 415-447, September.
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    Cited by:

    1. Luciana Lazzeretti & Francesco Capone, 2017. "The transformation of the Prato industrial district: an organisational ecology analysis of the co-evolution of Italian and Chinese firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 135-158, January.
    2. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    3. Andrea Morrison & Ron Boschma, 2017. "The spatial evolution of the Italian motorcycle industry (1893-1993): KlepperÕs heritage theory revisited," Papers in Evolutionary Economic Geography (PEEG) 1707, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
    4. 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.
    5. repec:eee:respol:v:47:y:2018:i:3:p:606-616 is not listed on IDEAS
    6. 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.
    7. 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, vol. 24(4), pages 859-873.
    8. 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.

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    Keywords

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

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