Session 69

Problematizing Categories: Performance, Audiences, Innovation and Status

Track P

Date: Monday, October 5, 2015


Time: 13:45 – 15:00

Common Ground

Room: Plaza Court 4


  • Violina Rindova, University of Texas at Austin

Title: Business Models: Concepts, Categories and Consequenses


  • Charles Baden-Fuller, City University London
  • Alessandro Giudici, City University London
  • Stefan Haefliger, City University London
  • Mary Morgan, London School of Economics

Abstract: In this paper, we propose that scientific research and managerial practice on business model design could be advanced by developing a classification system built upon first principles related to how value is created and for whom; and by deriving mutually exclusive and collectively exhaustive business model ideal categories (types) that might be robust to changing context and time. We develop this idea using the network-relational view from sociological-economic literature as a starting point. We identify four categories: work-for-hire, product, market-matchmaking, and platform. We explain how these categories can be generative, and that they can be used to shed insights into what is meant by business model innovation and the role of changes in technology; and to improve theorizing, policy and empirical work.

Title: Categorical Performance Feedback and New Product Development in the U.S. Film Industry


  • Haram Seo, Seoul National University

Abstract: This study provides complementary accounts as to why firms often do not increase risk-taking after negative performance feedback. I propose that the response to failures varies depending on the nature of failures; failures are categorized by whether they are mostly attributed to prior engagement in exploitative business or explorative one. In case of exploitative failures, the general prediction of traditional BToF argument holds robust. On the other hand, in case of explorative failures, firms are driven not to increase, but to decrease risk-taking since risky explorative investments are regarded as the main source of problem. And such drive gains all the more strength as category-dependent illegitimacy discounts discriminates against explorative failures. I examine this phenomenon based on new product development investments of film producer organizations in the United States from 2000 to 2012.

Title: Category Dynamics of a Hybrid Category: The Rise and Fall of Edutainment


  • Eunice Rhee, Seattle University
  • Jade Lo, Drexel University

Abstract: This study investigates how a hybrid market category that encompasses competing logics fails to become a sustainable market category due to changing balance of logics over time. Specifically, we follow the trajectory of edutainment, a hybrid category combining education and entertainment logics, for a ten-year period and examine how the inherent tension and gradual imbalance between the two logics leads to a failure in meeting audience expectations, eventually resulting in the demise of a potentially viable new market. Overall, we suggest the need to understand the interrelated nature of category emergence and dissolution and argue that that it is important to examine the nuanced processes behind the co-evolution of meanings, features, members, and labels over the full life-cycle of a category.

Title: Category Mismatch and Audience Evaluation of Newly Public Firms


  • Eunice Rhee, Seattle University

Abstract: The current study investigates how a misfit between a firm’s claimed category membership and audience’s assigned categories impact audience’s evaluation of the firm. Specifically, this study focuses on the mismatch between firms’ self-categorization and the Security and Exchange Commission’s (SEC’s) assigned categories for firms that are going public in the Internet sector. This study argues that such category mismatch implies ambiguity in placing the firm into the existing category structure and examines how the degree of category mismatch influences analyst coverage and evaluation. Preliminary findings suggest that a greater degree of category mismatch results in increased forecast dispersion and heterogeneity in analysts who follow the firm; however, such effects will likely be attenuated as the Internet sector becomes increasingly mainstream.

Title: Negotiating Market Boundaries: Fitting New Products into Existing Categories


  • Natalya Vinokurova, University of Pennsylvania

Abstract: This paper explores the process by which innovations negotiate membership in existing product categories in a longitudinal historical case study of the entire lifecycle of creation, evolution, and diffusion of mortgage-backed securities (MBS) in the U.S. between 1960 and 1987. I find that innovators use a combination of rhetorical, material, and political strategies to claim membership in an existing product category. These claims are evaluated by the product category’s audience, i.e. the potential buyers, with the rejection of claims triggering changes to the innovator’s strategies and the innovation’s design. The iterative process of membership claiming, the evaluation and rejection of the claims, and changes in innovator’s strategies triggered by such rejections leads to changes in the category boundaries that permit the acceptance of the innovation.

Title: The Birdman Effect: High Status Backfire with Heterogeneous Audiences


  • Vincenzo Buttice, Polytechnic University of Milan
  • Chiara Franzoni, Polytechnic University of Milan
  • Cristina Rossi Lamastra, Polytechnic University of Milan

Abstract: This paper studies the negative effect of high status when social groups have segmented preferences. We show that, when different social groups commonly observe agent’s action, status is a multidimensional construct that affects the meaningfulness of the information provided. High status decreases access to survival resources when it reinforces information that are in contrast with the preference of a wide social group. We test our hypotheses on a sample of 950 film crowdfunding campaigns and we run an algorithm of content analysis to measure the extent to which a film project is intended to the artistic movie audience. Results of econometric models totally confirm our predictions.

All Sessions in Track P...

Sun: 08:00 – 09:15
Session 281: Models and Evidence in Behavioral Strategy
Sun: 09:45 – 11:00
Session 280: Neuro-science in Behavioral Strategy Research
Sun: 11:15 – 12:30
Session 282: The Origins and Future Development of Behavioral Strategy
Sun: 16:15 – 17:30
Session 77: Organization Level Cognition
Sun: 17:45 – 00:00
Session 325: Behavioral Strategy Business Meeting
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 83: Behavioral Strategy at the Firm Level
Mon: 11:15 – 12:30
Session 68: Behavioral Theory & Learning
Mon: 13:45 – 15:00
Session 69: Problematizing Categories: Performance, Audiences, Innovation and Status
Session 169: The Role of Attention in Organizational Processes (Evaluation, Promotion, Innovation and Growth)
Mon: 16:45 – 18:00
Session 85: Governance
Tue: 08:00 – 09:15
Session 80: Business Models and Innovation
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 71: Upper Echelons and Individual Decision Makers
Session 75: Organizational identity
Tue: 15:45 – 17:00
Session 79: Cognition, Identity and Search
Tue: 17:30 – 18:45
Session 84: Competitors and Other External Forces

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