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Constructing markets and shaping boundaries: entrepreneurial power in nascent fields

Author: Santos, Filipe M. ; Eisenhardt, Kathleen M.INSEAD Area: Entrepreneurship and Family EnterpriseIn: Academy of Management Journal, vol. 52, no. 4, August 2009 Language: EnglishDescription: p. 643-671.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: This paper examines how entrepreneurs shape organizational boundaries and construct markets. Specifically, we conduct an inductive study of five ventures in their first five years. Our resulting theoretical framework explains how successful entrepreneurs attempt to dominate nascent markets by co-constructing their organizational boundaries and market using three processes – claiming (identity-based), demarcating (alliance-focused) and controlling (acquisition-driven). We propose a holistic and longitudinal view of organizational boundaries, offer new insights into institutional entrepreneurship and resource dependence theories, and indicate the “soft-power” strategy by which successful entrepreneurs compete in highly ambiguous markets. Our most important contribution is reinvigorating the study of inter-organizational power
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This paper examines how entrepreneurs shape organizational boundaries and construct markets. Specifically, we conduct an inductive study of five ventures in their first five years. Our resulting theoretical framework explains how successful entrepreneurs attempt to dominate nascent markets by co-constructing their organizational boundaries and market using three processes – claiming (identity-based), demarcating (alliance-focused) and controlling (acquisition-driven). We propose a holistic and longitudinal view of organizational boundaries, offer new insights into institutional entrepreneurship and resource dependence theories, and indicate the “soft-power” strategy by which successful entrepreneurs compete in highly ambiguous markets. Our most important contribution is reinvigorating the study of inter-organizational power

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