Business Commons^™

Rivalry And The Industry Model Of Scottish Knitwear Producers, Joseph F. Porac, Howard Thomas, Fiona Wilson, Douglas Patton, Alaina Kanfer

Research Collection Lee Kong Chian School Of Business

In this paper we argue that market boundaries are socially constructed around a collective cognitive model that summarizes typical organizational forms within an industry. This model is produced when firms observe each other's actions and define unique product positions in relation to each other. Our study examines the question of how firms define a reference group of rivals when market cues are ambiguous and interorganizational variety is high and identifies the industry model underlying rivalry among Scottish knitwear producers. The data suggest that a six-category model of organizational forms best describes the common sense of competition in the industry and …