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Rivalry and the Industry Model of Scottish Knitwear Producers

Joseph F. Porac, Howard Thomas, Fiona Wilson, Douglas Paton and Alaina Kanfer
Administrative Science Quarterly
Vol. 40, No. 2 (Jun., 1995), pp. 203-227
DOI: 10.2307/2393636
Stable URL: http://www.jstor.org/stable/2393636
Page Count: 25
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Rivalry and the Industry Model of Scottish Knitwear Producers
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Abstract

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 that an ensemble of attributes involving size, technology, product style, and geographic location forms the foundation for this ordering. The results also show how this industry model is reproduced within the rivalry network structuring imperfect competition in the industry.

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