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Fools Rush in? The Institutional Context of Industry Creation

Howard E. Aldrich and C. Marlene Fiol
The Academy of Management Review
Vol. 19, No. 4 (Oct., 1994), pp. 645-670
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/258740
Page Count: 26
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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.
Fools Rush in? The Institutional Context of Industry Creation
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Abstract

New organizations are always vulnerable to the liabilities of newness, but such pressures are especially severe when an industry is in its formative years. We focus on one set of constraints facing entrepreneurs in emerging industries-their relative lack of cognitive and sociopolitical legitimacy. We examine the strategies that founders can pursue, suggesting how their successful pursuit of legitimacy may evolve from innovative ventures to broader contexts, collectively reshaping industry and institutional environments.

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