What is it about?
There are situations when a firm has no practicable alternative but to sell their products via a single enterprise, or when there is a limited number of customers in a firm's niche market. This situation is referred to as captivity. This paper explores within the framework of new venture legitimation how and why international new ventures that are captive acquire external legitimacy and strive for survival in the face of critical events.
Why is it important?
The paper puts forward a typology of captivity that is generated by cross-tabulating two business strategies: route to market (direct or indirect) and market development (vertical or horizontal). Three types of captivity emerged: captive industry supplier, captive dyadic partner, and captive market leader. When the above-identified prerequisites of captivity disappear, companies may become free market leaders.
Read the Original
This page is a summary of: External legitimation in international new ventures: toward the typology of captivity, International Journal of Entrepreneurship and Small Business, January 2012, Inderscience Publishers, DOI: 10.1504/ijesb.2012.045207.
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Theory Building Research Programme (TBRP)
The goal of this on-going research programme is to develop a process theory of legitimation which explains how and why new, emerging phenomena legitimate and institutionalise over time. It is part of TBRP that is a platform that brings together international scholars passionate about theory building and theorising. TBRP is also a lovely hub that facilitates cross-disciplinary training and research, as well as much needed conceptual and methodological pluralism.
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