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Vertical group formation: A social process perspective

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  • Mark Shanley

    (Purdue University, USA)

  • Margaret Peteraf

    (Dartmouth College, USA)

Abstract

Vertical groups are a common occurrence that is rarely studied as a group-level phenomenon. This paper brings attention to the vertical group, as a collective actor, and group formation processes. We define the vertical group and describe, in brief, why they exist. We explore the issue of how they form and the social processes under which different types of groups are likely to emerge. These include trial and error learning, social learning, and social identification. We introduce a framework that shows how variation in two more fundamental enabling conditions affects both the group development process and the characteristics of the emerging groups. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Mark Shanley & Margaret Peteraf, 2004. "Vertical group formation: A social process perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 473-488.
    • Handle: RePEc:wly:mgtdec:v:25:y:2004:i:6-7:p:473-488
    DOI: 10.1002/mde.1202
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    References listed on IDEAS

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    2. Patrick DeGraba, 1996. "Why Lever into a Zero‐Profit Industry: Tying, Foreclosure, and Exclusion," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(3), pages 433-447, September.
    3. Joseph Farrell & Hunter K. Monroe & Garth Saloner, 1998. "The Vertical Organization of Industry: Systems Competition versus Component Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(2), pages 143-182, June.
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    Cited by:

    1. Michael G. Jacobides, 2008. "Playing football in a soccer field: value chain structures, institutional modularity and success in foreign expansion," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 257-276.
    2. Jean McGuire & Sandra Dow, 2009. "Japanese keiretsu: Past, present, future," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 333-351, June.

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