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The logic of organizational markets: thinking through resource partitioning theory

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  • Vermeulen, I.
  • Bruggeman, J.

    (Groningen University)

Abstract

Resource partitioning theory claims that Increasing concentration enhances the life chances of specialist organizations. We systemati- cally think through this theory,specify implicit background assump- tions,sharpen concepts,and rigorously check the theory s logic.As a result,we increase the theory s explanatory power,and claim contrary to received opinion that under certain eneral conditions, resource partitioning and the proliferation of specialists can take place independently of organizational mass and relative size effects, size localized competition,diversifying consumer tastes, increasing number of dimensions of the resource space,and changing niche widths. Our analysis makes furthermore clear that specialist and generalist strategies are asymmetric, and shows that not concentration enhances the life chances of specialists but economies of scale instead.Under the conditions explicated,we argue that if scale economies come to dominate,the number of organizations in the population increases, regardless of the incumbents sizes.

Suggested Citation

  • Vermeulen, I. & Bruggeman, J., 2000. "The logic of organizational markets: thinking through resource partitioning theory," Research Report 00B17, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:00b17
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    File URL: http://irs.ub.rug.nl/ppn/240534522
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    References listed on IDEAS

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    1. Gábor Péli & Michael Masuch, 1997. "The Logic of Propagation Strategies: Axiomatizing a Fragment of Organizational Ecology in First-Order Logic," Organization Science, INFORMS, vol. 8(3), pages 310-331, June.
    2. Jaap Kamps & Michael Masuch, 1997. "Partial Deductive Closure: Logical Simulation and Management Science," Management Science, INFORMS, vol. 43(9), pages 1229-1245, September.
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