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Collective Action, Networks, and Critical Mass for Market Formation

Author

Listed:
  • Jeroen Struben

    (EM - EMLyon Business School)

  • Brandon H. Lee

Abstract

The heterogeneous distribution of resources tends to reduce collective action problems. In this paper, we examine whether these insights extend to more complex settings of collective action. While perfect substitutability of resources is a fundamental assumption of existing collective action models, many collective causes, particularly those focused on market formation, require resources across distinct actors that are often imperfectly substitutable. We develop a formal model that shows that heterogeneity under conditions of imperfect substitutability actually exacerbates collective action problems. We examine the central mechanisms governing the existence and resolution of collective action dilemmas for complex causes and we identify the conditions under which collective action is more or less challenging. Analyzing the problem in the context of market formation, we explore implications for those settings with heterogeneous social structure. We discuss the implications of our findings for study of collective action dilemmas, mobilization strategies for collective action, and market formation research.

Suggested Citation

  • Jeroen Struben & Brandon H. Lee, 2018. "Collective Action, Networks, and Critical Mass for Market Formation," Post-Print hal-02312207, HAL.
  • Handle: RePEc:hal:journl:hal-02312207
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    Cited by:

    1. Enrico Forti & Serena Morricone & Federico Munari, 2021. "Litigation risks and firms innovation dynamics after the IPO," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 291-313, June.
    2. Yong Li & Jing Li & Peng Zhang & Sunhwan Gwon, 2023. "Stronger together: Country‐of‐origin agglomeration and multinational enterprise location choice in an adverse institutional environment," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1053-1083, April.
    3. Srivardhini K. Jha & E. Richard Gold & Laurette Dubé, 2021. "Modular Interorganizational Network Governance: A Conceptual Framework for Addressing Complex Social Problems," Sustainability, MDPI, vol. 13(18), pages 1-21, September.
    4. Luis Araujo & Katy Mason, 2021. "Markets, infrastructures and infrastructuring markets," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 240-251, December.
    5. Guillermo Casasnovas & Jessica Jones, 2022. "Who Has a Seat at the Table in Impact Investing? Addressing Inequality by Giving Voice," Journal of Business Ethics, Springer, vol. 179(4), pages 951-969, September.
    6. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    7. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Post-Print hal-02927584, HAL.
    8. Shon R. Hiatt & W. Chad Carlos & Wesley D. Sine, 2018. "Manu Militari : The Institutional Contingencies of Stakeholder Relationships on Entrepreneurial Performance," Organization Science, INFORMS, vol. 29(4), pages 633-652, August.
    9. Suvi Nenonen & Kaj Storbacka & Charlotta Windahl, 2019. "Capabilities for market-shaping: triggering and facilitating increased value creation," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 617-639, July.
    10. Krzeminska, Anna & Lundmark, Erik & Härtel, Charmine E.J., 2021. "Legitimation of a heterogeneous market category through covert prototype differentiation," Journal of Business Venturing, Elsevier, vol. 36(2).
    11. Elizabeth G. Pontikes & Violina P. Rindova, 2020. "Shaping Markets Through Temporal, Constructive, and Interactive Agency," Strategy Science, INFORMS, vol. 5(3), pages 149-159, September.
    12. Margo P. M. Enthoven & Hendrik N. Thelken, 2023. "Activists' and social entrepreneurs' approaches towards consumer culture: Providing a protective space for sustainability transitions," Business Strategy and the Environment, Wiley Blackwell, vol. 32(2), pages 991-1004, February.
    13. Wujuan Zhai & Florence Yean Yng Ling & Jiyong Ding & Zhuofu Wang, 2023. "Impact of Institutional Pressures on Socially Responsible Collective Action Behaviors for Major Water Transfer Projects," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(11), pages 4253-4269, September.
    14. Lin Zhou & Walter Timo de Vries, 2022. "Collective Action for the Market-Based Reform of Land Element in China: The Role of Trust," Land, MDPI, vol. 11(6), pages 1-16, June.
    15. Suvi Nenonen & Kaj Storbacka, 2021. "Market-shaping: navigating multiple theoretical perspectives," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 336-353, December.
    16. Alexander Flaig & Daniel Kindström & Mikael Ottosson, 2021. "Market-shaping phases—a qualitative meta-analysis and conceptual framework," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 354-374, December.
    17. Joan Enric Ricart & Yuliya Snihur & Carlos Carrasco-Farré & Pascual Berrone, 2020. "Grassroots Resistance to Digital Platforms and Relational Business Model Design to Overcome It: A Conceptual Framework," Strategy Science, INFORMS, vol. 5(3), pages 271-291, September.
    18. Breidbach, Christoph F. & Tana, Silviana, 2021. "Betting on Bitcoin: How social collectives shape cryptocurrency markets," Journal of Business Research, Elsevier, vol. 122(C), pages 311-320.
    19. Dharmani, Pranav & Das, Satyasiba & Prashar, Sanjeev, 2021. "A bibliometric analysis of creative industries: Current trends and future directions," Journal of Business Research, Elsevier, vol. 135(C), pages 252-267.
    20. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Strategy Science, INFORMS, vol. 5(3), pages 245-270, September.

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