Small is beautiful? Organizational Identity and Growth Rates in a Partitioned Market

Liu, M.; Wezel, F.C.

Abstract

The present paper aims at contributing to the discussion on the determinants of organizational diversity by illustrating the process of identity-based resource partitioning observed in the German electricity market after deregulation from 2001 to 2008. We contend that the demise of regional utilities contributed to sharpen the identity of municipal utilities as oppositional identities to that of nation-wide utilities, ultimately creating durable boundaries among forms. Identity-based partitioning however heterogeneously affected the growth of municipal utilities due to the substantial differences in terms of strategies and endowments such firms. The potential ramifications of peripheral firms’ success on the distinctiveness of their collective identity and, thus, for the durability of diversity are discussed.

Citation

Liu, M., & Wezel, F. Small is beautiful? Organizational Identity and Growth Rates in a Partitioned Market

• Working Paper Type: Working Paper
• Publication Date: Oct 1, 2013
• Deposit Date: Sep 27, 2013
• Publicly Available Date: Oct 5, 2013
• Public URL: https://durham-repository.worktribe.com/output/1169634
• Publisher URL: http://dro.dur.ac.uk/11414