Local and non-local pre-founding experience and organizational form transformation: The case of Israel's wine industry

Tal Simons, P.W. Roberts

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

Abstract

he twin expectations of local imprinting and of organizational form inertia (Stinchcombe, 1965) make it difficult to see how we ever observe form changes within local populations of organizations. In this paper, we present a theory of new form invasion that features both local and non-local pre-founding industry experience as drivers of both organizational form selection and performance with the selected forms. This theory further suggests a blending process. Pre-founding experience in non-local populations leads founders to establish organizations with the novel forms. When these founders also have pre-founding experience in the local population, their new organizations tend to perform better. This facilitates the establishment and persistence of the new organizational form. We evaluate these predictions in an analysis of a major transformation of the population of Israeli wineries. Between 1982 and 2003, the population of Israeli wine producers grew from just five to more than 100. This explosion in numbers coincided with a shift toward non-kosher wine production. Although the four largest Israeli producers in 1982 were kosher, roughly eighty percent of the new entrants were established as non-kosher producers. After arguing that kosher versus non-kosher wine production represent two distinct organizational forms separated (at least initially) by strong form boundaries, we analyze how the novel non-kosher organizational form successfully invaded the local population of kosher producers. Our results attest to the joint effect of local and non-local pre-founding experience, and thus corroborate our theory of form invasion.
Original languageEnglish
Title of host publicationAcademy of Management Best Paper Proceedings 2006
PublisherAcademy of Management
PagesX1-X6
Publication statusPublished - 2006
Externally publishedYes

Fingerprint

Wine industry
Israel
Organizational form
Wine
Inertia
Industry
Prediction
New organizational forms
Persistence
New entrants
Explosion

Keywords

  • business enterprises
  • wineries
  • viticulture
  • wine & wine making
  • wine industry
  • organizational effectiveness
  • industrial management
  • performance standards

Cite this

Simons, T., & Roberts, P. W. (2006). Local and non-local pre-founding experience and organizational form transformation: The case of Israel's wine industry. In Academy of Management Best Paper Proceedings 2006 (pp. X1-X6). Academy of Management.
Simons, Tal ; Roberts, P.W. / Local and non-local pre-founding experience and organizational form transformation : The case of Israel's wine industry. Academy of Management Best Paper Proceedings 2006. Academy of Management, 2006. pp. X1-X6
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Simons, T & Roberts, PW 2006, Local and non-local pre-founding experience and organizational form transformation: The case of Israel's wine industry. in Academy of Management Best Paper Proceedings 2006. Academy of Management, pp. X1-X6.

Local and non-local pre-founding experience and organizational form transformation : The case of Israel's wine industry. / Simons, Tal; Roberts, P.W.

Academy of Management Best Paper Proceedings 2006. Academy of Management, 2006. p. X1-X6.

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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Simons T, Roberts PW. Local and non-local pre-founding experience and organizational form transformation: The case of Israel's wine industry. In Academy of Management Best Paper Proceedings 2006. Academy of Management. 2006. p. X1-X6