Market positioning

The shifting effects of niche overlap

J. Bruggeman, D. Grunow, M.A.A.M. Leenders, I. Vermeulen, J.G. Kuilman

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Organizational ecology models of market dynamics emphasize the competition-inducing role of inter-organizational niche overlap—targeting similar market niches increases competitive pressure and thus reduces organizations’ fitness. Recent studies, however, have suggested that moderate niche overlap may positively influence organizational viability by enhancing comparability and promoting legitimacy spillovers. Data on consumers’ impressions of Dutch music festivals and on the growth and decline of early Internet search engines were used to test the proposition that niche overlap may, in fact, be non-monotonically related to organizational fitness. Since new organizations must first gain recognition by being comparable to others, they will benefit more from niche overlap than older incumbents. The results confirm that both the appeal that organizations generate as well as their growth rates are non-monotonically related to niche overlap, and that positive effects of niche overlap decrease with organizational age.
Original languageEnglish
Pages (from-to)1451-1477
JournalIndustrial and Corporate Change
Volume21
Issue number6
Publication statusPublished - 2012

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Positioning
Niche
Fitness
Viability
Legitimacy
Music
Spillover
Search engine
World Wide Web
Incumbents
Market niche
Market dynamics
Organizational ecology

Cite this

Bruggeman, J., Grunow, D., Leenders, M. A. A. M., Vermeulen, I., & Kuilman, J. G. (2012). Market positioning: The shifting effects of niche overlap. Industrial and Corporate Change, 21(6), 1451-1477.
Bruggeman, J. ; Grunow, D. ; Leenders, M.A.A.M. ; Vermeulen, I. ; Kuilman, J.G. / Market positioning : The shifting effects of niche overlap. In: Industrial and Corporate Change. 2012 ; Vol. 21, No. 6. pp. 1451-1477.
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Bruggeman, J, Grunow, D, Leenders, MAAM, Vermeulen, I & Kuilman, JG 2012, 'Market positioning: The shifting effects of niche overlap', Industrial and Corporate Change, vol. 21, no. 6, pp. 1451-1477.

Market positioning : The shifting effects of niche overlap. / Bruggeman, J.; Grunow, D.; Leenders, M.A.A.M.; Vermeulen, I.; Kuilman, J.G.

In: Industrial and Corporate Change, Vol. 21, No. 6, 2012, p. 1451-1477.

Research output: Contribution to journalArticleScientificpeer-review

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AU - Leenders, M.A.A.M.

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AB - Organizational ecology models of market dynamics emphasize the competition-inducing role of inter-organizational niche overlap—targeting similar market niches increases competitive pressure and thus reduces organizations’ fitness. Recent studies, however, have suggested that moderate niche overlap may positively influence organizational viability by enhancing comparability and promoting legitimacy spillovers. Data on consumers’ impressions of Dutch music festivals and on the growth and decline of early Internet search engines were used to test the proposition that niche overlap may, in fact, be non-monotonically related to organizational fitness. Since new organizations must first gain recognition by being comparable to others, they will benefit more from niche overlap than older incumbents. The results confirm that both the appeal that organizations generate as well as their growth rates are non-monotonically related to niche overlap, and that positive effects of niche overlap decrease with organizational age.

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Bruggeman J, Grunow D, Leenders MAAM, Vermeulen I, Kuilman JG. Market positioning: The shifting effects of niche overlap. Industrial and Corporate Change. 2012;21(6):1451-1477.