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Does Embeddedness Reduce Innovation and Differentiation? Evidence from the Japanese Microbrewery Industry

Christina Ahmadjian; Jesper Edman

Title:
Does Embeddedness Reduce Innovation and Differentiation? Evidence from the Japanese Microbrewery Industry
Author(s):
Ahmadjian, Christina
Edman, Jesper
Date:
Type:
Working papers
Department:
Center on Japanese Economy and Business
Permanent URL:
Series:
Center on Japanese Economy and Business Working Papers
Part Number:
328
Abstract:
While strategic management scholars and institutional theorists regularly debate the merits of organizational differentiation and innovation vs conformity and embeddedness, few studies have sought to empirically investigate how these seemingly opposing forces impact each other. Drawing on both qualitative and quantitative data, we contribute to closing this research gap by exploring how post-entry embeddedness impacted innovation and survival among de-novo and de-alio entrants into the Japanese microbrewery industry. Our findings indicate that post-entry embeddedness has contrasting effects, reducing overly non-conformist strategies among de-novo entrants, but enhancing non-conformity among de-alio entrants. These results indicate how institutions can serve as enablers of innovation, rather than constraints, through their dissemination of standards, norms and industry practices.
Subject(s):
Economics
Management
Item views:
388
Metadata:
text | xml

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