Entry into emergent and uncertain product-markets: The role of associative rhetoric

Gwendolyn K. Lee, Srikanth Paruchuri

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Abstract

We analyze how firms use media-associative rhetoric in their decisions to enter emergent and uncertain product-markets. In the context of our study, this type of rhetoric associates the logics of firms' existing markets with the not-yet-legitimated logics of a newly emerging market. Our panel study shows that firms enter such markets faster when the associative rhetoric has higher (versus lower) volume, positive (versus negative) tenor, firms (versus journalists/analysts) as the source of information, and generalizations (versus specific cases) as the focus. We discuss the implications of our findings for institutional theory and market entry. Copyright of the Academy of Management, all rights reserved.

Original languageEnglish (US)
Pages (from-to)1171-1188
Number of pages18
JournalAcademy of Management Journal
Volume51
Issue number6
DOIs
StatePublished - Jan 1 2008

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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