Legitimation and Covert Prototype Differentiation

Research Paper Title:

“Legitimation of heterogeneous market category through covert prototype differentiation”

Authors:

Anna Krzeminska (Macquarie University)
Erik Lundmark (Macquarie University)
Charmine E.J. Hartel (Monash Business School, Monash University)

Background:

The literature on market category formation provides insufficient insights into how entrepreneurs address the need for collective legitimation of a market category while simultaneously managing tensions between heterogeneous practices. Through a study of the Autism@Work market category, this article shows that covert prototype differentiation constitutes a distinct construct that explains how entrepreneurs in heterogeneous market categories can strengthen category legitimacy while supporting the practices that they perceive as appropriate, without triggering conflicts related to category heterogeneity. The article also provides insights into how market category legitimacy is perceived by entrepreneurs and the antecedents and implications of such perceptions.

Methodology:

Sample: Data was collected between 2011 and 2014 from four sources: interviews with entrepreneurs, archival materials from entrepreneurs and external audiences, observational field notes, and interviews with external audiences including investors, clients, autism experts, and autism advocacy and support organizations.

Secondary data was also collected from entrepreneurs such as internal memos, emails, meeting minutes, and information packs for clients to understand historical context.

Sample Size: 41 formal interviews conducted between 2011 to 2014.
Analytical Approach:

1- Event reconstruction

2- Investigation of entrepreneur’s perception of market category legitimacy

3- Investigation of entrepreneurs’ disagreements

4- Modeling entrepreneurs’ perceptions and behavior during category legitimacy

Results:

Through a study of the Autism@Work market, this article shows how entrepreneurs and organizations successfully manage their joint growth despite their conflicting business models. Because entrepreneurs fear that their market is fragile, front-stage they demonstrate unity and success, while their attempts to promote their conflicting business practices remain hidden back-stage because they suppress communication about their conflicts.