Please enable JavaScript.

Coggle requires JavaScript to display documents.

Week 5: Opportunity emergence - Coggle Diagram

- - - - new
        
        technology
        
        structure
        
        goals
        
        served markets
    - - not automatic process , entrepreneurs need to work to convince others. This involves justifying & legitimising
      - Social movements can contribute to process
  - - - central problem of establishing new form: free-rider problem
        
        Why? -> Those who incur the costs/efforts of working to establish new form are not sole beneficiaries, those who benefit may not have shared the cost
      - Eg. early entrepreneurs incur costs of developing technical standards/ establishing supply and distribution networks
        
        entrepreneurs play key role in familiarising consumers, financial markets, governments with new form
        
        of course: once established, benefits also extend to later entrants
      - Central idea: when faced free-rider problem and thus demotivated, SM activists can help by investing own time, energy, efforts and resources to help establish new form
      - EXAMPLE:
        
        Standard-setting organisations
        
        in 1894, association of insurance companies commissioned to certify the fire-resistance of wires and lights for houses. By that, they became first standard setting organization
        
        however, even increasing need for standard setting, it did not lead to emergence of further standard setting organizations, because free rider problem
        
        only when activists gathered at national conferences and formed "standards movement" - focus reduce waste and inefficiency in industrial production
        
        campaigned against "wasteful variety" , recruited business to follow
        
        success of activists in recruiting big companies showed importance of standard setting and organisations -> acceptance
        
        Overall: passionate activist helped establish idea of standard setting, thereby overcoming need for single organisations to do all the work
    - - Organisation Forms that are novel, must acquire support to become accepted. Assumed this happens through trade associations, enable securing of support from consumers and financial markets
      - can be very complex, difficult to manage
        
        different members want different things
        
        try and influence decisions to own good
        
        = agreements hard to negotiate and coordination to get new form accepted can fail
      - EXAMPLE
        
        Early automobile manufacturers
        
        when emerging, previously relied on horses -> A lot of fear resulted in opposition from groups concerned about speeding
        
        some automotive trade associations emerged to campaign on behalf of car manufacturers, disappeared again bc financial issues and disagreements
        
        early fans banded together in clubs and promoted automobiling movement
        
        promoted image in 2 ways:
        
        support of state-wide laws on speed, to reduce criticism
        
        official rules for races, building trust by professionalising activity
        
        Overall: efforts helped manufacturers and product be accepted and be seen legitimate by society/government