Local and Non-local Pre-founding Experience and New Organizational Form Penetration: The Case of the Israeli Wine Industry.

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Title: Local and Non-local Pre-founding Experience and New Organizational Form Penetration: The Case of the Israeli Wine Industry.
Authors: Simons, Tal1, Roberts, Peter W.2
Source: Administrative Science Quarterly. Jun2008, Vol. 53 Issue 2, p235-265. 31p. 8 Charts.
Subject Terms: Organizational behavior -- Social aspects, New business enterprises, Vintners, Wine industry, Management, Market penetration, Wines -- Religious aspects -- Judaism, Commerce
Abstract: This paper presents a theory of how new organizational forms penetrate local populations. We theorize that founders with pre-founding industry experience in non-local populations are more likely to adopt locally novel forms. Pre-founding experience within local and non-local industry populations should also allow organizations to reach larger size and produce superior quality products, both of which contribute to the persistence of the novel organizational form. We evaluate these predictions in an analysis of the transformation of the population of Israeli wineries between 1983 and 2004, when five existing organizations witnessed the arrival of 138 new wineries. This explosion in numbers coincided with a shift from kosher toward non-kosher wine production, the new organizational form. Although the four largest Israeli wineries in 1982 were kosher, roughly 75 percent of the new entrants were established as non-kosher producers. We analyze how founders' pre-founding experiences helped the novel non-kosher form penetrate the local population. The results show that non-local wine industry experience prior to founding increased the odds that a new entrant would select the non-kosher organizational form. At the same time, both local and non-local pre-founding experience improved the size and product-quality outcomes achieved by the non-kosher entrants. This had an additional effect on form penetration by improving the impact and longevity of the novel-form producers. [ABSTRACT FROM AUTHOR]
Copyright of Administrative Science Quarterly is the property of Administrative Science Quarterly and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: <searchLink fieldCode="DE" term="%22Organizational+behavior+--+Social+aspects%22">Organizational behavior -- Social aspects</searchLink><br /><searchLink fieldCode="DE" term="%22New+business+enterprises%22">New business enterprises</searchLink><br /><searchLink fieldCode="DE" term="%22Vintners%22">Vintners</searchLink><br /><searchLink fieldCode="DE" term="%22Wine+industry%22">Wine industry</searchLink><br /><searchLink fieldCode="DE" term="%22Management%22">Management</searchLink><br /><searchLink fieldCode="DE" term="%22Market+penetration%22">Market penetration</searchLink><br /><searchLink fieldCode="DE" term="%22Wines+--+Religious+aspects+--+Judaism%22">Wines -- Religious aspects -- Judaism</searchLink><br /><searchLink fieldCode="DE" term="%22Commerce%22">Commerce</searchLink>
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  Data: This paper presents a theory of how new organizational forms penetrate local populations. We theorize that founders with pre-founding industry experience in non-local populations are more likely to adopt locally novel forms. Pre-founding experience within local and non-local industry populations should also allow organizations to reach larger size and produce superior quality products, both of which contribute to the persistence of the novel organizational form. We evaluate these predictions in an analysis of the transformation of the population of Israeli wineries between 1983 and 2004, when five existing organizations witnessed the arrival of 138 new wineries. This explosion in numbers coincided with a shift from kosher toward non-kosher wine production, the new organizational form. Although the four largest Israeli wineries in 1982 were kosher, roughly 75 percent of the new entrants were established as non-kosher producers. We analyze how founders' pre-founding experiences helped the novel non-kosher form penetrate the local population. The results show that non-local wine industry experience prior to founding increased the odds that a new entrant would select the non-kosher organizational form. At the same time, both local and non-local pre-founding experience improved the size and product-quality outcomes achieved by the non-kosher entrants. This had an additional effect on form penetration by improving the impact and longevity of the novel-form producers. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Administrative Science Quarterly is the property of Administrative Science Quarterly and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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        Value: 10.2189/asqu.53.2.235
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      – Code: eng
        Text: English
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      – SubjectFull: Organizational behavior -- Social aspects
        Type: general
      – SubjectFull: New business enterprises
        Type: general
      – SubjectFull: Vintners
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      – SubjectFull: Wine industry
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      – SubjectFull: Management
        Type: general
      – SubjectFull: Market penetration
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      – SubjectFull: Wines -- Religious aspects -- Judaism
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      – SubjectFull: Commerce
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              Text: Jun2008
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