The Evolution of Collective Strategies in Fragmented Industries

Mimi Dollinger

127 citations0/0 files storedAcademy of Management Review

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Business Strategy and Innovation Merger and Competition Analysis Management and Organizational Studies

Abstract

This article revises and expands the theory of collective strategy to include firms in fragmented industries. Collective strategy in fragmented industries may be less visible, but it is no less extensive than in concentrated industries because repetitive patterns of pairwise interorganizational activity can aggregate into emergent collective strategy. This implies that collective activity is a ubiquitous strategy, permeating all types of organizations in fragmented industries. The article offers a process model and a mechanism for aggregating pairwise activity into collective activity based on an extension of the prisoner’s dilemma game. A curvilinear relationship between environmental factors and cooperative behavior is proposed. Propositions suggest that the effects of cooperation on performance shift from the firm level to the population level as colonization is completed.

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References

1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1981The Evolution of Cooperation 2017Exchange and Power in Social Life 2011External Control of Organizations: Resource Dependence Perspective 1965Exchange and Power in Social Life.1976Markets and Hierarchies: Analysis and Antitrust Implications.1979The External Control of Organizations: A Resource Dependence Perspective

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