Purpose This paper develops a conceptual framework based on the identification and examination of the mechanisms (termed “viability mechanisms”) under which market-shaping activities yield the emergence of a viable market: one able to adapt to the changing environment over time while remaining stable enough for actors to benefit from it. Design/methodology/approach The paper employs extant literature to build a conceptual framework identifying viability mechanisms for market shaping and a case illustration examining how a viable market for Finnish timber high-rise buildings was created. The case exemplifies how the identified viability mechanisms are practically manifested through proactive market-shaping. Findings The proposed conceptual framework incorporates four viability mechanisms identified in the extant literature: presence of dissipative structures, consonance among system elements, resonance among system elements, and reinforcing and balancing feedback loops. It illustrates how these mechanisms are manifested in a contemporary case setting resulting in a viable market. Practical implications First, firms and other market-shaping organizations should look for, or themselves foster, viability mechanisms within their market-shaping strategies. Second, as failure rates in innovation are extremely high, managers should seek to identify or influence viability mechanisms in order to avoid premature commercialization of innovations. Originality/value This research identifies how these viability mechanisms permit markets to emerge and survive over time. Further, it illuminates the workings of the non-linear relationship between actorlevel market-shaping actions and system-level market changes. As such, it provides a “missing link” to the scholarly and managerial discourse on market-shaping strategies. Unlike much extant market-shaping literature, this study draws substantively on the systems literature.
Viability Mechanisms in Market Systems: Prerequisites for Market-Shaping
Polese F.;
2020-01-01
Abstract
Purpose This paper develops a conceptual framework based on the identification and examination of the mechanisms (termed “viability mechanisms”) under which market-shaping activities yield the emergence of a viable market: one able to adapt to the changing environment over time while remaining stable enough for actors to benefit from it. Design/methodology/approach The paper employs extant literature to build a conceptual framework identifying viability mechanisms for market shaping and a case illustration examining how a viable market for Finnish timber high-rise buildings was created. The case exemplifies how the identified viability mechanisms are practically manifested through proactive market-shaping. Findings The proposed conceptual framework incorporates four viability mechanisms identified in the extant literature: presence of dissipative structures, consonance among system elements, resonance among system elements, and reinforcing and balancing feedback loops. It illustrates how these mechanisms are manifested in a contemporary case setting resulting in a viable market. Practical implications First, firms and other market-shaping organizations should look for, or themselves foster, viability mechanisms within their market-shaping strategies. Second, as failure rates in innovation are extremely high, managers should seek to identify or influence viability mechanisms in order to avoid premature commercialization of innovations. Originality/value This research identifies how these viability mechanisms permit markets to emerge and survive over time. Further, it illuminates the workings of the non-linear relationship between actorlevel market-shaping actions and system-level market changes. As such, it provides a “missing link” to the scholarly and managerial discourse on market-shaping strategies. Unlike much extant market-shaping literature, this study draws substantively on the systems literature.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
