ADMS 1000 Lecture Notes - Lecture 6: Creative Destruction, Joseph Schumpeter, Baby Food

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Shahab Modirmassihai

Document Summary

Ap/adms 1000 lecture # 6 competitive and technological forces. The wide spread diffusion of an industry standard or dominant design is a critical step in facilitating an industry"s transition to the growth phase. Over time industry reaches mature phase where market stabilizes sales grow more slowly than once sales hit their peak and start to drop it enters the decline phase) The quest for legitimacy: new industries seek legitimacy (sociopolitical and cognitive) through collective action and institutional entrepreneurship, sociopolitical legitimacy. Refers to the endorsement of an industry, activity in organizational form of key stakeholders: cognitive legitimacy. It is much easier to get the resources to open it up and legitimacy is not an issue in this industry. In the text messaging case the entrepreneur launching it would need to explain to the stakeholders every detail of the company they also need to convince these stakeholders the potential of the business.