Socio-Cognitive Dynamics as Positive Feedback Loops in Mature Competitive Markets

University of Illinois Office of Research Working Paper #99-0116

Posted: 15 Mar 2000

See all articles by Michael S. Saxon

Michael S. Saxon

affiliation not provided to SSRN

José Antonio Rosa

University of Illinois at Urbana-Champaign - Department of Business Administration

Joseph F. Porac

Emory University - Department of Organization & Management

Date Written: July 1999

Abstract

Taking a social constructivist perspective, this paper presents a socio-cognitive framework for understanding the dynamics of mature competitive markets. Its fundamental premise is that mature competitive markets are as dynamic as emerging ones because the enactment-sensemaking cycles in which producers and consumers engage, and the constant recalibration of product conceptual systems that such activity engenders, are present in both types of markets. Furthermore, it argues that the dynamic processes unleashed by enactment-sensemaking behaviors are evident in the market stories used by producers and consumers to make sense of enacted outcomes or experiences. The value of market stories to understanding market dynamics is illustrated by a rudimentary testing a set of simple propositions. Qualitative support is found for some of the propositions, and the paper concludes by discussing several theoretical and managerial implications of the socio-cognitive perspective as it pertains to understanding and managing in mature competitive markets.

JEL Classification: L10

Suggested Citation

Saxon, Michael S. and Rosa, José Antonio and Porac, Joseph Francis Allen, Socio-Cognitive Dynamics as Positive Feedback Loops in Mature Competitive Markets (July 1999). University of Illinois Office of Research Working Paper #99-0116. Available at SSRN: https://ssrn.com/abstract=179636

Michael S. Saxon

affiliation not provided to SSRN

José Antonio Rosa (Contact Author)

University of Illinois at Urbana-Champaign - Department of Business Administration ( email )

1206 South Sixth Street
110 David Kinley, MC 706
Champaign, IL 61820
United States
217-333-5160 (Phone)
217-244-7969 (Fax)

Joseph Francis Allen Porac

Emory University - Department of Organization & Management ( email )

1300 Clifton Road
Atlanta, GA 30322
United States
404-727-9738 (Phone)

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