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Evidence from the Franconian Beer Industr THE ROLE OF AUTHENTICITY CONSTRAINTS AND GEOGRAPHICAL COMMUNITIES ON ENTREPRENEURSHIP: EVIDENCE FROM THE FRANCONIAN BEER INDUSTRY 1989-2012 by Margarita Cruz A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy Institute of Management (IMA) Università della Svizzera italiana (USI) Lugano, Switzerland July, 2016 To Andreas For the freedom to break with traditions ii ACKNOWLEDGEMENTS I feel enormously lucky to have been able to join the Institute of Management (IMA) and its vibrant community of faculty and students in 2011. Being part of this community allowed me to take part of multiple arenas of interaction where incredibly smart and rigorous people helped shaping the ideas throughout this dissertation. I am primarily thankful to my advisors, Nikolaus Beck and Filippo Carlo Wezel, whose constant support and sincere advice has been essential in the process of advancing this dissertation and the next academic steps. I am grateful to Nikolaus Beck for giving me the freedom and autonomy to follow my ideas, for his constructive attitude and also for teaching me the values of being authentic and persistent in academia. I am thankful to Filippo Carlo Wezel for teaching me to be always rigorous and encouraging me to think out of the box. His advice has also been immensely valuable in understanding how to navigate the academic world and becoming a good citizen within the academic community. I am also deeply grateful to Gianluca Carnabuci. His constant and unconditional mentorship became an important anchor throughout my dissertation, particularly, in the last and most challenging phases. Thanks for your dedication and commitment to the well-being of students and their careers. I would also like to thank the external members of my evaluation committee, Peter Walgenbach and Francesco Chirico, for dedicating time to read my dissertation and help pushing it forward. It is an honor to have you all as part of my committee. An important mention goes to all faculty and students who have made part of the IMA community. Each one of you has enriched this path. I feel immensely grateful to Erik Larsen for sharing his bright understanding of the world and always having a good advice no matter about what. You have become a true role model to me. Thank you Balazs Kovács, Dirk Martignoni, and Matteo Prato for showing a sincere interest in my progress and being always available to talk about authenticity, communities, or beer. I also want to thank all my IMA colleagues and friends who made this journey more amusing: Martina Montauti thanks for being always there and sharing both good and difficult moments throughout these years. You have become a strong intellectual anchor in this journey. I have also been blessed with the best senior colleagues one can dream of: thank you Martin, Chanchal, Jaime, Marco, Min, iii Rebeka, and Pooya for sharing your knowledge, your guidance, and sincere feedback. And to my incredibly smart and nice colleagues Manos, Carla, Thorsten, Joao, Eva, Federica, Ivona, Gloria, Sebastian, Karthik, Mohammad: it has been a pleasure to share these years and experiences with you all! I would also like to thank the Swiss National Science Foundation for funding my stay at Robert H. Smith Business School (University of Maryland) and giving me the opportunity to push previous drafts of my dissertation in an international context. I am immensely grateful to Christine Beckman for her genuine interest and availability, and for being an important mentor in the last stages of this dissertation and the next academic steps. I am also grateful to David Kirsch, Waverly Ding, David Waguespack, Rajshree Agarwal, Dan Olsen, Siddharth Sharma, Hyeun Lee, Sandeep Pillai, Rui Shu, Sofya Isaakyan, and Justin Frake for welcoming me in their community and pushing me to improve the ideas throughout this dissertation. Finally, none of this would have been possible without the unconditional support of my family. Thanks to my parents for teaching me to be traditional yet critic and entrepreneurial. Thanks to the German side of my family for showing me how important communities and local relationships can be. Last, but not least, I am deeply grateful to my husband, Andreas, for his support in every step throughout this journey, for the days apart, and the freedom to go after my dreams. I dedicate this thesis to you! iv TABLE OF CONTENTS 1. INTRODUCTION ..................................................................................................... 5 1.1. BACKGROUND .................................................................................................... 5 1.2. AIMS OF THE DISSERTATION ...................................................................... 10 1.2.1. Understanding the constraints of authenticity on entry of new organizations .................................................................................................................... 10 1.2.2. Understanding the constraints of authenticity on product diversification ..... ............................................................................................................................ 11 1.2.3. Understanding the resources that help producers overcome authenticity constraints ........................................................................................................................ 11 1.3. OUTLINE OF THE DISSERTATION .............................................................. 13 2. EMPIRICAL SETTING AND DATA SOURCES................................................ 18 2.1. OVERVIEW ......................................................................................................... 18 2.2. REGIONAL CHARACTERISTICS .................................................................. 20 2.3. DATA SOURCES ................................................................................................ 22 3. GROWN LOCAL: COMMUNITY ATTACHMENT AND MARKET ENTRY IN THE FRANCONIAN BEER INDUSTRY ............................................................... 27 3.1. INTRODUCTION ................................................................................................ 28 3.2. THEORY AND HYPOTHESES ......................................................................... 30 3.2.1. Defining communities ...................................................................................... 30 3.2.2. Local attachment of incumbent organizations .............................................. 31 3.3. EMPIRICAL FRAMEWORK AND METHODS ............................................ 36 3.3.1. Some qualitative evidence ................................................................................ 38 3.3.2. Methods and Measures .................................................................................... 40 3.3.2.1. Dependent variable and statistical approach ............................................. 40 3.3.2.2. Independent variables .................................................................................. 41 3.3.2.3. Control variables .......................................................................................... 44 3.4. RESULTS ............................................................................................................. 46 3.4.1. Additional analyses .......................................................................................... 49 3.5. DISCUSSION ....................................................................................................... 50 4. GEOGRAPHY AND AUTHENTICITY: ORGANIZATIONAL RESPONSES TO COMPETITION IN THE FRANCONIAN BEER INDUSTRY .............................. ................................................................................................................................... 68 4.1. INTRODUCTION ................................................................................................ 69 4.2. THEORY AND HYPOTHESES ......................................................................... 72 4.2.1. Geography, communities, and authenticity ................................................... 72 4.2.2. Competition and the nature of diversification ............................................... 73 1 4.2.3. Geographical communities and consumers’ search for authenticity .......... 76 4.2.4. Authenticity as a constraint for diversification ............................................. 79 4.3. EMPIRICAL FRAMEWORK AND METHODS ............................................ 80 4.3.1. The dataset ........................................................................................................ 81 4.3.2. Methods and Measures .................................................................................... 82 4.3.2.1. Dependent variables ..................................................................................... 82 4.3.2.2. Independent variables .................................................................................. 85 4.3.2.3. Control variables .......................................................................................... 89 4.4. RESULTS ............................................................................................................. 90 4.5. DISCUSSION ....................................................................................................... 95 5. BUILDING ON THE PAST TO CREATE THE FUTURE: FAMILY ADVANTAGE AND NAMING STRATEGIES IN THE INTRODUCTION OF NEW PRODUCTS IN THE FRANCONIAN BEER INDUSTRY ............................ 110 5.1. INTRODUCTION .............................................................................................
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