Categorical Competition in the Wake of Crisis: Banks vs. Credit Unions

Published Online:https://doi.org/10.1287/orsc.2020.1403

References

  • Angrist JD , Pischke JS (2009) Mostly Harmless Econometrics: An Empiricist’s Companion (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Ashforth BE , Reingen PH (2014) Functions of dysfunction: Managing the dynamics of an organizational duality in a natural food cooperative. Admin. Sci. Quart. 59(3):474–516.CrossrefGoogle Scholar
  • Audia PG , Rider CI (2010) Close, but not the same: Locally headquartered organizations and agglomeration economies in a declining industry. Res. Policy 39(3):360–374.CrossrefGoogle Scholar
  • Barron DN , West E , Hannan MT (1994) A time to grow and a time to die: Growth and mortality of credit unions in New York City, 1914–1990. Amer. J. Sociol. 100(2):381–421.CrossrefGoogle Scholar
  • Bergengren RF (1952) Crusade: The Fight for Economic Democracy in North America, 1921–1945 (Exposition Press, New York).Google Scholar
  • Boone C , Özcan S (2014) Why do cooperatives emerge in a world dominated by corporations? The diffusion of cooperatives in the U.S. bio-ethanol industry, 1978–2013. Acad. Management J. 57(4):990–1012.CrossrefGoogle Scholar
  • Brewer MB (1991) The social self: On being the same and different at the same time. Personality Soc. Psych. Bull. 17(5):475–482.CrossrefGoogle Scholar
  • Brewer MB , Feinstein ASH (1999) Dual processes in the cognitive representation of persons and social categories. Chaiken S , Trope Y , eds. Dual-Process Theories in Social Psychology (Guilford Press, New York), 255–270.Google Scholar
  • Burger AE , Dacin T (1992) Field of Membership: An Evolving Concept (Center for Credit Union Research, University of Wisconsin-Madison, Madison).Google Scholar
  • Burt RS (2000) The network structure of social capital. Res. Organ. Behav. 22:345–423.CrossrefGoogle Scholar
  • Card D , Dooley MD , Payne AA (2010) School competition and efficiency with publicly funded Catholic schools. Amer. Econom. J. 2(4):150–176.Google Scholar
  • Carroll G , Goodstein J , Gyenes A (1986) Organizations and the state: Effects of the institutional environment on agricultural cooperatives in Hungary. Admin. Sci. Quart. 33(2):233–256.CrossrefGoogle Scholar
  • Cattani G , Porac JF , Thomas H (2017) Categories and competition. Strategic Management J. 38(1):64–92.CrossrefGoogle Scholar
  • Chatterji A , Luo J , Seamans R (2020) Assigning credit union deposits to credit union branches. Preprint, submitted March 20, https://ssrn.com/abstract=3558882.Google Scholar
  • Coleman JS (1988) Social capital in the creation of human capital. Amer. J. Sociol. 94(Supplement):S95–S120.CrossrefGoogle Scholar
  • Council of Economic Advisers (CEA) (2016) The performance of community banks over time. https://obamawhitehouse.archives.gov/sites/default/files/page/files/20160810_cea_community_banks.pdf (last accessed December 20, 2020)Google Scholar
  • Davis GF (1991) Agents without principles? The spread of the poison pill through the intercorporate network. Admin. Sci. Quart. 36(4):583–613.CrossrefGoogle Scholar
  • Devers CE , McNamara G , Wiseman RM , Arrfelt M (2008) Moving closer to the action: Examining compensation design effects on firm risk. Organ. Sci. 19(4):548–566.LinkGoogle Scholar
  • DiMaggio P , Powell WW (1983) The iron cage revisited: Collective rationality and institutional isomorphism in organizational fields. Amer. Sociol. Rev. 48(2):147–160.CrossrefGoogle Scholar
  • Dobrev SD , Kim TY , Carroll GR (2002) The evolution of organizational niches: U.S. automobile manufacturers, 1885–1981. Admin. Sci. Quart. 47(2):233–264.CrossrefGoogle Scholar
  • Dowling J , Pfeffer J (1975) Organizational legitimacy: Social values and organizational behavior. Pacific Sociol. Rev. 18(1):122–136.CrossrefGoogle Scholar
  • Duggan M (2002) Hospital market structure and the behavior of not-for-profit hospitals. RAND J. Econom. 33(3):433–446.CrossrefGoogle Scholar
  • Durand R , Khaire M (2017) Where do market categories come from and why? Distinguishing category creation from category emergence. J. Management. 43(1):87–110.CrossrefGoogle Scholar
  • Durand R , Paolella L (2013) Category stretching: Reorienting research on categories in strategy, entrepreneurship, and organization theory. J. Management Stud. 50(6):1100–1123.CrossrefGoogle Scholar
  • Elsbach KD (1994) Managing organizational legitimacy in the California cattle industry: The construction and effectiveness of verbal accounts. Admin. Sci. Quart. 39(1):57–88.CrossrefGoogle Scholar
  • Federal Deposit Insurance Corporation (FDIC) (2012) FDIC community banking report. Accessed December 20, 2020, https://www.fdic.gov/regulations/resources/cbi/report/cbi-full.pdf.Google Scholar
  • Feinberg RM (2001) The competitive role of credit unions in small local financial services markets. Rev. Econom. Statist. 83(3):560–563.CrossrefGoogle Scholar
  • Fernando CS , Vladimir AG , Spindt PA (2005) Wanna dance? How firms and underwriters choose each other. J. Finance 60(5):2437–2469.CrossrefGoogle Scholar
  • Fiske ST , Taylor ET (1991) Social Cognition (McGraw-Hill, New York).CrossrefGoogle Scholar
  • Frake JA (2016) Selling out: The inauthenticity discount in the craft beer industry. Management Sci. 63(11):3930–3943.LinkGoogle Scholar
  • Freeman J , Audia PG (2011) Community context and founding processes of banking organizations. Res. Sociol. Organ. 33:253–282.CrossrefGoogle Scholar
  • Freeman J , Hannan MT (1983) Niche width and the dynamics of organizational populations. Amer. J. Sociol. 88(6):1116–1145.CrossrefGoogle Scholar
  • Freixas X , Martin A , Skeie D (2011) Bank liquidity, interbank markets, and monetary policy. Rev. Financial Stud. 24(8):2656–2692.CrossrefGoogle Scholar
  • Gallup (2012) Americans’ confidence in banks falls to record low. Gallup (June 27), https://news.gallup.com/poll/155357/Americans-Confidence-Banks-Falls-Record-Low.aspx?utm_source=alert&utm_medium=email&utm_campaign=syndication&utm_content=morelink&utm_term=Business.Google Scholar
  • Gehman J , Grimes M (2017) Hidden badge of honor: How contextual distinctiveness affects category promotion among certified B corporations. Acad. Management J. 60(6):2294–2320.CrossrefGoogle Scholar
  • Gertler M , Kiyotaki N (2015) Banking, liquidity, and bank runs in an infinite horizon economy. Amer. Econom. Rev. 105(7):2011–2043.CrossrefGoogle Scholar
  • Gertler P , Kuan J (2009) Does it matter who your buyer is? The role of nonprofit mission in the market for corporate control of hospitals. J. Law Econom. 52(2):295–306.CrossrefGoogle Scholar
  • Goldberg A , Hannan MT , Kovács B (2016) What does it mean to span cultural boundaries? Variety and atypicality in cultural consumption. Amer. Sociol. Rev. 81(2):215–241.CrossrefGoogle Scholar
  • Gonzalez F (2009) Determinants of bank‐market structure: Efficiency and political economy variables. J. Money Credit Banking 41(4):735–754.CrossrefGoogle Scholar
  • Greve HR , Kim JYJ (2014) Running for the exit: Community cohesion and bank panics. Organ. Sci. 25(1):204–221.LinkGoogle Scholar
  • Greve HR , Kim JYJ , Teh D (2016) Ripples of fear: The diffusion of a bank panic. Admin. Sci. Quart. 81(2):396–420.Google Scholar
  • Greve HR , Palmer D , Pozner JE (2010) Organizations gone wild: The causes, processes, and consequences of organizational misconduct. Acad. Management Annual. 4(1):53–107.CrossrefGoogle Scholar
  • Guiso L , Sapienza P , Zingales L (2013) The determinants of attitudes toward strategic default on mortgages. J. Finance 68(4):1473–1515.CrossrefGoogle Scholar
  • Hannan TH (2003) The impact of credit unions on the rates offered for retail deposits by banks and thrift institutions. Preprint, submitted June 4, https://ssrn.com/abstract=386880.Google Scholar
  • Hannan MT (2010) Partiality of memberships in categories and audiences. Annual Rev. Sociol. 36:159–181.CrossrefGoogle Scholar
  • Hannan MT , Pólos L , Carroll GR (2007) Logics of Organization Theory: Audiences, Codes, and Ecologies (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Haveman H (1993) Follow the leader: Mimetic isomorphism and entry into new markets. Admin. Sci. Quart. 38(4):593–627.CrossrefGoogle Scholar
  • Hiatt SR , Sine WD , Tolbert PS (2009) From Pabst to Pepsi: The deinstitutionalization of social practices and the creation of entrepreneurial opportunities. Admin. Sci. Quart. 54(4):635–667.CrossrefGoogle Scholar
  • Hsu G (2006) Evaluative schemas and the attention of critics in the US film industry. Indust. Corporate Change 15(3):467–496.CrossrefGoogle Scholar
  • Hsu G , Grodal S (2015) Category taken-for-grantedness as a strategic opportunity: The case of light cigarettes, 1964 to 1993. Amer. Sociol. Rev. 80(1):28–62.CrossrefGoogle Scholar
  • Hsu G , Koçak Ö , Hannan MT (2009) Multiple category memberships in markets: An integrative theory and two empirical tests. Amer. Sociol. Rev. 74(1):150–169.CrossrefGoogle Scholar
  • Ingram P , McEvily B (2007) Sharper in relief: Opposition, identity and the maintenance of social movement organizations. Working paper, Columbia University, New York.Google Scholar
  • Iyer R , Puri M (2012) Understanding bank runs: The importance of depositor-bank relationships and networks. Amer. Econom. Rev. 102(4):1414–1445.CrossrefGoogle Scholar
  • Janney JJ , Gove S (2017) Firm linkages to scandals via directors and professional service firms: Insights from the backdating scandal. J. Bus. Ethics 140(1):65–79.CrossrefGoogle Scholar
  • Jensen M (2006) Should we stay or should we go? Accountability, status anxiety, and client defections. Admin. Sci. Quart. 51(1):97–128.CrossrefGoogle Scholar
  • Jonsson S , Greve HR , Fujiwara-Greve T (2009) Undeserved loss: The spread of legitimacy loss to innocent organizations in response to reported corporate deviance. Admin. Sci. Quart. 54(2):195–228.CrossrefGoogle Scholar
  • Kang E (2008) Director interlocks and spillover effects of reputational penalties from financial reporting fraud. Acad. Management J. 51(3):537–555.CrossrefGoogle Scholar
  • Kim BK , Jensen M (2011) How product order affects market identity: Repertoire ordering in the U.S. opera market. Admin. Sci. Quart. 56(2):238–256.CrossrefGoogle Scholar
  • King BG (2008) A political mediation model of corporate response to social movement activism. Admin. Sci. Quart. 53(3):395–421.CrossrefGoogle Scholar
  • Kovács B, Hannan M (2010) The consequences of category spanning depend on contrast. Res. Sociol. Org. 35:175–201.Google Scholar
  • Kovács B , Hannan M (2015) Conceptual spaces and the consequences of category spanning. Sociol. Sci. 2:252–286.CrossrefGoogle Scholar
  • Kuilman JG , Li J (2009) Grades of membership and legitimacy spillovers: Foreign banks in Shanghai, 1847–1935. Acad. Management J. 52(2):229–245.CrossrefGoogle Scholar
  • Laumann EO , Galaskiewicz J , Marsden PV (1978) Community structure as interorganizational linkages. Annual Rev. Sociol. 4:455–484.CrossrefGoogle Scholar
  • Leung MD (2014) Dilettante or renaissance person? How the order of job experiences affects hiring in an external labor market. Amer. Sociol. Rev. 79(1):136–158.CrossrefGoogle Scholar
  • Leung MD , Sharkey AJ (2014) Out of sight, out of mind? Evidence of perceptual factors in the multiple-category discount. Organ. Sci. 25(1):171–184.LinkGoogle Scholar
  • Lounsbury M (2002) Institutional transformation and status mobility: The professionalization of the field of finance. Acad. Management J. 45(1):255–266.CrossrefGoogle Scholar
  • Lounsbury M , Glynn MA (2001) Cultural entrepreneurship: stories, legitimacy, and the acquisition of resources. Strategic Management J. 22(6–7):545–564.CrossrefGoogle Scholar
  • Lu SF (2016) How do nonprofits respond to quality disclosure? Evidence from nonprofit nursing homes. Amer. J. Health Econom. 2(4):431–462.CrossrefGoogle Scholar
  • Marquis C , Battilana J (2009) Acting globally but thinking locally? The enduring influence of local communities on organizations. Res. Organ. Behav. 29:283–302.CrossrefGoogle Scholar
  • Marquis C , Huang Z , Almandoz J (2011) Explaining the loss of community: Competing logics and institutional change in the US banking industry. Res. Sociol. Organ. 33:177–213.CrossrefGoogle Scholar
  • Marsden PV , Friedkin NE (1993) Network studies of social influence. Sociol. Methods Res. 22(1):127–151.CrossrefGoogle Scholar
  • McDonnell MH , King B (2013) Keeping up appearances: Reputational threat and impression management after social movement boycotts. Admin. Sci. Quart. 58(3):387–419.CrossrefGoogle Scholar
  • McDonnell MH , Pontikes EG (2018) Bad company: Tactics, stigma, and shifts in the public approval of environmental activist organizations after the BP oil spill. Preprint, submitted March 21, https://ssrn.com/abstract=3005520.Google Scholar
  • McDonnell MH , Werner T (2016) Blacklisted businesses: Social activists’ challenges and the disruption of corporate political activity. Admin. Sci. Quart. 61(4):584–620.CrossrefGoogle Scholar
  • Mizruchi M (1996) What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates. Annu. Rev. Sociol. 22(1):271–298.CrossrefGoogle Scholar
  • Moody JC, Fite GC (1984) The Credit Union Movement: Origins and Development, 1850--1980, 2nd ed. (Kendall, Hunt Publishing Company, Dubuque, IA).Google Scholar
  • Navis C , Glynn MA (2010) How new market categories emerge: Temporal dynamics of legitimacy, identity, and entrepreneurship in satellite radio, 1990–2005. Admin. Sci. Quart. 55(3):439–471.CrossrefGoogle Scholar
  • Negro G , Leung MD (2013) “Actual” and perceptual effects of category spanning. Organ. Sci. 24(3):684–696.LinkGoogle Scholar
  • Negro G , Koçak Ö , Hsu G (2010) Research on categories in the sociology of organizations. Res. Sociol. Organ. 31:3–35.CrossrefGoogle Scholar
  • Paruchuri S , Misangyi VF (2015) Investor perceptions of financial misconduct: The heterogeneous contamination of bystander firms. Acad. Management J. 58(1):169–194.CrossrefGoogle Scholar
  • Phillips DJ , Zuckerman EW (2001) Middle-status conformity: Theoretical restatement and empirical demonstration in two markets. Amer. J. Sociol. 10(2):379–429.CrossrefGoogle Scholar
  • Piazza A , Jourdan J (2018) When the dust settles: The consequences of scandals for organizational competition. Acad. Management J. 61(1):165–190.CrossrefGoogle Scholar
  • Piazza A , Perretti F (2015) Categorical stigma and firm disengagement: Nuclear power generation in the United States, 1970–2000. Organ. Sci. 26(3):724–742.LinkGoogle Scholar
  • Podolny JM (2001) Networks as the pipes and prisms of the market. Amer. J. Sociol. 107(1):33–60.CrossrefGoogle Scholar
  • Pontikes EG (2012) Two sides of the same coin: How ambiguous classification affects multiple audiences’ evaluations. Admin. Sci. Quart. 57(1):81–118.CrossrefGoogle Scholar
  • Pontikes EG (2018) Category strategy for firm advantage. Strategy Sci. 3(4):620–631.LinkGoogle Scholar
  • Pontikes EG , Negro N , Rao H (2010) Stained red: A study of stigma by association with blacklisted artists during the “red scare” in Hollywood, 1945–1960. Amer. Sociol. Rev. 75(3):456–478.CrossrefGoogle Scholar
  • Porac JF , Thomas H , Wilson F , Paton D , Kanfer A (1995) Rivalry and the industry model of Scottish knitwear producers. Admin. Sci. Quart. 40(2):203–227.CrossrefGoogle Scholar
  • Rao H , Monin P , Durand R (2005) Border crossing: Bricolage and the erosion of categorical boundaries in French gastronomy. Amer. Sociol. Rev. 70(6):968–991.CrossrefGoogle Scholar
  • Roper Center (2002) Social capital benchmark survey, restricted use version 3. Accessed May 2, 2016, https://ropercenter.cornell.edu/featured-collections/2000-social-capital-community-benchmark-survey.Google Scholar
  • Ruef M , Patterson K (2009) Credit and classification: The impact of industry boundaries in nineteenth-century America. Admin. Sci. Quart. 54(3):486–520.CrossrefGoogle Scholar
  • Schneiberg M (2010) Toward an organizationally diverse American capitalism-cooperative, mutual, and local, state-owned enterprise. Seattle University Law Rev. 34:1409–1434.Google Scholar
  • Schneiberg M , King M , Smith T (2008) Social movements and organizational form: Cooperative alternatives to corporations in the American insurance, dairy, and grain industries. Amer. Sociol. Rev. 73(4):635–667.CrossrefGoogle Scholar
  • Scott WR (2003) Organizations: Rational, Natural, and Open Systems (Prentice Hall, Upper Saddle River, NJ).Google Scholar
  • Seamans RC (2012) Fighting city hall: Entry deterrence and technology upgrades in cable TV markets. Management Sci. 58(3):461–475.LinkGoogle Scholar
  • Sharkey AJ (2014) Categories and organizational status: The role of industry status in the response to organizational deviance. Amer. J. Sociol. 119(5):1380–1433.CrossrefGoogle Scholar
  • Simons T , Ingram P (1997) Organization and ideology: Kibbutzim and hired labor, 1951–1965. Admin. Sci. Quart. 42(4):784–813.CrossrefGoogle Scholar
  • Simons T , Ingram P (2003) Enemies of the state: The interdependence of institutional forms and the ecology of the Kibbutz, 1910–1997. Admin. Sci. Quart. 48(4):592–621.CrossrefGoogle Scholar
  • Sine WD , David RJ (2003) Environmental jolts, institutional change, and the creation of entrepreneurial opportunity in the US electric power industry. Res. Policy 32(2):185–207.CrossrefGoogle Scholar
  • Smith EB (2011) Identities as lenses: How organizational identity affects audiences’ evaluation of organizational performance. Admin. Sci. Quart. 56(1):61–94.CrossrefGoogle Scholar
  • Strang D , Soule SA (1998) Diffusion in organizations and social movements: From hybrid corn to poison pills. Annual Rev. Sociol. 24:265–290.CrossrefGoogle Scholar
  • Suchman MC (1995) Managing legitimacy: Strategic and institutional approaches. Acad. Management Rev. 20(3):571–610.CrossrefGoogle Scholar
  • Vergne JP (2012) Stigmatized categories and public disapproval of organizations: A mixed-methods study of the global arms industry, 1996–2007. Acad. Management J. 55(5):1027–1052.CrossrefGoogle Scholar
  • Vergne JP, Wry T (2014) Categorizing categorization research: Review, integration, and future directions. J. Management Stud. 51(1):56–94. Google Scholar
  • Waters M (1989) Collegiality, bureaucratization, and professionalization: A Weberian analysis. Amer. J. Sociol. 94(5):945–972.CrossrefGoogle Scholar
  • Weber M (1978) Economy and Society: An Outline of Interpretive Sociology (University of California Press, Oakland, CA).Google Scholar
  • Westphal JD , Gulati R , Shortell SM (1997) Customization or conformity? An institutional and network perspective on the content and consequences of TQM adoption. Admin. Sci. Quart. 42(2):366–394.CrossrefGoogle Scholar
  • Yu T , Sengul M , Lester RH (2008) Misery loves company: The spread of negative impacts resulting from an organizational crisis. Acad. Management Rev. 33(2):452–472.CrossrefGoogle Scholar
  • Yue LQ (2015) Community constraints on the efficacy of elite mobilization: The issuance of currency substitutes during the panic of 1907. Amer. J. Sociol. 120(6):1690–1735.CrossrefGoogle Scholar
  • Yue LQ , Luo J , Ingram P (2013) The failure of private regulation: Elite control and market crises in the Manhattan banking industry. Admin. Sci. Q. 58(1):37–68.CrossrefGoogle Scholar
  • Zavyalova A , Pfarrer MD , Reger RK , Shapiro DL (2012) Managing the message: The effects of firm actions and industry spillovers on media coverage following wrongdoing. Acad. Management J. 55(5):1079–1101.CrossrefGoogle Scholar
  • Zhao EY , Fisher G , Lounsbury M , Miller D (2017) Optimal distinctiveness: Broadening the interface between institutional theory and strategic management. Strategic Management J. 38(1):93–113.CrossrefGoogle Scholar
  • Zuckerman EW (1999) The categorical imperative: Securities analysts and the illegitimacy discount. Amer. J. Sociol. 104(5):1398–1438.CrossrefGoogle Scholar
  • Zuckerman E (2016) Optimal distinctiveness revisited: An integrative framework for understanding the balance between differentiation and conformity in individual and organizational identities. Pratt MG, Schultz M, Ashforth BE, Ravasi D, eds. The Oxford Handbook of Organizational Identity (Oxford University Press, Oxford, UK), 183–199.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.