Patterns of competition: The diffusion of a market position in radio broadcasting

This study examines how existing organizations in an industry come to adopt a new market position in a differentiated market. I argue that the great uncertainty about the consequences of adopting a different market position does not lead to unchanging positions, as often assumed, but instead leads to mimetic adoption among organizations, as some organizations observe others adopting the new position. I test hypotheses developed from this argument in an event history analysis of the diffusion of a new music radio format, Results show that low organizational inertia, caused by events such as a recent ownership or format change, strongly increases the likelihood of, adoption, while social proximity to prior adopters has a weaker effect. The results imply that organizational populations can become more diverse through this type of organizational change..