Identity narratives in the face of market competition: the emerging legal medical cannabis market in Canada

Abstract

As the medical cannabis industry in Canada moved from a single government producer to an open market model in 2014, this paper provides insight into how entrepreneurs from illegal medical cannabis dispensaries, as well as legal licensed producers, protect their position and reputation in this ‘emerging’ market. On the one hand, MCDs are illegal, niche-filling entities that have historically been ‘boxed out’ by the legal framework, trying to survive untouched by enforcement and supported by faithful clientele. Licensed producers (LPs), on the other hand, are new legal entities that follow a strict government regulated framework, and are essentially stepping on their illegal predecessor’s territory. This project draws on 63 in-depth qualitative interviews, when medical cannabis access transitioned to an open market model. In this context, we see that rather than attempts to construct a credible shared identity for legitimacy, the emphasis is on building a distinct identity narrative in the face of market competition. The emergence of legal cannabis markets and the future of cannabis legalization in Canada presents a fruitful avenue for continuing the study of both the micro and macro processes in emerging markets, organizations, and entrepreneurial activities.