New Wine in a New Bottle: A New Organizational Form and Change in Valuation of Category Spanning

Abstract

This study investigates how the theory of value in a market can evolve towards recognizing and rewarding category spanning. We suggest that a new organizational form in existing markets enables this process by creating a distinct identity that valorizes spanning, which problematizes the existing theory of value and encourages audiences to have positive experiences with spanning. We argue that the prevalence of the new organizational form, then, shifts audiences' theory of value to appreciate hybridity and ultimately drives a change in evaluations of category spanners of the established form. Using the rise of gourmet food trucks in the U.S. restaurant industry as our context, we find an increase in returns to spanning by conventional restaurants over time and with the increase of gourmet food trucks in a focal city. This study contributes to research on spanning and entrepreneurship by investigating how audience evaluations towards spanners are socially contingent and change over time, explicating a “categorical opportunity” for new organizational forms.