Toward a Strategic Perspective on Categorization

Abstract

Existing research believes that the categorization process is exogenous, and penalties arise when organizations attempt to straddle categories. However, category spanners are widely seen in modern society, implying that unidentified mechanisms may trigger organizations to cross category boundaries. I hence argue that the categorization process is endogenous to organizations to some extent, and internal organizational agents play an important role in shaping the category domain the focal organization claims in. Using a large dataset from online film databases, I study the categorization of feature films in North America. I find that the team- and personal- level attributes of a film crew, including the producer, director, and casts, deeply affect the genre labels the focal film will receive from audiences. In addition, the extent to which the film crew interferes in the categorization process ultimately affects the box office gross of the focal film. My research advances category research by framing categorization as a producer-centric, rather than an audience-centric, process, and recognizing the role of organizational agents in product categorization.