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Illicit innovation and institutional folding: From purity to naturalness in the Bavarian brewing industry

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Abstract

We take an institutional perspective to examine how innovation thrives under conditions of resistance. Specifically, we conceive illicit innovation as a process of successive institutionalization of a new practice in the face of contrary law. In the German federal state of Bavaria, the global movement of craft-beer brewing collides with a regional jurisdiction that prohibits precisely these brewing practices and instead protects the traditional institution of purity-brewing (Reinheitsgebot). Grounded on an embedded qualitative case study of brewers and industry representatives, we build a theory of institutional folding of new norms and practices over established ones. This way, creative brewers have succeeded in legitimizing new practices of naturalness-brewing (Natürlichkeitsgebot). Whereas the legal resistance has stimulated brewers to create an original counter-institution, the illicit innovation has also begun to change the institutional context of the beer industry in Bavaria.

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... Such change is often difficult or impossible for the agents most interested in it, who usually have limited financial resources and political power (Hardy and Maguire 2008). For example, in recent work, Glückler and Eckhardt (2022) found that craft brewers in Bavaria lacked the resources and power to disrupt and change legally regulated institutions. The authors assert that this type of disruptive institutional work is unlikely in oligopolistic brewing markets, as found in Ontario. ...
... The authors assert that this type of disruptive institutional work is unlikely in oligopolistic brewing markets, as found in Ontario. Glückler and Eckhardt (2022) argue that the brewers they examined worked collectively to undermine local legislation limiting their businesses, concurrently folding a new institutional understanding overlaying the older regulation, creating a more favorable business environment. These findings offer an intriguing foundation for the primary research question this study aims to answer: (how) did Ontario craft brewers create new institutions and disrupt and replace existing regulatory institutions in their localized oligopolistic market? ...
... Nonetheless, the industry has a history of institutionalized practices such as open communication, inter-firm collaboration, and a unified front against macrobreweries. These practices created strong connections among the brewers, unlocking the potential for and facilitating the collective institutional work that realized changes in provincial regulations of the type Glückler and Eckhardt (2022) suggest is unlikely in an oligopolistic beer market. ...
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This paper explores how Ontario’s craft brewers created new as well as disrupted and changed existing institutions at local and regional levels in the province’s beer industry. Using a relational economic geography framework and a markets-as-practices perspective, this study highlights the brewer’s collaborative and pro-social practices, showing how close inter-firm relations and engagement with local communities resulted in resource mobilization such as better access to financial capital and greater social capital, which mobilized public support for the industry, and ultimately which helped individual and collective institutional work efforts succeed. The findings are significant as they show how actors in the industry overcame the constraints imposed on them in an oligopolistic market dominated by multinational firms. It also posits craft brewers acted individually at a local scale as institutional entrepreneurs, revisiting criticisms around this concept. This research contributes to understanding how localized market actors can achieve broader institutional change and offers insights into the relationship between market practices and institutional work, including entrepreneurship in craft industries.
... For instance, trafficking in human organs (illegal and socially illegitimate) differs significantly from trafficking in small amounts of marijuana (illegal in most countries but mostly legitimate). In particular, the latter intersections of "legitimate illegality" (Mayntz, 2017, p. 40) and underlying practices offer a valuable starting point for deeper inquiry, as, for example, legitimate practices can provide opportunities for innovation to take root in the face of conflicting laws (Glückler & Eckhardt, 2022) and manifest in rulecircumventing institutions (Glückler & Lenz, 2016). However, situations of clash between regulations and institutions raise the question of how these stable patterns of action and the underlying rules form, stabilize, and sustain themselves (Helmke & Levitsky, 2004). ...
... Grounded in extensive research in the social media of the German recreational fishing community, I summarize the findings and propose the concept of institutional signaling as a strategy to highlight one's commitment to a legitimate, but illegal institution. As such, the article i) adds to the social science knowledge of the case under study, because "[f]or too long, the considerable importance and impacts of recreational fisheries have been ignored" (Arlinghaus et al., 2019, p. 5209) ii) opens up a research perspective to gain a better understanding of practices outside the legal sphere (Hudson, 2014;Inverardi-Ferri, 2021), as "[e] conomic geographers have traditionally been reluctant to extend their analysis to illegal markets" (Hall et al., 2021, p. 283), and iii) sharpens the understanding of institutional dynamics and the interplay of institutions and regulations (Glückler & Eckhardt, 2022;Glückler & Lenz, 2016;Mena & Suddaby, 2016). The article proceeds as follows. ...
... Recent research underscores the value of distinguishing between legitimacy and legality as a starting point for further investigation. For example, Glückler & Eckhardt (2022) highlight the institutionalization of a legitimate practice despite conflicting legal provisions and theorize the legitimation strategies employed for an illegal innovation. Taking this into account, the conceptual distinction between these two dimensions allows to examine their different modes of relationship. ...
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Addressing the largely overlooked area of illegal action in geography, this study draws upon an institutional framework to examine how actors of legitimate institutions admit to their actions in the face of conflicting regulations. In recreational fishing, the practice of voluntary ‘catch and release’ (C&R) of fish collides with official regulations in most German federal states. Yet, despite the prohibition by law and the threat of criminal conviction, this is widely legitimized as a conservation practice. Grounded on extensive social media research and interpretive content analysis I qualitatively extract the underlying social practices that unite voluntary C&R anglers into a cohesive group. Building on these findings, I propose the strategy of institutional signaling as a means of encoding compliance with common expectations while avoiding explicit acknowledgment of unlawful behavior. In this way, the study sheds light on a relatively unexplored facet of our social fabric, where the realms of legitimacy and illegality intersect
... Institutional logics entail "criteria of legitimacy by which role identities, strategic behaviors, organizational forms and relationships between organizations are constructed and sustained" and are thus related to sense-making (Glückler and Eckhardt, 2022: p.609). In economic geography, how institutional logics contribute to legitimation has been analyzed, for example, in the green restructuring of tourism (Baekkelund, 2022), the (de)legitimation of competing water technologies (Fuenfschilling and Truffer, 2016), or different approaches to brewing (Glückler and Eckhardt, 2022). ...
... When working towards new paths, agents can rely on the legitimacy of established institutional logics and carry their meanings over to other institutional logics. This can involve "institutional folding" that includes delegitimizing one of the institutional logics (Glückler and Eckhardt, 2022) but not necessarily so. ...
... While the combination of multiple institutional logics is a well-known phenomenon (e.g., Baekkelund, 2022;Besharov and Smith, 2014;Lenz and Glückler, 2021;Pache and Santos, 2013;Tracey et al., 2011), interlinking addresses a specific case that includes the role of visions as symbolic constructions strategically employed by agents to legitimize new paths on the local and regional level (Benner, 2022a;Sotarauta, 2018;Steen, 2016). In contrast to blending (Glynn and Lounsbury, 2005) and folding (Glückler and Eckhardt, 2022), interlinking is not based on competition between institutional logics but on their complementarities. Hence, interlinking does not involve delegitimization of one logic (e.g., Fuenfschilling and Truffer, 2016;Glückler and Eckhardt, 2022) but is purely constructive. ...
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The legitimation of new regional industrial paths has become a crucial issue in path development since it touches the institutional foundations of spatial evolution and fits the recent interest in agency. Neo-institutional sociology offers a wealth of insights for how agents build legitimacy. In particular, the institutional logics perspective suggests multiple material and symbolic sources of legitimacy. Seeking a deeper contextualization of paths into their socio-institutional environment, this article argues that new paths are legitimized by agents interlinking institutional logics through symbolic constructions such as visions. Empirical examples from two tourism destinations in Israel illustrate this mechanism.
... Instead, we propose a geographical view and sketch elements of a research agenda that seeks to study the role of geographical and institutional variety in the unfolding of localized controversies and the success or failure of a novelty to experience acceptance and diffusion. As such, we emphasize the need for a geographical understanding of contested innovation processes and propose some first elements of an emerging analytical framework to study controversial innovation in economic geography (Glückler, 2014;Glückler & Eckhardt, 2022;Glückler & Panitz, 2014). ...
... Only by way of 'institutional folding' was it possible for craft brewing innovations to thrive, i.e. by layering new practices over traditional ones in ways that legitimized the new brewing techniques and, simultaneously, delegitimized existing institutions. This process not only helped craft-brewing innovations succeed in the face of controversy, but ultimately established the new creations as among the most innovative products worldwide (Glückler & Eckhardt, 2022). ...
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In this paper, we analyze the global controversy surrounding the innovation of cryptocurrencies, developing an analytical framework to assess the empirical structure of arguments. By unpacking an argumentation analysis of a comprehensive set of scholarly, media, and industry publications, we identify six key dimensions of disagreement, comprising 42 distinct arguments. These dimensions include the raison d’ˆetre, environmental impact, social inclusion, susceptibility to illegal activities, economic impact, and potential for decentralization and democratization. Our findings reveal entrenched positions supported by robust scholarly research and empirical evidence. Cryptocurrencies represent a controversial innovation, for which global resolution remains elusive. While the controversy may appear unbounded, we plead for a geographical approach, emphasizing that localized institutional contexts are crucial for exploring potential trajectories of the controversy. Finally, our analysis illustrates the potential of argumentation analysis to properly disentangle complex societal disagreements, and it therefore promises to enrich the methodological pluralism in economic geography.
... It involves a limited, yet critical number of ingredients and stages, allowing for an empirically comprehensive overview. The Bavarian beer industry combines a relevant set of global (Hána et al., 2020) and local interlinkages (Argent, 2018;Maier et al., 2020) and has a rich analytical tradition in economics (Gammelgaard and Dörrenbächer, 2013) and geography (Glückler and Eckhardt, 2021;Patterson, 2014). Small-and-medium-sized enterprises (SMEs) and large companies operate on two strong markets, the regional and the global ones. ...
... With an average output of approximately 25.5 million hectolitres per year, the Bavarian beer industry is the largest within Germany (26%), only closely followed by the state of North Rhine-Westphalia (Destatis, 2018). The Bavarian stages (subsequently referred to as the regional level) are prominent for a small-scaled market of high density, subordinate relevance of international competitors and particular regulatory settings (Glückler and Eckhardt, 2021). This economic strength rests at least partly on a traditional consumer awareness the production stages and identification with the product. ...
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Contemporary crises have stimulated a new political and scientific interest in economic power structures and regionalisation. In particular, this concerns the local-global nexus, a key argument within the Global Production Networks (GPN) literature. This addresses the question of how global governance concepts help us understand regional production networks within multiscale production processes, mostly linked to transnational corporations. We contribute to this question with a focus on value creation and governance structures beyond, or 'in the shade' of, the often-prevailing dominance of transnational lead firms. Here, we present an analysis of value creation and governance in the Bavarian beer sector, building on comprehensive statistical data and expert interviews. The interpretation is based on a visual value creation mapping. We draw on three analytical dimensions from the GPN debate: corporate, institutional and collective power. The analysis shows that the local level can be a hub for multi-layered dynamics in value creation and governance. We find strong local lead firms, which succeed in linking global dynamics and protecting local networks. In this process of segmentation some local firms build a strong regional network that is economically rather independent from larger firms. Institutional governance plays an important role, and regional assets such as education facilities or cultivation contexts come into play. Our results indicate that the 'local' might be a stronger part of the local-global nexus than often assumed.
... Acknowledging differences across innovation types, this emergent narrative examines various aspects, types and stages of innovation-some of which can work better in the periphery than the center. We identify at least three concepts characterizing the periphery as an environment conducive to innovation processes: local knowledge idiosyncrasy (Glückler, 2014;Shearmur, 2015), controversial innovation (Glückler, 2014;Glückler and Eckhardt, 2022) and the periphery as frontier (Frieman, 2021). ...
... He suggests that some innovation in the geographic periphery occurs in the C-P position, that is, some establishments in this periphery entertain strategic connections with outside interlocutors (see also Grillitsch and Nilsson, 2015); and some in the P-P position, that is, some establishments located in peripheral places essentially rely on local knowledge specific to peripheral network positions. Other research has shown that the C-P position can be important for 'controversial' innovation (Krackhardt, 1997;Glückler, 2014) and illicit inovation (Glückler and Eckhardt, 2022), that is, innovation that overcomes or circumvents resistance because the geographic periphery sufficiently disconnects innovators from a resistant majority and from the pressure to conform that can emerge in C-C locations. ...
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The continued emphasis on innovation in urban and clustered settings has led many geographers to conceive peripheries as laggard and non-innovative. After reconstructing discussions of the periphery in the context of the geography of firm-level innovation, we argue that normative connotations should be stripped away, and that 'periphery' and 'center' are better understood as positions in a field. We draw upon concepts current in network theory and propose a relational definition of periphery as a distant, dispersed and disconnected position relative to a core within a field. A key distinction is made between the position of an actor in geographical space (location) and the position of an actor in a social network of relations. Combining geographic and network dimensions of an actor's position, our aim in this article is to propose a dual core-periphery framework which provides the vocabulary and concepts to empirically scrutinize the role of periphery in innovation processes. Although we focus on the geography of innovation, this framework can be applied more broadly to discussions of peripherality.
... These different strands of literature have created important insights into the knowledge dynamics that condition regional industrial path development, but thus far conceptualized the institutional structures and dynamics that influence new industry emergence only to a limited extent (e.g., Glückler and Eckhardt, 2021). Much thus remains to be researched when it comes to the complex (de-)institutionalization, legitimation and system (re)configuration processes that go hand in hand with new industry emergence in regions. ...
... Arguably, the three perspectives outlined above provide highly complementary insights to understanding industry emergence in space. Apart from a few exceptions (Benner, 2021;Gong and Hassink, 2019a;Glückler and Eckhardt, 2021), they have directed relatively limited attention to the institutional structures and dynamics that influence new industry emergence. In the remainder we will thus try to combine generic insights from these three lines of thinking into a meta-level framework that will allow us to capture the institutional dynamics and to position (de-)institutionalization, legitimation and system building dynamics around emerging industries in a guiding heuristic (Figure 1). ...
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Objective: To explore patterns of cannabis use for medical purposes in Australia immediately prior to the 2016 legislation for frameworks for medical cannabis use.Design, setting: Anonymous online survey with convenience sample, April-October 2016. Participants were recruited through online media and at professional and consumer forums. Participants: Adults (at least 18 years of age) who reported using a cannabis product for self-identified medical or therapeutic reasons during the preceding 12 months. Main outcome measures: Consumer characteristics; indications and patterns of medical cannabis use; perceived benefits and harms; views on appropriate availability of medical cannabis. Results: Most of the 1748 participants were men (68.1%) and employed (56.6%), with a mean age of 37.9 years (SD, 13.4 years) and mean reported period of medical cannabis use of 9.8 years (SD, 12.5 years). The most frequent reasons for medical cannabis use were anxiety (50.7%), back pain (50.0%), depression (49.3%), and sleep problems (43.5%). Respondents had used medical cannabis on a mean of 19.9 of the previous 28 days (SD, 10.0 days), spending a mean 68.60(SD,68.60 (SD, 85.00) per week, and 83.4% had inhaled the substance. Participants reported high levels of clinical effectiveness and frequent side effects, including drowsiness, ocular irritation, lethargy and memory impairment; 17% met DSM-5 criteria for moderate or severe cannabis use disorder. Many reported harms or concerns related to the illicit status of cannabis. Participants believed that medical cannabis should be integrated into mainstream health care, and that products should be required to meet consistency and safety standards. Conclusion: Illicitly sourced cannabis is used to treat a broad range of medical conditions in Australia. Future models of prescribed medical cannabis take consumer patterns of use and demand into consideration.
Book
This book can be downloaded free-of-charge using the following link: https://link.springer.com/book/10.1007%2F978-3-319-75328-7 This open access book bridges the disciplinary boundaries within the social sciences to explore the role of social institutions in shaping geographical contexts, and in creating new knowledge. It includes theorizations as well as original empirical case studies on the emergence, maintenance and change of institutions as well as on their constraining and enabling effects on innovation, entrepreneurship, art and cultural heritage, often at regional scales across Europe and North America. Rooted in the disciplines of management and organization studies, sociology, geography, political science, and economics the contributors all take comprehensive approaches to carve out the specific contextuality of institutions as well as their impact on societal outcomes. Not only does this book offer detailed insights into current debates in institutional theory, it also provides background for scholars, students, and professionals at the intersection between regional development, policy-making, and regulation.
Article
In this article, we argue that in addition to facilitating organizational learning and specialization, an industry cluster related to tradition or to the practice of a craft influences audience expectations through the definition of the prototypical features that define an organizational form. Analyzing the population of northern Bavarian (Franconian) breweries, we show that compliance with a prototype involves multiple dimensions and depends on an organization’s location in geographic space with reference to the center of the industry cluster. Using qualitative interviews, archival data, and a survey of consumers, we provide evidence that as distance from the cluster center increases, organizations are more likely to deviate from the prototype and suffer fewer of the negative consequences that result from such deviations.
Article
In 1937, the United States of America criminalized the use of cannabis and as a result its use decreased rapidly. In recent decades, there is a growing interest in the wide range of medical uses of cannabis and its constituents; however, the laws and regulations are substantially different between countries. Laws differentiate between raw herbal cannabis, cannabis extracts, and cannabinoid-based medicines. Both the European Medicines Agency (EMA) and the United States Food and Drug Administration (FDA) do not approve the use of herbal cannabis or its extracts. The FDA approved several cannabinoid-based medicines, so did 23 European countries and Canada. However, only four of the reviewed countries have fully authorized the medical use of herbal cannabis - Canada, Germany, Israel and the Netherlands, together with more than 50% of the states in the United States. Most of the regulators allow the physicians to decide what specific indications they will prescribe cannabis for, but some regulators dictate only specific indications. The aim of this article is to review the current (as of November 2017) regulations of medical cannabis use in Europe and North America.
Chapter
This chapter explores the interrelations between institutions, defined as stabilized interaction patterns, and innovation, since successful innovation rests on the design of institutional contexts and since inconsistent institutional contexts constrain or even impede successful innovation. Such situations require processes of adjusting innovations to the institutional context (robust design), circumventing resistant institutional contexts (peripheral dominance), or creating new institutional contexts that fit the innovation process (institutional entrepreneurship). The chapter criticizes studies that focus on formal legislation and regulation as indicators of national institutional variety, while neglecting institutional practices and how these also differ at the sub-national level. From a relational perspective, supportive innovation policies need to respond to geographically and temporally varying institutional contexts even within a single legal and regulatory regime. It is argued that policy needs to understand the interrelationships between institutional practices and innovation, rather than viewing rules and regulations as determinants of innovation outcomes.
Article
The craft beer industry is one of the most innovative industries in America. Craft brewers blend tradition, regional tastes, and artistry to make some of the best beers in the world. Against all odds, the craft brewing business has boomed in an outmoded and ill-fitting regulatory environment. As more countries - and multinational brewers - follow in the footsteps of American craft brewers by cultivating their own fledgling markets, the fragile international dominance of our industry is threatened by our own stifling rules. This Comment proposes two methods that state and federal governments can use to spur competition and thus innovation. First, the federal excise tax should match the size of the brewer. Tax rates must be reduced to lower a significant barrier to entry for the smallest brewers. Second, all states should allow brewpubs to operate with direct sales and reasonable barrelage limits. Barrelage limits threaten growth without furthering a legitimate regulatory purpose. These two small changes in federal and state law will lower barriers to entry, improve the odds of success for existing craft brewers, and create more competition - innovation follows. Importantly, for the regulators and legislators, these changes can coexist harmoniously with the current, post-Prohibition moral framework.
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Against the backdrop of an explosion of interest in new techniques for data collection and theory testing, this volume provides a fresh programmatic statement about comparative-historical analysis. It examines the advances and distinctive contributions that CHA has made to theory generation and the explanation of large-scale outcomes that newer approaches often regard as empirically intractable. An introductory essay locates the sources of CHA's enduring influence in core characteristics that distinguish this approach, such as its attention to process and its commitment to empirically grounded, deep case-based research. Subsequent chapters explore broad research programs inspired by CHA work, new analytic tools for studying temporal processes and institutional dynamics, and recent methodological tools for analyzing sequences and for combining CHA work with other approaches. This volume is essential reading for scholars seeking to learn about the sources of CHA's enduring influence and its contemporary analytical and methodological techniques.
Chapter
Qualitative Content Analysis designates a bundle of text analysis procedures integrating qualitative and quantitative steps of analysis, which makes it an approach of mixed methods. This contribution defines it with a background of quantitative content analysis and compares it with other social science text analysis approaches (e.g. Grounded Theory). The basic theoretical and methodological assumptions are elaborated: reference to a communication model, rule orientation of analysis, theoretical background of those content analytical rules, categories in the center of the procedure, necessity of pilot testing of categories and rules, necessity of intra- and inter-coder reliability checks. Then the two main procedures, inductive category formation and deductive category assignment, are described by step models. Finally the procedures are compared with similar techniques (e.g. codebook analysis) and strengths and weaknesses are discussed.
Article
Intensive water and energy use, copious volumes of wastewater and solid waste, and large carbon footprints make the process of brewing and distributing beer a not-so-(environmentally)-friendly industry. However, the rise of craft breweries and their perceived foci on environmental, economic and/or social sustainability trends have promulgated a greening in the beer industry at local to global scales. To assess the geographies of sustainability in the craft beer industry, we distributed a mixed method survey to all regional craft breweries in the United States. Overall, more sustainable practices have been adopted at various levels of the craft beer production, including the reduction of water and energy use and increased energy efficiency, the use of organic or local ingredients, and the incorporation of a culture that promotes sustainability. These and related findings showcase certain sustainability trends and practices being adopted by regional craft breweries in the United States. © 2014 Springer Science+Business Media Dordrecht. All rights are reserved.
Chapter
This chapter traces the spatial diffusion of beer from the Fertile Crescent region and on to Egypt, then throughout Europe via the Roman conquest. The importance of Catholic monasteries to the development of beer culture in Europe during the Middle Ages is reviewed, along with the rise of commercial brewing and the decline of monastic brewing in early modern Europe. This chapter also discuss the dissemination of beer culture to Colonial America and later in the United States. Topics discussed include the role of German immigrants in the development of nineteenth century beer industry. Twentieth Century topics discussed include prohibition, post-World War II mass production and consolidation, and the rise of microbreweries. © 2014 Springer Science+Business Media Dordrecht. All rights are reserved.
Article
A unique contribution of institutional theory is the insight that organizations need legitimacy as well as technical efficiency to survive and thrive in their environments (DiMaggio & Powell, 1983; Meyer & Rowan, 1977). The institutionalized norms, practices, and logics which structure organizational fields exert isomorphic pressures, forming an “iron cage” which constrains organizational actions. Organizations are seen as legitimate when they conform to field structures and operate within the iron cage (DiMaggio & Powell, 1983). Much work in institutional theory has focused on the diffusion of institutional structures and the forces which support institutional isomorphism. Yet not all institutional environments are highly institutionalized, and not all actors are equally constrained by institutional arrangements. A great deal of work in the last two decades has shown that institutional entrepreneurs may arise to question institutional arrangements (DiMaggio, 1988), resisting them strategically (Oliver, 1991; Ang & Cummings, 1997), disrupting and deinstitutionalizing them (Ahmadjian & Robinson, 2001; Oliver, 1992), and reconstructing them to suit the desires of different actors (Anand & Peterson, 2000; Hargadon & Douglas, 2001; Zilber, 2002). Much of the prior work on institutional entrepreneurship has tended to focus retrospectively on the path of a single institutional innovation as it gained support in an emerging or existing field, often displacing an existing set of institutional arrangements (e.g. Greenwood, Suddaby & Hinings, 2002; Maguire, Hardy & Lawrence, 2004; Munir, 2005). Throughout this work, competing or independently evolving innovations which may also have been candidates for institutionalization are generally not discussed.
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IntroductionPurpose of FiltrationTheoretical Considerations of Cake FiltrationFiltration TechniquesVariables Influencing Beer FiltrationBeer StabilizationTechnical Design of a Filtration and Stabilization PlantReferences
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Brewing YeastYeast ManagementReferences
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Alcohol-Free BeersDietetic Beer‘Nährbier’ and ‘Malzbier’ (‘Malztrunk’)XAN™ Wheat BeerGluten-Free BeerBrewing with High Original WortAle and Cask-Conditioned AleLambic, Gueuze and Fruit LambicBerliner WeissePorterSummaryReferences
Article
This study unpacks the construct of theorization – the process by which organizational ideas become delocalized and abstracted into theoretical models to support their diffusion across time and space. We adopt an institutional work lens to analyze the key components of theorization in contexts where institutional work is in transition from changing institutions to maintaining them. We build on a longitudinal inductive study of theorization by the Fair Labor Association, a private regulatory initiative which created and then enforced a code of conduct for working conditions in apparel factories. Our study reveals that when institutional work shifts from changing to maintaining an institutional arrangement of corporate social responsibility, there is a key change in how the Fair Labor Association theorizes roles and practices related to this arrangement. We observe that theorization on key practices largely remain intact, whereas the roles of different actors are theorized in a dramatically different manner. Our findings contribute to a better understanding of the work involved in the aftermath of radical change by demonstrating the relative plasticity of roles over the rigidity of practices.
Article
The research reported here explores how institutional practices change over time in an interorganizational field, in the historical context of the U.S. radio broadcasting industry. It identifies three endogenous mechanisms of change: analogies that are used to make sense of and manage new phenomena, private agreements between identifiable parties, and conventions, the practices adopted by some constituents to solve coordination problems. The use of each mechanism is associated with the nature of the goods transacted within a field and triggers change in established practices as actors attempt to realize value from their transactions. After describing each mechanism as found in the radio broadcasting industry, we focus our historical analysis on conventions. It reveals that conventions were introduced into the broadcasting field by fringe players to deal with shifting coordination problems and competitive pressures. Once they were adopted by the central players, these conventions transformed the organization of the industry by changing the basis of transactions and became its new institutional practices. We conclude that the organization of a field is not permanent, but is contingent upon institutionalized definitions of what is being transacted.
Article
The functional view of deviancy, which emphasizes rejection of the norms of a social system and the conflict between means and ends, is brought under question because it imputes "ends" to a system. An alternative perspective is presented, advancing the conception that norms are rules that express the nature of social transactions in an organization and are established under a historically specific systems of authority. Under this conception, "deviant" actions do not necessarily imply a rejection of the ends of a total system, but are simply part of the totality of individual transactions in an organization. Thus deviant behavior is the consequent of a plurality of ends as well as the consequent of the conflict between means and ends. The functions of the violation of one specific rule of workmanship in one organization are treated in detail to illustrate the inapplicability of the functional model of deviancy and the viability of other perspectives.
Article
In the West are the 'haves', while much of the rest of the world are the 'have-nots'. The extent of inequality today is unprecedented. Drawing on an extraordinary range of contemporary and historical examples, Why Nations Fail looks at the root of the problems facing some nations. Economists and scientists have offered useful insights into the reasons for certain aspects of poverty, such as Jeffrey Sachs (it's geography and the weather), and Jared Diamond (it's technology and species). But most theories ignore the incentives and institutions that populations need to invest and prosper: they need to know that if they work hard, they can make money and actually keep it - and the key to ensuring these incentives is sound institutions. Incentives and institutions are what separate the have and have-nots. Based on fifteen years of research, and stepping boldly into the territory of Ian Morris's Why the West Rules - For Now, Daron Acemoglu and James Robinson blend economics, politics, history and current affairs to provide a new, persuasive way of understanding wealth and poverty. And, perhaps most importantly, they provide a pragmatic basis for the hope that those mired in poverty can be placed on the path to prosperity.
Chapter
The performance and composition of the U.S. brewing industry have changed dramatically over the past three decades. More specifically, the industry has experienced contradictory shifts in both aggregate production volume and number of firms. While aggregate beer production in the US has increased modestly, per capita beer production has decreased steadily since the early 1980s, dropping 26∈% from a record 26.2 barrels per person in 1981 to a low of 19.5 barrels per person in 2011. However, the number of brewing establishments increased substantially during the same period, expanding from 48 breweries in 1981 to nearly 1,700 by 2011-a 3,500∈% increase. So what explains this counterintuitive story? And how has this story manifested itself over space? This chapter seeks to answer these questions by analyzing the economic geography of the U.S. craft brewing industry. Specifically, our empirical approach consists of three exercises. First, we examine the temporal changes in the aggregate production volume and the total number of brewing establishments for each state. Second, we examine state-level variation in total beer production, total craft-beer production, percent craft beer production, and per-capita craft beer production. And last, we map the precise location of craft beer establishments to show the spatial and temporal distribution of active craft breweries in the US. Our results are three-fold. First, we find the change in total brewing establishments and total beer production has manifested itself rather unevenly over space. Second, we find that craft-beer production at the state level has also increased in a spatially uneven manner, as the largest production still occurs in the states with a history of high beer production. Last, and in contrast to our first two exercises, we find that within states, the location of active craft-brewing establishments have spread from major urban centers in the 1980s to many non-urban locations by 2011. We conclude that although growth in the craft-brewing sector will continue to be highest in areas with already high levels of brewing activity, there will be significant growth in regions that currently have few brewing establishments. © 2014 Springer Science+Business Media Dordrecht. All rights are reserved.
Article
This paper conceptualizes standardization as institutional work to study the emergence of a standard and the deployment of its regulatory power. We rely on unique access to longitudinal archival data for exploring how the FTSE4Good index, a responsible investment index, emerged as a standard for socially responsible corporate behavior. Our results show how three types of standardization work - calculative framing, engaging and valorizing - support the design, legitimation and monitoring processes whereby a standard acquires its regulatory power. Our findings reveal new facets in the dynamics of standardization by approaching standardization as a product of institutional work and in showing how unintended consequences of that work can be recaptured to strengthen the regulatory power of the standard.
Article
This study examines the role of professional associations in a changing, highly institutionalized organizational field and suggests that they play a significant role in legitimating change. A model of institutional change is outlined, of which a key stage is "theorization," the process whereby organizational failings are conceptualized and linked to potential solutions. Regulatory agencies, such as professional associations, play an important role in theorizing change, endorsing local innovations and shaping their diffusion.
Article
The global beer industry has transformed dramatically in recent decades. Two key trends include 1) consolidation resulting from mergers, acquisitions and joint ventures, and 2) the largest firms expanding into new regions. While beer was previously a very local product, these trends have combined to result in approximately half of global sales being controlled by just four firms: AB InBev, SABMiller, Heineken, and Carlsberg. Notably, these top four companies are all headquartered in Western Europe. The primary products of the largest firms are pale lagers, with ales and numerous other potential beer varieties produced only in much smaller quantities, if at all. Why are these changes occurring now? Many other industries, including soft drinks, have seen a small number of companies achieve global dominance earlier than the beer industry. Recent policy and technological changes, however, have eroded many barriers to consolidation and geographic expansion for beer firms. They have enabled the largest firms to exert more political and economic power, and to move closer to the endgame of a global monopoly. These trends are not inevitable, however, and are countered by 1) the rise of specialty brewers and their much more diverse selection of beer varieties, and 2) cultural barriers to the global branding and marketing of beer.
Article
Argues that the formal structure of many organizations in post-industrial society dramatically reflect the myths of their institutional environment instead of the demands of their work activities. The authors review prevailing theories of the origins of formal structures and the main problem which those theories confront -- namely, that their assumption that successful coordination and control of activity are responsible for the rise of modern formal organization is not substantiated by empirical evidence. Rather, there is a great gap between the formal structure and the informal practices that govern actual work activities. The authors present an alternative source for formal structures by suggesting that myths embedded in the institutional environment help to explain the adoption of formal structures. Earlier sources understood bureaucratization as emanating from the rationalization of the workplace. Nevertheless, the observation that some formal practices are not followed in favor of other unofficial ones indicates that not all formal structures advance efficiency as a rationalized system would require. Therefore another source of legitimacy is required. This is found in conforming the organization's structure to that of the powerful myths that institutionalized products, services, techniques, policies, and programs become. (CAR)