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Playing cat and mouse : contests over regulatory categorization of dietary supplements in the U.S.

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Ozcan, P. and Gurses, K. (2018) Playing cat and mouse : contests over regulatory categorization of dietary supplements in the U.S. Academy of Management Journal, 61 (5). 1789-1820 . doi:10.5465/amj.2015.1221 ISSN 0001-4273.

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Official URL: https://doi.org/10.5465/amj.2015.1221

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Abstract

Regulatory categorization can be a matter of life and death to firms as it sets legal limitations to the production and sales of their product. In this paper, we set out to uncover this critical process, for which there is only anecdotal information in extant literature, by asking, how are regulatory categories determined through the strategies and interaction of firms, regulators and other category audiences? We use extensive archival data to examine how US dietary supplement makers first moved from drug to food category in 1976 and when faced resistance from the FDA, created an entirely new category in 1994, which fueled their explosive market growth since then. Our findings show that regulatory categorization is a contest between firms and the regulator, where firms try to disrupt unfavourable regulation by overpowering the regulator through hard power imposed by other state actors, which is achieved through pressure from another category audience, consumers, who are themselves won over through soft power. In uncovering this process, our findings contribute to extant literatures on institutional work and corporate political strategy, which have largely remained independent despite dealing with many of the same issues.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Warwick Business School > Strategy & International Business
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Dietary supplements industry -- Law and legislation -- United States
Journal or Publication Title: Academy of Management Journal
Publisher: Academy of Management
ISSN: 0001-4273
Official Date: 1 October 2018
Dates:
DateEvent
1 October 2018Published
24 October 2018Updated
27 November 2017Available
17 November 2017Accepted
Volume: 61
Number: 5
Page Range: 1789-1820
DOI: 10.5465/amj.2015.1221
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Date of first compliant deposit: 30 November 2017
Date of first compliant Open Access: 27 November 2018

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