ORGANIZATIONAL RESOURCE BUNDLES AND INSTITUTIONAL CHANGE IN THE U.S. ORGANIC FOOD AND AGRICULTURAL CERTIFICATION SECTOR

This analysis explores the competitive implications of new institutional standards within the organic certification industry based on a theoretical perspective that integrates institutional and resource-based theories. The authors provide a historical account of the development of certification standards and discussions of three certification agencies: Quality Assurance International (QAI), Oregon Tilth, Inc. (OTCO) and the Food Alliance (FA). They find that QAI incorporated the standards into its overall resource bundle. Conversely, the imposition of national standards seemed to diminish OTCO’s position by institutionalizing standards previously considered unique. Finally, FA focused on exceeding the expectations of the newly promulgated national standards. Thus, the development of national standards may serve as source of competitive advantage or constraint depending on the organization’s pre-existing resource bundles. In addition, the evolution of national standards may permit the emergence of a latent niche focused on exceeding the expectations of the new standards