A Review of Market Categorization Research: An Evolutionary Framework Across Perspectives and Stages

Abstract

Market categorization—the process of grouping organizations perceived as sharing core attributes and serving similar demand profiles—has become a central topic in management research, offering a theoretically rich and interdisciplinary domain of study. Scholars have examined how market categories form, develop, and decline, drawing from structural, strategic, and constructionist perspectives to explore their role in shaping firms, industries, and institutions. Despite substantial advancements, research on market categorization remains fragmented, leading to inconsistent conceptualizations, theoretical isolation, and a lack of cross-stage integration. Studies often focus on individual stages while neglecting their interconnections or apply discipline-specific lenses that limit theoretical synthesis and hinder the accumulation of knowledge. To address these gaps, we conducted a systematic review of 195 articles published between 1999 and 2024, synthesizing insights across stages and perspectives to develop an evolutionary framework of market categorization. Our analysis identifies three cross-perspective mechanisms—categories as constraints, enablers, and actor-shaped entities—that underpin categorization processes and explain their underlying dynamics. In addition, by conceptualizing transitions between categorization stages, we provide a unified foundation for future research. This evolutionary perspective clarifies the role of market categorization in shaping economic and organizational landscapes while bridging theoretical divides and guiding future empirical inquiry.