ABSTRACT
In this chapter we draw upon institutional theory to explore the dynamics of market creation. Empirically, we investigate the creation of Indian mobile payments market and the dynamic interaction between macro and micro actors in creation of this market. Our findings suggest that an important aspect of market creation is the contradiction between institutional logics championed by different macro actors. The emergence of Indian mobile payments market involved contradiction between institutional logic of security and inclusiveness championed respectively by banking and telecom companies. The other actors such as regulators and consumers had to perform active institutional work in order to resolve these contradictions. The present study further sheds light on the dynamic interaction between firms and consumers in market creations. Our findings suggest that feedback from micro actors such as consumers and retailers played an important role in emergence of Indian mobile payments market.
