This study investigates the emergence of an elective community in the popular music industries context. The community examined is the fan community of the Grateful Dead band, one of the most profitable and influential bands in the 20th century. The popular music industries (comprising mainly of recording and touring industries) offer divergent organizational models and dynamics, thus providing a ripe context for the institutional entrepreneur (i.e. the band) to explore alternative ways of artistic expression and commercial viability. Unsatisfied with the existing institutions, the band activated their praxis to mobilize fans directly through a mailing list. The community emergence process started when the band established dyadic reciprocity and built trust with the fans through lowering ticket prices and ensuring a quality concert going experience. Next, the fans, taking upon the values of freedom and adventure, started touring with the band in self-organizing groups, forming an independent community. Finally, informal code of conduct and formal rules jointly developed by both maintained order as the community grew. Through an inductive theory-building process, this article identified a process model of community emergence based on institutional contradictions, praxis, reciprocity, shared values, and rule-setting.
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