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They make investigating topics manageable by allowing researchers to delimit their work to certain taxa or types (e.g., of artifacts or firms) and provide a basis for generalization. Opposed to theoretically grounded typologies, taxonomies are empirically derived from entities of a phenomenon and therefore have several advantages, such as more detailed and exhaustive coverage. Initial guidelines for developing taxonomies in business have been proposed; however, research is still missing a clear set of applicable procedures to empirically build taxonomies. We tackle this topic by suggesting an inductive approach based on the procedures of content and cluster analysis. 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