Showing papers in "Academy of Management Review in 1996"
TL;DR: In this article, a contingency framework for investigating the relationship between entrepreneurial orientation and firm performance is proposed. But the authors focus on the business domain and do not consider the economic domain.
Abstract: The primary purpose of this article is to clarify the nature of the entrepreneurial orientation (EO) construct and to propose a contingency framework for investigating the relationship between EO and firm performance. We first explore and refine the dimensions of EO and discuss the usefulness of viewing a firm's EO as a multidimensional construct. Then, drawing on examples from the EO-related contingencies literature, we suggest alternative models (moderating effects, mediating effects, independent effects, interaction effects) for testing the EO-performance relationship.
8,623 citations
TL;DR: This article reviewed and evaluated recent management research on the effects of different types of diversity in group composition at various organizational levels (i.e., boards of directors, top management groups, and organizational task groups) for evidence of common patterns.
Abstract: In this article, we review and evaluate recent management research on the effects of different types of diversity in group composition at various organizational levels (i.e., boards of directors, top management groups, and organizational task groups) for evidence of common patterns. We argue that diversity in the composition of organizational groups affects outcomes such as turnover and performance through its impact on affective, cognitive, communication, and symbolic processes.
3,053 citations
TL;DR: In this article, the authors set out a framework for understanding organizational changes from the perspective of neo-institutional theory and examined the processes by which individual organizations retain, adopt, and discard templates for organizing, given the institutionalized nature of organizational fields.
Abstract: The complexity of political, regulatory, and technological changes confronting most organizations has made radical organizational change and adaptation a central research issue. This article sets out a framework for understanding organizational changes from the perspective of neo-institutional theory. The principal theoretical issue addressed in the article is the interaction of organizational context and organizational action. The article examines the processes by which individual organizations retain, adopt, and discard templates for organizing, given the institutionalized nature of organizational fields.
3,052 citations
TL;DR: In this article, the authors argue that TCE is "bad for practice" because it fails to recognize the difference between a market and an organization, and identify some of the sources of the organizational advantage.
Abstract: Transaction cost economics (TCE), and more specifically the version of TCE that has been developed by Oliver Williamson (1975, 1985, 1993b), has become an increasingly important anchor for the analysis of a wide range of strategic and organizational issues of considerable importance to firms. As argued by some of its key proponents, the theory aims not only to explain but also to influence practice (Masten, 1993). In this article, we argue that prescriptions drawn from this theory are likely to be not only wrong but also dangerous for corporate managers because of the assumptions and logic on which it is grounded. Organizations are not mere substitutes for structuring efficient transactions when markets fail; they possess unique advantages for governing certain kinds of economic activities through a logic that is very different from that of a market. TCE is “bad for practice” because it fails to recognize this difference. We identify some of the sources of the “organizational advantage” and argue for the ...
2,153 citations
TL;DR: In this article, the authors conceptualized the emotional labor construct in terms of four dimensions: frequency of appropriate emotional display, attentiveness to required display rules, variety of emotions to be displayed, and emotional dissonance generated by having to express organizationally desired emotions not genuinely felt.
Abstract: This article conceptualizes the emotional labor construct in terms of four dimensions: frequency of appropriate emotional display, attentiveness to required display rules, variety of emotions to be displayed, and emotional dissonance generated by having to express organizationally desired emotions not genuinely felt. Through this framework, the article then presents a series of propositions about the organizational-, job-, and individual-level characteristics that are antecedents of each of these four dimensions. Frequency of emotional display, attentiveness to display rules, variety of emotions to be displayed, and emotional dissonance are hypothesized to lead to greater emotional exhaustion, but only emotional dissonance is hypothesized to lead to lower job satisfaction. Implications for future theory development and empirical research on emotional labor are discussed as well.
2,139 citations
TL;DR: In this article, the authors suggest that implementation effectiveness is a function of the strength of an organization's climate for the implementation of an innovation and the fit of that innovation to targeted users' values.
Abstract: Implementation is the process of gaining targeted organizational members' appropriate and committed use of an innovation. Our model suggests that implementation effectiveness—the consistency and quality of targeted organizational members' use of an innovation—is a function of (a) the strength of an organization's climate for the implementation of that innovation and (b) the fit of that innovation to targeted users' values. The model specifies a range of implementation outcomes (including resistance, avoidance, compliance, and commitment); highlights the equifinality of an organization's climate for implementation; describes within- and between-organizational differences in innovation-values fit; and suggests new topics and strategies for implementation research.
2,006 citations
TL;DR: This article examined the implications of this development by first considering the differences between the literatures on organizational culture and organizational climate and then examining the many similarities between these two literatures, focusing on their definition of the phenomena, their epistemology and methodology, and their theoretical foundations.
Abstract: Recently, organizational culture researchers have applied quantitative survey methods and identified comparative “dimensions” of culture in a way that appears to contradict some of the original foundations of culture research within organizational studies. This new quantitative culture research also bears a strong resemblance to earlier research on organizational climate. This article examines the implications of this development by first considering the differences between the literatures on organizational culture and organizational climate and then examining the many similarities between these two literatures. The literatures are compared by focusing on their definition of the phenomena, their epistemology and methodology, and their theoretical foundations. The implications of the differing theoretical foundations and their underlying assumptions about the phenomenon are discussed at some length, as are some of the consequences of the continued separation of these two literatures. The final discussion f...
1,890 citations
TL;DR: In this paper, the authors present a model of the growth strategy of the firm in planned economies in transition such as Eastern Europe, the former Soviet republics, and China, focusing on the stylized state-owned enterprises.
Abstract: Highlighting an important facet of diversity among organizations operating in different institutional environments, this article presents a model of the growth strategy of the firm in planned economies in transition such as Eastern Europe, the former Soviet republics, and China. Focusing on the stylized state-owned enterprises, we explore the interaction between institutions and organizations in these countries. Given the institutional constraints, neither generic expansion nor acquisitions, two traditional strategies for growth found in the West, are viable for firms in these countries. Instead, firms settle on a network-based strategy of growth, building on personal trust and informal agreements among managers. The institutional environment that leads to this unique strategy of growth is examined, and boundary conditions, limitations, and implications of this model are discussed.
1,758 citations
TL;DR: In this paper, the authors introduce two firm-specific, theory-based constructs: market commonality, developed from the literature on multiple-point competition, and resource similarity, derived from the resource-based theory of the firm.
Abstract: This article bridges two important subjects in strategy: competitor analysis and interfirm rivalry. Through a refined conceptualization of competitor analysis, the article introduces two firm-specific, theory-based constructs: market commonality, developed from the literature on multiple-point competition, and resource similarity, derived from the resource-based theory of the firm. The joint consideration of these two constructs shows the complementarity of these two prominent but contrasting strategy theories. Each firm has a unique market profile and strategic resource endowment, and a pair-wise comparison with a given competitor along these two dimensions will help to illuminate the prebattle competitive tension between these two firms and to predict how a focal firm may interact with each of its competitors. The idea of competitive asymmetry is introduced, that is, the notion that a given pair of firms may not pose an equal degree of threat to each other. To illustrate competitor mapping, measures of ...
1,226 citations
TL;DR: In this paper, the authors integrate psychological and sociological descriptions of creativity and conformity to present a theory of individual creative action within organizational settings composed of intertwined group, organizational, institutional, and market domains.
Abstract: Creative and habitual actions represent competing behavioral options that may be simultaneously influenced by multiple domains of social action. This article integrates psychological and sociological descriptions of creativity and conformity to present a theory of individual creative action within organizational settings composed of intertwined group, organizational, institutional, and market domains. This theory contributes to the innovation literature by illustrating how intentional action and evolutionary processes that legitimize action interact to facilitate creativity and innovation.
1,180 citations
TL;DR: In this article, the authors explore the implications of the neglected behavioral assumption of risk neutrality in transaction cost economics and illustrate the relative ease with which previous empirical shortcomings can be addressed by incorporating risk and trust in TCE models.
Abstract: Transaction cost economics (TCE) relies on three behavioral assumptions in predicting how firms choose governance structures—bounded rationality, opportunism, and risk neutrality. We explore the implications of the neglected behavioral assumption of risk neutrality. offer an integrative appraisal of the three behavioral assumptions using trust as a unifying perspective, and explicate subjective costs and risks. We illustrate the relative ease with which previous empirical shortcomings can be addressed by incorporating risk and trust in TCE models.
TL;DR: In this paper, the authors organize and integrate the innovation speed literature, develop a conceptual framework of innovation speed, and offer researchable propositions relating to the need for and antecedents and outcomes.
Abstract: There is a growing recognition that innovation speed is important to a firm's creating and sustaining competitive advantage amidst rapidly changing business environments. However, there has been little theoretical advancement or model building regarding when innovation speed is appropriate, what factors speed up innovations, and how differences in speed affect project outcomes. In this article, we organize and integrate the innovation speed literature, develop a conceptual framework of innovation speed, and offer researchable propositions relating to the need for and antecedents and outcomes of innovation speed. Specifically, we argue that innovation speed (a) is most appropriate in environments characterized by competitive intensity, technological and market dynamism, and low regulatory restrictiveness; (b) can be positively or negatively affected by strategic-orientation factors and organizational-capability factors; and (c) has an influence on development costs, product quality, and ultimately project ...
TL;DR: This paper developed an evolutionary model that contrasts hot spot and non-hot spot competitors within the same industry and found that over time, those same forces create a homogeneous macroculture that suppresses innovation, making hot spot competitors more susceptible to environmental jolts.
Abstract: Hot spots are fast-growing geographic clusters of competing firms. Drawing on several literature streams, we develop an evolutionary model that contrasts hot spot and non-hot spot competitors within the same industry. Initially, economies of agglomeration, institutional forces, and managers' mental models create an innovative environment within the hot spot. Over time, those same forces create a homogeneous macroculture that suppresses innovation, making hot spot competitors more susceptible than non-hot spot competitors to environmental jolts.
TL;DR: The authors reviewed the book "Hypercompetition: Managing the Dynamics of Strategic Maneuvering" by Richard A. D'Aveni and found that it is a good book to read.
Abstract: The article reviews the book “Hypercompetition: Managing the Dynamics of Strategic Maneuvering,” by Richard A. D'Aveni.
TL;DR: In this paper, the authors examined familiar roles that customers play in both manufacturing and service organizations and integrated insights from organization theory, services marketing, and total quality concepts to develop both a conceptual model and 10 propositions based on a more complex view of potential customer contributions to competitive quality.
Abstract: Regardless of the specific tools and methods a firm adopts or what quality experts an organization follows, managing for quality and competitive advantage means a firm must become customer oriented. Unfortunately, many quality-management programs and efforts to enhance competitiveness take a rather limited view of potential customer involvement in the process. This article first examines familiar roles that customers play in both manufacturing and service organizations. Then, insights from organization theory, services marketing. strategic management, and total quality concepts are integrated to develop both a conceptual model and 10 propositions based on a more complex view of potential customer contributions to competitive quality. Both a research agenda and ideas for improved organizational practice are discussed.
TL;DR: In this article, the concept of organizational intelligence is developed and related to innovation, and a conceptual framework is proposed that relates types and levels of intelligence, moderated by contextual factors, to the two stages of the organizational innovation process: initiation and implementation.
Abstract: In this article, organizational innovation is viewed as fundamentally cognitive, and the concept of organizational intelligence is developed and related to innovation. Individual and organizational intelligences are conceptualized as being functionally similar (i.e., as purposeful information processing that enables adaptation to environmental demands). Organizational intelligence, however, is a social outcome and is related to individual intelligence by mechanisms of aggregation, cross-level transference, and distribution. A conceptual framework is proposed that relates types and levels of intelligence, moderated by contextual factors, to the two stages of the organizational innovation process: initiation and implementation. Implications for research and management are discussed.
TL;DR: In this article, the authors build on previous work in international human resource management by drawing on concepts from the resource-based view of the firm and resource dependence to develop a theoretical model of the determinants at strategic international HR systems in multinational corporations.
Abstract: This article builds on previous work in international human resource management by drawing on concepts from the resource-based view of the firm and resource dependence to develop a theoretical model of the determinants at strategic international human resource management (SIHRM) systems in multinational corporations. The article then offers propositions concerning the relationships between a number of key determinants and the multinational corporation's overall SIHRM approach, the design of a particular affiliate's HRM system, and the HRM system for critical groups of employees within the affiliate.
TL;DR: In this article, a model of factors thought to affect the treatment of disabled individuals in organizations is presented, which suggests that person characteristics (e.g., attributes of the disabled person, attributes of an observer), environmental factors (i.e., legislation), and organizational characteristics combine to affect how disabled individuals are treated in organizations.
Abstract: A model of factors thought to affect the treatment of disabled individuals in organizations is presented. Specifically, the model suggests that person characteristics (e.g., attributes of the disabled person, attributes of the observer), environmental factors (i.e., legislation), and organizational characteristics (e.g., norms, values, policies, the nature of jobs, reward systems) combine to affect the way disabled individuals are treated in organizations. Furthermore, the model indicates that the relationships just noted are mediated by observers' cognitions (i.e., categorization, stereotyping, expectancies) and affective states. Finally, the model predicts that the disabled person's responses feed back to modify observers' expectancies and organizational characteristics. Implications for conducting research on disability issues and facilitating the inclusion of disabled individuals in organizational settings are discussed.
TL;DR: In many crucial decisions, the course of action that is moat desirable over the long run is not the best one in the short term as mentioned in this paper, which is the dilemma addressed by the ongoing debate over economic short-termism.
Abstract: In many crucial decisions, the course of action that is moat desirable over the long run is not the best course of action in the short term. This is the dilemma addressed by the ongoing debate over economic “short-termism,” sparked by contentions that U.S. firms are losing to overseas competitors because U.S. management is unwilling or unable to invest in the long run, I argue that the debate has suffered from a limited focus: to address this problem, I present a framework that addresses organizational and individual as well as economic perspectives. I offer a review of concepts, analysis, and evidence, and I suggest a cross-discipline, multilevel research agenda for advancing understanding of this vital topic.
TL;DR: In this paper, the authors focus on those aggressive actions and violent outcomes that are instigated by factors in the organization itself, labeled organization-motivated aggression (OMA) and organizationmotivated violence (OMV).
Abstract: Aggression and violence are of increasing concern to American employees and employers; however, these issues have received limited research attention in the management literature. We focus here on those aggressive actions and violent outcomes that are instigated by factors in the organization itself, labeled organization-motivated aggression (OMA) and organization-motivated violence (OMV). Specifically, we define the terms OMA and OMV, provide a social learning model of OMA, and present research propositions related to the model.
TL;DR: In this article, a new strategy for multiparadigm research that promotes interplay between paradigms is presented, using organizational culture studies as an example of how interplay affects multi-paradigm relations.
Abstract: This article presents a new strategy for multiparadigm research that promotes interplay between paradigms. We develop interplay across the border of functionalist and interpretive paradigms and use organizational culture studies as an example of how interplay affects multi-paradigm relations. In addition to clarifying paradigm contrasts, the article points to connections between paradigms by taking a postmodern perspective.
TL;DR: In this paper, the authors consider TQM in relation to firm orientation and identify market advantage, product design efficiency, process efficiency, and product reliability as the key feature of its content.
Abstract: Authors of the literature on total quality management (TQM) have been much more concerned with process than content. This article considers TQM in relation to firm orientation and identifies market advantage, product design efficiency, process efficiency, and product reliability as the key feature of its content. Performance expectations for TQM. In the form of Increased revenues, reduced costs, and their time lags, are addressed in the context of environmental uncertainty.
TL;DR: In this paper, the authors reply to Davis-Blake and Pfeffer's critique of dispositional research in organizational behavior and their suggestions for what it would take for such research to make a valid contribution to the field.
Abstract: In this article we reply to Davis-Blake and Pfeffer's (1989) critique of dispositional research in organizational behavior and their suggestions for what it would take for dispositional research to make a valid contribution to the field. Based on a review of studies of different populations in various settings and the different assessments of dispositional we conclude that the evidence presents a compelling argument for incorporating dispositional theory into explanations of behavior in organizations.
TL;DR: In this paper, transitional cost economics (TCE) and opportunism in business are discussed and the strengths and weaknesses present in many professional contracts are examined, and prediction methods are also examined.
Abstract: The article reports on transitional cost economics (TCE) and opportunism in business. The author focuses on discussing the economic theory of industrial organization. It is suggested that research related to self-interest and cognitive styles is especially useful when considering aspects of organizational behavior. It is further suggested that TCE and industrial efficiency are connected to one another. The author discusses the strengths and weaknesses present in many professional contracts. Prediction methods are also examined.
TL;DR: In this article, the authors have developed theories of organizational absorptive capacity; researchers have also developed models of the effective generation of new products, and the challenge lies in integrating the two research streams.
Abstract: Organizations, like sponges, must have the capacity to absorb inputs in order to generate outputs. Researchers have developed theories of organizational absorptive capacity; researchers have also developed models of the effective generation of new products. The challenge lies in integrating the two research streams.
TL;DR: This paper developed a set of predictions for interactions in culturally diverse workgroups, adapted from Cox's (1991) model of monolithic, plural, and multicultural organizational types, followed by a discussion of how organization and workgroup conditions influence workgroup members to emphasize either categorization or specification in cognitive processing.
Abstract: This article develops a set of predictions for interactions in culturally diverse workgroups. A typology of organizations and corresponding workgroups is detailed, adapted from Cox's (1991) model of monolithic, plural, and multicultural organizational types, followed by a discussion of how organization and workgroup conditions influence workgroup members to emphasize either categorization or specification in cognitive processing. Next, a series of positive and negative communicative interaction types is predicted based on type of processing. Finally, a discussion of the implications for further research and potential application is presented.
TL;DR: In this article, the authors use a reflexive approach to gain a critical awareness of the assumptions underlying their use of metaphors, and address representation, enunciation, separation, and routinization.
Abstract: Diverse and often unacknowledged assumptions underlie the use of metaphors in the organizational change literature. This diversity is symptomatic of broader ontological and epistemological conflicts within organization theory. To gain a critical awareness of the assumptions underlying their use of metaphors, organizational analysts can use a reflexive approach. This approach entails addressing four issues: representation, enunciation, separation, and routinization. The organizational change literature is used to illustrate the implications of this approach for future research.
TL;DR: In this paper, the authors focus on responding to a criticism of their article "Bad for Practice: A Critique of Transaction Cost Theory." They go on to suggest that markets and industrial organizations feature a vastly different set of dynamics.
Abstract: The article reports on the economic theory of industrial organization. The authors focus on responding to a criticism of their article “Bad for Practice: A Critique of Transaction Cost Theory.” They go on to suggest that markets and industrial organizations feature a vastly different set of dynamics. It is suggested that managers cannot run business enterprises or corporations based on transactional cost economics (TCE) because that particular theory is meant to decipher market situations. The authors endeavor to provide a realistic and balanced view of organizational behavior.
TL;DR: In this article, the authors use paradigmatic differences to identify polar opposite beliefs about multiculturalism and predict ideal states of multiculturalism from these fundamental beliefs, and compare these belief systems to sources of influence to predict reaction to a formal diversity-training program.
Abstract: Formal diversity-training programs have been growing rapidly, but anecdotal literature suggests that many such programs garner negative reactions from participants. Charges of “political correctness” and “white-male bashing” may typify such responses. This article theorizes that fundamental beliefs and multiple sources of influence must be taken into account to predict a participant's reaction. Burrell and Morgan's (1979) work on paradigmatic differences is used to identify polar opposite beliefs about multiculturalism. Ideal states of multiculturalism are then defined and predicted from these fundamental beliefs. These belief systems are compared to sources of influence to predict reaction to a formal diversity-training program. We conclude with some cautionary dialogue about realistic expectations of diversity and the polarizing effects of Balkanizing rhetoric.
TL;DR: In this paper, the authors examine the link between managers' careers and the strategic behavior of the companies they manage, and present an integrative model that specifies a set of propositions defining a program of research designed to shed light on the nature of the link.
Abstract: This article examines the link between managers' careers and the strategic behavior of the companies they manage. We argue that despite the theoretical and practical importance of this topic for the strategic management of organizations, the results of research to date have been contradictory and confusing, partly because of two substantial gaps in the underpinning theory. Implicit theories about the impact of work history on managerial characteristics are not made explicit, and a conceptual bridge is needed between individual and organizational levels of analysis. Ideas from research on decision-making studies, top management team behavior, and the strategic management literature are reviewed to yield an integrative model that specifies a set of propositions defining a program of research designed to shed light on the nature of the link.