Showing papers in "Academy of Management Review in 2007"
TL;DR: In this paper, the authors propose an institutional theory of corporate social responsibility consisting of a series of propositions specifying the conditions under which corporations are likely to behave in socially responsible ways, and argue that the relationship between basic economic conditions and corporate behavior is mediated by several institutional conditions: public and private regulation, the presence of nongovernmental and other independent organizations that monitor corporate behaviour, institutionalized norms regarding appropriate corporate behavior, associative behavior among corporations themselves, and organized dialogues among corporations and their stakeholders.
Abstract: I offer an institutional theory of corporate social responsibility consisting of a series of propositions specifying the conditions under which corporations are likely to behave in socially responsible ways. I argue that the relationship between basic economic conditions and corporate behavior is mediated by several institutional conditions: public and private regulation, the presence of nongovernmental and other independent organizations that monitor corporate behavior, institutionalized norms regarding appropriate corporate behavior, associative behavior among corporations themselves, and organized dialogues among corporations and their stakeholders. Concerns about corporate social responsibility have grown significantly during the last two decades. Not only has the issue become commonplace in the business press and among business and political leaders (Buhr & Graf
3,806 citations
TL;DR: The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices as mentioned in this paper.
Abstract: The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices. At the invitation of the editor, I recap the AMR article in which the theory was originally presented (Hambrick & Mason, 1984), discuss subsequent refinements of the theory, and lay out several promising avenues for future upper echelons research.
2,966 citations
TL;DR: In this paper, the authors address current criticisms of the RBV (overight of dynamism, environmental contingencies, and managers' role) by linking value creation in dynamic environmental contexts to the management of firm resources.
Abstract: We address current criticisms of the RBV (oversight of dynamism, environmental contingencies, and managers' role) by linking value creation in dynamic environmental contexts to the management of firm resources. Components of the resource management model include structuring the resource portfolio; bundling resources to build capabilities; and leveraging capabilities to provide value to customers, gain a competitive advantage, and create wealth for owners. Propositions linking resource management and value creation are offered to shape future research.
2,792 citations
TL;DR: The authors introduce a contingency framework that relates prior work to the design of a research project, paying particular attention to the question of when to mix qualitative and quantitative data in a single research paper.
Abstract: Methodological fit, an implicitly valued attribute of high-quality field research in organizations, has received little attention in the management literature. Fit refers to internal consistency among elements of a research project—research question, prior work, research design, and theoretical contribution. We introduce a contingency framework that relates prior work to the design of a research project, paying particular attention to the question of when to mix qualitative and quantitative data in a single research paper. We discuss implications of the framework for educating new field researchers.
2,650 citations
TL;DR: The authors describe three distinctive types of diversity: separation, variety, and disparity, and present guidelines for conceptualization, measurement, and theory testing, highlighting the special case of demographic diversity.
Abstract: Research on organizational diversity, heterogeneity, and related concepts has proliferated in the past decade, but few consistent findings have emerged. We argue that the construct of diversity requires closer examination. We describe three distinctive types of diversity: separation, variety, and disparity. Failure to recognize the meaning, maximum shape, and assumptions underlying each type has held back theory development and yielded ambiguous research conclusions. We present guidelines for conceptualization, measurement, and theory testing, highlighting the special case of demographic diversity
2,541 citations
TL;DR: A considerable amount of research has examined trust since the 1995 publication of as discussed by the authors, and a number of the critical issues that we addressed and provided clarifications and extensions of the topics of levels of analysis, time, control systems, reciprocity, and measurement.
Abstract: A considerable amount of research has examined trust since our 1995 publication. We revisit some of the critical issues that we addressed and provide clarifications and extensions of the topics of levels of analysis, time, control systems, reciprocity, and measurement. We also recognize recent research in new areas of trust, such as affect, emotion, violation and repair, distrust, international and cross-cultural issues, and context-specific models, and we identify promising avenues for future research.
2,370 citations
TL;DR: In this article, a multilevel theoretical model is proposed to understand why business organizations are increasingly engaging in corporate social responsibility (CSR) initiatives and thereby exhibiting the potential to exert positive social change.
Abstract: We provide a multilevel theoretical model to understand why business organizations are increasingly engaging in corporate social responsibility (CSR) initiatives and thereby exhibiting the potential to exert positive social change. Our model integrates theories of organizational justice, corporate governance, and varieties of capitalism to argue that organizations are pressured to engage in CSR by many different actors, each driven by instrumental, relational, and moral motives. We conclude by highlighting empirical questions for future research and discussing some managerial implications. Economic progress, through a fair and open world trading system is essential to tackle poverty and ensure a safer more secure world for everyone now and for future generations. The challenges remain of ensuring that the benefits of that progress reach all sectors in all countries and are not at the expense of the environment (Sir Stephen Timms, U.K. Minister for CSR, Royal In
2,285 citations
TL;DR: It is argued that research on organizational configurations has been limited by a mismatch between theory and methods and introduced set-theoretic methods as a viable alternative for overcoming this mismatch.
Abstract: I argue that research on organizational configurations has been limited by a mismatch between theory and methods and introduce set-theoretic methods as a viable alternative for overcoming this mismatch. I demonstrate the value of such methods for studying organizational configurations and discuss their applicability for examining equifinality and limited diversity among configurations, as well as their relevance to other research fields such as complementarities theory, complexity theory, and the resource-based view
1,601 citations
TL;DR: A rereading of the seminal Cohen and Levinthal (1990) article in light of current research on learning and innovation directs our attention to serious ambiguities and omissions in Zahra and George's reconceptualization as mentioned in this paper.
Abstract: Zahra and George (2002) suggested a reconceptualization of the absorptive capacity construct in order to reduce ambiguity in empirical studies. A rereading of the seminal Cohen and Levinthal (1990) article in light of current research on learning and innovation directs our attention to serious ambiguities and omissions in Zahra and George's reconceptualization. We suggest a reintroduction of “recognizing the value,” an alternative understanding of “transformation,” a clarification of “potential absorptive capacity,” an elaboration of the impact of socialization mechanisms, an investigation of the role of “power relationships,” and an inclusion of feedback loops in a dynamic model of absorptive capacity.
1,530 citations
TL;DR: In this article, the authors introduce a model of relational job design to describe how jobs spark the motivation to make a prosocial difference, and how this motivation affects employees' actions and identities.
Abstract: This article illustrates how work contexts motivate employees to care about making a positive difference in other people's lives. I introduce a model of relational job design to describe how jobs spark the motivation to make a prosocial difference, and how this motivation affects employees' actions and identities. Whereas existing research focuses on individual differences and the task structures of jobs, I illuminate how the relational architecture of jobs shapes the motivation to make a prosocial difference.
1,472 citations
TL;DR: In this article, the authors argue that research on the business case for corporate social responsibility must account for the path-dependent nature of firm-stakeholder relations, and develop the construct of stakeholder influence capacity to fill this void.
Abstract: I argue that research on the business case for corporate social responsibility must account for the path-dependent nature of firm-stakeholder relations, and I develop the construct of stakeholder influence capacity to fill this void. This construct helps explain why the effects of corporate social responsibility on corporate financial performance vary across firms and time. I develop a set of propositions to aid future research on the contingencies that produce variable financial returns to investment in corporate social responsibility.
TL;DR: In this article, the authors define intuitions as affectively charged judgments that arise through rapid, nonconscious, and holistic associations, and delineate intuition from other decision-making approaches (e.g., insight, rational).
Abstract: We review and reconceptualize “intuition,” defining intuitions as affectively charged judgments that arise through rapid, nonconscious, and holistic associations. In doing so, we delineate intuition from other decision-making approaches (e.g., insight, rational). We also develop a model and propositions that incorporate the role of domain knowledge, implicit and explicit learning, and task characteristics on intuition effectiveness. We close by suggesting directions for future research on intuition and its applications to managerial decision making. The human brain can be a magnificent synthesizer of disparate pieces of nebulous information, and often formal techniques and procedures thwart and inhibit this mysterious mechanism from operating efficiently (Raiffa, 1968: 272).
TL;DR: In this paper, the authors define value creation in terms of use value and exchange value and discuss some of the key issues related to its study, including the topic of value capture, and use the concepts of competition and isolating mechanisms to explain how value can be captured at different levels of analysis.
Abstract: As an introduction to the special issue topic of value creation, we define value creation in terms of use value and exchange value and discuss some of the key issues related to its study, including the topic of value capture. Although the definition of value creation is common across levels of analysis, the process of value creation will differ based on whether value is created by an individual, an organization, or society. We use the concepts of competition and isolating mechanisms to explain how value can be captured at different levels of analysis.
TL;DR: This article proposed a new approach, based on Jurgen Habermas's theory of democracy, and defined the new role of the business firm as a political actor in a globalizing society.
Abstract: We review two important schools within business and society research, which we label positivist and postpositivist corporate social responsibility (CSR). The former is criticized because of its instrumentalism and normative vacuity and the latter because of its relativism, foundationalism, and utopianism. We propose a new approach, based on Jurgen Habermas's theory of democracy, and we define the new role of the business firm as a political actor in a globalizing society.
TL;DR: A roadmap is developed that describes theory development using simulation and position simulation in the “sweet spot” between theory-creating methods, such as multiple case inductive studies and formal modeling, and theory-testing methods.
Abstract: We describe when and how to use simulation methods in theory development. We develop a roadmap that describes theory development using simulation and position simulation in the “sweet spot” between theory-creating methods, such as multiple case inductive studies and formal modeling, and theory-testing methods. Simulation strengths include internal validity and facility with longitudinal, nonlinear, and process phenomena. Simulation's primary value occurs in creative experimentation to produce novel theory. We conclude with evaluation guidelines.
TL;DR: In this article, the authors outline a research methodology developed around two basic elements: the active discovery and/or creation of mysteries and the subsequent solving of the mysteries, and a key element is the reflexive opening up of established theory and vocabulary through a systematic search for deviations from what would be expected, given established wisdom, in empirical contexts.
Abstract: We outline a research methodology developed around two basic elements: the active discovery and/or creation of mysteries and the subsequent solving of the mysteries. A key element is the reflexive opening up of established theory and vocabulary through a systematic search for deviations from what would be expected, given established wisdom, in empirical contexts. “Data” are seen as an inspiration for critical dialogues between theoretical frameworks and empirical work.
TL;DR: This paper explored the meaning and significance of relational identity and relational identification, predicated on the role-relationship between two individuals and argued that relational identity integrates person-and role-based identities and thereby the individual, interpersonal, and collective levels of self.
Abstract: We explore the meaning and significance of relational identity and relational identification, predicated on the role-relationship between two individuals. We argue that relational identity integrates person- and role-based identities and thereby the individual, interpersonal, and collective levels of self; contrast relational identity and relational identification with social identity and social identification; contend that relational identity and relational identification are each arranged in a cognitive hierarchy ranging from generalized to particularized schemas; and contrast relational identification with relational disidentification and ambivalent relational identification.
TL;DR: In this article, the authors address the debate about whether firms should engage in socially responsible behavior by proposing a theoretical model in which the supply of and demand for socially responsible investment opportunities determine whether these activities will improve, reduce, or have no impact on a firm's market value.
Abstract: We address the debate about whether firms should engage in socially responsible behavior by proposing a theoretical model in which the supply of and demand for socially responsible investment opportunities determine whether these activities will improve, reduce, or have no impact on a firm's market value. The theory shows that managers in publicly traded firms might fund socially responsible activities that do not maximize the present value of their firm's future cash flows yet still maximize the market value of the firm.
TL;DR: The authors argue that the locus of new value and knowledge lies at the firm level, while knowledge and capabilities-based researchers argue that new value created, or, put differently, what is the location of knowledge, lie at the individual level.
Abstract: At what level is new value created, or, put differently, what is the locus of knowledge? While knowledge and capabilities-based researchers argue that the locus of new value and knowledge lies at the firm level, we challenge this conceptualization and theoretically build toward more individualist foundations. We explicate the underlying philosophical assumptions of extant knowledge and capabilities-based work and discuss attributional problems. Nested (individual-level, a priori) heterogeneity may provide a better explanation of collective heterogeneity.
TL;DR: In this paper, the authors introduce a framework of relational archetypes derived from unique configurations of three dimensions (structural, affective, and cognitive) of social relations within and across firm boundaries.
Abstract: Theories of knowledge-based competition emphasize the firm's ability both to explore and to exploit knowledge as the source of value creation. We attempt to bring human resource management directly into this forum by introducing a framework of relational archetypes—entrepreneurial and cooperative—that are derived from unique configurations of three dimensions (structural, affective, and cognitive) of social relations within and across firm boundaries. We identify how human resource configurations can be linked to the strategic management of these relational archetypes.
TL;DR: In this article, a conceptual framework is proposed that leaders' chronic self-regulatory focus (promotion versus prevention), in conjunction with their values, influences their motivation to lead and subsequently their leadership behavior.
Abstract: In this paper we integrate recent theories of motivation and leadership. Drawing on the self-regulatory focus theory and on self-concept based theories of leadership, we develop a conceptual framework proposing that leaders' chronic self-regulatory focus (promotion versus prevention), in conjunction with their values, influences their motivation to lead and, subsequently, their leadership behavior. We further suggest that leaders may influence the motivational self-regulatory foci of their followers, which will mediate different follower outcomes at the individual and group level.
TL;DR: In this article, the authors present an overview of how theory and method have been treated to date by organization researchers and suggest that respecting both the primacy of theory and evidence is no easy task but a necessary balancing practice.
Abstract: This special issue contains six papers that address a variety of practical research process questions. The papers explore how theory and method inevitably interact in particular organization and management studies. Here we offer an overview of how theory and method have been treated to date by organization researchers and suggest that respecting both the primacy of theory and the primacy of evidence is no easy task but a necessary balancing practice that characterizes high-quality research.
TL;DR: In this paper, a consumer benefit experienced viewpoint on value creation complements the value capture orientations of the firm positioning, transaction cost, and resource-based approaches and offers an additional tool for addressing intractable issues in strategic management.
Abstract: I show how company strategies that focus on improving consumer benefits can create value by increasing consumer payments to an entire value system. This “consumer benefit experienced” viewpoint on value creation complements the value capture orientations of the firm positioning, transaction cost, and resource-based approaches. It helps to clarify often-blurred distinctions between value creation and value capture and offers an additional tool for addressing intractable issues in strategic management.
TL;DR: In this article, the authors present a model of how institutional pressures at the community level shape corporate social action, behaviors and practices that extend beyond immediate profit maximization goals and are intended to increase social benefits or mitigate social problems for constituency external to the firm.
Abstract: We present a model of how institutional pressures at the community level shape corporate social action—behaviors and practices that extend beyond immediate profit maximization goals and are intended to increase social benefits or mitigate social problems for constituencies external to the firm—within the metropolitan area where firms are headquartered. We propose that community isomorphism influences the nature and level of corporate social action within communities and conclude with theoretical implications emphasizing the community as the focal unit of analysis for understanding corporate social action.
TL;DR: In this paper, the authors explore the "glass cliff" form of discrimination and identify multiple processes as having the potential to contribute to the phenomenon, and elaborate strategies for eliminating glass cliffs, but, as with other forms of discrimination, these depend on the capacity for disadvantaged groups to overcome resistance on the part of those who are motivated to maintain the status quo.
Abstract: In this paper we explore the “glass cliff” form of discrimination. We review archival and experimental evidence of the glass cliff and identify multiple processes as having the potential to contribute to the phenomenon. We also outline a range of potential reactions to the phenomenon, and we elaborate strategies for eliminating glass cliffs, but, as with other forms of (gender) discrimination, we argue that these depend on the capacity for disadvantaged groups to overcome resistance on the part of those who are motivated to maintain the status quo.
TL;DR: In this article, the authors explore how activism influences corporate social change activities and argue that ideological differences among activist groups motivate them to choose different influence tactics to support their claims, leading to field-level change.
Abstract: Using insights from the social movement literature and institutional change theory, we explore how activism influences corporate social change activities. As the responsibility for addressing a variety of social issues is transferred from the state to the private sector, activist groups increasingly challenge firms to take up such issues, seeking to influence the nature and level of corporate social change activities. Eventually, they aim to bring about field-level change. We argue that ideological differences among activist groups motivate them to choose different influence tactics to support their claims.
TL;DR: In this paper, the authors describe the nature of simulations, its attractions, and its special problems, as well as some uses of computational modeling in management research, and promote understanding of simulation methodology and develop an appreciation of its potential contributions to management theory.
Abstract: Simulation modeling provides a powerful methodology for advancing theory and research on complex behaviors and systems, yet it has been embraced more slowly in management than in some associated social science disciplines. We suspect that part of the reason is that simulation methods are not well understood. We therefore aim to promote understanding of simulation methodology and to develop an appreciation of its potential contributions to management theory by describing the nature of simulations, its attractions, and its special problems, as well as some uses of computational modeling in management research.
TL;DR: In this paper, the authors use convergent elements of major ethical theories to create a typology of corporate stakeholder cultures, the aspects of organizational culture consisting of the beliefs, values, and practices that have evolved for solving problems and otherwise managing stakeholder relationships.
Abstract: We use convergent elements of major ethical theories to create a typology of corporate stakeholder cultures–the aspects of organizational culture consisting of the beliefs, values, and practices that have evolved for solving problems and otherwise managing stakeholder relationships. We describe five stakeholder cultures–agency, corporate egoist, instrumentalist, moralist, and altruist–and explain how these cultures lie on a continuum, ranging from individually self-interested (agency culture) to fully other-regarding (altruist culture). We demonstrate the utility of our framework by showing how it can refine stakeholder salience theory.
TL;DR: Work-family interface (WFI) considerations in particular are noticeably absent from much theorizing and research as mentioned in this paper, despite the importance of such considerations to entrepreneurs themselves, and demonstrate how constructs from the WFI literature can help address an important entrepreneurship question that has not been answered satisfactorily to date.
Abstract: The entrepreneurship literature has been criticized for providing inadequate accounts of business owners' actual experiences and challenges. Work-family interface (WFI) considerations in particular are noticeably absent from much theorizing and research--despite the importance of such considerations to entrepreneurs themselves. We demonstrate how constructs from the WFI literature can help address an important entrepreneurship question that has not been answered satisfactorily to date: Why is there a persistent performance differential between male-headed and female-headed firms'
TL;DR: In this paper, the authors unpack contract design capabilities for detailed commercial contracts, and draw out implications for the locus of such capabilities within the firm, and examine implications for exploiting those capabilities as a potential source of competitive advantage.
Abstract: Our aim is to unpack contract design capabilities for detailed commercial contracts, to draw out implications for the locus of such capabilities within the firm, and to examine implications for exploiting those capabilities as a potential source of competitive advantage. We argue that developing contract design capabilities involves learning how much and what kinds of detail to include in a contract. We further argue that knowledge about the management of these trade-offs resides differentially in managers, engineers, and lawyers regarding different types of contractual provisions.