The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)
01 Jan 2008-
TL;DR: In this article, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Abstract: What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.
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DOI•
08 Jul 2021
TL;DR: In this paper, the authors used a literature review method with narrative analysis to deepen knowledge about performance-based budgeting in higher education institutions in Indonesia by integrating institutional management theory and organizational theory in setting organizational goals.
Abstract: This paper discusses the application of performance-based budgeting in higher education institutions in Indonesia. This study uses a literature review method with narrative analysis to deepen knowledge about performance-based budgeting. The conclusion that can be drawn from this study is that the implementation of performance-based budgeting plays an important role in realizing a quality higher education institution. To implement performance-based budgeting, universities must consider management competencies, organizational commitment, reward systems, and higher education quality. This paper provides a different perspective to understand the application of performance-based budgeting by integrating institutional management theory and organizational theory in setting organizational goals.
10 citations
01 Jan 2019
10 citations
Posted Content•
TL;DR: In this article, the authors investigated how and where R&D takes place in the book publishing industry and provided a reliable cartography of the value chain through an adaptation of the OSI layers model.
Abstract: The innovative and strategic models of creative industries (CIs) in the digital economy are capturing an increasing interest in recent years. Yet, most of the literature deals with creation and talent and very little with technological and innovation perspectives. Innovation is in general considered from a single viewpoint: a means to develop new creative contents. This paper investigates an important issue surprisingly neglected in scientific literature and public reports: the topic of R&D and technological innovations in CIs. The paper characterizes how and where R&D takes place in the book publishing industry. A systematic identification of R&D developments concerning e-book technology has been achieved using an original methodology set up to feature the technological strategic evolutions. The results provide a reliable cartography of the value chain through an adaptation of the OSI layers model. This framework helps to understand the new digital ecosystem of the book publishing sector and the strategies carried out by the editorial houses.
10 citations
TL;DR: In this paper, the authors investigate the internationalization of internal audit functions by examining possible drivers of permanently employing internal auditors in foreign countries and find that a focus on the internal audit function's cost efficiency is negatively associated with its degree of internationalization.
Abstract: This study investigates the internationalization of internal audit functions by examining possible drivers of permanently employing internal auditors in foreign countries. As corporate scandals, the ongoing globalization and increased environmental complexity necessitate new approaches to control, the internal audit function is faced with finding the most suitable organizational form for providing enterprise-wide assurance. Survey data from 295 chief audit executives is used to construct an exploratory model of internal audit function internationalization whose development is supported by fourteen preliminary in-depth interviews with internal audit practitioners. Positive effects on the degree of the internal audit function’s internationalization are observed for company complexity, audit committee and supervisory board oversight, the use of local expertise, as well as company’s affiliation to the financial sector and firm size. A focus on the internal audit function’s cost efficiency is negatively associated with its degree of internationalization. This paper adds to the growing literature on internal auditing while filling a research gap on internal audit function staffing practices in the international context.
10 citations
01 Jan 2011
TL;DR: In this article, the authors conducted a survey with members of the Institute of Chartered Accountants of Bangladesh (ICAB) to determine their perceptions on issues pertaining to social and environmental accounting and reporting practices in Bangladesh.
Abstract: Purpose – The aim of this study is to elicit accountants’ perceptions regarding corporate social and environmental accounting and reporting practices in a developing country such as Bangladesh. Design/methodology/approach – Members of the Institute of Chartered Accountants of Bangladesh (ICAB) were surveyed to determine their perceptions on issues pertaining to social and environmental accounting and reporting practices in Bangladesh. Findings – Whilst the findings show that accountants have positive attitudes toward corporate social and environmental accounting, progress is limited, with the absence of ICAB in making any noticeable effort to develop such practices. Research implications – Unlike prior studies, the implications of this study suggest that without international influence, it is less likely that institutional forces in Bangladesh (ICAB and the government) would be effective in dealing with social and environmental accounting and reporting issues. Originality/value – While prior studies advocate proactive roles of the accounting profession, this study argues that proactive roles are less likely to prevail in the context of Bangladesh without direct intervention from institutional and regulatory authorities in the international arena.
10 citations
References
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TL;DR: This article synthesize the large but diverse literature on organizational legitimacy, highlighting similarities and disparities among the leading strategic and institutional approaches, and identify three primary forms of legitimacy: pragmatic, based on audience self-interest; moral, based upon normative approval; and cognitive, according to comprehensibility and taken-for-grantedness.
Abstract: This article synthesizes the large but diverse literature on organizational legitimacy, highlighting similarities and disparities among the leading strategic and institutional approaches. The analysis identifies three primary forms of legitimacy: pragmatic, based on audience self-interest; moral, based on normative approval: and cognitive, based on comprehensibility and taken-for-grantedness. The article then examines strategies for gaining, maintaining, and repairing legitimacy of each type, suggesting both the promises and the pitfalls of such instrumental manipulations.
13,229 citations
TL;DR: In this paper, a theory of stakeholder identification and saliency based on stakeholders possessing one or more of three relationship attributes (power, legitimacy, and urgency) is proposed, and a typology of stakeholders, propositions concerning their saliency to managers of the firm, and research and management implications.
Abstract: Stakeholder theory has been a popular heuristic for describing the management environment for years, but it has not attained full theoretical status. Our aim in this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency. By combining these attributes, we generate a typology of stakeholders, propositions concerning their salience to managers of the firm, and research and management implications.
10,630 citations
TL;DR: The authors applied the convergent insights of institutional and resource dependence perspectives to the prediction of strategic responses to institutional processes, and proposed a typology of strategies that vary in active organizational resistance from passive conformity to proactive manipulation.
Abstract: This article applies the convergent insights of institutional and resource dependence perspectives to the prediction of strategic responses to institutional processes. The article offers a typology of strategic responses that vary in active organizational resistance from passive conformity to proactive manipulation. Ten institutional factors are hypothesized to predict the occurrence of the alternative proposed strategies and the degree of organizational conformity or resistance to institutional pressures.
7,595 citations
TL;DR: This article conducted a meta-analysis of 52 studies and found that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association.
Abstract: Most theorizing on the relationship between corporate social/environmental performance (CSP) and corporate financial performance (CFP) assumes that the current evidence is too fractured or too variable to draw any generalizable conclusions. With this integrative, quantitative study, we intend to show that the mainstream claim that we have little generalizable knowledge about CSP and CFP is built on shaky grounds. Providing a methodologically more rigorous review than previous efforts, we conduct a meta-analysis of 52 studies (which represent the population of prior quantitative inquiry) yielding a total sample size of 33,878 observations. The meta-analytic findings suggest that corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off, although the operationalizations of CSP and CFP also moderate the positive association. For example, CSP appears to be more highly correlated with accounting-based measures of CFP than with market-based ...
6,493 citations
TL;DR: In this paper, the authors consider structural inertia in organizational populations as an outcome of an ecological-evolutionary process and define structural inertia as a correspondence between a class of organizations and their environments.
Abstract: Considers structural inertia in organizational populations as an outcome of an ecological-evolutionary process. Structural inertia is considered to be a consequence of selection as opposed to a precondition. The focus of this analysis is on the timing of organizational change. Structural inertia is defined to be a correspondence between a class of organizations and their environments. Reliably producing collective action and accounting rationally for their activities are identified as important organizational competencies. This reliability and accountability are achieved when the organization has the capacity to reproduce structure with high fidelity. Organizations are composed of various hierarchical layers that vary in their ability to respond and change. Organizational goals, forms of authority, core technology, and marketing strategy are the four organizational properties used to classify organizations in the proposed theory. Older organizations are found to have more inertia than younger ones. The effect of size on inertia is more difficult to determine. The variance in inertia with respect to the complexity of organizational arrangements is also explored. (SRD)
6,425 citations