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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Dissertation•
01 Jan 2014
TL;DR: In this article, the authors explored corporate governance effectiveness in not-for-profit organisations by identifying and developing the types of performance indicators used in the notforprofit sector. But they did not provide any empirical data to evaluate the effectiveness of these performance indicators.
Abstract: This thesis explores corporate governance effectiveness in not-for-profit organisations
by identifying and developing the types of performance indicators used in the not-forprofit
sector. Only by agreement, between all affected parties, on the criteria is one
able to assess corporate governance effectiveness. This thesis contributes not only
analytically but also by the provision of several empirical datasets: they are
contributions from interviews with expert practitioners, action research data available
from an individual board that developed its own performance indicators and a review
of published annual reports. Two main research questions were posed. The first was:
What are the performance indicators of effective Australian not-for-profit corporate
governance? And the second question was: What is the process for determining the
performance indicators of effective Australian not-for-profit corporate governance?
7 citations
Posted Content•
TL;DR: In this paper, the authors differentiate between three patterns of firm selection: Darwinian, strategic, and institutional and define the associated embedded rationalities that buttress those different selection patterns, and illustrate how selection differed and evolved through time by exploring two empirical cases.
Abstract: A key component of evolutionary models in economics and organizational research, the notion of organizational selection is rarely the object of inquiry. It generally suggests instead a neutral and unquestioned process, a mechanism explaining organizational success and survival. In this chapter, we explore the variation of selection; we problematize the notion of selection and do an exercise in conceptual genealogy. We differentiate between three patterns of firm selection: Darwinian, strategic, and institutional and define the associated ?embedded rationalities? that buttress those different selection patterns. We illustrate how selection differed and evolved through time by exploring two empirical cases ? France and the United States. Building upon our empirical exploration, we stress some important contributions for three theories familiar to strategy scholars ? resource-based view, population ecology, and institutional theory. We also point to some consequences for empirical research and suggest new directions for future work on the dynamics of organizational action.
7 citations
Posted Content•
TL;DR: In this article, a case study of a French national federation (Federation Addiction) formed by the merger of two former federations originating in different fields, alcoholism treatment and drug addiction professionals, is presented.
Abstract: To cope with the new challenges inherent to their political role, Civil Society Organizations (CSOs) must convince their stakeholders about their legitimacy, and meta-organizations (MOs) appear to play a central role in such a context (Arhne & Brunsson, 2005; Bonfils, 2011). In this paper, we aim to better understand the legitimating processes of a specific kind of MOs-namely Civil Society M Os (CSMOs)-, considering that CSMOs feature some characteristics that reinforce both internal and external legitimacy issues. Our research is based on an in-depth case study of a French national federation (Federation Addiction) formed by the merger of two former federations originating in different fields, alcoholism treatment and drug addiction professionals. We confirm the importance of stakeholders' representativeness in the governance of MOs and especially in multi-stakeholders CSMOs, and we corroborate the assertion that MOs closely relate to categorization-related issues and the categorization process itself in many ways: the legitimacy and the potential f or action of M Os depend on the socially perceived appropriateness of the delimitation of the f ield that they claim to represent, and at the same time categorization is reinforced by the creation of MOs. We contribute to the current literature on MOs in two main ways. First, we show how a change in the relevant categorization may result from the dual and interacting actions of the M Os themselves and public authorities. Second, our case study illustrates how a restructuring of the MOs landscape may strengthen the salience of internal legitimacy issues federative actors are confronted with in order to maintain their representativeness and position in the expanded organizational field. In this dynamic context, external and internal legitimating processes appear closely intricate, and categorization and governance issues appear strongly interrelated.
7 citations
Posted Content•
TL;DR: In this paper, the authors examine how the staff exercise informal governance over lending decisions of the International Monetary Fund (IMF or Fund) and find that the essential component of designing any IMF program, assessing the extent to which a borrowing country is likely to fulfill its policy commitments, is based partly on informal staff judgments subject to informal incentives and normative orientations not dictated by formal rules and procedures.
Abstract: his paper examines how the staff exercise informal governance over lending decisions of the International Monetary Fund (IMF or Fund). The essential component of designing any IMF program, assessing the extent to which a borrowing country is likely to fulfill its policy commitments, is based partly on informal staff judgments subject to informal incentives and normative orientations not dictated by formal rules and procedures. Moreover, when country officials are unable to commit to policy goals of the IMF, the IMF staff may bypass the formal channel of policy dialogue through informal contacts and negotiations with more like-minded actors outside the policymaking process. Exercising informal governance in these ways, the staff are motived by informal career advancement incentives and normative orientations associated with the organization’s culture to provide favorable treatment to borrowers composed of policy teams sympathetic toward their policy goals. The presence of these sympathetic interlocutors provides the staff both with greater confidence a lending program will achieve success and an opportunity to support officials who share their policy beliefs. I assess these arguments using a new dataset that proxies shared policy beliefs based on the professional characteristics of IMF staff and developing country officials. The evidence supports these arguments: larger loan commitments are extended to countries where government officials and the Fund staff share similar professional training. The analysis implies informal governance operates in IOs not just via state influence but also through the evolving makeup, incentive structure, and normative orientations of their staffs.
7 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