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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Posted Content•
01 Jan 1994TL;DR: In this paper, a natural resource-based view of the firm is proposed, which is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development, and each of these strategies are advanced for each of them regarding key resource requirements and their contributions to sustained competitive advantage.
Abstract: Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
902 citations
Posted Content•
TL;DR: In this article, the authors reconceptualize the firm-level construct absorptive capacity as a learning dyad-level measure, relative absorptive capacities, and test the model using a sample of pharmaceutical-biotechnology R&D alliances.
Abstract: Much of the prior research on interorganizational learning has focused on the role of absorptive capacity, a firm's ability to value, assimilate, and utilize new external knowledge. However, this definition of the construct suggests that a firm has an equal capacity to learn from all other organizations. We reconceptualize the firm-level construct absorptive capacity as a learning dyad-level construct, relative absorptive capacity. One firm's ability to learn from another firm is argued to depend on the similarity of both firms' (1) knowledge bases, (2) organizational structures and compensation policies, and (3) dominant logics. We then test the model using a sample of pharmaceutical–biotechnology R&D alliances. As predicted, the similarity of the partners' basic knowledge, lower management formalization, research centralization, compensation practices, and research communities were positively related to interorganizational learning. The relative absorptive capacity measures are also shown to have greater explanatory power than the established measure of absorptive capacity, R&D spending. © 1998 John Wiley & Sons, Ltd.
335 citations
Posted Content•
TL;DR: This paper employs a difference-in-differences approach to compare premove versus postmove citation rates for the recruits' prior patents and corresponding matched-pair control patents and generates results that are robust to a more stringently matched control sample.
Abstract: When firms recruit inventors, they acquire not only the use of their skills but also enhanced access to their stock of ideas. But do hiring firms actually increase their use of the new recruits' prior inventions? Our estimates suggest they do, quite significantly in fact, by approximately 202% on average. However, this does not necessarily reflect widespread "learning-by-hiring." In fact, we estimate that a recruit's exploitation of her own prior ideas accounts for almost half of the above effect. Furthermore, although one might expect the recruit's role to diminish rapidly as her tacit knowledge diffuses across her new firm, our estimates indicate that her importance is surprisingly persistent over time. We base these findings on an empirical strategy that exploits the variation over time in hiring firms' citations to the recruits' pre-move patents. Specifically, we employ a difference-in-differences approach to compare pre-move versus post-move citation rates for the recruits' prior patents and the corresponding matched-pair control patents. Our methodology has three benefits compared to previous studies that also examine the link between labor mobility and knowledge flow: 1) it does not suffer from the upward bias inherent in the conventional cross-sectional comparison, 2) it generates results that are robust to a more stringently matched control sample, and 3) it enables a temporal examination of knowledge flow patterns.
322 citations
Journal Article•
TL;DR: In this article, the authors explore the relationship between CSR and government and highlight the varied role that the governments can play in order to promote CSR in the context of the wider national governance systems.
Abstract: Abstract This paper explores the relationship between corporate social responsibility (CSR) and government. CSR is often viewed as self-regulation, devoid of government. We attribute the scholarly neglect of the variety of CSR-government relations to the inadequate attention paid to the important differences in the way in which CSR has ‘travelled’ (or diffused), and has been mediated by the national governance systems, and the insufficient emphasis given to the role of the government (or government agency) in the CSR domain. We go on to identify a number of different types of CSR-government configurations, and by following empirically the CSR development trajectories in Western Europe and East Asia in a comparative historical perspective, we derive a set of propositions on the changing dynamics of CSR-government configurations. In particular, we highlight the varied role that the governments can play in order to promote CSR in the context of the wider national governance systems.
278 citations
01 Apr 2017
TL;DR: A review and synthesis of existing research on institutional voids, tracking the evolution of institutional void scholarship since the inception of the concept, can be found in this article, where the authors highlight four different strategies for responding to them: internalization, substitution, borrowing and signaling.
Abstract: textFor nearly two decades, scholars in international business and management have explored the implications of institutional voids for firm strategy and structure. Although institutional voids offer both opportunities and challenges, they have largely been associated with firms' efforts to avoid or mitigate institutional deficiencies and reduce the transaction costs associated with operating in settings subject to those institutional shortcomings. The goal of this special issue is to advance scholarship on this topic by (a) exploring institutional voids that are new to the literature, (b) providing a deeper assessment of the different ways in which firms respond to these voids, and (c) utilizing diverse disciplines and theoretical approaches to do so. In this introduction, we first review and synthesize extant research on institutional voids, tracking the evolution of institutional void scholarship since the inception of the concept (Khanna & Palepu, Journal of Economic Literature, 45(2):331-372, 1997) and providing our perspective on its contributions and limitations. We then summarize the contributions of the articles included in this special issue. In addition to identifying an array of institutional voids - economic and social - the articles highlight four different strategies for responding to them: internalization, substitution, borrowing and signaling. Drawing on these, we develop new insights on the implications of institutional voids for firm behavior. We conclude with suggestions for future research.
249 citations
References
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TL;DR: In this paper, the labor market for feature-film actors is analyzed via career patterns recorded in the Internet Movie Database and interviews with key informants, allowing the article to distinguish between typecasting effects and those due to underlying skill differences or social networks.
Abstract: This article addresses two seemingly incompatible claims about identity: (a ) complex, multivalent identities are advantageous because they afford greater flexibility versus (b) simple, focused identities are advantageous because they facilitate valuation. Following Faulkner, it is hypothesized that a focused identity is helpful in gaining entree into an arena but subsequently leads to increasing limitations. The labor market for feature‐film actors is analyzed via career patterns recorded in the Internet Movie Database and interviews with key informants, allowing the article to distinguish between typecasting effects and those due to underlying skill differences or social networks. Important implications are drawn for research on identity formation in various social arenas, on categorical boundaries in external labor markets, and on the actor‐position interplay inherent in market dynamics.
504 citations
TL;DR: In this paper, the authors define a world environmental regime as a partially integrated collection of world-level organizations, understandings, and assumptions that specify the relationship of human society to nature.
Abstract: In recent decades a great expansion has occurred in world environmental organization, both governmental and nongovernmental, along with an explosion of worldwide discourse and communication about environmental problems. All of this constitutes a world environmental regime. Using the term regime a little more broadly than usual, we define world environmental regime as a partially integrated collection of world-level organizations, understandings, and assumptions that specify the relationship of human society to nature. The rise of an environmental regime has accompanied greatly expanded organization and activity in many sectors of global society. Explaining the growth of the environmental regime, however, poses some problems. The interests and powers of the dominant actors in world society—nation-states and economic interests—came late to the environmental scene. Thus these forces cannot easily be used to explain the rise of world mobilization around the environment, in contrast with other sectors of global society (for example, the international economic and national security regimes).
504 citations
TL;DR: Sustainable human resource management (sustainable HRM) as mentioned in this paper is an approach that seeks to link HRM and sustainability by explicitly identifying the negative as well as the positive effects of HRM on a variety of stakeholders.
Abstract: Strategic human resource management (SHRM) emerged as a dominant approach to human resource management (HRM) policy during the past 30 years. However, during the last decade, a new approach to HRM has evolved. This approach has been labelled sustainable human resource management (sustainable HRM). It is an approach that seeks to link HRM and sustainability. The term sustainability is fraught with semantic difficulties, as is conceptualising its relationship to HRM. Consequently, sustainable HRM is viewed in a variety of ways. This paper examines the major features of SHRM, some of the meanings given to sustainability and the relationship between sustainability and HRM. It then outlines the major characteristics of sustainable HRM. Although there are a diversity of views about sustainable HRM, this approach has a number of features which differentiate it from SHRM. It acknowledges organisational outcomes, which are broader than financial outcomes. All the writings emphasise the importance of human and social outcomes. In addition, it explicitly identifies the negative as well as the positive effects of HRM on a variety of stakeholders; it pays further attention to the processes associated with the implementation of HRM policies and acknowledges the tensions in reconciling competing organisational requirements. Such an approach takes an explicit moral position about the desired outcomes of organisational practices in the short term and the long term. Sustainable HRM can be understood in terms of a number of complimentary frameworks.
503 citations
TL;DR: In this paper, the authors investigate the roles played by observable corporate governance characteristics as indirect indicators of new firms' potential qualitative differences and find that firm market valuation was strongly associated with corporate governance characteristic (e.g., executive and director stock-based incentives, institutional and blockholder stock ownership, board structure, and venture capital participation).
Abstract: New business models combined with a lack of objective operating data result in significant information asymmetry and uncertainty in the valuation of new firms in emerging markets. Information asymmetry increases the risks of both adverse selection and moral hazard. When traditional differentiators of firm quality are lacking, such as in emerging economic sectors, markets may turn to secondary information sources to filter and sort firms. We investigate the roles played by observable corporate governance characteristics as indirect indicators of new firms' potential qualitative differences. Markets may sort firms based on such characteristics because they are perceived to be correlated with desired but unobservable characteristics and actions and they lower the risks of both adverse selection and moral hazard. Our study of publicly traded U.S. Internet firms found that firm market valuation was strongly associated with corporate governance characteristics (e.g., executive and director stock-based incentives, institutional and blockholder stock ownership, board structure, and venture capital participation). In addition, firm age moderated how markets used some quality proxies to determine firm valuation during the post-IPO period. Copyright © 2003 John Wiley & Sons, Ltd.
502 citations
TL;DR: In this article, a case study of a transitional housing organization called Parents Community is presented, where three key service departments at Parents Community respond in multiple ways to this external environment, depending on each department members' creative uses of institutional logics and local meanings, which emerge from their professional commitments, personal interests, and interactional, on-the-ground decision making.
Abstract: The recent “inhabited institutions” research stream in organizational theory reinvigorates new institutionalism by arguing that organizations are not merely the instantiation of environmental, institutional logics “out there,” where organizational actors seamlessly enact preconscious scripts, but are places where people and groups make sense of, and interpret, institutional vocabularies of motive. This article advances the inhabited institutions approach through an inductive case study of a transitional housing organization called Parents Community. This organization, like other supportive direct service organizations, exists in an external environment relying increasingly on federal funding. Most scholars studying this sector argue that as federal monies expand to pay for these organizations’ services, non-profit organizations will be forced to become ever more bureaucratic and rationalized. However, I find that three key service departments at Parents Community respond in multiple ways to this external environment, depending on each department members’ creative uses of institutional logics and local meanings, which emerge from their professional commitments, personal interests, and interactional, on-the-ground decision making. By looking carefully at these three departments’ variable responses to the external environment, we have a better map for seeing how human agency is integrated into organizational dynamics for this and other organizations.
501 citations