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 article, the authors analyze the nation-state as a worldwide institution constructed by worldwide cultural and associational processes, developing four main topics: (1) properties of nation-states that result from their exogenously driven construction, including isomorphism, decoupling, and expansive structuration; (2) processes by which rationalistic world culture affects national states; (3) characteristics of world society that enhance the impact of world culture on national states and societies, including conditions favoring the diffusion of world models, expansion of world level associations, and rationalized scientific and professional
Abstract: The authors analyze the nation‐state as a worldwide institution constructed by worldwide cultural and associational processes, developing four main topics: (1) properties of nation‐states that result from their exogenously driven construction, including isomorphism, decoupling, and expansive structuration; (2) processes by which rationalistic world culture affects national states; (3) characteristics of world society that enhance the impact of world culture on national states and societies, including conditions favoring the diffusion of world models, expansion of world‐level associations, and rationalized scientific and professional authority; (4) dynamic features of world culture and society that generate expansion, conflict, and change, especially the statelessness of world society, legitimation of multiple levels of rationalized actors, and internal inconsistencies and contradictions.
3,819 citations
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: In this article, a nodal (i.e., subsidiary) level analysis of knowledge transfer within multinational corporations (MNCs) is proposed, where the authors predict that knowledge outflows from a subsidiary would be positively associated with value of the subsidiary's knowledge stock, its motivational disposition to share knowledge, and the richness of transmission channels.
Abstract: Pursuing a nodal (i.e., subsidiary) level of analysis, this paper advances and tests an overarching theoretical framework pertaining to intracorporate knowledge transfers within multinational corporations (MNCs). We predicted that (i) knowledge outflows from a subsidiary would be positively associated with value of the subsidiary’s knowledge stock, its motivational disposition to share knowledge, and the richness of transmission channels; and (ii) knowledge inflows into a subsidiary would be positively associated with richness of transmission channels, motivational disposition to acquire knowledge, and the capacity to absorb the incoming knowledge. These predictions were tested empirically with data from 374 subsidiaries within 75 MNCs headquartered in the U.S., Europe, and Japan. Except for our predictions regarding the impact of source unit's motivational disposition on knowledge outflows, the data provide either full or partial support to all of the other elements of our theoretical framework. Copyright © 2000 John Wiley & Sons, Ltd.
3,672 citations
TL;DR: In this paper, the authors compare the perspectives of transaction costs and strategic behavior in explaining the motivation to joint venture and propose a theory of joint ventures as an instrument of organizational learning.
Abstract: This paper compares the perspectives of transaction costs and strategic behavior in explaining the motivation to joint venture. In addition, a theory of joint ventures as an instrument of organizational learning is proposed and developed. Existing studies of joint ventures are examined in light of these theories. Data on the sectoral distribution and stability of joint ventures are presented.
3,423 citations
TL;DR: In this article, the authors examine strategy formulation and implementation by private and public enterprises in several different regional settings and from three primary theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm.
Abstract: Emerging economies are low-income, rapid-growth countries using economic liberalization as their primary engine of growth. They fall into two groups: developing countries in Asia, Latin America, Africa, and the Middle East and transition economies in the former Soviet Union and China. Private and public enterprises have had to develop unique strategies to cope with the broad scope and rapidity of economic and political change in emerging economies. This Special Research Forum on Emerging Economies examines strategy formulation and implementation by private and public enterprises in several different regional settings and from three primary theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. In this introduction, we show how different theoretical perspectives can provide useful insights into enterprise strategies in emerging economies. We discuss the special methodological as well as empirical challenges associated with doing research in emer...
3,391 citations