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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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
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TL;DR: In this paper, the authors explore the implications of institutional theory for the successful implementation of multidimensional performance measurement and management in the public sector, and discuss the influence of these core concepts on the possibilities of achieving some balance between the stakeholder interests examined in the overall control of provider organizations.
921 citations
TL;DR: The authors argue that the modern actor is an authorized agent for various interests via an ongoing relocation into society of agency originally located in transcendental authority or in natural forces environing the social system, and see this authorized agentic capability as an essential feature of what modern theory and culture call an actor.
Abstract: Much social theory takes for granted the core conceit of modern culture, that modern actors—individuals, organizations, nation states—are autochthonous and natural entities, no longer really embedded in culture. Accordingly, while there is much abstract metatheory about “actors” and their “agency,” there is arguably little theory about the topic. This article offers direct arguments about how the modern (European, now global) cultural system constructs the modern actor as an authorized agent for various interests via an ongoing relocation into society of agency originally located in transcendental authority or in natural forces environing the social system. We see this authorized agentic capability as an essential feature of what modern theory and culture call an “actor,” and one that, when analyzed, helps greatly in explaining a number of otherwise anomalous or little analyzed features of modern individuals, organizations, and states. These features include their isomorphism and standardization, their in...
920 citations
Posted Content•
TL;DR: In this article, the authors examine the external (both institutional and market), organizational and individual drivers of greenwashing and offer recommendations for managers, policymakers, and NGOs to decrease its prevalence.
Abstract: More and more firms are engaging in greenwashing, misleading consumers about firm environmental performance or the environmental benefits of a product or service. The skyrocketing incidence of greenwashing can have profound negative effects on consumer and investor confidence in environmentally friendly firms and products. Mitigating greenwashing is particularly challenging in a context of limited and uncertain regulation. This article examine the external (both institutional and market), organizational and individual drivers of greenwashing and offers recommendations for managers, policymakers, and NGOs to decrease its prevalence.
920 citations
TL;DR: In this article, a social theory framework is developed to explain the common themes of recursive and adaptive practice underpinning the existing strategic management literature and how management practices are used to put strategy into practice.
Abstract: In this article, a social theory framework is developed to explain the common themes of recursive and adaptive practice underpinning the existing strategic management literature. In practice, there is a coexistent tension between recursive and adaptive forms of strategic action that spans multiple levels from macro-institutional and competitive contexts to within-firm levels of analysis to individual cognition. This tension may be better understood by examining how management practices are used to put strategy into practice. Such practices span multiple levels of context and are adaptable to their circumstances of use, serving to highlight both general characteristics and localized idiosyncrasies of strategy as practice. The article develops the concept of management practices-in-use into a research agenda and nine broad research questions that may be used to investigate empirically strategy as practice.
914 citations
Posted Content•
TL;DR: In this article, the authors provide a review of 178 articles dating from 1999 to 2011 from journals related to business, management, and accounting to identify what determinants of sustainability reporting are examined in the literature and to identify (in)consistencies, gaps, and opportunities for future research.
Abstract: Since the end of the 1990s, sustainability reporting has become an increasingly relevant topic in business and academia. However, literature is still limited in quantity and no major reviews of the latest developments have thus far been presented. This paper provides a review of 178 articles dating from 1999 to 2011 from journals related to business, management, and accounting. Our aim is to identify what determinants of sustainability reporting are examined in the literature and to identify (in)consistencies, gaps, and opportunities for future research. We specifically illuminate factors influencing the adoption, the extent, and the quality of reporting. Based on our findings we provide an otherwise often missing link to theory (especially legitimacy, stakeholder, signaling, and institutional theory). Finally, possible future research themes are discussed by illuminating gaps and underexposed themes in the area of regulation and governance as well as reporting quality and stakeholder perception.
912 citations