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: This paper conducted an exploratory investigation of Australian annual reporting of intellectual capital and found that the main areas of reporting focus on human resources; technology and intellectual property rights; and organisational and workplace structure.
Abstract: This study reports the results of an empirical examination of Australian annual reporting of intellectual capital. The findings suggest that the development of a model for reporting intangibles is piecemeal and not widely spread. The outcomes of our exploratory investigation are threefold. First, the key components of intellectual capital are poorly understood, inadequately identified, inefficiently managed, and not reported within a consistent framework when reported at all. Second, the main areas of intellectual capital reporting focus on human resources; technology and intellectual property rights; and organisational and workplace structure. Third, even in an Australian enterprise thought of as “best practice” in this regard, a comprehensive management framework for intellectual capital is yet to be developed, especially for collecting and reporting intellectual capital formation. In conclusion, Australian companies do not compare favourably with several European firms in their ability to measure and report their intellectual capital in the annual report.
827 citations
TL;DR: This article examined some of the important organizational consequences of popular management techniques and provided strong support for institutional theory, demonstrating how both internal and external legitimacy can be gained by using popular management practices.
Abstract: This paper examines some of the important organizational consequences of popular management techniques. Using informational reports on quality, empowerment, and teams, as well as a measure of the implementation of total quality management programs, we found that companies associated with popular management techniques did not have higher economic performance. Nevertheless, these same companies were more admired, perceived to be more innovative, and rated higher in management quality. Higher pay was also given to chief executives when their companies were associated with these management trends. These results provide strong support for institutional theory, demonstrating how both internal and external legitimacy can be gained by using popular management techniques. They also extend institutional theory from its usual emphasis on organization-environment relations to new within-firm dynamics.
827 citations
TL;DR: In this article, the authors argue that the structure of a social network can influence the extent of the adoption of a new product by potential adopters of the new product in the network.
Abstract: of innovation diffusion no longer focus exclusively on explaining the rate at which innovations diffuse or the sequence in which they are adopted. They also focus on explaining why certain innovations diffuse extensively, be- coming de facto standards, whereas others do so partially or not at all. Many of these theories specify a bandwagon process: a positive feedback loop in which increases in the number of adopters create stronger bandwagon pressures, and stronger bandwagon pressures, in turn, cause increases in the number of adopters. Factors affecting if and how many times this feedback loop cycles explain if and how many potential adopters jump on a bandwagon. We argue that one important factor has not yet been incorporated into theories explaining bandwagons' extent: the structure of social net- works through which potential adopters of innovations find out information about these innovations which can cause them to adopt these innovations. We advance a theory of how the structure of social networks affects bandwagons' extent. We propose that both the number of network links, as well as small, seemingly insignificant idiosyncracies of their structures, can have very large effects on the extent of an innovation's diffusion among members of a social network.
822 citations
TL;DR: In this article, the authors examined the concept of archetype, implicit in a number of contemporary approaches to the study of organizational design and change, and found that despite an emerging interest in archetypes, the concept has r...
Abstract: We examined the concept of archetype, implicit in a number of contemporary approaches to the study of organizational design and change. Despite an emerging interest in archetypes, the concept has r...
820 citations
TL;DR: A new model of culture in action is presented that finds that though respondents cannot articulate clear principles of moral judgment, their choice from a list of moral‐cultural scripts strongly predicts later behavior.
Abstract: This article presents a new model of culture in action Although most sociologists who study culture emphasize its role in post hoc sense making, sociologists of religion and social psychologists tend to focus on the role beliefs play in motivation The dual‐process model integrates justificatory and motivational approaches by distinguishing between “discursive” and “practical” modes of culture and cognition The author uses panel data from the National Study of Youth and Religion to illustrate the model's usefulness Consistent with its predictions, he finds that though respondents cannot articulate clear principles of moral judgment, their choice from a list of moral‐cultural scripts strongly predicts later behavior
815 citations