Institutional theory and HRM: A new look

The context of HRM is important but undertheorized (Paauwe, 2009) and subsequently underresearched (Jackson, Schuler, & Jiang, 2014). We offer two recent perspectives of institutional theory—institutional logics and institutional work—as theoretical lenses through which scholars can explore the influence of institutional context on HRM and more intriguingly the influence of HRM professionals on their institutional contexts. Though others have introduced institutional theory to HRM scholarship (e.g. Paauwe & Boselie, 2003), we bring a conceptualization of institutional theory that reflects its advances over the last fifteen years, advances highly relevant to HRM scholars. While previous conceptualizations of institutional theory focus on the direct constraint of institutions on HRM, institutional logics emphasizes complexity, multilevel dynamics, and agency. Similarly, institutional work addresses agency at the day-to-day level, exploring how actors create, maintain, and disrupt the institutional contexts in which they are embedded. Directions for HRM research are discussed.     

Managing Legitimacy in Business-Driven Social Change: The Role of Relational Work

This paper examines how companies manage their legitimacy in driving social change, drawing attention to how companies proactively negotiate their involvement with nonmarket actors. Building on the legitimacy-as-process perspective, I argue that companies construct the legitimacy of their involvement by engaging in relational work, that is, by investing efforts in shaping their relations with others and thereby redefining roles and responsibilities. To explore the role of relational work in business-driven social change, I present an inductive, interpretive study of a pharmaceutical company’s efforts to build a market for its products by improving diabetes care in Indonesia. Grounded in the empirical study, I develop a process model to explain how legitimacy is redefined from the bottom-up, that is, how a company’s involvement is re-negotiated in situ and crafted to attain the social approval of a wider audience. Advancing the micro-foundations of nonmarket strategy, the model offers new insights into how companies can organize with nonmarket actors and how they can effectively publicize their involvement as socially responsible. I also discuss the model’s implications for a more critical research agenda on the political responsibilities of companies in social change.     

Maintaining Legitimacy: Controversies,Orders of Worth,and Public Justifications

We build on Boltanski and Thévenot's theory of justification to account for the ways in which different stakeholder groups actively engage with discourses and objects to maintain the legitimacy of institutions that are relevant to their activity. We use this framework to analyse a controversy emerging from a nuclear accident which involved a large European energy company and sparked public debate on the legitimacy of nuclear power. Based on the findings, we elaborate a process model of institutional repair that explains the role of agents and the structural constraints they face in attempting to maintain legitimacy. The model enhances institutional understandings of legitimacy maintenance in three main respects: it proposes a view of legitimacy maintenance as a controversy‐based process progressing through stakeholders' justifications vis‐à‐vis a public audience; it demonstrates the role of meta‐level ‘orders of worth’ as multiple modalities for agreement which shape stakeholders' public justifications during controversies; and it highlights the capacities that stakeholders deploy in developing robust justifications out of a plurality of forms of agreement.     

Accidental activists: headhunters as marginal diversity actors in institutional change towards more women on boards

We present a qualitative study that examines the role of headhunters as actors in a broader institutional change process aiming to increase gender diversity on corporate boards. We draw on institutional and diversity management theories to conceptualise their change agency in the broader field of women on boards. We describe their role as ‘accidental activists’ and theorise two micro‐processes that define their change agency in this field: voluntaristic framing of intentionality and role redefinition by drawing on competing logics. This conceptualisation does not match the heroic image of the institutional entrepreneur driving institutional change, or that of the tempered radical championing diversity, but rather casts light into a marginal and previously neglected change role. We demonstrate the opportunistic and precarious nature of this role with regard to both institutional change and diversity management and discuss its possibilities and perils.     

Between advocacy,compliance and commitment: A multilevel analysis of institutional logics in work environment management

In this study we explore the development and enactment of institutional logics in the field of work environment management. We show how three historically developed logics constitute different values and practices that guide professionals’ organizational action. Using both historical and contemporary qualitative data, we show how the three institutional logics are present in the field of work environment, and how the logics are enacted simultaneously by actors within four large organizations in Denmark. The study contributes to the literature on institutional logics. The logics perspective is combined with critical realism to describe the inter-relatedness between the levels of society, institutional fields, and organizations, and by elaborating the near-decomposable relations between institutional logics and orders. The study contributes to the literature on work environment management by investigating the ideational lenses through which regulations and interventions are perceived by organizational actors, and how these perceptions may lead to different organizational outcomes and outlooks in work environment management.     

People,Actors, and the Humanizing of Institutional Theory

In much contemporary institutional scholarship, the term ‘actor’ is used as a shorthand for any entity imbued with agency. Talking about actors in institutions thus serves the necessity of allocating agency before returning to the analysis of institutional structures and processes. We find this approach to actorhood limiting, conceptually and normatively. Grounded in the perspective of pragmatist phenomenology, we assert the need for distinguishing between persons and actors, and the value of integrating the person into institutional analysis. We conceive of persons as humans with a reflective capacity and sense of self, who engage with multiple institutions through the performance of institutional roles. People may acquire actorhood by temporarily aligning their self with what is expected from a particular actor-role in an institutional order. Conversely, institutions enter people’s lifeworld as they are personified in people’s social performances. We outline this perspective and examine conceptual and normative implications that arise from the integration of human experience in institutional analysis.     

Institutional distance and international networking

We focus on how small- and medium-sized enterprises (SMEs) adapt to differences in institutional logics (values, beliefs, and rules) in their networking when they enter an institutionally distant market. We address gaps in the literature, relating to the role of institutional logics in SME internationalization, and how institutional distance affects the formation of network ties. We show how the social interaction involved in internationalization is embedded in the institutional logics followed by partnering actors. Specifically, we demonstrate how institutional distance may constrain the networking activities of SMEs and identify practices that may support successful internationalization.     

Framing and Interorganizational Knowledge Transfer: A Process Study of Collaborative Innovation in the Aircraft Industry

This article explains how and why organizational actors' decisions about interorganizational knowledge transfer might change over time. We find that organizational actors' framing of future innovation developments, as either an opportunity or a threat, motivates them to engage or disengage in interorganizational knowledge transfer activities. Shifts in framing lead organizational actors to leverage their relational context and knowledge base in new ways, thereby emphasizing the role of agency in drawing upon these structures. These findings are incorporated into a process model that explains discontinuous change in interorganizational knowledge transfer.     

Voices unspoken? Understanding how gay employees co-construct a climate of voice/silence in organisations

Abstract

This study aimed to understand how the individual actions of gay employees influence the development of a climate of voice/silence in the workplace. We conducted a qualitative study using semi-structured interviews with male and female homosexuals. The results reveal two types of boundary tactics (micro-level and structural) that our research participants used to promote their ideal level of separation or integration of their personal and professional identities. Our grounded theory demonstrates that whereas structural boundary tactics promote respect and a climate of voice, micro-level boundary tactics soften conflicts in the short term but solidify a climate of silence from a long-term perspective. We also propose that the insufficiency of institutional mechanisms to support gay people’s right to have a voice at work reduce the likelihood that these workers will risk confronting those who attempt to silence them. The originality of this study is based on the fact that it focuses on actions that gay employees can perform to co-construct a climate of voice that positions them as active social actors and not merely passive recipients of organisational and institutional conditions.     

Preserving a Professional Institution: Emotion in Discursive Institutional Work

We studied the discursive institutional work written by pharmacy leaders as part of a larger institutional project to preserve the institution of pharmacy. Our analysis of monthly editorials printed in the Journal of the American Pharmacists Association from 1960 to 2003 shows how different discrete emotions were systematically incorporated in specific rhetorical argument structures over the course of an institutional project. In contrast to previous research, we show how discursive institutional work that is directed to members of the same specific social group (e.g., a profession) can vary over time in response to significant events and changes in practices of the target audience. Our longitudinal study shows that the relative frequency of argument types, the incorporation of emotion, and the content of rhetorical argumentation changed over time. We contribute to theory about the role of emotions in discursive institutional work by unpacking the role of discrete emotions and showing how such discourse evolves over time in concert with field conditions.     

Digital innovation and transformation: An institutional perspective

In this conceptual piece we suggest that the institutional perspective is a prolific lens to study digital innovation and transformation. Digital innovation is about the creation and putting into action of novel products and services; by digital transformation we mean the combined effects of several digital innovations bringing about novel actors (and actor constellations), structures, practices, values, and beliefs that change, threaten, replace or complement existing rules of the game within organizations and fields. We identify three types of novel institutional arrangements critical for digital transformation: digital organizational forms, digital institutional infrastructures, and digital institutional building blocks. From this vantage point, an institutional perspective invites us to examine how these novel arrangements gain social approval (i.e. legitimacy) in the eyes of critical stakeholders and their interplay with existing institutional arrangements. Questioning the disruptive talk associated with digital transformation, we draw on the institutional change literature to illustrate the institutionalization challenges and that existing institutional arrangements are pivotal arbiters in deciding whether and how novel arrangements gain acceptance. We close this essay with discussing the implications of an institutional perspective on digital transformation for policy, practice and research.     

房地产行业改革中思想政治工作出现的新情况及对策

房地产企业实行公司制改革后，产权结构将会由原来的国有独资形式转变为多元化投资形式，董事会将由不同利益群体的代表组成，股东大会是公司的权力机构，职代会则是“内部人”民主管理的主要渠道。在产权多元化的公司组织中，思想政治工作的管理体制、运行机制、机构设置、人员配置等都会发生相应的变化，不太可能再维持原有的工作机构和专职政工人员编制。在这种变化下，如何继续发挥思想政治工作的优势，确保其企业生命线的作用，是企业管理者、思想政治工作者必须思考和解决的问题。     

Revisiting the interplay between contractual and relational governance: A qualitative and meta-analytic investigation

Although extant literature has shown that formal contracts and relational governance play a key role in interorganizational relationships, the nature of their interplay still remains equivocal. To better understand the relationships between contractual and relational governance, we conducted a qualitative review and meta-analysis of the existing literature. Meta-analytic results from 33,051 interorganizational relationships across 149 empirical studies have indicated that contractual governance is positively related to both sides of relational governance—trust and relational norms. Our results have also indicated that contracts, trust, and relational norms jointly improve satisfaction and relationship performance and jointly reduce opportunism. These findings provide strong evidence for the complementarity arguments of the contractual–relational governance relationships and their joint impacts on performance. We also found that the mutual relationships between contractual and relational governance are moderated by the institutional environments, the interorganizational relationship type and length, and the construct measurement of contracts. Overall, this study provides new insights on when contractual and relational governance complement or substitute each other. We discuss the implications of our study for theory and practice and propose a research agenda for future research on governance in interorganizational relationships.     

Technology in the time of corona: A critical institutional reading

Drawing on institutional theory and using examples from Israel, we offer a critique of technology's deployment in responses to the coronavirus disease (COVID-19). We distinguish between technologies-in-use (“small ‘t' technologies”), the bundle of artifacts and practices that bring them into being, and “Big ‘T' Technology,” the latter being technology as an institution – shared meanings, structures, and practices that govern thought and action. Using the conceptual tool kit of institutional theory, we make three interrelated arguments. First, the deployment of technologies-in-use in response to the pandemic is embedded in diverse and contradictory institutions, the institution of technology among them. These technologies participate in the very construction of crisis, which fosters the revert to known and established ways of being and doing. Thus, technologies-in-use are not necessarily the most efficient and rational but rather the most legitimate and readily available. Second, putting certain technologies into action has not been happening by itself. Instead, we have witnessed contestations among relevant agents – like politicians and experts – who engage in institutional work to serve their interests. Third, despite its global reach, technology is locally adapted and implemented in specific contexts. All in all, institutional theory helps us to explore further and critique the naïve belief, common in public discourse, in technology as a remedy of all things. Instead, it offers a more critical understanding of the cultural dynamics involved in putting technology to work in the coronavirus crisis. This critical lens carries implications for policymaking and implementation in times of crisis.     

On boundary spanners and interfirm embeddedness: The role of guanxi institution in China

Based on social embeddedness theory and institutional theory, we construct a research model that depicts how boundary spanners’ personal relationships affect dyadic embeddedness at the organizational level, under the varying influence of guanxi institution across different regions in China. We empirically test our model by analyzing data collected from 225 retail gas stations within the distribution network of a major Chinese petroleum company. Our analysis shows that boundary spanners need to first establish relational ties, which, in turn, influence interfirm dyadic embeddedness. Additionally, the results indicate that the informal institutions, such as guanxi in China, exert an indirect effect on personal trust through personal closeness. The informal institutions also moderate the effects of personal level trust on organizational level trust, which is a key linkage between personal relationship and interfirm embeddedness.     

Contexts of enterprise policy-making – an institutional perspective

Abstract

This paper advances our understanding of policy formulation, exploring how the particular institutional dynamics between the transnational and national levels of enterprise policy-making affect policy choices made by governments and consequently their outcomes. The paper argues that policy development occurs within a framework of dominating assumptions on enterprise, influential academic/policy communities and lesson-drawing from other countries’ experiences, which have led to a privileging of the transnational when making policy choices. Empirically, the paper draws on a post-socialist country case – Albania, and uses interviews with policy actors and documentary data from national governments and international organizations. The paper explores the dynamics involved, and the actors that shape, policy formulation and makes two contributions to the literature. First, it provides a conceptual framework on how to analyse policy formulation, extending recent work on the link between policy formulation and the intended outcomes of policies. Second, it offers a more nuanced conceptualization of enterprise policy formulation, arguing that policy formulation reflects the changing configurations of ideas, policy tools and resources, and actors involved in the process.     

SME policy implementation as a relational challenge

The purpose of this paper is to study the relationship between actors, who implement the small- and medium-sized enterprise (SME) policy, and entrepreneurs, who are the targets of the policy, by focusing on the question who is serving whose interests. The paper presents a case study conducted in one of the sub-regions in Finland. The data include individual interviews with 10 policy implementers and 19 small business entrepreneurs and two group discussions. The data are approached from the perspectives of discourse analysis and positioning theory. The results are further interpreted in terms of agent–principal relations. The results indicate that one relational challenge faced in the implementation of the SME policy is the proxy agency, in which both policy implementers and entrepreneurs position themselves as the principal and the other party as their agent. The proxy agency can be viewed as an interactional pitfall caused by the incompatible discourses of entrepreneurs and policy actors and the actor positions constructed with these discourses. Besides addressing the relational problems enabled by certain individual discourses, the paper also demonstrates how there is also a need to address the potential conflict that stems from the collision between discourses.     

Endogenous institutions in bureaucratic compliance games

We consider a set-up where two governments have either conflicting or matching preferences on the provision of differentiated (local) goods supplied by a common monopoly bureau. We develop a two-stage game. At stage-1, the two governments decide whether or not to merge into a single institution. At stage-2, all players simultaneously and independently take their decisions in terms of production and rents, with perfect knowledge of the other players' strategies. We solve the subgame perfect Nash equilibrium of this game, and show that, if the bureau immediately updates its objective function to institutional changes, then the governments always prefer merging. However, if there is an initial bureaucratic inertia in adjusting the bureau's objective function to the institutional change, then ruling politicians may prefer decentralisation to centralisation, depending on the strategic properties of the compliance game and on their own discounting. Received: May 1999 / Accepted April 2000