Co‐evolution in an Institutionalized Environment*

abstract This paper examines the extent to which co‐evolution can take place within a heavily constrained environment and how changes in the degree of institutionalization are relevant to opportunities for exercising strategic choice at the level of the firm. It addresses these questions through a detailed case study of a major Brazilian telecommunications company, Telemig, covering its life span of 27 years from 1973 to 2000. The insights obtained advance the theory of co‐evolution by incorporating a political dimension of how organizations are transformed into new forms. In the case studied, new forms arose with radical changes in the rules affecting competition and with de‐institutionalization of the economic regime by coalitions of actors who were strategically located in networks that crossed system levels. Although the Telemig case presents circumstances different to those usually addressed by studies of co‐evolution, it nevertheless points to the virtues of combining a strategic choice approach with one that focuses on the isomorphic effects of institutional constraints.     

Sacred alliance or pact with the devil? How and why social enterprises collaborate with mainstream businesses in the fair trade sector*

Abstract

This paper uses institutional theory to highlight different patterns of cross-sector collaboration from the perspective of social enterprises. Specifically, it explores how and why social enterprises interact with mainstream businesses and to what extent their collaboration patterns reflect a vision of how their social mission should be implemented and institutionalized. The empirical analysis is derived from a qualitative study of ‘fair trade’ – a hybrid model created by social enterprises and using market mechanisms to support small-scale producers in developing countries and to advocate for changes in international trading practices. The findings highlight three strategies used by fair trade social enterprises to manage their interactions with mainstream businesses: sector solidarity, selective engagement, and active appropriation. This paper suggests that each strategy is motivated by a different vision of how best to articulate the social mission of fair trade via specific types of collaborations. It also notes how each vision has a distinct pattern of institutionalization at the field level. This paper adds to the emergent literatures on social enterprise and social entrepreneurship, fair trade, cross-sector collaboration and hybrid organizing.     

Episodic and Systemic Power in the Transformation of Professional Service Firms

We examine the roles of episodic and systemic forms of power in radical organizational change. Drawing on a study of three attempted transformations in professional service firms from traditional professional partnerships into managed professional businesses – one relatively complete and two incomplete – we identify two key mechanisms that link episodic and systemic forms of power and show how those mechanisms affect the likelihood that organizations will be able to successfully undergo radical change. We find that episodic power is able to initiate and energize radical change when it represents a significant break from traditional authority structures and is legitimated through appeals to traditional organizational values. We find that systemic power is able to institutionalize radical change when the systems associated with it are legitimated by the skilled use of language by key actors and then left to operate independently by those actors. By articulating the specific mechanisms that link episodic and systemic power, our study provides a more complete model of the role of power in radical change, enabling better prediction of the likelihood of successful transformation and a fuller theoretical explanation of change outcomes.     

The organizing vision of application service provision: a process-oriented analysis

The processes by which information systems (IS) innovations become institutionalized are the subjects of much debate within the field of organization theory. Yet few empirical studies exist which examine how IS innovations come to be adopted and diffused across organizations. This paper draws from neo-institutional theory by extending the work of Swanson and Ramiller, using their concept of the organizing vision as a lens for observing and analysing an emerging information systems innovation targeted at small and medium enterprises (SMEs), which came to be known as application services provisioning (ASP). We observe that over time, the initial euphoria and ‘hype’ which surrounded the organizing vision of ASP was replaced by scepticism and distrust, as powerful institutional interests in the form of leading technology firms, industry analysts and IT consultancies were ultimately unsuccessful in their attempts to disseminate ASP throughout the wider business and not-for profit IS user communities. The lessons from this research suggest that a processes-oriented analysis of how organizing visions are interpreted, legitimised and mobilized is critical for understanding and explaining how underdevelopment of an organizing vision at an early stage, may inhibit its later adoption and institutionalization.     

The Management of Creative Vision and the Economics of Creative Cycles

This paper proposes a new theory of variability in innovation performance in managerial firms that contract ‘creative vision’. We argue that such firms are prone to ‘creative cycles’ that arise from uncertainty‐induced systemic overshooting that can threaten the firm's financial viability, requiring managers to shift control back to risk‐averse financial controllers. But this creates opportunities for competing firms to engage in bold creative visions, threatening the firm's market viability and inducing control to shift back to newly contracted suppliers of ‘creative vision’. We discuss how this ‘principal‐agent‐agent’ mechanism plays out, the types of uncertainty that drive it, and consider the industry‐level externalities it induces. Copyright © 2015 John Wiley & Sons, Ltd.     

Radical HRM innovation and competitive advantage: The Moneyball story

Moneyball (Lewis, 2003), a New York Times bestseller, is a book about baseball. When read through a broader lens, however, Moneyball is also a book about innovation, resistance to change, competitive advantage, achieving excellence, and, of most relevance here, human resource management. While many would agree that the radical innovation described in Moneyball represents a “new vision of management” in baseball, this article describes how Moneyball lessons might contribute to a “new vision of HRM” in various types of organizations. The focus of the article is on what HR executives and scholars can learn from the Moneyball phenomenon. More specifically, the authors address a number questions related to the Moneyball story that have relevance to successfully implementing HRM innovations; these questions have to do with overcoming resistance to the implementation of radical innovation and how HRM innovation can contribute to sustainable competitive advantage. © 2006 Wiley Periodicals, Inc.     

From Dyadic Change to Changing Business Networks: An Analytical Framework

This paper investigates the dynamics of business networks. We distinguish between confined dyadic change and network change and show how change itself may be incremental or radical, using the punctuated equilibrium model of change. The concept of the critical event is introduced to highlight radical change. We propose an analytical framework where the ideas of mechanism, nature and forces of change are integrated. Two circles of network change (incremental and radical) are presented and transfers from one circle to the other are discussed. We believe this conceptual elaboration may have significant implications for future network dynamic research     

The Conduct of Management and the Management of Conduct: Contemporary Managerial Discourse and the Constitution of the ‘Competent’ Manager*

The character and conduct of the manager has formed a central focus of attempts to govern economic life throughout the present century. and current programmes of organizational change involve radical attempts to reconstitute the nature and conduct of management. This is attempted through the identification and implementation of management competencies. Discourses of organizational reform such as human resource management, total quality management and business process re-engineering all place a critical emphasis on anti-bureaucratic, organic and flexible forms of organization, which are also seen to require the development of particular capacities and predispositions among managers. Essential to their vision of ‘managerial work’ is a composite of ‘entrepreneurial’ attributes. Management competencies appear to offer a congenial method for the reconstitution of the manager along ‘entrepreneurial’ lines, not simply because they are inherently founded on managers'self-management and self-presentation of identified behaviours, but also because they represent individualized forms of business functions (and are often associated with the establishment of market relations within the organization).     

Measurement Issues in Financial Reporting

Research on management control has emphasised the relevance of controls for knowledge integration on a project-by-project basis. This work contributes to this field by proposing a framework to explain how management control systems foster knowledge transfer between organisational units in knowledge-intensive firms. By combining network theory and knowledge network research, this study suggests that the design of management control systems should consider various forms of relationships between individuals (strong/weak, direct/indirect) that these systems activate and that are necessary to transfer various forms of knowledge (process, outcome, technology or opportunities) characterised by different levels of causal ambiguity and relatedness. An in-depth empirical analysis of a software firm and three of its projects shows that management controls may act as important mechanisms of knowledge circulation and that some principles reinforce this function. In particular, to achieve organisational knowledge transfer, enforceability of manuals and procedures, scalability of reviews and decisions, mobility induction of individuals, and multiplicity of roles and accountabilities are indicated as desirable design properties of control systems in knowledge-intensive firms.     

Developing a typology of organisational forms of cooperative purchasing

This paper develops a typology for purchasing groups. In the typology, five main forms of cooperative purchasing are distinguished based on seven main dimensions. The forms are positioned in a matrix according to two distinguishing dimensions. These two dimensions are the ‘influence by all members on the group activities’ and the ‘number of different group activities’. Underlying the two-dimensional matrix, there are five other dimensions that do not distinguish all forms from each other, but further detail the forms of cooperative purchasing. The typology can serve as a guideline for purchasing groups when a suitable organisational form needs to be chosen. In a suitable form, the dimensions of a group fit together. For all groups, it is recommended to find this best fit. This is something in which the typology may help. The paper concludes by emphasising the importance of clearly defining and positioning studied forms, because different forms imply different research models and have different advantages, disadvantages, and critical success factors.     

Identity Regulation as Organizational Control: Producing the Appropriate Individual

This paper takes the regulation of identity as a focus for examining organizational control. It considers how employees are enjoined to develop self-images and work orientations that are deemed congruent with managerially defined objectives. This focus on identity extends and deepens themes developed within other analyses of normative control. Empirical materials are deployed to illustrate how managerial intervention operates, more or less intentionally and in/effectively, to influence employees' self-constructions in terms of coherence, distinctiveness and commitment. The processual nature of such control is emphasized, arguing that it exists in tension with other intra and extra-organizational claims upon employees' sense of identity in a way that can open a space for forms of micro-emancipation.     

Urban Operating Systems: Diagramming the City

A set of software/hardware packages developed by IT companies for the urban market is transforming the way in which cities are imagined and configured. These urban operating systems (Urban OS) embody important presumptions about what constitutes appropriate knowledge and forms of decision making, pointing to how novel forms of ‘smart' or ‘computational' urbanism may govern urban life. Arguing that an analysis of the interface between the urban and IT requires a broader historical and theoretical perspective, the article traces the ways in which the city has been diagrammed as a space of power since the nineteenth century and highlights the antecedents of Urban OS present across different domains of life—particularly in military and corporate enterprises. Relaying the urban as an efficient logistical enterprise, and operating as a piloting device (Deleuze and Guattari, 1987), the Urban OS appears as an emerging urban diagram introducing an informational diagrammatic of control. We focus on five archetypal framings of how Urban OS envision the city, illustrating how a new corporate rationality of control based on functional simplification and heterogeneous reintegration seeks to take hold in the city (via re‐engineering, agility, modularity, flexibility and configurability).     

中小企业财务风险的识别与控制研究

财务风险是指筹资后因资金结构科学合理程度不同而可能造成财务危机和财务失败的风险。本文重点分析了如何识别我国中小企业的财务风险及在此基础上形成的防范控制措施。     

Transformational offshore outsourcing: Empirical evidence from alliances in China

Adopting a transformational offshore outsourcing perspective, we examine empirically the relationship among the motive to acquire tacit knowledge from outsourcing partners, formal and social control mechanisms, and innovation outcomes among Sino-foreign as well as local alliances. We constructed our theoretical model incorporating knowledge management, social exchange, and alliance risk perspectives, and hypothesized that motives to acquire partners’ tacit knowledge through offshore outsourcing will affect firm innovation via two forms of control, namely social control and formal control. Our empirical testing, utilizing two sub-samples composed of Sino-foreign offshore outsourcing alliances and local outsourcing alliances, respectively, reveals that the motive to acquire outsourcing partner's tacit knowledge and different control mechanisms are significant predictors of incremental and radical innovation outcomes, and that there are some intriguing differences between the Sino-foreign alliances and local alliances.     

From HRM to psychological contracting - the case of Finnish mobile content producing companies

The paper explores how human resource management (HRM) is currently intended, used and experienced in 10 Finnish companies operating in the field of telecommunications. Our specific focus is on direct and indirect forms of managerial control and the psychological contract. We examine how psychological contracts are created and maintained, and study their relationship with HRM as a means of either direct or indirect control. Our findings indicate that employees are voluntarily assuming the obligation to exercise organizational control as a part of their psychological contract in exchange for the freedom and autonomy that they enjoy. Recruitment emerges as a top employer priority. However, not many other human resource (HR) techniques are used. Rather, carefully selected workers are allowed the autonomy and freedom to define what constitutes their psychological contract, with a duty to control its attractiveness from the employers' point of view.     

Tomorrow's materiel management executive today

As materiel management executives in today's market, the challenges of not only operating effectively but with fewer resources is a reality that has no end in sight. The role of the materiel executive in hospitals is moving from supply manager to resource consultant. This may be quite appealing to many of us; however, not all are prepared to assume these responsibilities. As a result, we find ourselves overwhelmed with information and examples of case studies from different facilities describing how they are resolving their individual issues. Reactions to these changes are met in different ways, ranging from marveling at others' imaginations to fear from not understanding how to commit to these radical new processes. Is there a proper way or a mold to use? I suggest not.     

Enactment of a Sustainable Vision in the Dual Context of the Tropical Biosphere and the Developing World: A Case Study of Belize Natural Energy

Nowhere is economic, cultural, and environmental sustainability more critical than in a country like Belize, where the developing world merges with the tropical biosphere. Through a single‐organization case study design, the authors provide insight into Belize's only oil‐producing company, specifically examining its sustainability practices and its enactment of an organizational vision centered on sustainability. Our global economy relies heavily on fossil fuels; such reliance requires us to understand the sustainability efforts of these companies. Determining how sustainability is enacted in these organizations forms the basis for how these practices can be replicated. Data collection included multiple interviews with employees throughout the organization, ethnographic observation, and document analysis. The results yielded an understanding of how sustainability practices are enacted in organizational communication.     

Employee perspectives on communication and consultation: findings from a cross-national survey

Highlighting the ongoing significance of national models of employment relations, this paper examines whether variation in communication and consultation practices between countries is reflected in employee perceptions. Drawing upon a survey of around 3,500 employees in four European countries – France, Germany, Italy and the UK – the paper explores whether workers' views on various aspects of communication and consultation are similar or different. It finds that there are certain similarities, with particular types of information and forms of communication being valued across the countries. However, differences are also identified. It is suggested that national institutions may well shape employee expectations about the nature of communication and consultation, feeding through to how satisfied they are with these processes.     

Bridging the research-practice divide: Harnessing expertise collaboration in making a wider set of contributions

Understanding how we develop research contributions which go beyond conversations in the academic field is an enduring challenge. While much has been written on the importance of academic-practitioner relationships in the research process more is needed on conceptualizing how we develop a wider set of contributions. In this paper, we call for researchers to be reflective as to how different forms of expertise can be drawn on during collaborative relationships to bridge the research – practice divide. We develop a framework which combines different levels of expertise with varying forms of academic-practitioner collaboration to widen the impact of our research. Four strategies are proposed by which academics may leverage their expertise in collaborative relationships with practitioners to develop Research Impact and Contributions To Knowledge (RICK). These include: maintaining critical distance, promoting deeper engagement, developing prescience, and achieving hybrid practices. We discuss implementation approaches for each of these RICK strategies and suggest writing genres to help increase engagement by practitioners in research contributions.     

An analytical model for human resource management as an enabler of organizational renewal: a framework for corporate entrepreneurship

This article presents the development of a model of types of work based on organizational theory. It analyzes the different characteristics of work and efficient forms of Management, and joins all these aspects together in terms of corporate entrepreneurship. Organizational theory provides the instruments needed to manage work, the causes that make decentralization desirable and the technical, social and institutional mechanisms for its control. The literature on corporate entrepreneurship provides material for forms of discovery or creation of opportunities based on accumulated experience in the firm, on the collective relationships linked to entrepreneurship and on the way in which resources are managed. This article contributes to existing knowledge by systematically addressing these two fields, showing how the instruments that allow for the efficient management of work are the same as those necessary for corporate entrepreneurship and how the efficient management of work is a prerequisite and an enabler of entrepreneurial activity.