Pay dispersion in interdependent work settings is virtually universally argued to be detrimental to performance. We contend, however, that these arguments often confound inequality with inequity, thereby overestimating inequity concerns. Consequently, we adopt a sorting (attraction and retention) perspective to differentiate between pay dispersion that is used to secure valued employee inputs a…
The topic of escalation of commitment has intrigued the organizational sciences for over 35 years. A variety of theoretical explanations have been offered for why escalation occurs, and numerous constructs have been examined as antecedents of escalation behavior. However, little effort has been made to systematically investigate these various accounts. Using meta-analysis, we present a comprehe…
Developing and nurturing links with political actors and institutions constitutes an important component of a firm's overall nonmarket strategy. This paper focuses on corporate political ties, which are boundary-spanning personal and institutional linkages between firms and the constituent parts of public authorities. To help address the inconsistency of past research findings on the value of c…
The informal economy comprises business activities that are unregistered and unregulated but not otherwise illegal (Hart, 2006). Studying informal activity yields important insights for mainstream theories of management, pointing to areas for new theorizing on the boundaries of the firm, diversification, dynamic capabilities, absorptive capacity, property rights, governance, stakeholder theory,…
An emerging problem-finding and problem-solving approach suggests that management's ability to discover problems to solve, opportunities to seize, and challenges to respond to is vital to organizations. This paper explores the extent to which the problem-finding and problem-solving approach can provide a foundation for joining the capabilities, dynamic capabilities, and governance perspectives …
We provide a rejoinder to the article by Bloom, Sadun, and Van Reenen (this issue). In this paper, we acknowledge positive aspects of their work. However, we also raise both conceptual and methodological issues that need to be addressed as their research efforts move forward. Specific recommendations are provided..Printed Journal
We develop a contingency theory for how structural closure in a network, defined as terms of the extent to which an actor's network contacts are connected to one another, affects the initiation and adoption of change in organizations. Using longitudinal survey data supplemented with eight in-depth case studies, we analyze 68 organizational change initiatives undertaken in the United Kingdom's N…
In this article, we examine how organizations become less sensitive to the symbolic and material carriers of a prevailing logic and correspondingly enact a deviating logic. Using the highly institutionalized Belgian horticulture industry, we employ a multicase, inductive study of firms that vary in their responses to an emerging logic that diverges from institutionalized norms and practices of …
We study how analysts' recommendations affect firms' strategies during radical technological shifts. We find, from our study of firms in three industries undergoing technological change, that analysts' recommendations trigger changes in strategic investments during periods of uncertain technological change. We also find that firms that make high investments despite negative analysts' recommenda…
A recent theoretical proposal is that relational identification generalizes to organizational identification through affective, cognitive, and behavioral mediating mechanisms. The generalization process is strengthened when a relational other is prototypical?that is, is seen as promoting core organizational values. We investigate these propositions via two field studies. First, we find, via tem…
This article develops a model of practice-driven institutional change?or change that originates in the everyday work of individuals but results in a shift in field-level logic. In demonstrating how improvisations at work can generate institutional change, we attend to the earliest moments of change, which extant research has neglected; and we contrast existing accounts that focus on active entr…
Much effort goes into building markets as a tool for economic and social development; those pursuing or promoting market building, however, often overlook that in too many places social exclusion and poverty prevent many, especially women, from participating in and accessing markets. Building on data from rural Bangladesh and analyzing the work of a prominent intermediary organization, we uncov…
Drawing upon prior research on proactive personality and person-environment fit, we examine the congruence effect of leader and follower proactive personality on leader-member exchange (LMX) quality, which in turn influences follower job satisfaction, affective commitment, and job performance. Results of cross-level polynomial regressions on 165 dyads supported the congruence effect hypothesis.…
Although network ties are crucial for firm performance, the strategies by which executives actually form ties are relatively unexplored. In this study, we introduce a new construct, tie formation efficiency, and clarify its importance for superior network outcomes. Building on fieldwork in nine Internet security ventures seeking investment ties, we unexpectedly identify two ?equifinal? paths fo…