Reexamining Threat Rigidity: Implications for Design

2009 ◽  
Keyword(s):  
Threat Rigidity

The Consequences of Accounting Failure for Innovation: A Multi-Level Analysis

2020 ◽  
Vol 34 (2) ◽  
pp. 109-124
Author(s):  
Megan F. Hess ◽  
Andrew M. Hess
Keyword(s):  
Firm Level ◽  
Psychological Response ◽  
Top Executives ◽  
Innovation Activities ◽  
Threat Rigidity ◽  
Multi Level ◽  
Multiple Levels ◽  
Financial Misconduct ◽  
Public Disclosures ◽  
Level Analysis

SYNOPSIS In this study, we investigate the relation between accounting failure and innovation at multiple levels in an organization by developing and testing a model for how top executives and functional managers might change their risk preferences and their innovation investments in response to public disclosures of financial misconduct. At the firm level, we find that accounting failures reduce subsequent investments in R&D, as predicted by a threat rigidity (“play it safe”) psychological response among top executives. At the project level, accounting failures have the opposite effect, resulting in an increase in the number of exploratory projects, as predicted by a failure trap (“swing for the fences”) psychological response among functional managers. Unpacking this relation at multiple levels of analysis helps us to understand the complex ways in which financial misconduct shapes a firm's innovation activities and appreciate the far-reaching consequences of accounting failure.

Innovation in the aftermath of downsizing: evidence from the threat-rigidity perspective

2020 ◽  
Vol 49 (9) ◽  
pp. 1859-1877
Author(s):  
José Fernández-Menéndez ◽  
Óscar Rodríguez-Ruiz ◽  
José-Ignacio López-Sánchez ◽  
María Isabel Delgado-Piña
Keyword(s):  
Regression Models ◽  
Negative Impact ◽  
Content Type ◽  
Logistic Regression Models ◽  
Marketing Innovation ◽  
Different Types ◽  
Threat Rigidity ◽  
The Impact ◽  
Research Show ◽  
Innovation Outcomes

PurposeThe purpose of this paper is to study how job reductions affect product innovation and marketing innovation in a sample of 2,034 Spanish manufacturing firms in the period 2007–2014.Design/methodology/approachPoisson and logistic regression models with random effects were used to analyse the impact of downsizing on some innovation outcomes of firms.FindingsThe results of this research show that the stressful measure of job reductions may have unexpected consequences, stimulating innovation. However downsizing combined with radical organisational changes such as new equipment, techniques or processes seems to have a negative impact on product and marketing innovation.Originality/valueThis research has two original features. First, it explores the unconventional direction of causality from the planned elimination of jobs to innovation outputs. Secondly, the paper looks at the combined effect of downsizing and other restructuring measures on different types of innovation. Following the threat-rigidity theory, we assume that this combination represents a major threat for survivors that leads to lower levels of product and marketing innovation.

An Examination of Whether and How Prevention Climate Alters the Influence of Turnover on Performance

2020 ◽  
pp. 014920632097845
Author(s):  
David R. Hekman ◽  
H. Phoenix VanWagoner ◽  
Bradley P. Owens ◽  
Terence R. Mitchell ◽  
Brooks C. Holtom ◽  
...  
Keyword(s):  
Conceptual Model ◽  
Underlying Mechanism ◽  
Group Norms ◽  
Threat Rigidity ◽  
Harmful Effects

Recent meta-analytic studies imply that groups often find ways of neutralizing turnover’s harmful effects and that important moderators of the turnover–performance relationship must be missing from the literature. Building on theory and findings related to the threat–rigidity effect, we suggest that groups tend to respond maladaptively to turnover when group norms promote the idea that turnover is threatening. Specifically, we suggest that prevention climate—that is, a climate focused on minimizing mistakes and costs—largely determines the degree to which group norms encourage members to view turnover as threatening and, in turn, the degree to which groups become less adaptive and perform worse in response to turnover. Across a sample of 232 groups, we found evidence that turnover is indeed more negatively related to performance for those groups with a strong prevention climate. Further, in a controlled laboratory context where we manipulated turnover and prevention climate, we found causal evidence supporting our full conceptual model. Our work advances research on turnover by identifying an important moderator and an underlying mechanism of the turnover–performance relationship.

Entrepreneurial Orientation and Environmental Hostility: A Threat Rigidity Perspective

2019 ◽  
Vol 44 (6) ◽  
pp. 1174-1198 ◽  
Author(s):  
Patrick M. Kreiser ◽  
Brian S. Anderson ◽  
Donald F. Kuratko ◽  
Louis D. Marino
Keyword(s):  
Behavioral Change ◽  
Entrepreneurial Orientation ◽  
Negative Relationship ◽  
Capital Allocation ◽  
Marginal Costs ◽  
Threat Rigidity ◽  
Entrepreneurial Capital ◽  
Environmental Hostility

We posit that environmental hostility exhibits an inverse U-shaped relationship with a firm’s entrepreneurial orientation. We suggest a nuanced perspective on the threat rigidity argument that firms generally retrench from entrepreneurial capital allocation behaviors as hostility increases. We argue that firms are likely to act opportunistically and increase EO, but only to the point where the marginal costs of such activity outweigh the marginal benefits, at which point EO drops precipitously. Analyzing 60,440 observations from 6,481 firms across 373 industries from 1998 through 2017, our results indicate that EO exhibits a generally negative relationship with environmental hostility. Further, we examine a potential moderating influence of recoverable slack on the hostility–EO relationship, arguing that recoverable slack represents a meaningful buffer on behavioral change stemming from changing environmental hostility.

Organizational slack, experience, and acquisition behavior across varying economic environments

2014 ◽  
Vol 52 (5) ◽  
pp. 967-982 ◽  
Author(s):  
Todd Alessandri ◽  
Daniele Cerrato ◽  
Donatella Depperu
Keyword(s):  
Design Methodology ◽  
Behavioral Theory ◽  
Economic Conditions ◽  
Financial Resources ◽  
Organizational Slack ◽  
Economic Downturn ◽  
Content Type ◽  
Cross Border ◽  
Threat Rigidity ◽  
Using Data

Purpose – The purpose of this paper is to examine the effects of the organizational slack and acquisition experience on acquisition behavior across varying environmental conditions. Drawing from behavioral theory and the threat-rigidity hypothesis, the paper explores firm acquisition behavior, in terms of type of acquisitions, before and during the recent economic downturn. Design/methodology/approach – Using data on 385 acquisitions in Italy in the period 2007-2010, the paper tests hypotheses on how organizational slack and acquisition experience influence the likelihood of cross-border and diversifying acquisitions relative to domestic, non-diversifying acquisitions prior to and during the economic downturn. Findings – Results suggest that the availability of financial resources and acquisition experience both have an important influence on acquisition behavior. Firms with greater slack and acquisition experience were more likely to make diversifying and/or cross-border acquisitions, compared to domestic non-diversifying acquisitions, particularly during an economic downturn, than firms with lower levels of slack and acquisition experience. Originality/value – The paper extends behavioral theory and threat-rigidity hypothesis, highlighting their applicability to acquisition behavior across varying economic conditions. Slack resources and acquisition experience appear to be particularly salient during challenging economic times.

Threat Rigidity Effects in Organizational Behavior: A Multilevel Analysis

1981 ◽  
Vol 26 (4) ◽  
pp. 501 ◽  
Author(s):  
Barry M. Staw ◽  
Lance E. Sandelands ◽  
Jane E. Dutton
Keyword(s):  
Organizational Behavior ◽  
Multilevel Analysis ◽  
Threat Rigidity

scholarly journals Transformational change in the SA gambling and lotteries sector

2007 ◽  
Vol 7 (1) ◽  
Author(s):  
D. Van Lill
Keyword(s):  
South African ◽  
Transformational Change ◽  
Point Of View ◽  
Work Culture ◽  
Significant Finding ◽  
Sustainable Competitive Advantage ◽  
Value Innovation ◽  
Business Principles ◽  
Threat Rigidity ◽  
User Friendly

Purpose: This paper examines the transformation of the South African gaming and casino sub-sector after South Africa's democratic dispensation in 1994 and the National Gambling Act (33 of 1996). These developments introduced an adapt-or-die scenario to the gambling and lotteries sector leading to a total overhaul of strategy, structure, systems, processes, technology, work, culture, behaviour and mindset. More specifically, Sun International's gaming and casino division's response to transformational change was examined by tapping into, and reflecting on, the experiences of managers involved in day-to-day casino operations. Design: The conceptual framework of the research is based on transformation as a form of change where business principles and people management are highly integrated. Subsequently, a user-friendly tool called the "See-Saw model" was developed to measure transformational progress. The model was applied in six change management workshops for casino managers and, from this framework, transformational progress was interpreted. Findings: The results highlighted the magnitude of change in the gambling and lotteries sector. It appeared that this sector has evolved in 10 year cycles up to 2000, whereas the current level of competitiveness fuels the demand for innovation and change in less than two year cycles. The second significant finding revolved around employees' perception that Sun International's gaming and casinos division has performed well in terms of value innovation variables. Implications: The study confirmed that, in successful transformation, business innovation needs to be balanced by fairness principles. Moreover, that the threat-rigidity in leader and employee mindset has become a most challenging people management puzzle to position in securing sustainable competitive advantage. Originality: The value of the research lies in the development of a user-friendly, non-threatening strategic tool called the "see-saw model" which can be used across industries to evaluate transformational progress from the employees' point of view.

Is Updating Play or Work?

2011 ◽  
Vol 1 (4) ◽  
pp. 37-47 ◽  
Author(s):  
Damien Joseph ◽  
Mei Ling Tan ◽  
Soon Ang
Keyword(s):  
Turnover Intentions ◽  
Future Research ◽  
Rigidity Theory ◽  
It Professionals ◽  
Research Directions ◽  
Knowledge And Skills ◽  
Threat Rigidity ◽  
Future Research Directions ◽  
Behavioral Orientation ◽  
It Knowledge

This study proposes that IT professionals’ behavioral orientation towards IT knowledge and skills updating demands can take on two contrasting forms: updating-as-play or updating-as-work. Drawing on threat-rigidity theory (Staw, Sandelands, & Dutton, 1981), the authors hypothesize that IT professionals who feel threatened by professional obsolescence are more likely to approach updating-as-work more than as play. Results from a sample of IT professionals are consistent with threat-rigidity theory (Staw et al., 1981) in that the threat of professional obsolescence is negatively related to updating-as-play and is positively related to updating-as-work. The authors also find that updating-as-play is negatively related to turnaway intentions and that updating-as-work is positively related to turnover intentions; these findings are consistent with IT theories of job mobility. The authors conclude this study with a discussion of these results and propose future research directions.

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