Cooperation Beyond the Network

2021 ◽  
Author(s):  
Ronald S. Burt ◽  
Sonja Opper ◽  
Håkan J. Holm

It is well known in economics, law, and sociology that reputation costs in a closed network give insiders a feeling of being protected from bad behavior in their relations with one another. A person accustomed to doing business within a closed network is, therefore, likely to feel at unusual risk when asked to cooperate beyond the network because of absent reputation-cost security. It follows that business leaders in more closed networks should be less likely to cooperate beyond their network (Hypothesis 1 ). Success reinforces the status quo. Business leaders successful with a closed network associate their success with the safety of their network, so they should be even less likely to cooperate with a stranger (Hypothesis 2 ). We combine network data from a heterogeneous area probability survey of Chinese CEOs with a behavioral measure of cooperation to show strong empirical support for the two hypotheses. CEOs in more closed networks are less likely to cooperate beyond their network, especially those running successful businesses: successful CEOs in closed networks are particularly likely to defect against people beyond their network. The work contributes to a growing literature linking network structure with behavior: here, the closure that facilitates trust and cooperation within a network simultaneously erodes the probability of cooperation beyond the network, thereby reinforcing a social boundary around the network. Taking our results as a baseline, we close sketching new research on personality, homophily, network dynamics, and variation in the meaning of “beyond the network.”

Author(s):  
T. Clifton Morgan ◽  
Glenn Palmer

The “two-good theory” is a theory of foreign policy that is meant to apply to all states in all situations; that is, it is general. The theory is simple and assumes that states pursue two things in theory with respect to foreign policies: change (altering aspects of the status quo that they do not like) and maintenance (protecting aspects of the status quo that they do like). It also assumes that states have finite resources. In making these assumptions, the theory focuses on the trade-offs that states face in constructing their most desired foreign policy portfolios. Further, the theory assumes that protecting realized outcomes is easier than bringing about desired changes in the status quo. The theory assumes that states pursue two goods instead of the more traditional one good; for realism, that good is “power,” and for neorealism, it is “security.” This small step in theoretical development is very fruitful and leads to more interesting hypotheses, many of which enjoy empirical support. The theory captures more of the dynamics of international relations and of foreign policy choices than more traditional approaches do. A number of empirical tests of the implications of the two-good theory have been conducted and support the theory. As the theory can speak to a variety of foreign policy behaviors, these tests appropriately cover a wide range of activities, including conflict initiation and foreign aid allocation. The theory enjoys support from the results of these tests. If the research relaxes some of the parameters of the theory, the investigator can derive a series of corollaries to it. For example, the initial variant of the theory keeps a number of parameters constant to determine the effect of changes in capability. If, however, the investigator allows preferences to vary in a systematic and justifiable manner (consistent with the theory but not established by the theory), she can see how leaders in a range of situations can be expected to behave. The research strategy proposed, in other words, is to utilize the general nature of the two-good theory to investigate a number of interesting and surprising implications. For example, what may one expect to see if the United States supplies a recipient state with military aid to counter a rebellion? Under reasonable circumstances, the two-good theory can predict that the recipient would increase its change-seeking behavior by, for instance, engaging in negotiations to lower trade barriers.


2020 ◽  
Vol 6 (3) ◽  
pp. 1-6
Author(s):  
Daryl D Green ◽  
Jack McCann

Due to disruptive changes such as COVID-19, universities can no longer afford to tackle these turbulent forces solely. In today’s hyercompetitive environment, companies that want to compete in the future understand that the status quo will not do. According to Accenture, 76% of business leaders surveyed agree that current business models will be “unrecognizable” in the next 5 years. Businesses that attempt to move forward against the backdrop of uncertainty and unpredictability with little or no partnerships will find it difficult to be successful. In this short communication, researchers examine how to build strategic alliances in a disruptive world marked by uncertainty and unpredictability, given the impact of COVID-19.


2020 ◽  
Vol 338 ◽  
pp. 287-299
Author(s):  
Jasmin Oster ◽  
Birgit Schenk

On 16 April 2014, the European Parliament and the Council of the European Union adopted the Directive on electronic invoicing for public contracts (2014/55/EU) in order to establish electronic invoicing as the predominant method by 2020. The e-invoicing directive requires all contracting authorities to be able to receive and process electronic invoices (ABI L133/1). The European legislator defines e-bill as "an invoice issued, transmitted and received in a structured electronic format that enables its automatic and electronic processing" (ABI L133/7). This raises the question of (a) the status quo of electronic invoicing in Baden-Württemberg's municipalities, (b) their implementation barriers and drivers, and (c) the status quo in Baden- Württemberg compared to all other German states. This paper answers these questions and points out interesting aspects that raise new research questions.


2021 ◽  
Vol 5 ◽  
Author(s):  
Qinyu Xiao ◽  
Choi Shan Lam ◽  
Muhrajan Piara ◽  
Gilad Feldman

Status quo bias refers to people’s general preference to stick to, or continue with, a previously chosen option. In two pre-registered experiments with U.S. participants recruited from the Amazon Mechanical Turk (n1 = 311, n2 = 316), we attempted to replicate four decision scenarios (Question 1, 2, 4, and 6) from Samuelson and Zeckhauser (1988), the seminal article that provided the first experimental demonstration of the status quo bias. We found strong empirical support for the status quo bias in three decision scenarios out of the four, including budget allocation (Scenario 1/Question 1 in the original article), investment portfolios (Scenario 3/Question 2), and college jobs (Scenario 4/Ques- tion 4). However, we failed to find substantial support for the status quo bias in the wagon color choice scenario (Scenario 2/Question 6). We discuss the implications of our results and possible explanations using multiple accounts put forward in the status quo bias literature.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jacques Nel ◽  
Christo Boshoff

PurposeDigital-only banks are emerging as challenger banks to the traditional-bank business model in South Africa. However, traditional-bank customers could resist the use of digital-only banks, theoretically due to their satisfaction with the status quo. Consequently, inertia arising from bias to traditional banks based on status quo satisfaction could engender their resistance to become customers of digital-only banks. The objective of the study, therefore, is to investigate how traditional-bank customers' inertia influences digital-only bank resistance.Design/methodology/approachBased on a literature review, digital-only bank adoption barriers and cognitive-based initial distrusting beliefs were identified as mediators of the influence of inertia on digital-only bank resistance. To test the mediation model empirically, data was collected from 610 traditional-bank-only customers.FindingsThe five adoption barriers fully mediate the influence of inertia on cognitive-based initial distrusting beliefs. The five barriers in serial with cognitive-based initial distrusting beliefs partially mediate the influence of traditional-bank customers' inertia on digital-only bank resistance. Cognitive-based initial distrusting belief is an essential factor in the mechanism underlying the influence of traditional-bank customers' inertia on digital-only bank resistance.Originality/valueDigital-only banks are relatively new. Research is therefore lacking in consumer behavior explaining the use of digital-only banks by traditional-bank customers in the South African context. A further novelty of the study is the empirical assessment of mechanisms that explain the influence of inertia on cognitive-based initial distrusting beliefs, and the influence of inertia on resistance behavior.


2005 ◽  
Vol 26 (2-3) ◽  
pp. 72-84 ◽  
Author(s):  
Cynthia Bond Hopson

This analysis of coverage of 1960s registration efforts by African Americans in Tennessee reveals that the local newspaper chose to protect the business leaders and support the status quo.


Author(s):  
Patrick Bohl

Today’s business leaders must constantly review and develop their firm’s abilities to adapt to and benefit from external changes. Dynamic capabilities are the capacity of an organization to purposefully create, extend or modify its resource base. They enable it to exploit business, technological and market opportunities and adapt to market changes, an ability more often observed in highly dynamic industries, such as consumer electronics or telecommunications. Using the case study method, this article identifies dynamic capabilities in traditional, less dynamic industries when faced with a sudden drop of revenue. Four distinct routines emerge, namely structure and practices enduring time-sensitive strategic decision-making by the tice, and a culture encouraging learning and coevolving. Seemingly strategic paradox objectives encourage the management team to question the status quo and, when managed well, transform the tensions between old and new into an ability to advance superior ideas faster.


2018 ◽  
Vol 59 (1) ◽  
pp. 129-174 ◽  
Author(s):  
Aurélien Feix ◽  
Déborah Philippe

Corporate social responsibility (CSR) has repeatedly been described as an “essentially contested concept,” which means that its signification is subject to continuous struggle. We argue that the “CSR institution” (CSRI; i.e., the set of standards and rules regulating corporate conduct under the banner of CSR) is legitimized by narratives which “decontest” the underlying concept of CSR in a manner that safeguards the CSRI from calls for alternative institutional arrangements. Examining several such narratives from a structuralist perspective, we find them to be permeated with six recurrent ambiguities that we show to be reflective of three deep-set taboos: the taboo of the noncongruency between corporate profit objectives and societal needs, the taboo of multinational firms’ continued contribution to the emergence of global socioenvironmental issues, and the taboo of the CSRI’s moderate results in solving these problems. We contend that the perpetuation of these taboos contributes to inhibiting substantial change in the way of doing business, and we sketch out possibilities for initiating a “recontestation” of CSR’s meaning.


2017 ◽  
Vol 35 (8) ◽  
pp. 1343-1361 ◽  
Author(s):  
Elin Lerum Boasson ◽  
Dave Huitema

This is an introductory paper to a special issue on climate governance entrepreneurship, where entrepreneurship is understood as acts performed by actors seeking to ‘punch above their weight’. By contrast, actors who are merely doing their job are not ‘entrepreneurs’. In order to understand climate policy and governance, we need to learn more about the factors that condition variance in entrepreneurial activity, strategies and success. In this introduction, we present a comprehensive review of the literature on entrepreneurs and entrepreneurship in policy in governance, with special attention to the recent upsurge in studies of climate governance entrepreneurship. We distinguish two types of entrepreneurship: (1) acts aimed at enhancing governance influence by altering the distribution of authority and information; and (2) acts aimed at altering or diffusing norms and cognitive frameworks, worldviews or institutional logics. The contributions in this special issue offer valuable insights into how personal motivations, policy windows, international trends, cultural-institutional traditions and the distribution of structural power influence entrepreneurship. However, more work is needed – not least as regards whether actors that seek change are more active and/or more successful as entrepreneurs compared to those that defend the status quo, and whether there is more successful entrepreneurship in public or in private arenas of governance.


2006 ◽  
Vol 10 (1) ◽  
pp. 23-38 ◽  
Author(s):  
Kahilu Kajimo-Shakantu ◽  
Kathy Evans

Currently, South African banks exclude most low‐income households from access to formal housing loan finance with which to resolve housing problems. The research reported here examined the banks’ resilience to change the status quo so as to become more flexible and all‐inclusive. Using naturalistic enquiry, the research gathered evidence from five banks and a leading housing organisation. The main findings include that while there is potential for banks to expand their role in this area of housing finance; factors such as risk and cost minimisation as well as lack of research constrain this potential. The research concluded that the low‐income group requires a different business model that is suited to their needs and which calls for new ways of thinking and doing business.


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