Institutional inertia and practice variation

PurposeInstitutional theory had been developed for the purpose of explaining widespread diffusion, mimetic adoption and institutionalization of organizational practices. However, further extensions of institutional theory are needed to explain a range of different institutional trajectories and organizational responses since institutionalized standards constitute a minority of all diffusing practices. The study presents a theoretical framework which offers guidelines for explaining and predicting various adoption, variation and post-adoption scenarios.Design/methodology/approachThe paper is primarily conceptual in nature, and the arguments are developed based on previous institutional theory and organizational change literature.FindingsThe notion of institutional inertia is proposed in order to provide a more detailed explanation of when and why organizations ignore, adopt, modify, maintain and abandon practices and the way intra-organizational institutional pressures shape, direct and constrain these processes. It is specified whether institutional inertia will be temporarily eclipsed or whether it will actively manifest itself during adoption, adaptation and maintaining attempts. The study distinguishes between four institutional profiles of organizational practices – institutionalized, institutionally friendly, neutral and contested practices – which can vary along three dimensions: accuracy, extensiveness and meaning. The variation and post-adoption outcomes for each of them can be completely characterized and predicted by only three parameters: the rate of institutional inertia, institutional profile of these practices and whether they are interpretatively flexible. In turn, an extent of intraorganizational institutional resistance to new practices is determined by their institutional profile and flexibility.Practical implicationsIt is expected that proposed theoretical explanations in this paper can offer insights into these empirical puzzles and supply a broader view of organizational and management changes. The study’s theoretical propositions help to understand what happens to organizational practices after they are handled by organizations, thus moving beyond the adoption/rejection dichotomy.Originality/valueThe paper explores and clarifies the nature of institutional inertia and offers an explanation of its manifestation in organizations over time and how it shapes organizational practices in the short and long run. It challenges a popular assumption in organizational literature that fast and revolutionary transition is a prerequisite for successful change. More broadly, the typology offered in this paper helps to explain whether and how organizations can successfully handle and complete their change and how far they can depart from institutional norms.

Entrepreneurship-driven organizational transformation for sustainability: a sensemaking lens

PurposeThis paper adopts a sensemaking lens to explore the process of entrepreneurship-driven organizational transformation for sustainability.Design/methodology/approachAnalysis is based on an in-depth case study of a large European meat company. Sensemaking by top and middle managers is analyzed over the period of 18 months.FindingsThe findings show how, over time, bidirectional sensemaking, that is, sensemaking for and of sustainability-oriented entrepreneurship, directed and accelerated organizational transformation for sustainability. The case company transformed with regard to organizational strategy, structure, operations and identity. The process revealed temporally different involvement of top and middle managers in sensemaking.Originality/valueThis paper offers unique insights into fast and emergent sustainability-oriented change in an established organization within a highly topical context. The results highlight how continuous and increasingly shared sensemaking can help top and middle managers navigate organizational change for sustainability in dynamic environments over time.

Effects of emotional healing on organisational learning and radical innovation: a leadership-based approach

PurposeThe objective of this study was to provide empirical evidence of the relationship between emotional healing, analysed as a leader behaviour and radical innovation.Design/methodology/approachTo test the hypotheses, structural equations were used, with organisational learning capability as an explanatory variable. The study was conducted in a population of 402 Spanish companies. A sample frame of 292 questionnaires was obtained from 146 different organisations. The fieldwork took place in two stages, in 2010 and again in 2015.FindingsResults confirm the hypotheses proposed in the model. Emotional healing promotes organisational learning capability and, in turn, radical innovation.Practical implicationsOur results provide some guidelines for companies that are trying to develop radical innovations by improving the workplace conditions.Originality/valueTo our knowledge, there are no previous studies which studied the relationship between emotional healing and its effect on radical innovation. Therefore, providing empirical evidence of such a relationship is the main contribution of this paper.

The effect of mortality salience on status consumption among elderly individuals: the moderating role of chronological age and subjective age

PurposeOver the past two decades, a large body of research has examined the effect of the awareness of the inevitability of death on consumption behaviours. However, the literature has shed little light on the effect of mortality salience (MS) on elderly individuals. The present research specifically aims to challenge the effect of MS on status consumption among elderly individuals.Design/methodology/approachTwo experiments were conducted among individuals over 50. The experiments manipulated MS to test its effect on status consumption.FindingsThe results demonstrate that MS positively influences the preference for status products among elderly individuals (experiment 1) and that this effect is less pronounced as elderly individuals age (experiment 2). Subjective age bias, defined as the potential gap between chronological age and subjective age, negatively moderates this effect (experiment 2).Practical implicationsLuxury marketers need to pay attention to generational cohorts rather than other demographic variables in the segmentation of their market. Moreover, subjective age may be a better segmentation variable for marketers than objective variables such as chronological age.Originality/valueThis research provides insights that support a better understanding of status consumption among elderly individuals and the role of subjective ageing in this process.

Transforming the scope of the bank through fintechs: toward a modularized network governance

PurposeThe aim of this paper is to develop a theoretical framework of the transformation of the bank's scope driven by fintechs.Design/methodology/approachThe conceptual foundations for a comprehensive transformation of the bank governance through financial technologies (fintechs) are underexplored. In order to develop such foundations, the authors adopt transaction cost economics (TCE), the concepts of external enablers and a modular organizational design, as well as a systematic literature review.FindingsThe results point to three scenarios of the banks' scope, depending on the adopted technological mechanisms and related effects that change the characteristics of organizational activities, justifying new bank boundaries. The most advanced application of fintechs results in a modularized network scenario leading to the emergence of financial ecosystems.Research limitations/implicationsThe proposed micro-perspective of decisional rules in an individual organization is unique in the current literature that predominantly focuses on the banking sector at large. The identified scenarios are valuable for solid theoretical and empirical grounding and can be further exploited in decision simulations and empirical studies.Practical implicationsThe proposed theoretical framework points to the rationales and consequences of adopted technologies for the boundaries of a bank organization.Originality/valueThis paper provides three contributions to the literature on technology-driven transformations of organizations with a focus on banks. First, the authors elaborate a theoretical framework for establishing the bank's boundaries in response to the expansion of financial technologies. Second, the authors add to the knowledge accumulation in the area of organizational transformations based on the ICT adoption, in particular, to the literature on the modular organizational design. Third, the authors contribute to the decision-maker practice by proposing the alternative options of banks' scope transformed through fintechs.

Opposing acceleration: the tragedy of resistance in Brazil

PurposeThe study aims to highlight and reflect on resistance to Brazil's illiberal accelerationist politics highlighting alternative possibilities based on affects and forms of relatedness.Design/methodology/approachDrawing on the case of public universities and the arts in today's Brazil, the authors point out a tragedy of resistance (when opposing change fuels its acceleration) and explore a strategy of lines of flight and becomings in the light of Deleuze and Guattari's perspective on acceleration.FindingsAlongside an oppositional and reactive resistance, that is caught in a tragedy of resistance, the authors explore an alternative strategy that protects a plurality of life forms and forces and their becoming. This strategy differs from most critiques of accelerationism.Originality/valueThis strategy of resistance seems more faithful to Deleuze than the accelerationist strategies that claim to be inspired by him. The authors suggest another reading of the often quoted passage by Deleuze and Guattari. While Deleuze and Guattari favor continuous deterritorializations of the flows of desire, accelerationism reterritorializes these flows towards a (often) undesirable future.

The jury is out – Can the HR managers be the choice architects in a post-pandemic work setting?

PurposeThe purpose of this paper is to explore the role of HR managers as choice architects to increase the communication efforts for vaccination drives, thereby making the workplace a safe place for all employees.Design/methodology/approachThis study used qualitative research methodology and interviewed 10 HR managers.FindingsThe findings indicate that HR managers can use the nudge theory and choice architecture to encourage employees towards coronavirus disease 2019 (COVID-19) vaccination.Practical implicationsHR professionals will get an alternate perspective regarding how learnings from behavioural economics can be leveraged in a post-pandemic world which can help them create a safe working environment.Originality/valueThis paper is an attempt to explore how learnings from behavioural economics (that is, nudge theory and choice architecture) can be leveraged by HR managers to design default options while organizing COVID-19 vaccination camps to motivate employees to get fully vaccinated and hence creating a safe working environment.

In search for the missing link: studying the interrelationship between organizational learning and organizational culture change

PurposeThe interrelationship between organizational learning (OL) and organizational culture (OC) is often assumed at an abstract theoretical level, but there is yet no systematization of scholarly knowledge allowing to conceptualize and understand its precise nature. In this article, we therefore ask “How can we, based on the insights from the dispersed research studying OC and OL, conceptualize the interrelationship between the two concepts?” Our purpose is to create an overview on the past development path and the current status of research interrelating OL and OC, to use it as basis for the conceptualization of this interrelationship and to identify avenues for future research.Design/methodology/approachThis article utilized a systematic literature review methodology by combining bibliometric and content analysis using relevant articles identified from the Scopus database. A two-stage literature review research approach was employed: (1) Bibliometric analysis was used to identify 416 relevant contributions and to present a comprehensive contextual picture of the interrelations between OL and OC research by analyzing the 162 most relevant articles. (2) A subsequent qualitative content analysis of the 45 most relevant academic contributions detailed and solidified the insights.FindingsWe identify four weakly linked thematic clusters on the interrelationship of OC and OL. Based on that, our analysis confirms the theorized bidirectional relationship between OC and OL: OC acts as antecedent, driver and result of OL processes, and OL processes are constrained by and alter OC. We moreover develop three propositions that put knowledge at the center of scholarly attention for understanding this interrelationship in more depth and develop avenues for future research.Practical implicationsOur research has important implications for managers as it shows that mastering leadership challenges is central for the success of OL processes and OC change. We moreover specify the leadership challenges that relate to particular types of OL processes. Managers need to take this interrelationship into account when setting out for OL or OC change processes, and carefully reflect on whether or not the decided OL measures fit the given OC, and the other way round.Originality/valueOur contribution to existing research is threefold: It first lies in analytically mapping out the research field, second in conceptualizing the interrelationship between OC and OL and third in identifying open research questions and topics.

The absorptive capacity process: an exposition and update

PurposeThis study investigates the development of absorptive capacity. Using an integrated cognitive learning perspective, this study provides empirical evidence about the conceptual absorptive capacity model through examining the full process step by step. Two groups of moderating variables were studied—namely, social integration and appropriability—to examine their impact on the process.Design/methodology/approachThis study employed a longitudinal study from a community service program (Kuliah Kerja Nyata) at Universitas Gadjah Mada, Yogyakarta, Indonesia, by using surveys at the beginning and the end of the project. Of 492 teams from 2,444 students participated in the study. Each individual within a team had at least one project assigned to him/her during the project. The absorptive capacity process was examined through six consecutive models and analysed using hierarchical linear modelling. The moderating variables were tested using the Moderated Regression Analysis and Wald tests.FindingsThe study confirms the full cycle of absorptive capacity as an independent, dynamic and complex process; it involves acquiring, assimilating, transforming and exploiting sequencing variables from the individual level to the team level and vice versa using feed-forward and feedback mechanisms adopted from the 4I framework of organisational learning. However, the roles of the moderating variables are still inconclusive due to some possible factors, which were also reflected by the U-phenomenon.Originality/valueThis study provides vital support to the learning theory as well as to the organisation learning concept. This study also reveals empirical evidence about the unsupported moderating variables behave during a project cycle, such as what they function, how they evolve and what we should do about the moderating factors during a project. The findings of this study provide practical suggestions and highlight areas for future research.

Considering the corporeal to facilitate research to practice transitions

PurposeThe authors suggest that the research-to-practice gap, such as that found in evidence-based management, is due in part to a lack of attention to embodied knowledge. The recommendation is for change agents to bring attention to embodied knowing when implementing change based on research. The purpose of the paper is to address the research-to-practice gap.Design/methodology/approachThis is a conceptual paper that considers limitations of the predominant approach to considering the research-to-practice gap. The literature on phenomenology, feminist theory, and learning theory form the basis for exploring these challenges as well as possible solutions for transcending the research-to-practice gap.FindingsStrategic opportunities for introducing increased corporeal understanding are advanced. The suggestions address the research-to-practice gap at three critical stages of research-based change initiatives. These include making embodied knowledge integral to change initiatives in framing research, reducing resistance, and increasing acceptance. Among the specific strategies discussed are attending to tacit knowledge when considering the change, embracing the embrained body including attending to kinesthetic resistance and starting with the body to increase acceptance when implementing change.Originality/valueThere has been very little previous attention to the corporeal in management research and practice, including in the organizational change literature. This paper not only increases this discussion significantly but also provides suggestions for how to move forward in practice.