Article Abstracts

Articles

Collaboration Networks, Structural Holes, and Innovation: A Longitudinal Study
Gautam Ahuja - University of Texas at Austin

To assess the effects of a firm's network of relations on innovation, this paper elaborates a theoretical framework that relates three aspects of a firm's ego network--direct ties, indirect ties, and structural holes (disconnections between a firm's partners)--to the firm's subsequent innovation output. It posits that direct and indirect ties both have a positive impact on innovation but that the impact of indirect ties is moderated by the number of a firm's direct ties. Structural holes are proposed to have both positive and negative influences on subsequent innovation. Results from a longitudinal study of firms in the international chemicals industry indicate support for the predictions on direct and indirect ties, but in the interfirm collaboration network, increasing structural holes has a negative effect on innovation. Among the implications for interorganizational network theory is that the optimal structure of interfirm networks depends on the objectives of the network members.

The Good, The Bad, and the Ambivalent: Managing Identification among Amway Distributors
Michael G. Pratt - University of Illinois at Urbana-Champaign

An ethnographic study of distributors for Amway, a network marketing organization, examines the practices and processes involved in managing members' organizational identification. It shows that this organization manages identification by using two types of practices: sensebreaking practices that break down meaning and sensegiving practices that provide meaning. When both sensebreaking and sensegiving practices are successful, members positively identify with the organization. When either sensebreaking or sensegiving practices fail, members deidentify, disidentify, or experience ambivalent identification with the organization. A general model of identification management is posited, and implications for both theory and practice are offered.

Presenting Structural Innovation in an Institutional Environment: Hospitals' Use of Impression Management
Margarete Arndt - Clark University
Barbara Bigelow - Clark University

This research examines how the first organizations to abandon an institutionalized, taken-for-granted structure and adopt a radically different form presented the innovation to important stakeholders. A content analysis of hospitals' annual reports reveals that organizations that differed on other dimensions uniformly made preventive use of defensive impression management in announcing the change to a diversified corporate structure. The organizations invoked coercive and mimetic pressures to account for and justify the new structure, and they associated the innovation with legitimated organizational activities. The findings make two contributions that link the "old" institutionalism and neoinstitutionalism: they point to organizational agency in the preventive use of the very institutional forces that create isomorphism and suggest the presence of institutional forces even during the early stages of innovation.

What Bandwagons Bring: Effects of Popular Management Techniques on Corporate Performance, Reputation, and CEO Pay
Barry M. Staw - University of California, Berkeley
Lisa D. Epstein - University of California, Berkeley

This paper examines some of the important organizational consequences of popular management techniques. Using informational reports on quality, empowerment, and teams, as well as a measure of the implementation of total quality management programs, we found that companies associated with popular management techniques did not have higher economic performance. Nevertheless, these same companies were more admired, perceived to be more innovative, and rated higher in management quality. Higher pay was also given to chief executives when their companies were associated with these management trends. These results provide strong support for institutional theory, demonstrating how both internal and external legitimacy can be gained by using popular management techniques. They also extend institutional theory from its usual emphasis on organization-environment relations to new within-firm dynamics.

The Winding Road from Employee to Complainant: Situational and Psychological Determinants of Wrongful Termination Claims
E. Allan Lind - Duke University
Jerald Greenberg - Ohio State University
Kimberly S. Scott - Ohio State University
Thomas D. Welchans - Ohio State University

Structured interviews with 996 recently fired or laid-off workers provided data for analyses of the situational and psychological antecedents of both thinking about filing a wrongful-termination claim and actually filing such a claim. Potential antecedents were drawn from relational theories of organizational justice, economic theories about claiming, and sociolegal studies of claiming in other contexts. Wrongful-termination claims were most strongly correlated with the way workers felt they had been treated at the time of termination and with their expected winnings from such a claim. Structural equation model analyses of panel data from follow-up interviews with 163 respondents four months later showed that the psychological variables were, in fact, causal antecedents rather than consequences of claiming thoughts and actions. These findings support relational models of organizational justice and lead to practical suggestions for managing the termination process so as to avoid wrongful-termination suits.

Focusing the Corporate Product: Securities Analysts and De-diversification
Ezra W. Zuckerman - Stanford University

The issue of corporate control is examined through an analysis of the de-diversification activity of publicly held American firms from 1985 to 1994. Prominent accounts of such behavior depict newly powerful shareholders as having demanded a dismantling of the inefficient, highly diversified corporate strategies that arose in the late 1950s and the 1960s. This paper highlights an additional factor that spurred such divestiture: the need to present a coherent product identity in the stock market. It is argued that because they straddle the industry categories that investors--and securities analysts, who specialize by industry--use to compare like assets, diversified firms hinder efforts at valuing their shares. As a result, managers of such firms face pressure from analysts to de-diversify so that their stock is more easily understood. Results indicate that, in addition to such factors as weak economic performance, de-diversification is more likely when a firm's stock price is low and there is a significant mismatch between its corporate strategy and the identity attributed to the firm by analysts.