Article Abstracts

Articles

Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More Than They Make?
Stefano Brusoni - University of Sussex
Andrea Prencipe - University of Sussex and Università G. D'Annunzio at Pescara
Keith Pavitt - University of Sussex

This paper uses an analysis of developments in aircraft engine control systems to explore the implications of specialization in knowledge production for the organization and the boundaries of the firm. We argue that the definition of boundaries of the firm in terms of the activities performed in house does not take into account that decisions to outsource production and other functions are different from decisions to outsource technological knowledge. We show that multitechnology firms need to have knowledge in excess of what they need for what they make, to cope with imbalances caused by uneven rates of development in the technologies on which they rely and with unpredictable product-level interdependencies. By knowing more, multitechnology firms can coordinate loosely coupled networks of suppliers of equipment, components, and specialized knowledge and maintain a capability for systems integration. Networks enable them to benefit from the advantages of both integration and specialization. Examples from other industries extend to other contexts the model we develop.

Safety in Numbers: Downsizing and the Deinstitutionalization of Permanent Employment in Japan
Christina L. Ahmadjian - Hitotsubashi University
Patricia Robinson - University of California at Berkeley

This study examines the role of downsizing in the deinstitutionalization of permanent employment among publicly listed companies in Japan between 1990 and 1997. We found that although economic pressure triggered downsizing, social and institutional pressures shaped the pace and process by which downsizing spread. Large, old, wholly domestically owned, and high-reputation Japanese firms were resistant to downsizing at first, as were firms with high levels of human capital, as reflected by high wages, but these social and institutional pressures diminished as downsizing spread across the population. We argue that this breakdown of social constraints was due to a safety-in-numbers effect: as downsizing became more prominent, the actions of any single firm were less likely to be noticed and criticized, and the effect of the institutional factors that once constrained downsizing diminished.

This study develops a model of engagement in the multiple roles of work and family. I examine two competing arguments about the effects of engaging in multiple roles, depletion and enrichment, and integrate them by identifying the type of emotional response to a role, negative or positive, as a critical contrasting assumption held by these two perspectives. Moreover, I represent depletion and enrichment as complex multistep processes that include multiple constructs, such as engagement and emotion. This study jointly examines both the depleting and enriching processes that link engagement in one role to engagement in another, using structural equation modeling. Findings from a survey of 790 employees reveal evidence for both depletion and enrichment as well as gender differences. Specifically, depletion existed only for women and only in the work-to-family direction. Men experienced enrichment from work to family, while women experienced enrichment from family to work. Overall, more linkages were found between work and family for women than for men.

This paper reports on a qualitative field study of 16 hospitals implementing an innovative technology for cardiac surgery. We examine how new routines are developed in organizations in which existing routines are reinforced by the technological and organizational context. All hospitals studied had top-tier cardiac surgery departments with excellent reputations and patient outcomes yet exhibited striking differences in the extent to which they were able to implement a new technology that required substantial changes in the operating-room-team work routine. Successful implementers underwent a qualitatively different team learning process than those who were unsuccessful. Analysis of qualitative data suggests that implementation involved four process steps: enrollment, preparation, trials, and reflection. Successful implementers used enrollment to motivate the team, designed preparatory practice sessions and early trials to create psychological safety and encourage new behaviors, and promoted shared meaning and process improvement through reflective practices. By illuminating the collective learning process among those directly responsible for technology implementation, we contribute to organizational research on routines and technology adoption.

Second-order Imitation: Uncovering Latent Effects of Board Network Ties
James D. Westphal - University of Texas at Austin
Marc-David L. Seidel - University of Texas at Austin
Katherine J. Stewart - University of Maryland

This study examines whether board interlock ties facilitate second-order imitation, in which firms imitate an underlying decision process that can be adapted to multiple policy domains, rather than imitating specific policies of tied-to firms (first-order imitation). Longitudinal analyses of archival data for a large sample of Forbes/Fortune 500 companies, as well as analyses of survey data on mimetic processes among these firms, show that network ties to firms that use imitation to determine a particular policy can prompt use of imitation by the focal firm in determining both that policy and a different policy. Firms that have board network ties to firms in other industries that imitate their competitors' business strategy are likely to imitate their own competitors' business strategy, as well as their competitors' acquisition activity and compensation policy. Thus, the findings reveal network effects that are not visible with extant perspectives on interorganizational imitation. We discuss implications for institutional theory and research on interorganizational networks.

From the Bottom Up? Technical Committee Activity and Alliance Formation
Lori Rosenkopf - University of Pennsylvania
Anca Metiu - INSEAD
Varghese P. George - Rutgers University

We examine how interaction between mid-level managers in technical committees facilitates subsequent alliance formation in a longitudinal study of 87 cellular service providers and equipment manufacturers. Joint participation by firms in technical committees helps them identify potential alliance partners and particular opportunities for technical collaboration. This effect is magnified by sustained participation by individuals on behalf of their firms, demonstrating that interfirm relationships are enhanced by the interpersonal bonds that are forged in technical committees. In contrast, we find that the effect of joint technical committee participation on alliance formation decreases as firms have more prior alliances, suggesting that technical committees provide a more critical avenue for knowledge exchange when firms do not have the luxury of exchanging information through contractual linkages. Taken together, these findings suggest one venue where managerial action can transform existing social structure, because technical committee activity facilitates the entry of less-established firms into alliance networks.