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This chapter uses new institutional theory to shed light on the recent trend toward openness and inclusiveness in strategy making. New institutional theory depicts an extraordinary vivid strand in management and organizational research. This vitality is foremost reflected in the large amount of different theoretical substrands that populate new institutional theory (for an overview, see Greenwood et al., 2017). While some of these substrands such as institutional work or institutional entrepreneurship tend to highlight micro-processes, we, in this chapter, focus on Open Strategy as a world societal phenomenon. Therefore, we draw on world society theory (Meyer, 2010) as this stream in new institutional theory sheds light on macro-processes.
In this chapter, I outline two main arguments. Delving into our history, and particularly the work of Frederick Taylor that led to scientific management and the famous Hawthorne Studies that laid the foundations for the human relations school, I argue that many of the problems now confounding management research were present from the origins of the discipline. These include poorly designed studies, an extravagant tendency to generalise from small samples to a population consisting of everyone who has a job (everywhere in the world), and a blatantly political agenda that obscures issues of power and so serves dominant interests. This is not a purely historical exercise. Rather, it illuminates the weak foundations on which much of our scholarship rests and reveals the extent of the challenges we face if we really wish to do better.
The idea of partial organization has not been fully explored. Relatively little attention has been paid to organization within organizations or to the possibility of partial de-organization. We explore this possibility in the context of business firms for which innovation and strategic renewal are imperatives. The firm’s top management created conditions for autonomous action in the form of a dedicated internal development program for strategic renewal. Thus, it attempted to partially deconstruct its organizational hierarchy and other elements of its decided order. Employees from all over the organization were invited to participate in the program and to present proposals for new strategic initiatives. The contribution of the paper is in the introduction of the concept of partial de-organizing and in the argument that partial organization is also observable within, and not just without, the boundaries of formal organizations.
In this chapter, we explore the usefulness of applying the idea of partial organization as one way of mitigating the confusion surrounding the notion of organized crime. We examine three types of collectivities that are usually seen as examples of organized crime: outlaw motorcycle gangs (OMCs), street gangs, and mafias. When we examine the occurrence of organizational elements, we find substantial differences among these three cases not only in the amount of their organization, but also in the ways in which they are organized. A few multinational outlaw motorcycle gangs have gradually been able to form strong formal organizations containing all organizational elements. For a mafia, the situation is quite the opposite. Because its embeddedness in kinship relationships provides cohesion and protection, it needs little organization. Through its strong kinship ties, a mafia has access to several functional equivalents to the organizational elements one can find in OMCs. In street gangs the appearance of organizational elements varies among the gangs, and they rarely have more than a few elements at any one time. One obstacle for the organization of street gangs is their local embeddedness and limited duration, which loosen the boundaries of the gang.
I have already noted how poor much management research is, and how little of it is of interest to anyone, including often the people who write it. Those who advocate ‘evidence-based-management’ (EBM) address this problem head-on. They argue that researchers should identify those research findings that will help managers to improve decision making. It is time to get rid of folklore, fiction and fantasy and to base management action on hard empirical evidence. In one sense, these issues have been around for many years – see, for example, my discussion of ‘rigour’ and ‘relevance’ in Chapter 1. However, advocates of EBM aspire to take these debates to a higher level, and their cause has been helped by the status of those who have championed it. For example, its key moment in capturing widespread attention was undoubtedly an address by the then president of the Academy of Management, Denise Rousseau, to the AOM’s 2005 conference. Her talk was published in the Academy of Management Review the following year. Many saw it as an attractive proposition, and it is not hard to see why. Clearly, the idea of EBM deserves to be taken seriously. But that does not mean it should be accepted uncritically. There is little point in escaping from one trap only to become ensnared in another. My intention in this chapter is to explore what EBM promises and look at the criticisms of it that have emerged. In my view, both the advocacy of EBM and some of the criticisms levelled at it are overblown. Is there is a third way which can preserve EBM’s welcome focus on addressing real world problems without having to adhere so closely to the managerialist agenda that accompanies it at present?
This chapter pulls together the discussions in the monograph and summarizes and categorizes all the research propositions developed in the previous chapters. It then demarcates the charateristics that are unique to family firms and those that are more likely in family firms in making such firms have a greater propensity to undertake patient long-term investments in developing proactive environmental strategies. It then deveops a framework showing how appying the family business lens changes what we know about drivers and influences of proactive environmental strategy and how non-family firms can learn from family firms to undertake patient capital investments in addressing sustainability challenges. The chapter concludes with avenues for future research and measure development, for business education, and for public policy.
Look at the guidelines for authors provided by any of our top journals, and the odds are that you will see an explicit call for ‘theory development’ in the papers that it publishes. There is no equivalent demand that authors should develop guidelines for practice, describe an interesting phenomenon for which no theory is yet available or address important issues.
This chapter is concerned with further advancing a process perspective on partial organization. More specifically, we address the question of how the different organizational elements of partial organization (i.e. membership, hierarchy, rules, monitoring, and sanctions) interrelate dynamically. Based on the emerging ‘communication as constitutive of organization’ (CCO) perspective in organization studies, we argue that social collectives can alternate between states of organizational ‘partialness’ and ‘completeness’ over time. The temporary and situational completion of partial organization can occur in and through communicative events that demonstrate and ‘celebrate’ a social collective’s ability to mobilize all five elements simultaneously. We illustrate our theoretical considerations by drawing on selected findings from an earlier empirical case study of the hacktivist collective Anonymous.
Strategic management is a system of continual disequilibrium, with firms in a continual struggle for competitive advantage and relative fitness. Models that are dynamic in nature are required if we are to really understand the complex notion of sustainable competitive advantage. New tools are required to tackle challenges of how firms should compete in environments characterized by both exogeneous shocks and intense endogenous competition. Agent-based modelling of firms' strategies offers an alternative analytical approach, where individual firm or component parts of a firm are modelled, each with their own strategy. Where traditional models can assume homogeneity of actors, agent-based models simulate each firm individually. This allows experimentation of strategic moves, which is particularly important where reactions to strategic moves are non-trivial. This Element introduces agent-based models and their use within management, reviews the influential NK suite of models, and offers an agenda for the development of agent-based models in strategic management.
Privatization is closely associated with the ideological turn to neoliberalism and regarded as a cornerstone of Britain’s “Thatcherite project.” Margaret Thatcher’s Conservative government did not undertake its major privatizations of state-owned businesses until its second term began in 1983. We argue in this article, however, that the 1980 disposal by the National Enterprise Board of its controlling interest in the engineering and electronics company Ferranti offers significant insights into the development of privatization policy and practice, as well as the changing role of the state in British business. This disposal reflected the early caution of some of the Thatcher government’s actions but contributed to fulfillment of an electoral commitment and provided valuable privatization experience in addressing difficult financial, industrial, and political issues.
The first of its kind, this Handbook mobilizes research on an emerging phenomenon, Open Strategy. As new technologies and societal pressures have precipitated employees, business partners, shareholder groups and other stakeholders into deeper involvement in strategy, various Open Strategy initiatives now promise greater transparency and inclusion in the strategy process. Providing a wide-ranging introduction to the concept of Open Strategy and its various dimensions, the chapters of this Handbook detail key practices, discuss the roles of technology, and propose various theoretical perspectives for researching Open Strategy. Finally, this Handbook addresses the ongoing challenges and politics involved in Open Strategy. It will appeal to organization and strategy scholars, master's students in business and management, practitioners, such as consultants and strategy staff in established firms, and anyone concerned with new trends in strategy development and its implications for organizations and their members.
While conventional wisdom dictates that people's trust – in the government, in corporations, in each other - is at a historic low, the rise of the Internet is offering new ways to rehabilitate and strengthen trust. Uber is probably the best example of a new company that, on the surface, allows individuals with smartphones to get rides with strangers, but at a deeper level is in the business of trust. In The Trust Revolution, M. Todd Henderson and Salen Churi trace the history of innovation and trust, linking companies such as Uber with medieval guilds, early corporations, self-regulatory organizations, and New-Deal era administrative agencies. This book should be read by anyone who wants to understand how trust - and its means of creation - has the potential not only to expand opportunities for human cooperation, but also to reduce the size and scope of government and corporate control over our lives.
Sustainable businesses create economic and social value while simultaneously protecting the natural environment for future generations. This examination of environmental sustainability through the lens of the family business identifies factors that help family and non-family organizations address the dilemma of balancing short-term productivity, efficiency and profitability objectives, with innovating for long-term sustainable value creation. Exploring the case of the wine industry - an industry characterized by a variety of governance systems - Sanjay and Pramodita Sharma develop fresh insights into influences and drivers for proactive environmental strategies to address major global sustainability challenges. By doing so, the authors are able to demonstrate that family firms with a focus on trans-generational continuity of business, long temporal orientation, shared vision, faster decision-making processes, and the goal of preserving socio-emotional wealth are more likely to make patient long-term investments for innovations in products, services, processes and business models to address environmental sustainability challenges.
Have you ever wondered why many of the over 28 million small businesses in operation in the United States do not survive past the first five years? Is it the economy? The stock market? Or is it something else? Two years of research on factors affecting small business survival revealed a direct relationship linking management and leadership skills. 'Management and Leadership Skills That Affect Small Business Survival' presents the research leading to this discovery that focuses solely on small businesses in the United States and teaches small businesses how to improve management and leadership skills so that they can survive past the historical five-year failure mark.