Research summary : Raters of firms play an important role in assessing domains ranging from sustainability to corporate governance best places work. Managers, investors, and scholars increasingly rely on these ratings make strategic decisions, invest trillions dollars capital, study social responsibility ( CSR ), guided by the implicit assumption that are valid. We document surprising lack agreement across six well‐established raters. These differences remain even when we adjust for explicit...

Sociological researchers have studied the consequences of strong categorical boundaries, but devoted little attention to causes and boundary erosion. This study analyzes erosion boundaries in case opposing category pairs. The authors propose that weaken when borrowing elements from a rival by high-status actors triggers emulation such mean number borrowed others increases variance declines. It is suggested penalties form downgraded evaluations critics exist, decline as peers who borrow...

We conceptualize the roots of cognitive, linguistic, and communicative theories institutions outline promise potential a stronger communication focus for institutional theory. In particular, we theoretical approach that puts at heart institutions, maintenance, change, label this institutionalism. then provide brief introduction to set articles contained in Special Topic Forum on Communication, Cognition, Institutions describe innovative theorizing these direction institutions. Finally,...

Abstract Deviance from social norms has been extensively examined in recent strategy research, leaving the strategic implications of conformity largely unexplored. In this article, we argue that firms can elect to conform a norm along two dimensions: compliance with goal and level commitment procedures. We then produce typology four norm‐conforming behaviors, which allows us isolate differentiated effects on firm reputation. examine corporate environmental disclosures 90 U.S. find derive...

We advocate for more tolerance in the manner we collectively address categories and categorization our research. Drawing on prototype view, organizational scholars have provided a ‘disciplining’ framework to explain how category membership shapes, impacts limits success. By stretching existing straightjacket of scholarship categories, point other useful conceptualizations – i.e. causal model goal-based approaches propose that depending situational circumstances, beyond disciplining exercise,...

We develop a conceptual understanding of when and how organizations respond to normative pressures. More precisely, we examine two main factors underlying the willingness ability an issue: issue salience cost-benefit analysis resource mobilization. suggest that decision makers’ interpretation in conjunction with their perception costs benefits taking action address generates five potential responses: symbolic compliance conformity, substantive inaction. extend baseline model by examining...

In stigmatized industries characterized by social contestation, hostile audiences, and distancing between industry insiders outsiders, firms facing media attacks follow different strategies from in uncontested industries. Because avoid publicizing their tainted‐sector membership, when threatened, they can respond divesting assets that industry. Our analyses of the arms demonstrate on focal firm its peers both increase likelihood divestment for firm. Specifically, are most consequential,...

Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can a greater impact on quality, they are ignored in most current metrics. It is time for these metrics be expanded critically assess firms based the impacts of public policy positions. To enable assessments, must become transparent about responsibility (CPR) social (CSR). For part, rating systems...

Abstract Research Summary In this study, we replicate and expand Hawn et al.’s study ( Strategic Management Journal , 2018, 39, 949–976) that used Dow Jones Sustainability World Index (DJSI) events to measure variations in firms' Corporate Social Responsibility (CSR)‐activism examined their effect on a firm's stock price. We use DJSI capture CSR visibility holding activism constant by restricting our analyses CSR‐equivalent firms. First, find similar results price (i.e., no impact) trading...

Organizational adaptation is equivocal. On the one hand, concept ubiquitous in management research and acts as glue binding together central issues of organizational change, performance, survival. other it lurks around various guises (e.g., “fit,” “alignment,” “congruence,” “strategic change”) studied from multiple theoretical streams behavioral, resource based, institutional) at different levels analysis organization industry levels). In a novel approach to reviewing 443 articles that...

We develop and test a theory of how unintended audiences create reaction costs for firms that use corporate social responsibility (CSR) as signal. introduce define signal senders incur when react negatively to true was intended another audience. argue activist hedge funds—an audience—treat CSR have wasteful intentions capabilities, which prevent from maximizing shareholder value in the short term. On basis, we hypothesize funds are more likely target with higher levels CSR, thus imposing on...

Abstract The field of Strategy has its origins in Business Policy, which emphasized how firms could pursue important social aims that individuals and governments not otherwise. This emphasis shifted the 1970s as turned towards economics for insights. scholars began to address market‐ industry‐level considerations, such performance, price, competition, were pursued by firms. By applying macro‐level principles assumptions analogically a more micro‐level analysis, strategy inadvertently...

This article proposes that legitimating agencies such as accreditation organizations face selection pressures to both maintain their legitimacy among constituents, but also expand the domain of activities. We argue expansion raises three important research questions: first, factors lead domain; second, need existing constituents; and third, establishment in new domain. use AACSB develop propositions relevant these issues. Quality concerns, process vs. content strategy, institutional...

Studies suggest that category-spanning organizations receive lower evaluation and perform worse than focused on a single category. We propose (a) these effects are contingent clients’ theory of value, that, as clients expect more sophisticated services, they tend to value category spanners positively, (b) the producers mediates relationship between spanning performance. test our hypotheses using original data corporate legal services in three markets (London, New York City, Paris) over...

Abstract How do we, as management researchers, develop novel theoretical contributions and, thereby, potentially break new ground in studies? To address this question, we review previous methodological work on theorizing and advance a typology of the reasoning processes that underlie significant advances studies. This consists various types analogical counterfactual reasoning, ranging from focused thought experiments aimed at prodding existing theory direction alternative assumptions,...

Beside making organizations look like their peers through the adoption of similar attributes ("alignment"), this paper highlights fact that conformity also enables to stand out by exhibiting highly salient key field or industry ("conventionality"). Building on and status literatures, using case major U.S. symphony orchestras changes in concert programming between 1879 1969, we hypothesize find middle-status are more aligned individual leaders make conventional choices than low- high-status...

This paper reviews several streams of research on market category formation. Most past has largely focused established systems and the antecedents consequences categorical positioning (i.e., purity vs. spanning; combination replacement) but relatively ignored formative processes leading to new categories. In this review, we address lacuna posit that scholarship would benefit from clearly disentangling emergence creation. We analytically describe differences between two elaborate boundary...

Abstract Research Summary We investigate how hedge fund activism affects firms' financial and social performance. So far, research has examined either the impact of on short‐term performance, or other types shareholder affect Crossing these boundaries with data 1,324 activist campaigns between 2000 2016, we find a clear trade‐off associated activism: benefits are shareholder‐centric short‐lived, reflected in immediate increases market value profitability; however, come at mid‐ to long‐term...

To what extent do organizations respond favorably to minority participation—that is, conform demands from resource suppliers that hold an unconventional logic? A favorable response participation (i.e., "alternative conformity") helps decrease the influence of dominant players, alter suppliers' social structure, and promote new logics, which makes alternative conformity a "soft control strategy" for organizations. We expect positive relationship between be attenuated by organizations'...

Although the emergence of new industries is often attributed to state support, little known about conditions under which an emergent category organizations comes receive support in first place. We theorize how government for a nascent industry jointly determined by industry’s internal features and external forces test our arguments analyzing feed-in tariff policies solar photovoltaics (PV) 28 European countries from 1987 2012. find that tariffs—policies incentivize renewable energy—were more...

We explore the way validity and propriety cues contribute to legitimacy judgments about a practice explaining whether subunit of large firm increases or decreases implementation this practice. Empirically, we examine extent which 65 subsidiaries multinational enterprise implemented three corporate social responsibility practices. Adopting set-theoretic approach, find that both are extremely relevant understanding subunits' practices over time. The endorsement in subunit's environment plays...

This article studies the case of socially responsible investment industry in France. accounts for how category and practices have successfully moved from margins late 1990s to become mainstream over two decades. We bring forefront importance three complementary factors process causing corporations transition toward more sustainable businesses: role investors and, particular, institutional investors; presence a clear definition intermediary organizations, providing ratings, scores, other...

PART ONE: POSITIONING THE QUESTIONS Introduction, Contributions and Overview Organizational Evolution Problems Promises TWO: BUILDING CHECKLIST APPRAISAL GRID FOR EVOLUTIONARY MODELS Evolutionary Theories in Retrospect Models Theory Introducing Recent Debates Biology into the Checklist Appraisal Grid for THREE: OFFERING POTENTIAL ANSWERS The Strategy Model Implications