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Paul D. Reynolds
In the late 1990s, there was considerable interest in national differences in entrepreneurial activity. The Global Entrepreneurship Monitor (GEM) research program was developed to provide harmonized, cross-national measures of participation in business creation; business creation was considered a critical aspect of entrepreneurship. This information was considered important for understanding the national characteristics associated with business creation and its subsequent impact on economic growth. The initial effort involved 10 countries in 1999. By 2014 Adult Population Surveys (APS) had been completed 705 times in 104 countries and with six special samples; this involved 2.3 million individual interviews. While there have been changes in the administrative structure and the focus of the annual global reports, the most significant data collection procedures have been stable since 2002. The GEM APS data sets are currently the only harmonized cross-national comparisons of business creation and business ownership. Designed to provide estimates of the prevalence of both business creation and existing firms, they also allow estimates of the total number of business ventures. GEM data sets are publically available three years after completion, providing a unique resource for assessing factors affecting business creation and its subsequent role in economic growth. Systematic assessments by national experts in participating countries provide measures of the national entrepreneurial framework conditions, complementing a variety of established measures of national economic and political characteristics.
There are three distinct features that characterize the GEM initiative: the unique organizational structure, the global reports summarizing annual assessments of entrepreneurial activity, and data sets assembled and made available for public use. The initial organizational structure, a collaborative arrangement among national teams, was replaced by membership in the Global Entrepreneurship Research Association (GERA) in 2004. The annual global reports emphasize comparisons among member countries, the annual national reports the country-specific situations. Both are designed to facilitate reality-based public policy.
Data collection for the APS provides harmonized comparisons of business creation across countries and within-country time series. The APS data has made clear the substantial variation among countries, by a factor of 10; that national levels of participation are very stable over time; that business creation is much more prevalent in poorer countries; that all segments of society are active in business creation; and that business creation is an important catalyst for the processes that lead to economic growth. The National Expert Survey (NES) questionnaire data provides information about the nature of the entrepreneurial framework in the GEN countries.
There is much to be learned about the relationships between national context, entrepreneurship, and economic growth. The unique information in the GEM data sets should continue to facilitate improved understanding of this important phenomenon.
Corporate governance is a central issue in business and economics. However, governance in financial institutions is more complicated than in other fields because of the nature of financial services and instruments. Financial organizations are similar to other businesses in terms of their purposes of establishment, but confidence in management and complex risk structures are more important in financial organizations than in other businesses. In financial institutions, there are various areas in which problems arise that are related to corporate governance, including the agency problem and stakeholder protection. The importance of good governance for sound performance of financial institutions was reconfirmed during the 2008 financial crisis, raising the need to understand the agency problems and the efficiency of various corporate governance mechanisms in mitigating them. International organizations, such as the Organisation for Economic Co-operation and Development, the Basel Committee, the International Finance Corporation, and the International Organization of Securities Commissions, have been working with regulators and policy makers to improve corporate governance practices both in nonfinancial and financial institutions. Corporate governance, especially in financial institutions, is essential in guaranteeing a sound financial system, capital markets, and sustainable economic growth. Governance weaknesses at financial institutions can result in the transmission of problems across the finance sector and the economy. Consequently, the effectiveness of governance mechanisms of financial institutions and capital markets after financial crises had significant importance in a period that witnessed an intensive discussion of corporate governance issues with new regulations and the related academic works.
Entrepreneurship is a critical driver of economic health, industrial rejuvenation, social change, and technological progress. In an attempt to determine how to best support such an important component of society, researchers and practitioners alike continue to ask why some countries, regions, and cities have more entrepreneurship than others. Unfortunately, the answer is not clear. This question is addressed by focusing on location-based support or infrastructure for entrepreneurship. A framework based on a social systems perspective guides this examination by concentrating on three main categories of infrastructure: resource endowments, institutional arrangements, and proprietary functions. Work from the knowledge-based perspective of entrepreneurship, systems of innovation, entrepreneurial ecosystems, and resource dependence literatures is integrated into this framework.
Heather A. Haveman and Gillian Gualtieri
Research on institutional logics surveys systems of cultural elements (values, beliefs, and normative expectations) by which people, groups, and organizations make sense of and evaluate their everyday activities, and organize those activities in time and space. Although there were scattered mentions of this concept before 1990, this literature really began with the 1991 publication of a theory piece by Roger Friedland and Robert Alford. Since that time, it has become a large and diverse area of organizational research. Several books and thousands of papers and book chapters have been published on this topic, addressing institutional logics in sites as different as climate change proceedings of the United Nations, local banks in the United States, and business groups in Taiwan. Several intellectual precursors to institutional logics provide a detailed explanation of the concept and the theory surrounding it. These literatures developed over time within the broader framework of theory and empirical work in sociology, political science, and anthropology. Papers published in ten major sociology and management journals in the United States and Europe (between 1990 and 2015) provide analysis and help to identify trends in theoretical development and empirical findings. Evaluting these trends suggest three gentle corrections and potentially useful extensions to the literature help to guide future research: (1) limiting the definition of institutional logic to cultural-cognitive phenomena, rather than including material phenomena; (2) recognizing both “cold” (purely rational) cognition and “hot” (emotion-laden) cognition; and (3) developing and testing a theory (or multiple related theories), meaning a logically interconnected set of propositions concerning a delimited set of social phenomena, derived from assumptions about essential facts (axioms), that details causal mechanisms and yields empirically testable (falsifiable) hypotheses, by being more consistent about how we use concepts in theoretical statements; assessing the reliability and validity of our empirical measures; and conducting meta-analyses of the many inductive studies that have been published, to develop deductive theories.
Intersectionality is a critical framework that provides us with the mindset and language for examining interconnections and interdependencies between social categories and systems. Intersectionality is relevant for researchers and for practitioners because it enhances analytical sophistication and offers theoretical explanations of the ways in which heterogeneous members of specific groups (such as women) might experience the workplace differently depending on their ethnicity, sexual orientation, and/or class and other social locations. Sensitivity to such differences enhances insight into issues of social justice and inequality in organizations and other institutions, thus maximizing the chance of social change.
The concept of intersectional locations emerged from the racialized experiences of minority ethnic women in the United States. Intersectional thinking has gained increased prominence in business and management studies, particularly in critical organization studies. A predominant focus in this field is on individual subjectivities at intersectional locations (such as examining the occupational identities of minority ethnic women). This emphasis on individuals’ experiences and within-group differences has been described variously as “content specialization” or an “intracategorical approach.” An alternate focus in business and management studies is on highlighting systematic dynamics of power. This encompasses a focus on “systemic intersectionality” and an “intercategorical approach.” Here, scholars examine multiple between-group differences, charting shifting configurations of inequality along various dimensions.
As a critical theory, intersectionality conceptualizes knowledge as situated, contextual, relational, and reflective of political and economic power. Intersectionality tends to be associated with qualitative research methods due to the central role of giving voice, elicited through focus groups, narrative interviews, action research, and observations. Intersectionality is also utilized as a methodological tool for conducting qualitative research, such as by researchers adopting an intersectional reflexivity mindset. Intersectionality is also increasingly associated with quantitative and statistical methods, which contribute to intersectionality by helping us understand and interpret the individual, combined (additive or multiplicative) effects of various categories (privileged and disadvantaged) in a given context. Future considerations for intersectionality theory and practice include managing its broad applicability while attending to its sociopolitical and emancipatory aims, and theoretically advancing understanding of the simultaneous forces of privilege and penalty in the workplace.
Dry goods stores, the predecessors of Japanese department stores, were forced to modernize and change their business format after the Meiji Restoration in 1868, which led to the demise of their main customers. The largest dry goods store, Mitsukoshi, was the first to learn about modern retailing in the West, and it broke out of the mold of the traditional Japanese retailer in around 1900 in an effort to catch up with Western department stores. Other large dry goods stores were quick to follow its lead: they transformed into department stores and created their own “cathedrals of consumption” in the 1920s, to match those in the West. This new retail format strongly contributed to Japan’s economic growth and to the Westernization of the Japanese lifestyle.
Despite numerous publications on the history of department stores, there has been little research on this transfer of Western department stores into a very different world: Japan. Although there are many studies on Japanese department stores in Japanese, focusing on how they were influenced by Western department stores, they are mostly subdivided on the basis of specific topics, such as levels of consumption in the interwar period or their economic impact during Japan’s period of high economic growth. The focus here is on the whole development process of department stores, bridging the gap between Western and Japanese studies on department stores.
The first stage in the development of Japanese department stores was in the early 20th century, when Japanese retailers raced to catch up with Western department stores to become modern Western-style retailers themselves; the second stage was in the late 20th century, when these new Japanese stores continued developing along their own unique path in order to target the domestic market during the growth of the Japanese economy, introducing ready-to-wear clothing, luxury brands, and gift products. In this way, Japanese department stores succeeded in increasing their efficiency and establishing a more upmarket image. However, in exchange for this prosperity, department stores also gave up control of their sales floors to the wholesalers and reduced their own merchandising skills. After the economic bubble burst in 1991, Japanese department stores began to suffer from decreased sales and lack of control over the points of sale in their stores.
There are trends in the use of teams in the classroom that stimulate both theory development and pedagogical innovation in this important area. In particular, three classroom applications are (1) building group process skills, (2) developing team leaders, and (3) using teams to learn course content. Of particular interest are new possibilities for utilizing leadered rather than leaderless groups, systematizing team coaching interventions, and enriching team-based learning. In this field of study, it is clear that pedagogical innovation and theoretical development interact to enhance student learning. Continued exploration in both aspects is encouraged.
Pierre-Yves Donzé and Rika Fujioka
The luxury business has been one of the fastest growing industries since the late 1990s. Despite numerous publications in management and business history, it is still difficult to have a clear idea of what “luxury” is, what the characteristics of this business are, and what the dynamics of the industry are. With no consensus on the definition of luxury among scholars and authors, the concept thus requires discussion. Luxury is commonly described as the high-end market segment, but the delimitation of the lower limit of this segment and its differentiation from common consumer goods are rather ambiguous. Authors use different terminology to describe products in this grey zone (such as “accessible luxury,” “new luxury,” and “prestige brands”).
Despite the ambiguous definition of “luxury,” various companies have described their own businesses in this way, and consumers perceive them as producers of luxury goods and services. Research on luxury business has focused mostly on four topics: (1) the evolution of its industrial organization since the 1980s (the emergence of large conglomerates such as Moët Hennessy Louis Vuitton SE or LVMH, and the reorganization of small and medium-sized enterprises); (2) production systems (the introduction of European companies into global value chains, and the role of country of origin labels and counterfeiting); (3) brand management (using heritage and tradition to build luxury brands); and (4) access to consumers (customization versus standardization). Lastly, new marketing communication strategies have recently been adopted by companies, namely customer relations via social media and the creation of online communities.
Jacqueline A. Gilbert
Organizational diversity is regarded positively, but haphazardly embraced. The absence of a cultural mandate at work (one which includes an emphasis on managing differences) can result in minority assimilation, and in either unintended bullying or in intentional abuse. Declining stock price, loss of goodwill, inability to recruit qualified candidates, and internal havoc marked by perpetuation of firm dysfunction may occur. These outcomes are especially alarming in the face of transformative population growth, in which minorities are predicted to become the demographic majority within the United States.
Inattention to employee misconduct prevents firms from experiencing enhanced productivity. Encouraging civil behavior is thus essential to engendering camaraderie in a diverse workforce, in which incivilities, or micro-inequities, are disproportionately targeted at minority groups. Management modeling of appropriate behavior (and swift action toward perpetrators for non-compliance) are necessary to achieve human capital integration.
Jeff Hearn and David Collinson
Even though gender and gender analysis are still often equated with women, men and masculinities are equally gendered. This applies throughout society, including within organizations. Following pioneering feminist scholarship on work and organizations, explicitly gendered studies on men and masculinities have increased since the 1980s. The need to include the gendered analysis of men and masculinities as part of gender studies of organizations, leadership, and management, is now widely recognized at least within gender research. Yet, this insight continues to be ignored or downplayed in mainstream work and even in some studies seen as “critical.” Indeed the vast majority of mainstream work on organizations still has either no gender analysis whatsoever or relies on a very simplistic and rather crude understanding of gender dynamics.
Research on men and masculinities has been wide ranging and has raised important new issues about gendered dynamics in organizations, including cultures and countercultures on factory shopfloors; historical transformations of men and management in reproducing patriarchies; the relations of bureaucracy, men, and masculinities; management-labor relations as interrelations of masculinities; managerial and professional identity formation; managerial homosociality; and the interplay of diverse occupational masculinities. Research has revealed how structures, cultures, and practices of men and masculinities continue to persist and to dominate in many contemporary organizations. Having said this, the concepts of gender, of men and masculinities, and of organization have all been subject to complex and contradictory processes that entail both their explicit naming and their simultaneous deconstruction and critique. This is illustrated, respectively, in the intersectional construction of gender; the pressing need to name men as men in analysis of organizational dominance, but also deconstruct the category of men as provisional; and in the multiplication of organizational forms as, for example, interorganizational relations, net-organizations, and cyberorganizations.
These contradictory historical and conceptual namings and deconstructions are especially important in the analysis of transnational organizations operating within the context of globalization, transnationalizations, production, reproduction, and trans(national) patriarchies. Within transnational organizations such as large gendered multinational enterprises, the taken-for-granted nature of transnational gendered hierarchies and cultures persists in management, maintained partly through commonalities across difference, gendered horizontal specializations, and controls. Transnational organizations are key sites for the production of a variety of developing forms of (transnational) business masculinities, some more individualistic, some marriage based, some nation based, some transcending nation. These masculinities have clear implications for gendered practices in private spheres, including the provision of domestic servicing often by Black and minority ethnic women. The growth of the knowledge economy brings further complications to these transnational patterns, through elaboration of techno-masculinities, and interactions of men, masculinities, and information and communication technologies. This is particularly relevant in the international financial sector, where constructions of men and masculinities are impacted by the gendering of capital and financial crisis, and gender regimes of financial institutions, as in men financiers’ risky behavior. Further studies are needed addressing the “gender-neutral” hegemony of organizations, leaderships, and managements, especially in transnational arenas, and organizations subject to changing technologies. Other key research issues concern analysis of neglected intersectionalities, including intersectional privileges, male/masculine/men’s bodies, and the taken-for-granted category of “men” in and around organizations.
This is an advance summary of a forthcoming article in the Oxford Research Encyclopedia of Business and Management. Please check back later for the full article.
Necessary Condition Analysis (NCA) understands cause-effect relations as “necessary but not sufficient.” It means that without the right level of the cause a certain effect cannot occur. This is independent of other causes, thus the necessary condition can be a single bottleneck, critical factor, constraint, disqualifier, or the like that blocks the outcome. This logic differs from conventional additive logic where factors on average contribute to an outcome and can compensate for each other. NCA complements conventional methods such as multiple regression and structural equation modeling. Applying NCA can provide new theoretical and practical insights by identifying the level of a factor that must be put and kept in place for having the outcome. A necessary condition that is not in place guarantees failure of the outcome and makes changes of other contributing factors ineffective.
NCA’s data analysis allows for a (multiple) bivariate analysis. NCA puts a ceiling line on the data in an XY-scatter plot. This line separates the space with cases from the space without cases. An empty space in the upper left corner of the scatter plot indicates that the presence of X is necessary for the presence of Y. The larger the empty space relative to the total space, the more X constrains Y, and the more Y is constrained by X, hence the larger the necessity effect size. A point on the ceiling line represents the level Xc of X that is necessary, but not sufficient, for level Yc of Y.
NCA is applicable to any discipline. It has already been applied in various business and management fields including strategy, organizational behavior, human research management, operations, finance, innovation, and entrepreneurship. More information about the method and its free R software package can be found on the
The New Public Management (NPM) is a major and sustained development in the management of public services that is evident in some major countries. Its rise is often linked to broader changes in the underlying political economy, apparent since the 1980s, associated with the rise of the New Right as both a political and an intellectual movement. The NPM reform narrative includes the growth of markets and quasi-markets within public services, empowerment of management, and active performance measurement and management. NPM draws its intellectual inspiration from public choice theory and agency theory.
NPM’s impact varies internationally, and not all countries have converged on the NPM model. The United Kingdom is often taken as an extreme case, but New Zealand and Sweden have also been highlighted as “high-impact” NPM states, while the United States has been assessed as a “medium impact” state. There has been a lively debate over whether NPM reforms have had beneficial effects or not. NPM’s claimed advantages include greater value for money and restoring governability to an overextended public sector. Its claimed disadvantages include an excessive concern for efficiency (rather than democratic accountability) and an entrenchment of agency-specific “silo thinking.”
Much academic writing on the NPM has been political science based. However, different traditions of management scholarship have also usefully contributed in four distinct areas: (a) assessing and explaining performance levels in public agencies, (b) exploring their strategic management, (c) managing public services professionals, and (d) developing a more critical perspective on the resistance by staff to NPM reforms.
While NPM scholarship is now a mature field, further work is needed in three areas to assess: (a) whether public agencies have moved to a post-NPM paradigm or whether NPM principles are still embedded even if dysfunctionally so, (b) the pattern of the international diffusion of NPM reforms and the characterization of the management knowledge system involved, and (c) NPM’s effects on professional staff working in public agencies and whether such staff incorporate, adapt, or resist NPM reforms.
Samer Faraj and Takumi Shimizu
Online communities (OCs) are emerging as effective spaces for knowledge collaboration and innovation. As a new form of organizing, they offer possibilities for collaboration that extend beyond what is feasible in the traditional hierarchy. OC participants generate new ideas, talk about knowledge, and remix and build on each other’s contributions on a massive scale. OCs are characterized by fluidity in the resources that they draw upon, and they need to manage these tensions in order to sustain knowledge collaboration generatively. OCs sustain knowledge collaboration by facilitating both tacit and explicit knowledge flows. Further, OCs play a key role in supporting and sustaining the knowledge collaboration process that is necessary for open and user innovation. As collective spaces of knowledge flows, OCs are mutually constituted by digital technologies and participants. The future is bright for OC research adopting the knowledge perspective and focusing on how to sustain their knowledge flow.
Organizational happiness is an intuitively attractive idea, notwithstanding the difficulty of defining happiness. A preference for unhappiness rather than happiness in an organization would be out of tune with community expectations in most societies, as would an organization that promoted unhappiness. Some argue that organizational happiness is a misconception, that happiness is a personality trait and organizations cannot have personality. Others suggest that organizational happiness is derived from, or at least dependent on, the happiness of the individuals in the organization. A third approach involves virtue ethics, linking organizational happiness to virtuous organizations. Some discussion of the nature of happiness is needed before consideration of these three approaches to the concept of organizational happiness. If one leaves aside the notion of happiness as a psychological state, there remain three main views as to the nature of happiness: one based on a hedonistic view, which grounds happiness in pleasure, one based on the extent to which desire is satisfied, and one where happiness is linked to a life of virtuous activity and the fulfillment of human potential. Some would see no distinction between all three senses of happiness and what is called well-being.
Whether or not organizations can experience happiness is to some extent determined by whether happiness is considered subjective well-being, fulfilled desire, or virtue and to some extent by one’s view of the moral nature of corporations. There are dangers in the unfettered pursuit of happiness. Empirical research is impacted by questions of definition, by changes over time for both individuals and society, and by the difficulty that arises from reliance on self-reported data. Recent decades have seen the publication of quantitative assessments of organizational happiness, despite the difficulty of constructing scales and manipulating data, and the problems of effectively taking into account cultural, organizational, and individual differences in concepts of happiness. Potential research questions fall into two groups, those that seek a better understanding of what happiness is and those that seek to collect data about happiness in pursuit of answers to questions about the benefits of happiness.
Innovation is a complex construct and overlaps with a few other prevalent concepts such as technology, creativity, and change. Research on innovation spans many fields of inquiry including business, economics, engineering, and public administration. Scholars have studied innovation at different levels of analysis such as individual, group, organization, industry, and economy. The term organizational innovation refers to the studies of innovation in business and public organizations.
Studies of innovations in organizations are multidimensional, multilevel, and context-dependent. They investigate what external and internal conditions induce innovation, how organizations manage innovation process, and in what ways innovation changes organizational conduct and outcome. Indiscreet application of findings from one discipline or context to another, lack of distinction between generating (creating) and adopting (using) innovations, and likening organizational innovation with technological innovation have clouded the understanding of this important concept, hampering its advancement. This article organizes studies of organizational innovation to make them more accessible to interested scholars and combines insights from various strands of innovation research to help them design and conduct new studies to advance the field.
The perspectives of organizational competition and performance and organizational adaptation and progression are introduced to serve as platforms to position organizational innovation in the midst of innovation concepts, elaborate differences between innovating and innovativeness, and decipher key typologies, primary sets of antecedents, and performance consequences of generating and adopting innovations. The antecedents of organizational innovation are organized into three dimensions of environmental (external, contextual), organizational (structure, culture), and managerial (leadership, human capital). A five-step heuristic based on innovation type and process is proposed to ease understanding of the existing studies and select suitable dimensions and factors for conducting new studies. The rationale for the innovation–performance relationship in strands of organizational innovation research, and the employment of types of innovation and performance indicators, is articulated by first-mover advantage and performance gap theory, in conjunction with the perspectives of competition and performance and of adaptation and progression. Differences between effects of technological and nontechnological innovation and stand-alone and synchronous innovations are discussed to articulate how and to what extent patterns of the introduction of different types of innovation could contribute to organizational performance or effectiveness. In conclusion, ideas are proposed to demystify organizational innovation to allure new researches, facilitate their learning, and provide opportunities for the development of new studies to advance the state of knowledge on organizational innovation.
Henrich R. Greve
Organizational learning theory is motivated by the observation that organizations learn by encoding inferences from experience into their behavior. It seeks to answer the questions of what kinds of experiences influence behaviors, how and under what circumstances behaviors change, and how new behaviors are stabilized and have consequences for organizations’ adaptation to their environment. Organizational learning research has as key mechanisms innovations and other triggering events that lead to major behavioral change, knowledge accumulation and experimentation that encourage incremental change, and interpretations that guide each of these processes. Organizational learning research has gained a central position in organizational theory because it has implications for organizational behaviors that also affect other theoretical perspectives such as institutional theory, organizational ecology, and resource dependence.
Key research topics in organizational learning and adaptation are (a) organizational routines and their stability and change, (b) performance feedback and its consequences for organizational search and change, (c) managerial goal formation and coalition building, (d) managerial attention to goals and organizational activities, and (e) adaptive consequences of learning procedures. Each of these topics has seen significant research, but they are far from completing their empirical agenda. Recently, organizational learning research has been very active, especially on the topics of routines, performance feedback, and attention, resulting in a strong increase in learning and adaptation research in management journals.
Isabel Boni-Le Goff and Nicky Le Feuvre
Professions or professional occupations have been studied through a large number of empirical and theoretical lenses over the last decades: as potential substitutes for organizations and markets, as protected labor markets, and as the site of the subjective experiences and socialization processes of their members. Combining a sociological and a gender perspective, a growing number of studies have shed new light on the growth and dynamics of professional occupations since the mid-20th century. They show how the massive entry of women into the upper reaches of Western labor markets has played a major role in the expansion and reconfiguration of the professions. However, by studying the barriers to women’s access to once exclusively masculine environments, scholars tend to show that the feminization processes coexist with persistent inequalities in income, promotion opportunities, career patterns, and access to leadership positions, popularized by the metaphor of the “glass ceiling” effect.
These contradicting trends—numerical feminization and the persistence of gender inequalities—have inspired a large range of empirical research projects and conceptual innovations. This article distinguishes three ways of framing the gendered dynamics of professional and managerial occupations.
A first way of framing the issue adopts a resolutely structural perspective, presenting feminization as a process that ultimately leads to the crystallization of traditional gender inequalities, thus confronting women with the risk of deprofessionalization or dequalification. Some of these studies observe variations in the rhythms and patterns of feminization across occupations. They reveal complex processes whereby the overall increase in women’s education levels comes with the persistence of gender-differentiated choices of study and occupation. Rhythms and patterns of feminization may also differ within a given occupation, from one specialty to another and from one type of organization to another, depending on the internal hierarchy of the occupation. Very significant gaps may also be observed according to employment status: wage labor or self-employment, for example.
A second way of framing the question adopts an organizational-level perspective; showing, for example, that a “glass ceiling” systematically hampers women’s career progression in all sectors of the labor market. These studies explore the combination of direct and indirect discriminatory processes—from the persistence of “old boys’ networks” to the legitimation of certain gendered body images of professionalism—within different organizational and professional contexts. In the face of such resistance, women’s career progression is particularly slow and arduous, both due to the prevailing symbolic norms of leadership models and due to the collective strategies of closure by male professionals at the organizational level.
Finally, a third way of framing the issue adopts a more holistic perspective, with a stronger focus on the agency of women within the occupational context and on the societal implications of changes to the gender composition of the professions. These studies insist on the potential or real changes that women may bring to the professional ethos and to the occupation-specific “rules of the game” in previously male-dominated bastions. Interested in the undoing of conventional norms of masculinity and fathering as well as of femininity and mothering, this third perspective explores a potential shift to more egalitarian gender arrangements at the organizational, interpersonal, and societal levels.
Nydia MacGregor and Tammy L. Madsen
Regulatory shocks, either by imposing regulations or easing them (deregulation), yield abrupt and fundamental changes to the institutional rules governing competition and, in turn, the opportunity sets available to firms. Formally, a regulatory shock occurs when jurisdictions replace one regulatory system for another. General forms of regulation include economic and social regulation but recent work offers a more fine-grained classification based on the content of regulations: regulation for competition, regulation of cap and trade, regulation by information, and soft law or experimental governance. These categories shed light on the types of rules and policies that change at the moment of a regulatory shock. As a result, they advance our understanding of the nature, scope, magnitude, and consequences of transformative shifts in rules systems governing industries. In addition to differences in the content of reforms, the assorted forms of regulatory change vary in the extent to which they disrupt an industry’s state of equilibrium or semi-equilibrium. These differences contribute to diverse temporal patterns or dynamics, an area ripe for further study. For example, a regulatory shock to an industry may be followed by rapid adjustment and, in turn, a new equilibrium state. Alternatively, the effects of a regulatory shock may be more enduring, contributing to ongoing dynamics and prolonging an industry’s convergence to new equilibrium state. As such, regulatory shocks can both stimulate ongoing heterogeneity or promote coherence within and among industries, sectors, organizational fields, and nation states. It follows that examining the content, scope, and magnitude of regulatory shocks is key to understanding their impact.
Since conforming to industry regulation (deregulation) increases economic returns, firms attempt to align their policies and behaviors with the institutional rules governing an industry. Thus, regulatory shocks stimulate the evaluation of strategic choices and, in turn, impact the competitive positions of firms and the composition of industries. Following a shock, at least two generic cohorts of firms emerge: incumbents, which are firms that operated in the industry before the change, and entrants, which start up after the change. To sustain a position, entrants must build capabilities from scratch whereas incumbents must replace or modify the practices they developed in the prior regulatory era. Not surprisingly, the ensuing competitive dynamics strongly influence the distribution of profits observed in an industry and the duration of firms’ profit advantages.
Our review highlights some of the prominent areas of research inquiry regarding regulatory shocks but many areas remain underexplored. Future work may benefit by considering regulatory shocks as embedded in a self-reinforcing system rather than simply an exogenous inflection in an industry’s evolutionary trajectory. Opportunities also exist for studying how the interplay of industry actors with actors external to an industry (political, social) affects the temporal and competitive consequences of regulatory shocks.
Donald D. Bergh
Growth strategies have long been a priority for executive leadership. However, growth can also create problems. Leaders may need to use restructuring and divestiture actions to regain control, improve transparency, and re-establish efficiency. Given that leaders benefit from having insights into the antecedents, processes, outcomes, and decisions associated with unwinding growth most effectively, it is essential to consider the body of knowledge that exists in strategic management on restructuring and divestiture. This review seeks to describe what is currently known and not known about restructuring and divestiture and will give future researchers some suggested directions for further developing knowledge about these expensive and risky actions. The assessment is organized round five key questions that have shaped the field’s literature base: Why do firms divest? How do firms divest? Do divestitures create value? What happens to the divested units? And what are some promising directions for future knowledge development? Afterwards, three challenges for knowledge development are presented: What is value creation and for whom does it matter? What to do about incomplete information? And, is there a need for integrating different levels of strategy? Overall, it is important to identify, develop, and analyze the conceptual models of restructuring and divestiture with the purpose of guiding future research to provide knowledge that decision-makers will find useful as they engage in restructuring and divestitures.
Michael K. Bednar
Corporate governance scholars have long been interested in understanding the mechanisms through which firms and their leaders are held accountable for their actions. Recently, there has been increased interest in viewing the media as a type of corporate governance mechanism. Because the media makes evaluations of firms and leaders, and can broadcast information to a wide audience, it has the potential to influence the reputation of firms and firm leaders in both positive and negative ways and thereby play a role in corporate governance.
The media can play a governance role and even influence firm outcomes by simply reporting about firm actions, giving stakeholders a larger voice with which to exert influence, and through independent investigation. However, despite the potential for the media to play a significant governance role, several barriers limit its effectiveness in this capacity. For example, media outlets have their own set of interests that they must strive to fulfill, and journalists often succumb to several cognitive biases that could limit their ability to successfully hold leaders accountable.
While significant progress has been made in understanding the governance role of the media, future research is needed to better understand the specific conditions in which the media is effective in this role. Understanding how social media is changing the nature of journalism is just one example of the many exciting avenues for future research in this area.