Institutional inertia and practice variation

PurposeInstitutional theory had been developed for the purpose of explaining widespread diffusion, mimetic adoption and institutionalization of organizational practices. However, further extensions of institutional theory are needed to explain a range of different institutional trajectories and organizational responses since institutionalized standards constitute a minority of all diffusing practices. The study presents a theoretical framework which offers guidelines for explaining and predicting various adoption, variation and post-adoption scenarios.Design/methodology/approachThe paper is primarily conceptual in nature, and the arguments are developed based on previous institutional theory and organizational change literature.FindingsThe notion of institutional inertia is proposed in order to provide a more detailed explanation of when and why organizations ignore, adopt, modify, maintain and abandon practices and the way intra-organizational institutional pressures shape, direct and constrain these processes. It is specified whether institutional inertia will be temporarily eclipsed or whether it will actively manifest itself during adoption, adaptation and maintaining attempts. The study distinguishes between four institutional profiles of organizational practices – institutionalized, institutionally friendly, neutral and contested practices – which can vary along three dimensions: accuracy, extensiveness and meaning. The variation and post-adoption outcomes for each of them can be completely characterized and predicted by only three parameters: the rate of institutional inertia, institutional profile of these practices and whether they are interpretatively flexible. In turn, an extent of intraorganizational institutional resistance to new practices is determined by their institutional profile and flexibility.Practical implicationsIt is expected that proposed theoretical explanations in this paper can offer insights into these empirical puzzles and supply a broader view of organizational and management changes. The study’s theoretical propositions help to understand what happens to organizational practices after they are handled by organizations, thus moving beyond the adoption/rejection dichotomy.Originality/valueThe paper explores and clarifies the nature of institutional inertia and offers an explanation of its manifestation in organizations over time and how it shapes organizational practices in the short and long run. It challenges a popular assumption in organizational literature that fast and revolutionary transition is a prerequisite for successful change. More broadly, the typology offered in this paper helps to explain whether and how organizations can successfully handle and complete their change and how far they can depart from institutional norms.

Michelin Is Coming to Town: Organizational Responses to Status Shocks

What happens in the aftermath of the introduction of a new status ranking? In this study, we exploit the unique empirical opportunity generated by the release of the first edition of the Michelin Guide for Washington, DC, in the fall of 2016. We build on prior work on rankings as insecurity-inducing devices by suggesting that newly awarded high-status actors modify their self-presentation attributes to fit with what they believe audiences expect from the elite. Our results show that, depending on their standing prior to Michelin’s entry, restaurants acted upon different attributes of their self-presentation. Restaurants with high prior standing emphasized attributes that channeled authenticity and exclusivity, which may imply that their Michelin designation triggered operational changes. Actors with low prior standing, on the other hand, acted on descriptive attributes that did not necessarily imply operational changes and could be easily manipulated to signal their belonging among the elite. We contribute to research on status and conformity by disentangling the sources and types of conformity behaviors that newly awarded high-status actors deploy. This paper was accepted by Lamar Pierce, organizations.

Exploring the Factors of Employee Subjective Well-Being in the Midst of Health Threat: An Evidence from the U.S. Federal Government during the COVID-19

The recent COVID-19 pandemic posed a challenge to employee well-being and will have a lasting impact on how safe employees feel about their work environment. This study aims at examining: (1) the impact of safety perception of employees on their job attitudes; and (2) what factors affect their expectations that their organizations will effectively protect them from potential health threats. Using data from the U.S. Federal Government, this study divided organizational responses to COVID-19 aimed at protecting their employees into the following three types: protecting the employees while working on site, reducing the number of employees working on-site, and providing mental and health assistance. The effects of these organizational responses were analysed separately, and regression analysis was performed with these factors with regards to employees’ safety perception. The results showed that the first group of measures, protecting the employees while they are in the workplace, had generally the most significant influences on employees’ feeling of safety. The attempt to protect those in vulnerable medical conditions was also seen as significant. These findings show that organizations need to protect their employees in the workplaces during a health crisis.

When Reflection Hurts: The Effect of Cognitive Processing Types on Organizational Adaptation to Discontinuous Change

Technological breakthroughs, institutional disruptions, and natural disasters often alter the course of organizations and entire industries. Such discontinuous changes threaten organizations’ survival by affecting the value of the knowledge accumulated in routines and capabilities. Although it is widely acknowledged that managerial cognition is a critical antecedent of organizational responses to discontinuous change, the role of type 1 (intuitive) and type 2 (reflective) processing in the adaptation of shared patterns of behavior, that is, routines, remains understudied. Drawing on dual-process theory, we propose that particular features of type 1 processing render this approach superior to type 2 processing, especially in highly ambiguous environments in which information is limited and difficult to verify. We tested our hypotheses in a longitudinal experiment linking individual-level factors with organizational-level practices of routine adaptation. Experienced managers, paired in 80 groups, developed routines in a first round of a simulation game; in a second round, we then introduced a discontinuous change making previous routines obsolete in order to observe how they adapted. The data show that priming type 1 processing facilitates organizational adaptation more than type 2 processing by providing faster, more routinized, efficiently coordinated, and optimal responses. In addition, type 1 appears to be more functional in highly ambiguous environments, whereas type 1 and type 2 processes yield similar levels of performance under low levels of ambiguity. Overall, our study advances the understanding of the nondeliberative dimension of organizational adaptation to discontinuous change.

Defining diversity in groupwork: A relational exploration

One of the basic assumptions underlying all traditional definitions is that diversity is a characteristic of an individual or a group, which is a problematic to groupwork. This paper explores Phases 1 and 2 of a multi-method research project exploring groupworkers’ understandings of diversity and how their perceptions impact their approach to group processes, with implications for group practice advancement. The project consists of sequential phases following a mixed-methods design. In the initial phase, in-depth semi-structured qualitative interviews were conducted individually with 24 groupworkers. While the second phase (phase two) consisted of 4 focus groups involving theoretical and criterion sampling strategies to interview experienced therapeutically-oriented groupworkers in Western and Eastern Canada. The analysis was guided by Glaser and Strauss’s (1967) constant comparative method involving open-coding, followed by axial coding, and concluded with selective coding. Groupworkers reported feeling overwhelmed and, in some cases, “paralyzed” by the complex diversity present in their groups. These findings suggest attention to group diversity renders it potentially more relevant and salient. We also found the levels and complexity of diversity increased as the reflection by groupworkers deepened. In keeping with the traditional aims of groupwork, attending to diversity goes beyond the group to include responses to diversity in the organizational and community contexts. Dialogue and change in organizational responses to diversity is important in the areas of organizational climate, allocation of resources, and agency policy and procedures. Accordingly, offering groupworkers and members tools to attend and navigate diversity in situ is a first step towards recognizing its presence and importance. A critical step in moving forward is to examine the nuances of diversity and move beyond thinking of diversity in terms of demographic variables.

The Wheel Comes Full Circle? An Integrated View of Organizational Responses to Institutional Pressures

In the face of increasing pressure to comply with institutional norms, firm managers may retreat from previous commitments to comply once they realize the challenges involved. This study examines how firms respond to institutional pressures in a particular way called reversion, in which an organization's managers temporarily comply when there are no consequences but resist when it is in their interest to resist. By integrating institutional and agency theories, we model the reversion decision as a tension between institutional constituents and organizational managers. An empirical analysis of a sample of Japanese firms that scheduled annual shareholder meetings during the 2001 through 2014 period was performed. Our findings show that although organizations’ susceptibility to certain institutional pressures determines initial organizational compliance, managers whose interests diverge from those of the institutional constituents can revert their decisions, especially when they have discretion in decision making to protect their own interests. These findings highlight the temporary nature of organizational responses to institutional pressures and help us understand how organizational agency can limit institutional control over an organization's actions.

Surviving the Strain of Youth Organizing: Youth and Organizational Responses

Youth of Color in the United States are often leaders in movements for social justice. Evidence suggests that organizing has a positive macro-therapeutic effect on the mental health of young organizers; however, they can also experience strain and become targets of the very systems they are trying to change. In a community-based participatory action research study, three organizations that train youth of Color in organizing in Brooklyn, New York City held focus groups with youth and adult staff. The focus groups examined the strains experienced by youth organizers and the strategies adult partners use to prepare organizers to maintain hope and well-being. Findings suggest four key emergent strategies: (a) provide an emotional homespace to process the rub between worlds, (b) actively shape the long view on systems change, (c) increase self-care skills and emotional preparation for organizing, and (d) promote healing by building leader(full) communities.