L8: Internal Flashcards
Davis, G. F., & DeWitt, T. (2021). Organization Theory and the Resource-Based View of the Firm: The Great Divide.
Strategy aims to explain firm performance (RBV: competitive advantage), while organization theory addresses why firms have the structures and behaviors they do (structure and culture).
Litterature for strategy does only minimaly draw on organization theory and opposite.
Why Is There Not More Interchange Between Strategy and Organization Theory
Organization theory focused on structural and cultural factors: Organization theory is like biology (why firms have the practices and structure they do)
Strategic theory focused on markets and and companies performed economically: Strategy is like medicin: (what effect the practices has on performance)
What Happens if Firms Disappear?
Technology and contracting work has and will challenge traditional companies –> less demand for big and complex firms.
ICTs (information and communication technologies), has gathered finance (investor and entreprenuers find eachother), suppliers (Nike: no one produces), labour (Uber: outsource/no contracts)
Traditionel companies can remain because 1) vessel for ressources (strategy) 2: social entities (organization).
But firms must adapt with alternative forms of organizing, such as online communities.
Giorgi, S. et al. (2015). The Many Faces of Culture: Making Sense of 30 Years of Research on Culture in Organization Studies
The article outlines that culture in organizational studies has been understood in 5 main concepts!
The article also highlights the complex interplay where culture can shape IDENTITY formation, influence INSTUTUTIONAL norms, and be manifested through organizational PRACTICES.
5 concepts of culture
Stories: narratives with causally-linked sequences of events (beginning, middle, and end)
Values: what we prefer, hold dear or desire (“web of meaning”)
Frames: filters that delimit what we pay attention to (directs attention)
Categories: social construction that define the distinction (locates an entity within a broader system of meaning: is the entity same or distint to other)
Toolkits: stories, frames, practices ect. that actors draw upon to take actions or make meaning (pragmatically assemble but into actions)
The framework on culture: It shows that these are all interrelated!
Moving Beyond Culture: Identity, Institutions, and Practices
Identity: forstås som “hvem vi er” og “hvad vi gør” og har en gensidig påvirkning på kulturen! (Ambitous people <–> ambitous culture)
Institutions: institutions affect the culture: the embeddedness in an institution –> similar formal norms and values. Also culture affect institutions by providing a meaning and structure.
Practices: “how we do things” (one of the observable artifacts (Shein)). Også denne bliver påvirket af kultur og påvirker igen som de andre!
Lounsbury, M., & Glynn, M. A. (2001). Cultural entrepreneurship: Stories, legitimacy, and the acquisition of resources
Cultural entrepreneurship: the storytelling that legimates the entrepreneurial ressources (a firm) to stakeholder and investors –> wealth creation.
Figure 1. Process model of cultural entrepreneurship
To gain a sustainable competitive advantage, companies need to:
Resource capital (firm-specific assets: tech, human, finance etc.) and institutional capital (industry norms and legitimacy)
–> Entreneurial stories (narratives that either stress or downplay distinctiveness: based on 1) institutional legitimacy and 2) competence-destroying (challenging existing expertise) or competence-enhancing (supporting current industry practices)
–> Entrepreneurial Identity and Legitimacy: The stores shape the identity and effeciancy.
–> Capital aquisition: Resource and/or Institutional capital
–> Wealth Creation: Performance + economic growth
Lounsbury, M., & Gehman, J. (2024b): Sensemaking
Sensemaking is about how individuals and organizations interpret and create meaning in situations characterized by ambiguity and uncertainty. (7 characteristics: retrospective, ongoing, social etc.)
1949 Mann Gulch fire: “cosmology episode” (a sudden and complete loss of meaning). Dodge used new sensemaking and survived.
Maitlis, S., & Christianson, M. (2014). Sensemaking in Organizations: Taking Stock and Moving Forward.
Mechanisms of Sensemaking:
Triggers for Sensemaking: These are discrepancies between expectations and experiences (ballet dancers’ injury).
Construction of Intersubjective Meaning: Sensemaking is social (dialogue, negotiation, and shared meaning among organizational members) (“Guided sensemaking” a leader speaks and construct sense).
Role of Action: Individuals interpret cues, act based on these, and modify their understanding through the consequences of their actions.
Sensemaking enables other important organizational processes and outcomes
Strategic change: leaders can influence others sensemaking (sensegiving) –> members share new meanings
Learning: create shared understandings that allow members to learn from errors (Volkswagen case)
Creativity and innovation:
enabling individuals to explore new ideas collaboratively
Kamala Harris campaign
Record-breaking fundraising amount:
- Culture and storytelling were pivotal: Zoom calls, “Forward” poster.
Volkswagen case
Emission scandal: vehicles cheated on emissions tests –> penalties + reputition.
Earlier culture: focus on growth, high pressure and groupthink.
Volkswagen will now transform its corporate culture: appointment of compliance officers, and transparency initiatives to prevent again (storytelling)!
