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Annu.Rev. Sociol. 1998. 24:265-90
Copyright? 1998 by AnnualReviews.All rights reserved
DIFFUSIONIN ORGANIZATIONS
AND SOCIALMOVEMENTS:From
HybridCornto Poison Pills
David Strang
Departmentof Sociology, Corell University, Ithaca,New York 14853;
e-mail: ds20@comell.edu
Sarah A. Soule
Departmentof Sociology, University of Arizona, Tucson, Arizona 85719;
e-mail: soule@U.arizona.edu
KEYWORDS:contagion,networkanalysis,discourse,protest,interorganizational
relations
ABSTRACT
There has been rapid growth in the study of diffusion across organizations
and social movements in recentyears, fueled by interestin institutionalargu-
ments and in networkand dynamic analysis. This researchdevelops a socio-
logically groundedaccountof change emphasizingthe channelsalong which
practices flow. Our review focuses on characteristiclines of argument,em-
phasizing the structuraland culturallogic of diffusion processes. We argue
for closer theoreticalattentionto why practices diffuse at differentrates and
via different pathways in different settings. Three strategies for furtherde-
velopment are proposed: broader comparativeresearch designs, closer in-
spection of the content of social relations between collective actors, and
more attentionto diffusion industriesrun by the media and communities of
experts.
What we really need is some new heroes in Engineering. I took that word
fromDeal's culturebook, andI'm tryingto identify the Engineeringheroes.
Divisional Manager(Kunda 1992, p. 100)
They are making more out of this culture stuff than it's worth...I never read
that stuff, maybe see it in passing. It's the same nauseatingstuff they printin
Business Week.
GroupManager(Kunda 1992, p. 180)
265
0360-0572/98/0815-0265$08.00
266 STRANG & SOULE
INTRODUCTION
As the above quotationssuggest, skillful players in business and other arenas
display a keen sense of fashions andmovementswithin theirspheresof action.
Much as academics are aware of intellectual currentsand exemplars in their
fields, we may be confidentthat executives know what new developmentsare
hot and which are not, and thatpolitical activists are attunedto successes and
disappointmentselsewhere. And as the quotes emphasize, individualscounter
as well as endorse and employ the culturalmaterialsprovidedby a largersys-
tem of discourse.
Diffusion studies work with this awarenessand its consequencesby exam-
ining how practices spread.They provide an opportunityto locate and docu-
ment social structure,where we consider how patternsof apparentinfluence
reflect durablesocial relations.And they providean opportunityto observe the
culturalconstructionof meaning,where we learnhow practicesare locally and
globally interpreted,and ask why some practices flow while others languish.
This review treats contemporaryuses of diffusion argumentswithin the
fields of organizationsand social movements. Diffusion imagery,models, and
explanationsare on the rise in both fields and with clearly productiveeffect.
We seek to map the logic of these developments, emphasizing characteristic
lines of argument,methods,andresearchdesigns. At the same time, we strikea
cautionarynote, arguing that theoretical advance requirescloser attentionto
both structuraland culturalbases of diffusion.
CONCEPTUALOVERVIEW
Diffusion refers to the spread of something within a social system. The key
term here is "spread,"and it should be taken viscerally (as far as one's con-
structionismpermits)to denote flow or movementfroma sourceto an adopter,
paradigmaticallyvia communicationand influence. We use the term "prac-
tice" to denote the diffusing item, which might be a behavior,strategy,belief,
technology, or structure.Diffusion is the most general and abstractterm we
have for this sort of process, embracingcontagion, mimicry, social learning,
organizeddissemination,and other family members.
The term"diffusion"is sometimesused in an alternativesense to denote in-
creasingincidence: Somethingdiffuses when more and more people do it. But
treatmentof diffusion as an outcome makes it uninteresting,since practices
rise and fall in frequencyfor every possible reason.We thus focus on diffusion
as a kind of causal process and seek to map some majorlines of argumentand
importantfindings.
Diffusion argumentscannotbe segregatedeasily from othercausal dynam-
ics. They verge on the one handtowardmodels of individualchoice, since dif-
DIFFUSION 267
2The literatureon recruitmentto activism also emphasizes the effects of network ties. See
Curtis& Zurcher(1973), Snow et al (1980), McAdam (1982, 1988), Morris(1984), McAdam &
Paulsen (1993), and McCarthy(1996).
DIFFUSION 269
INITIALELEMENTSOF A DIFFUSIONARGUMENT
We briefly flag two importantconcernsthatplay a role in all kinds of diffusion
argumentsbut that for present purposes are treated contextually ratherthan
within our main story line.
WhatIs Observed?
While most diffusion researchemphasizes thatadoptersare influencedby im-
mediate or second-hand observation of the diffusing practice, there is often
much ambiguity about what is actually observed. Sometimes we treatthe po-
tential adopteras exposed to the practiceitself. This involves discovering that
something is possible, witnessing it in action, or hearingsecondhandaboutits
objectives, rationale, and operation.For example, executives may come into
contact with poison pills when they sit on the boards of other firms that have
instituted them (Davis 1991), managers may learn which markets leading
firms enter(Haveman 1993), and activists in Switzerlandmay hearaboutpro-
tests in the Netherlands(Kriesi et al 1995, Chapter8).
A potential adoptermay also observe the consequences of a practice. To
continue the above examples, one might measurecontactwith companies that
had successfully wardedoff takeoversby wielding the pill, or calculateratesof
returnfor firms that entervarious markets,or contrastsituationsin which pro-
tester demandswere met to those in which they were not.
The contrastbetween observing practices and observing their outcomes is
tied only loosely to a contrastbetween diffusion as mimicry and diffusion as
social learning.One can readilymotivate diffusion in rationalchoice-theoretic
terms even when no informationabout consequences is provided (Banerjee
1992). And consequencesmay be implicit in descriptionsof the practiceor un-
interpretablewithout close local knowledge or a good theory.
Research that directly measures the consequences of adoption elsewhere
suggests thatboth are salient. Conell & Cohn (1995) find thatFrenchcoal min-
ing strikes were stimulatedby other strikes in the same departmentbut most
stronglyby victorious ones. And Holden (1986) shows thathijackingattempts
were stimulatedby priorhijackings, especially when a ransomwas paid.
In most studies, however, these distinctionsare not or cannotbe made. We
typically know thatpotentialadoptersarebroughtinto contactwith the diffus-
ing practicebut do not know quitewhat they see, particularlywhetherthey ob-
serve results. This inability to specify what is observed produces some theo-
retical fuzziness about the microprocesses involved in diffusion.
270 STRANG& SOULE
Innovativeness
We also flag the issue of innovativeness,a topic thatforms the flip-side of dif-
fusion studies (see Kimberly 1981, Drazin & Schoonhoven 1996 for excellent
discussions of the organizationalliterature).Innovation research asks what
makes organizationscapable of devising or adopting new technologies and
practices.3
While some critics have regardedthe literatureas beyond interpretation
(Downs & Mohr 1976), fairly consistent findings emerge (Damanpour1991).
Large, technically specialized organizationswith low levels of formalization
and centralizationtend to innovate rapidly (Bums & Stalker 1961). Exposure
to external competition and rapidly shrinkingmarketsprovide external spurs
to innovation(for example, Osterman1992, Studer-Ellis1997). Internally,the
adoptionof new practicesrequiresthe active efforts of innovationchampions
and a robustcoalition for change.
These lines of inquiryarerelevantto diffusion analysisbut ambiguouslyso,
since they conflate openness to diffusion with internalinventiveness. In addi-
tion, diffusion studies tracking specific practices must attend to the congru-
ence between adopterand practiceat least as much as generalizedinnovative-
ness. Large,technically complex organizationsmay be quick to adoptinnova-
tions designed to handle informationoverload (Burs & Wholey 1993) but
slow to adopt otherpractices such as "beerbash Fridays."
And while generalized innovativeness and particularcongruences help us
explain relative adoptionratesof specific practices,neithercontributesfunda-
mentallyto a theoreticalanalysis of diffusion. Forthat,we must examine com-
municationand influence within the communitywhere practices diffuse.
SOURCESAND STRUCTURALMECHANISMS
Diffusion studies arerich in structuralmechanisms:characteristicrelationsbe-
tween source and adopterthatpromotediffusion. Conceptualwork in the area
tends to bring previously overlooked pathways and logics into sharp focus.
Among the classics of this genre are Granovetter's"The Strength of Weak
Ties" (1973) and DiMaggio & Powell's "The Iron Cage Revisited"(1983). 4
The discussion builds from perhapsthe most centralopposition: diffusion
into a population(external source or broadcastmodels) vs diffusion within a
population(internalor contagion models). The two may operatein tandem,as
3The social movement literature has been much less concerned with variability in
innovativeness, though Tilly (1978) and Tarrow (1994) emphasize a long historical evolution
towardmore flexible repertoiresof contention.
4DiMaggio & Powell's discussion of homogenizing processes may be read as a conceptual
mappingof diffusion mechanisms.Their account of coercive, mimetic, and normativesources of
homogeneity intersectsat many points with our discussion.
DIFFUSION 271
5Some may recall the often stifling characterof these pressuresin the settingof the small town;
others find a more compelling parallelin the atmosphereof the universitydepartment.
DIFFUSION 273
6Like all other communities, organizationsand social movements display prestige orderings
(see Schrum& Wuthnow 1988, Fombrun& Shanley 1990).
7Tolnay et al (1996) find a surprisingnegative diffusion effect of geographic proximity on
lynchings (and also exhaustionratherthan contagion within counties). They argue that lynchings
are a social controlmechanismwhose memory lingers in the local population.
276 STRANG& SOULE
CULTURALBASES OF DIFFUSION
Both theoryandempiricalwork generallyfocus on the sorts of structuralbases
for diffusion cataloguedabove. But this is only partof the story. Structuralop-
portunities for meaningful contact cannot tell us what sorts of practices are
likely to diffuse, and such opportunitiesmay lead to conflict or boundaryfor-
mation as well as to diffusion.
An analysis of the cultural(in some usage, institutional)bases of diffusion
speaks more directlyto what spreads,replacinga theory of connectionswith a
theory of connecting. We emphasize three lines of analysis: discussion of the
interpretivework that catalyzes flow, inspection of the diffusion industries
whose stock in tradeis discourse, and examinationof how empiricaldiffusion
patternsare relatedto the culturalstatus of the diffusing item.
InterpretiveWorkas MediatingDiffusion
Culturalapproachesemphasizethata self-consciously interpretiveprocess un-
derlies most adoption(thoughthereis a place for unthinkingmimicryand hys-
tericalcontagion;see Kerckhoff& Back 1968). Strang& Meyer (1993) discuss
how practicesaretheorizedin termsof generalmodels andcausalrelationships.
Snow & Benford (1992) apply Goffman's notion of a frame:an "interpretive
schema thatsimplifies and condenses the 'world out there' by punctuatingand
encoding objects, situations,events, experiences,and sequencesof action."(p.
137). Lillrank(1995) portraysthe interpretiveprocessas one of translatingcon-
crete practices into abstractionsfor export and then unpackingthe abstraction
into a (suitablymodified) concretepracticeupon arrival.Jointly,the argument
is thatpracticesdiffuse as they arerenderedsalient, familiar,andcompelling.8
Strang's (1997) inquiry into the Americanreception of quality circles ex-
plores theorizationvia a content analysis of public discourse. Articles in the
business literatureare coded for the claims they make about quality circles.
The Japanese practice is found to have been theorized under two different
frames, a dominant human relations interpretationand an undertheorized
problem-solving one. These public discourses help us understandhow and
why American companies experimentedwith quality circles.
Snow (1993) examines framingin the importationofNichiro Shoshu/Saka-
gakkai (NSS), a Japanese-basedBuddhist movement, into the United States.
He emphasizes that the incorporationof American cultural symbols by the
NSS has facilitatedthe movement's expansionandviability. The NSS displays
nationalsymbols such as the Americanflag in its ceremonies,directsmembers
to be winners (a decidedly non-Buddhistideal), and peppersits communiques
with American archetypessuch as the pioneering spirit and town meetings.9
Perhapsthe richest analysis of interpretationis Hirsch's (1986) discussion
of the languageassociatedwith hostile takeovers.This imageryshifts dramati-
cally over time, as initially starkportrayalsof hostile takeoversas crimes com-
mitted by outsiders are replaced by a more complex, richer imagery of
shootouts, Big Hat Boys, rescues, and Snow Whites. Hirsch treats this lan-
guage as a culturalphenomenonthatevolves along with takeoverbehaviorand
its social location within the business community,initially framingresistance
and later framingacceptance.
In addition to generating interesting stories, attention to the interpretive
work underlyingdiffusion has two main implications. It points out that prac-
tices do not flow: Theorizedmodels and carefulframingsdo. And it arguesthat
interpretivework selects and transformsdiffusing practices:Not all practices
can be theorized or framed,and none come out of the process unmodified.
Fashion-SettingCommunities
Interpretivework promoting diffusion is accomplished by both sources and
adopters;sometimes the source, sometimes the adopter,and sometimes both
play an active role (Snow & Benford 1995). But culturalapproachesto diffu-
sion direct particularattention to the external communities whose members
make their living promulgatinginnovationand commentingon change. These
others (Meyer 1995) have access and influence largely to the extent that their
interpretiveframes are compelling to decision makers, and so here we see
much attentionto the culturalconditions for diffusion.
Today, the managementfashion industry is very big business. While the
theorizationand hyping of organizationalaction has always been fundamental
to managing(Eccles & Nohria 1992), a strongtrendtowardthe exteralization
A WIDER COMPARATIVELENS
The most common design in diffusion researchtreatsvariabilityin the timing
of adoptionof a single practice across a single community (a relationallyand
culturallyconnectedpopulation).Almost all of the previously mentionedstud-
10Ina convergentvein, Tarrow(1994) arguesthatmodularformsof protestlike the boycott and
the mass petition supportedmore widespread action and faster diffusion because they could be
flexibly utilized against differentopponentsand in service of differentcauses.
280 STRANG& SOULE
ies are of this type. Much less work compares rates, patterns, and causal
mechanisms across settings. We emphasize work that promotes a broader
comparativeanalysis.
120ne does see a state-sponsored infrastructurein the American health sector, with its
experiments,subsidized models, and regional innovation-diffusioncenters (Fennell & Wamecke
1988).
282 STRANG& SOULE
this follows from the resonanceof the idea of rationalcopying given the view
that organizationsare autonomousand are rationalactors.
Rowan (1982) provides a more structuralanalysis of legitimation, arguing
that innovationsdiffuse rapidlywhen core actors are in agreementand fizzle
when they are not. For example, curriculumreform was adopted rapidly by
school districtswhen the state legislature,the stateeducationalagency, andthe
teacher's association supportedthe same model. School districtsdisregarded
curricularinnovationswhen this consensus fell apart(for example, when the
legislatureregardednew texts as too radical).
Shifts in Causal Effects During Diffusion
Finally, much research looks for shifts in causal processes as diffusion un-
folds. The most influentialsuch analysis is Tolbert& Zucker's (1983) discus-
sion of how local rationalityis replacedby conformityto institutionalmodels.
They arguethatcivil service reformsdiffused slowly in the nineteenthcentury
in ways consistent with relevant city characteristics.After 1915, when civil
service practices had become widely legitimated in professional circles, re-
form diffused rapidlyand indiscriminately.
A related logic of crescive institutionalizationappears in organizational
studies that examine the changing effect of prior adoptions (ratherthan con-
duct a separatediscourseanalysis). For example, Bums & Wholey (1993) find
temporaldecline in the effects of internalpredictorsanda growing effect of re-
gional adoptionin the diffusion of matrixmanagementamong hospitals. Bu-
dros (1997) shows that the internal precipitants of corporate downsizing
weaken over time while the overall bandwagoneffect grows.13
Much work on national educational and welfare policy finds similar dy-
namics. Welfarepolicy adoptionearly in the twentiethcenturywas tied to eco-
nomic transformationsand development,whereas afterWorldWar II policies
were adoptedrapidlyeverywhere(Collier & Messick 1975). Educationalsys-
tems were tied closely to nationalcharacteristicsin the nineteenthcenturybut
spreadin broadcastfashion in the twentiethcentury(Meyer et al 1992).
Westphal et al (1997) extend this well-documented institutionalization
model in analysis of TQM practices across hospitals. Breakingwith standard
practice, they examine the relationshipbetween the timing of adoption and
what gets adopted,contrastingconventionalimplementationof TQM models
(measuredas closeness to averageuse andto theoreticalmodels) with customi-
zation of TQM to local conditions. Early adopters are shown to customize
while late adoptersadoptconventionalforms, and networkties to adoptersen-
13Coefficient values for contagion are rather stable across the three historical periods of
downsizing that Budros studies. But since the covariate (prior downsizing efforts) is rising
continuously,the total effect of prioradoptionsincreasesover time.
DIFFUSION 283
y=pWy+Xp+? 3.
tive action (how they are repressed, how they build activist solidarity, how
they appearon television, and whetherthey lead to desiredresults).
Substance
Relational analysis has been the backbone of diffusion researchin sociology.
But ideas based on interpersonalrelations translateunclearly into situations
where collective actorssuch as organizationsarethe adopters.The tendencyto
refer to the effect of any direct tie as cohesion is symptomatic(particularly
since the ties under discussion often seem so weak). More important,the
elaborateanalyses of diffusion and diffusion-like dynamicsmountedat the in-
dividuallevel (work such as thatofBurt, Carley,Doreian,Friedkin,Macy, and
Marsden)do far more with the networkmetaphorthan analyses of collective
actors seem able to pull off.
The problemis that collective actorparallelsto face-to-face interactionare
not as vivid or meaningfulas the real thing.Valuableinsightsinto diffusiontra-
jectorieshavebeen garneredby analysisof interlockingdirectorates,geographic
proximity,andculturallyanalyzedsimilaritiesas diffusionchannels.But thereis
a need for close attention to what sort of informationand influence flows
throughthese channels.And it would be useful to developmodels of interorgani-
zationalstructureless coloredby an analogyto directinterpersonalinteraction.
Finally, the fashion setterswho constructand disseminatenew practicesde-
serve renewed attention.Diffusion dynamics seem increasinglyvolatile, and
diffusing practices increasingly constructed,as interpretivework is exteral-
ized in public discourse. Study of the media, consultants, and professional
communities permits attention to cultural work and forms of agency that
adopter-centricresearchoverlooks. The impact of vibrantdiffusion industries
on the political and the business scene has hardlybegun to be tapped.
ACKNOWLEDGMENTS
We thankPamHaunschild,HeatherHaveman,Woody Powell, and Sid Tarrow
for their helpful suggestions.
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