Organizational Analysis
Collaboration
Week 4
Organized Anarchy
structures are needed
schools and their meetings
meaning making
characteristics
ill-defined goals
unclear tech
fluid participation
indipendent streams of solutions
problems, participants, and choice
arenas
decision situation-garbage ca n theory
choice opportunities(garbage
cans)"policy window meetings
flows- 3 flows in trash; problems,
solutions, participants
timing- opportunities of flow
outcomes
no decision
solutions does not resolve probs
oversight
flight
problem resolution
Applications
Garbage Can Applications
1. San Francisco Unified School District
Attempt to Desegregate
2. Agenda Setting in the Legislative
Process
3. Title V of No Child Left Behind(NCLB)
SFUSD Desegregation Plan
Hind'No manageable
Ambigious desegregation
P 3. Put knowledge into organizational
1integity of school complexes
2bilingual education
3bussing dislike by whites
4ses integration wanted
5bed segregation
7budget woes boycott in distrepair
8lawsuit by latinamer
9financial prob
10teacher strike
A Memory (Ofam)
1community interest groups
2federal consultants
3.Citizens Adivisory Council
s b. Database, routines,personnel, and
1Tristar(3 zone plans written by
technocrats
2horseshoe(7 zone plan-less drastic)
wins because supported by actors.
Agenda Setting in Legislative Process
A 1.
1Congressional houses, president, civil
servants.
2interest groups, lobbyists,
professional societies, advocates,
academics, media,voters, general
constituents.
Processes
.Origins
.Rational Choice
.Incrementalism
Week 5
Organizational Learning
Organizational Learning(OL)-
adaptation and learning from
experience.
Groups of Learning and Knowledge
Individual
Group
Organization
OL Perspective- not organizational
process model.
Routines are enacted practices, not
ostensive rules.
Practice Concern
Practice- understanding comes from
actually doing work.
1.Collaborative
2. Shared and Understood through
formalisms.
3.Entails Improvisation/adaptation via
use.
Share knowledge
1. Value improvisational efforts
2. Create collaborative practices by
which useful improvisation is
generated and transferred
memory.
Topics of Organizational Learning(tOL)
1. Learning Curves
a. Indicators(Test)
b. Gains Generations(Human and
tech)
c. Problems(Plateaus, and usage)
2. Organizational Forgetting and
a. Exogenous factors, outdated
knowledge, working in isolation,
personnel turnover.
cultural features like stories and
collective rites.
Community of Practice(CoP) Effect-
learn by practice and adopting
different identities.
Strategies:
2. Training everyone
3. Allow meetings for sense-making
4. Encourage frequent communications
whereby standards and procedures can
be learned.
5. Think about ways to record
individual and organizational practices,
knowledge base, and how they can be
distributed and interpreted.
tOL
CoP
Strategies
1-5
Problem with CoP's
1. Provide collab w/o reach
2. Generates local maxima
3. Susceptible to groupthink bias
and uniformity.
4. Networks of practice and
knowledge transfer(NoP)
NoP- learning about ostensive rules
learned by way of books and inter-
organizational networks. Localize
communication.
Strat
1. Headhunt experts from other
firms
2. Train people in a new outside
tech.
3. Reverse engineer outside
solutions(find new routines)
4. Transfer units across units
(People across departments and
schools)
5. Hire bridges of communities
Prob of NoP
1. Reach w/o community
2. Learning About
3. Local adaptations less of
emphasis.
EE&LT
Exploration- generating new practices.
Exploitation- eliminating inferior forms
Learning traps
1. Failure traps of negative feedback.
2. Competency traps of positive
feedback.
Week 6
Organizational Culture
Organizational Culture(Oc)- is shared
rules governing cognitive and effective
aspects of membership in an
organization, and the means whereby
they are shaped and expressed.
Traces of Organizational Culture(Toc)
.Shared norms.
.Symbolic, textual, narrative structures
in which they are encoded.
.Structural causes and consequences of
cultural forms and their relation to
organizational effectiveness.
.Means of normative control.
Cultural Elements(CE)
.Practices
..Formal Policies and Informal custom
.Artifacts-symbols and tools. rituals,
stories and jargon. physical
arrangements
Oc
How do you study organizational
culture? What are the elements?
.content themes
..Ideological, ideational, external,
internal
The Cult in Culture
.How do the element interrelate
Paradigms of Oc
.differentiated
.ambigious
.integrated-uniform
Integration Paradigm-alignment.
denies ambiguity.
OZCO Egalitarianism
Differentiation Paradigm- questioning
egalitarianism at OZCO
Ambiguity Paradigm- Confustion about
egalitarianism
Level of Consistency LOC DEgree of
Consensus DOC Orientation to
Ambiguity OTA Metaphors M
Integration
LOC only consistent elements
mentioned DOC Organization-wide
consensus OTA Denial M Hologram
Differentiation
LOC Some inconsistency DOC
Consensus within, not between,
subcultures OTA Channeling M
Archipelago
Ambiguity
LOC Lack of clarity DOC Issue-specific
consensus, dissensus, or confusion
OTA Acknowledged M Web, Jungle
Engineering Organizational Culture
Engineering Organizational
Culture(EOC)
.Threeparts
..Organizational culture as normative
control1
..Ideology is enacted and instilled in
members via presentation rituals of an
organizational self2
..Members response to organizational
culture3
1 .contrived self(Demonstrate social skill)
Culture as Normative Control
.Ideology
..Anthropological view of ideology:
ideologies are schematic images of
social order publicly offered in the
name of those with a claim to
authority
.Authority
..Managerial
..Expert
..Objective
.Senior Management View at Tech
..Relates collective in that lends
members moral significance(ideals)
..Expressed via speeches, interviews,
editorials, mission statements
..Integrated paradigm
.Internal Expert
..gives insider view in practical terms
and scientific credibility
..expressed in presentations,reports
..portrays culture as real, less
integrated.
.External View
..Edited, selective review of the
company
..Expressed in academic pieces,
popular books, media clippings
..Selection of which to post/share has a
positive, integrated bias
2 dependencies in the environment
Presentation Rituals of an
Organizational self
.Ideology is insacted(instilled and
enacted) via presentation rituals of an
organizational self
..Presentation occurs everywhere in-
Tech-performance of such rituals is a
framing device
.Behavioral Displays- time-bound and
specific to an audience and setting:
every display contains a view of the
self one wishes others to accept.
..presentations, question-answer
sessions, meetings
.Artifactual displays- standing exhibit
for passer-by
..desk paraphernalia, clothing etc.
.Observing rituals
..collect by interviews, observations,
journals, videotapes, etc.
.Features of Tech's interpersonal
rituals:
..characterized by decentralization of
power
..they are informal
---implication is that symbolic power
and ideology are exerted subtly.
Member response to Tecul(tech
culture)
.role embracement(commitment)
.role-distance(stance on role)
.not all members invest equally
..marginal members(temps, wage 2)
...utilitarian demand but not on self
...can have an 'estranged view'
..Full members(Wage 4)
...price of power is submission
...can have a 'cynical view'
Leaving room for authentic self
.Manage time
..Profane/Sacred balance
.Manage Response
..cognitive distance-over
involvement=problem
..emotional distance-occurs with
respect to feelings.
Week 7
Resource Dependence Theory
Resource Dependence theory(RDT)
.&Coalition formation
..Inter-organizational focus
...Concerns a focal organization and its
resource dependencies with other
organizations in the environment.
..Extended exchange relations
...an organization can form a wide
variety of buffering or bridging
maneuvers used to overcome
...These relations can be assymetric
.&Organizational Learning
..Resource Dependence theory
describes
...how the technological core of an
organization is buffered from the
environment
...how the organization bridges in the
environment
..The concern is with
...adapting to the external
environment
...being certain SOP's for resource
exchanges in the environment
.&Organizational Culture
.RDT is not concerned with sense-
making (deep structure), but with the
selection of SOP's that manage the
organization's dyadic relations in the
environment. These SOP's are selected
for their consequences in dependence
relations.
Locus of Uncertainty
.Prior theories- internal
.RDT- in external relations of
dependence
Views of Uncertainty and Dependence
.Coalition Formation: not a problem-
they hold the coalition together
.RDT:They threaten survival and
autonomy

Contingency theory- focus is on the
technical core of the organization and
protecting it from environmental
disturbances.
.Seal off technical core
.differentiate input/output functions.
.Stockpile resources and grow(smooth
and absorb uncertainty)
.Maintain alternatives/minimize
dependence.
RDT- modify boundaries to manage
disturbances in the external
environment
.Environmental determinism
specific goals depend on dependence
relations
.general goal is to find certainty and
autonomy
Factors of RDT:
.Types of resources
..physical
..tech
..social
.Values of Resources
..importance-demand
..availability
.Discretion over the resource
..who?
..what?
Management Strategies for dealing
with dependence- buffering
1. Coding(ex: tracking/classifying)
2. Stockpiling(ex. endownment)
3. Leveling(ex: advertising)
4. Forecasting(ex: Republican president
and NSF)
5.Adjusting Scale(ex: downsizing- kill
arts)
Bridging
1. Negotiating
.Normative coordination(NNc)
.Bargaining(NB)
2. Exchanging-giving up of autonomy
to each party
.Contracting(EC)
.Interlocking directorates(EId)
.Hierarchical Contracts(EHc)
3. Pooling
.Joint Venture (PJv)
.Strategic Alliances (PSa)
.Associations and Catels (PAc)
4. Merging
.Vertical Merger (MVm)
.Horizontal Merger (MHm)
.Diversification (MD)
General Management Approaches
.Avoid Dependencies->stockpile, form
long-term protective contracts, set
regulations, diversify
.Break Dependencies-> use secrecy,
restrict information, begin an anti-trust
suit, coopt controller, merge vertically.
Forms of Dependence
Symbiotic interdependence- when two
or more different kind of organizations
exchange resources (A<->B)
NNc, EC, EHc (using clauses), PJv, and
MVm.
Competitive dependence- when two or
more organizations compete for the
resources of a third party(A->C<-B)
NNc, cooptation/interlocking boards,
trade associations, PJv, MHm.
Critique
.Organization are assumed to be more
of less similar
.Value in resource is often unclear until
after the fact
.What happened to culture and
mission?
Week 8
Network Analysis of Organizations
Social Structures as Social Networks
.Networks vary in form and actor
locations differ.
Social embeddedness-> is the idea
that, within social structures, actors
decide and act in intentional ways.
An organization’s opportunities and
constraints depend on the form or
overall pattern of the network to which
it belongs, as well as its location or
position within that network.
Social Networks Perspectives
What is the network->definition of
actors and network boundary.
.individuals(context of interaction)
..intra-organization networks
..All interacting persons, or certain
roles?
.Organizations(field of transaction)
..inter-organizational networks
..All interacting organization or certain
types?
When is the network begin and end-
>defining unit of time for a relationship
and the temporal boundary to a
network
.seconds, hours, days, weeks, months,
years
.work-week, quarter, fiscal year
Qualities of Relationships
.types of ties(vary by content)
..obseved transactions
...discussion posts, exchange of
information, advice, goods, and shared
personnel, etc (actively-defined)
...Marriage, company chart, and formal
transactions(contracts)
..Perceived relations
...friendship-enemy, love-hate, trust-
distrust, etc(identity-defined)
.Strength of of ties
..Strong ties->entail
interaction(frequency), mutual affect
liking, time(history)
...bonding capital(cohesion)
..Weak ties-> entail infrequent,
intermittent casual interaction among
aquaintances
...bridging capital (brokerage)
.Theories of Tie Formation
..Propinquity(proximity breeds ties)
..Homophily(birds of feather flock
together)
..Exchange(I give you x for y)
..Reciprocity(I advise you, you advise
me)
..Control(interpersonal
advantage/status-seeking)
..Balance/transivity(afriend of a friend
is my friend; same goes for enemies
..Practices and cultural norms...
...activities->from this follow
prescribed roles
...identities->e.g. friendship and
guanxi- from which reciprocation
follows
.Networks Positioning
..Central positioning(opposite:
peripheral)
...prominence(center-periphery)
...brokerage(spanning/mediation)
..Group positioning
...interconnection and closure(norms)
.People and organization are
embedded in multiple networks and
positions
..Ex: Trade association. It can persuade
but not enforce
...central in information exhange
...peripheral in resource exchange
Application: Multiple Networks of
Faculty
.Regions of Layered Association
..Medicine: Publishing&Grants
..Humanities and Social Sciences:
Student Training
..Engineering and Sciences: Publishing,
Grants, and Student Training
Peer Influence and Network
Formation
Social network Perspective: Peer
Influence and Network Formation
.Discussion of ‘network as an
independent variable’
..ties and positions that influence
ourcomes
.Discussion of ‘network as a dependent
variable’
..factors driving network formation
Peer Influence
the people we associate with affect us;
they lead us to act in ways we wouldn’t
otherwise act.
.Social Influence
..Ex:Diffusion or adoption stories( in
contrast with selection)
...Intra-organizational:
....Diffusion of faculty
productivity(strong ties>>weak ties)
...Inter-organizational:
....Poison pill defense agaisnt takeovers
Peer Effects Among Faculty
The Effect of Weak Ties
.’The Strength of Weak Ties’ Mark
Granovetter
..Knowledge about jobs and novel
information is acquired through friends
of friends(indirect) and aquaintances
more than close friends and direct ties
..Implication: bridging relations can
lead to strategic advantage.
Network Effects
.Positional effects
..intra-organizational:
...central positioning and mathew
effect/reproduction of advantage
..Inter-organizational
...network positioning shapes
organizational effectiveness in policy
domain and field.
Positional Effects
.’The Strength of Strong Ties: The
importance of Philos in Organizations’
David Krackhardt
..Finds that strong ties greatly
influence organizational action-
unionization of Silicon systems fails
from failure to coopt informal leaders.
.Case of ‘dumb’ union
..Company chart-’Reports to’
...union focusses on largest bargaining
unit
..Advice Networks
...union organizers are peripheral
..Friend networks
...Union organizers are peripheral
..Lacked social support
..->Effort to unionize fails
..Chris was a key player!
Clique Effects
.Shakespeare Class
..Friendships form by
homophily(gender, race, grade)
..Structure bifurcated into age-grades
...core with hanger-on
...11th is focused on social affairs
...12th is focused on task affairs
...Specialization prevents intergroup
conflict.
.Percieved groups guide behaviors
..informal organization, or emergent
friendship cliques, alter work
outcomes
..friendship network is formed by
homophily, reciprocity, status-seeking,
and specialization(differentiation)
Network Formation
.Resultant Network Forms
..Why the different macro structures?
...Stratified, clustered, segregated
..Type of tie can correnspond with
form:
...EX: strong ties tend to be
homophilous, local, reciprocal ties that
form closed groups
...EX: Weak ties tend to be
heterophilous, distant bridging ties
form spanning trees across groups
..Network Ecology
...Organizational context amplify
certain tie mechanism resulting in
macro-structures
....heterogeneous population + choice
= segregation
....large size + no prescribed grouping +
choice = stratification and clustering
....prescribed grouping + small size +
frequent interaction = more random
association
Network Treatments
.Guided Network Formation
..Facilitate frequent, positive, content-
relevant interactions
..Encourage boundary spanning
..Optimize team composition->pre-
survey on skill strengths and
weaknesses, then assign
.Network Correctives
..Status treatments-> heterogenous
group work
..Clique treatments-> rotate and
reassign groups
Network Organization Compared to
Other Theories
.What kinds of network forms are the
in the industry?
..Joint Ventures
..Associations
..Interlocking Boards
..Strategic Alliances
..External Partnering(Not Merger)
SN&RDT
.RDT
..ego-centric, local view of direct
relations
.SN
..socio-centric, global view of direct
and indirect relations
Difference is between viewing effects
of “traffic jam” from your car or
helicopter
.It is not a coalition
..a coalition is an interest network.
..The network form of organizing is a
persistent structural property that is
maintained over time and has a
particular pattern.
SN&OL
.OL
..unit=individuals, internal and external
relations of knowledge
sharing/practice
.SN
..unit=organizations, multiplicity of
relations
Network Form of Organization
.Organizational forms characterized
By repetitive exchanges among semi-
autonomous organizations that rely on
trust and embedded social relations to
protect their transactions and to lower
costs.
.Argument is that markets and
hierarchical structures became
inefficient and in their stead arose a
network form of organization that
balance flexibility(of markets) with the
predictablility/stability of hierarchy.
Network Forms of Organization
Goldsmith and Eggers
.Study of US Government Agencies and
their use of subcontracting and
partnerships
.Agency coordinates web of service or
hires a coordinator
.Third Party as Integrator
.Why do Network forms arise?
..Organization lacks capacity: ise other
firms to do gov’t work.
..Clients seek integrated services: leads
firms to partner horizontally &
vertically to serve citizens/ customer
better.
..Technological capacity: partnering is
more feasible via communication
technology.
..Demand: Citizens want more choices
in public services.
.Advantages of Network Model
..Enables experimentation
..Enable focus on management
..Enables manegerial flexibility
..Decentralized structure of allied
organizations allows citizens to play a
greater role.

.How do you manage networks of
organizations?
..Weigh partners carefully
..Learn to network manage (integrate!)
..Align goals/ culture via incentives
..Have group processing capacities
..Have open ascess to performance
data
..Build trust
Summary
.When does it apply?
..When the wider context of
organizational relations influences
organizational behavior and survival.
.Basic Argument
..Organizations focus on network
relations, positions, and larger context
in developing strategy. Multiple types
of networks are feasible and they can
guide resultant exchanges.
.Key Organizational Elements
..Participants->all organizational
stakeholders in the field
..Goals-> is delivey of service via
collaboration and outsourcing aspects
not central to technological core.
..Technology->linking/ coordinating/
allying in order to deliver service and
outsourcing/ subcontracting/
partnering in order to focus on core
technology.
..Social Structure-> patterns of
relations influence behaviors. Deep
Structure consists of values and beliefs
in sharing, communication, and
collaboration (trust).
..Environment->the relations and wider
network in the environment is what is
managed (inter-organizational
relations).
.Dominant Pattern of Inference
..Action= identify complementary
strengths, form alliances, establish
collaborative/ reciprocal norms, create
open-minded mutual benefitrs where
possible, outsource secondary tasks,
(to focus on core)-> all for survival and
creation of positive network
environment that delivers service.
.Management Strategies
..Design network to deliver service
..Establish informal, active
communication channels
..Coordinate member activities(remove
internal competition, create open
information, form joint governance/
shared decision-making, and get them
to focus on discrete functions/
coordination of tasks)
..Reinforce norms of collaboration and
reciprocity.
Week 9
Institutional and Organizational
Legitimacy
Neoinstitutional Theory-> tries to
explain institutional isomorphism-or
how the same organizational forms
develop, spread, and become
legitimated in one sphere of activity
after another.
New Institutionalism->emphasizes the
pervasive influence of institutions on
human behavior through rules, norms,
and conceptual frameworks.
Institutions influence:
. Regulatory institutions-> they
constrain organizational behavior
through rules and inducements.
.Normative Institutions-> they guide
organizational behavior through logic
of appropriateness, and a sense of
duty or an awareness of what one is
‘supposed’ to do...(path of dependence
& norms)
.Cognitive institutions-> instead of
acting under rules and obligations,
individuals act because of conceptions,
‘Compliance occurs in maany
circumstances because other types of
behavior are inconceivable; routines
are followed because they are taken
for granted as ‘the way we do things’
”(Scott 2001, p. 57)
Example:
Soccer
.Regulative(Rule book, ref)
.Normative(Norms, styles)
.Cognitive(Activities, routines)
Rationalizing Agents:
.Government units
.Professional groups and associations
.Public Opinion
Comparing Theories
.Neoinstitutionalism(cultural fit)
compared to..
..Other open system wheres
...Resource Dependence Theory->
thought to be effective in exchange
environments.
...Social Network Organization
..Other Culture/rule-based arguments
...Organizational Culture
...Organizational Learning
Also in contrast to Neoinstitutionalism:
.Network Organization
..both discuss peer influence/diffusion
..diffusion of appearances >> content
.Organizational process
..Ways of doing business >> ostensive
rules
.Organizational Culture
..Macro-culture >> company culture
Theory and Application
Theory Features
.Organizations adopt institutional rules
as ratioanalized myths.
..Independent of the drive for
efficiency, organizations ceremonially
incorporate institutions into their
formal structure that are beleived to
be rational.
..rationalized because they are
impersonal prescriptions identified as
the appropriate means to pursue goals
..myths because we adopt them on
faith.
.Where do rationalized myths come
from?
..Complex context of modernization
and need to deal with ambiguity/
uncertainty.
..They have utility: their use garners
social resources and legitimacy
..They diffuse through social networks
of association(they are known and
shared)
.How are rationalzed myths sustained?
Logics of Confidence
..Avoidance-> units are segmented so
interation across them is minimized
..Discretion-> trust is afforded to
professionals and inspection is
minimized
..Integrity-> integrity of appearances
are assumed, allowing firms to
overlook problems or label them as
anomalies
Sequence of Confindence- confidence
on institutions that can be scaled down
to an individual. State- District- School
-Teacher
.Loose Coupling-> formal structures
decouple from technical activities and
outcomes. Same appearance belies
content variation.
.Why does decouplign occure?
..Protects the formnal structure from
the uncertainties of technical
core(buffewring)
..enables the organization to adapt to
inconsistent institutional pressures.
..Encourages a logic of confidence and
increases member commitment
..Value in ceremonial enactments are
relatively equivocal while efficiency
values are not- decouplic allows or
both
.Why is there decouplin in US schools?
..Decentralization, no universal means
of accountability.
.Is adherence to rationalized myths
helpful? School Example
..Funds are frequently allocated in
categorical fashion
..Ritual classifications can be used for
advantage
..Ritual classification provide internal
order and identities
.Why many organizations the same?
Concept of institutionals isomorphism
Organizational fields are composed of
organizations, that in the aggregate,
constitute a recognized area of
institutional life: for example, key
suppliers, resources and product
consumers, regulatory agencies, and
other organizations that produce
similar services or products
.How does a field form?
.. interaction
..more inter-organizational structuring
..greater information load
..mutual awareness
Isomorphism-> assumes the same
patterns as the same entity in the
environment.
.Process og isomorphism
..Competitive isomorphism->
organizations compete for resources
and suboptimal forms don’t survive.
..Institutional isomorphism->
organizations compete for political
power and institutional legitimacy.
.Institutional isomorphism
..Coercive: results from pressure
exerted by other organizations upon
which the focal organization is
dependent and by societal
expectations within which the
organization functions.
..Mimetic: when ambiguity arises,
organizations model themselves on
other legitimate/ successful
organizations.
..Normative: associated with
professionalism, and professional
norms (credentials)
.Buffering Strategies
..Rationalized myths
...logic of confidence
..Loose coupling
.Bridging Strategies
..Institutional isomorphism
...coercive
...mimetic
...normative
Week 10
Population Ecology
.Organizational Ecology begins with
several questions:
..Why are there so many kinds of
organizations?
..What explains the diversity of
organizations?
..Where do different org forms come
from?
.The theory explans organizational
change as the result of environmental
forces acting on populations of
organizations. It argues thatt social,
economic, and political conditions
affect the relative abundance and
diversity of organizations and account
for their changing composition over
time.
Population
A class of organization facing similar
environmental vulnerabilities and
sharing the same internal form
(technical core). The population is
bounded within a common system-
whether by geographical(region),
political (nation), or economic (market)
boundary.
Environmental Niche
.Fundamental Niche-> a region of the
resource space inwhich an organization
can persist in the absense of
competition (e.g. education)
.Realized Niche-> the subset of the
fundamental niche in which an
organization can sustain itself in the
presence of given competitors (e.g.
private or charter school)
Process of Ecological change
Environments are constantly changing,
and a healthy population has some
diversity and new organizations
emerge to meet these changes
(variation). However, societies have
limited harrying capacities for
organizations. Therefore, in
equilibrium, the surviving population
of firms occupy a niche wherein
organizations are isomorphic and fit
the environment (Selection and
retention).
.Variation-. new forms emerge all the
time to cope with perceived need in
the environment
.Selection- some forms suit the
environment and survive- they are
reliable and accountable (favord by
selection). This is observed as the
reproduction rate of an organizational
form (environmental fit).
.Retention- some forms get
reproduced and iinstitutionalized (e.g.
gov’t, schools, franchises, etc.) as
relatively permanent.
Population ecology assumes that a
variation that has been selected is
reliable and accountable (i.e., it
"works"), but it may not be the best
possible variation. There may have
been other reliable and accountable
variations that would have been better
or optimal but that were not selected.
Structural Inertia and Change
Selected and Retained firms are
reliable and accountable. They also
resist change. Why?
.Internal constrains- investments in
equipment, information limitsm intra-
organizational politics, and the
institutionalization of organizational
routines.
.External constraints-> barriers to entry
and exit, legitimacy concerns.
Implication: This means selected firms
do not adapt much. Istead, they often
die when the environment changes.
The main dynamic of organizational
change the is the birth of new
organizations and the death of old
ones.
Organizational brith and death
How do prevailing conditions
determine which organizational forms
are born or die and at what rate?
.Density Dependence-> rates of firm
birth and death depend on the number
of organizations in a niche(density).
..At low density, legitimization(taken-
for-grantedness) will drive founding
rate and decrease mortality.
..At high density, competition will
increase mortality and decrease
founding.
.Liability of Newness (Age
Dependence)
..New organizations are most likely to
fail since their internal structure and
external dependence relations are not
well elaborated and established. These
develop with age and increase chance
of survival.
..In crisis some organizations change
internally creating a liability of
newness (they rob the firm of prior
survival value).
.Niche Theory
..Specialis-> focused production of
particular varietals.
..Generalists-> mass production of
many varieties.
..Different environmental conditions
favor specialist and generalist
organizational forms. Some industries
have more generalists and others have
more specialists- why?
..Niche Width Theory-> Populations of
organizations occupy same niche to
the extent they depend on the same You can succeed if you recognize your
environmental resources. If the fit with the environment.
organizations differ on some trait, the ..What population are you in?
less fit one will be eliminated. ..What is the composition and distance
Wide niches favor generalists(as do between firms?(Density)
unstable markets) ..What niche are you in?(wide or
Narrow niches favor specialists(as do narrow)
stable markets) ..What change is occuring?(Rapid,
Coarse)
..Fine-vs-Course Grained .Take a generalist or specialist stance
Environmental Variation-> from there
Environmental change doesn’t always ..Consider rousource-partitioning and
favor generalists... depends on the competition
distance between types of firms and .Consider firm history, identity and the
the “grain” of environmental variation. liability of newness
Rapid fine-grained change favors .Often better to start over than adapt.
specialists (stable).
Rapid course-grained change favors Critique
generalists. (unstable). .Too environmentally deterministic?
...Stable and Unstable Markets (pre- .Concept of population density
post 2001): Stable-> relativelt strong assumes all organizations are
residual correlations and segmented equivalent
form (specialists reign). Unstable-> .Density dependence is hard to utilize
abnormal market has very strong as an absolute as opposed to relative
correlations with vanishing residual proportion
correlations (emergence of market .Role of technology in the niche
“seisure” behavior). Has bursts of very definition and resouce-partitioning.
high stock correlations tha coincide
with local minima in the index and high
volatility (niches collide and generalists
win).
..Resource Partitioning Theory->
Competition among large generalist
organization frees resources at the
periphery that can be used by small
specialist firms without engaging in
direct competition with the generalists.
...Mechanisms of resource partitioning
....Customization-> small firms are
flexible and can customize
....Indentity-> who you are matters
...Now> generalist entering specialist
terrain??
Summary of Theory
.Organizational Ecologu
..Open system view
..Organizations have stable forms
...Founder imprint internal/ external
constraints
...Variation mostly at birth
...Selection>>Adaption
..Environmental determinism results
Management
.Useful in forecasting an industry
.Internal management of technological
core does not apply, but peripheral
changes are consistent with the
theory.
.Main effort is to be competitively
isomorphic in an environmental nich.