Search

When people want to conduct a transaction, but doing so would be morally disreputable, they can obfuscate the fact that they are engaging in an exchange while still arranging for a set of transfers that are effectively equivalent to an exchange. Obfuscation through structures such as gift-giving and brokerage is pervasive across a wide range of disreputable exchanges, such as bribery and sex work. In this article, we develop a theoretical account that sheds light on when actors are more versus less likely to obfuscate. Specifically, we report a series of experiments addressing the effect of trust on the decision to engage in obfuscated disreputable exchange. We find that actors obfuscate more often with exchange partners high in loyalty-based trustworthiness, with expected reciprocity and moral discomfort mediating this effect. However, the effect is highly contingent on the type of trust; trust facilitates obfuscation when it is loyalty-based, but this effect flips when trust is ethics-based. Our findings not only offer insights into the important role of relational context in shaping moral understandings and choices about disreputable exchange, but they also contribute to scholarship on trust by demonstrating that distinct forms of trust can have diametrically opposed effects.

A wide class of economic exchanges, such as bribery and compensated adoption, are considered morally disreputable precisely because they are seen as economic exchanges. However, parties to these exchanges can structurally obfuscate them by arranging the transfers so as to obscure that a disreputable exchange is occurring at all. In this article, we propose that four obfuscation structures—bundling, brokerage, gift exchange, and pawning—will decrease the moral opprobrium of external audiences by (1) masking intentionality, (2) reducing the explicitness of the reciprocity, and (3) making the exchange appear to be a type of common practice. We report the results from four experiments assessing participants’ moral reactions to scenarios that describe either an appropriate exchange, a quid pro quo disreputable exchange, or various forms of obfuscated exchange. In support of our hypotheses, results show that structural obfuscation effectively mitigates audiences’ moral offense at disreputable exchanges and that the effects are substantially mediated by perceived attributional opacity, transactionalism, and collective validity.

This article examines the economic effects of prizes with implications for the diversity of market positions, especially in cultural fields. Many prizes have three notable features that together yield an emergent reward structure: (1) consumers treat prizes as judgment devices when making purchase decisions, (2) prizes introduce sharp discontinuities between winners and also-rans, and (3) appealing to prize juries requires costly sacrifices of mass audience appeal. When all three conditions obtain, winning a prize is valuable, but seeking it is costly, so trying and failing yields the worst outcome-a logic we characterize as a Tullock lottery. We test the model with analyses of Oscar nominations and Hollywood films from 1985 through 2009. We create an innovative measure of prize-seeking, or "Oscar appeal," on the basis of similarity to recent nominees in terms of such things as genre, plot keywords, and release date. We then show that Oscar appeal has no effect on profitability. However, this zero-order relationship conceals that returns to strong Oscar appeals are bimodal, with super-normal returns for nominees and large losses for snubs. We then argue that the effect of judgment devices on fields depends on how they structure and refract information. © American Sociological Association 2014.

This article adopts a relational perspective to demonstrate that characteristics of the dyadic relationship between supervisors and their employees are critical to understanding individual-level exploration—understood as the extent to which organizational members pursue new opportunities and experiment with changes to current practices. To this end, we introduce the concept of power framing—that is, whether the control over valued resources is emphasized as the ability to reward or to punish—and propose that supervisor power framing shapes employee exploration. In an experimental study, we demonstrate that reward (versus punishment) power framing increases employee exploration behavior and that this effect is mediated by perceived trustworthiness of the supervisor. In a second survey study, we replicate these findings in a field sample and show that the relationship between reward power framing and exploration depends on the degree to which the focal employee is sensitive to power characteristics (i.e., power distance orientation). This investigation advances scholarship on the microfoundations of exploration while also highlighting the ability of leaders to alter trustworthiness perceptions and induce employee exploration through power framing. Funding: This work was supported by a National Science Foundation CAREER Award from the Directorate for Social, Behavioral and Economic Sciences [Grant 1943688] granted to O. Schilke. Additional funding was provided by the Sauder School of Business, University of British Columbia. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.1672. [ABSTRACT FROM AUTHOR]

Experiments have long played a crucial role in various scientific disciplines and have been gaining ground in organization theory, where they add unique value by establishing causality and uncovering theoretical mechanisms. This essay provides an overview of the merits and procedures of the experimental methodology, with an emphasis on its application to organization theory. Drawing on the historical roots of experiments and their impact across science, we argue the method holds immense potential for furthering organization theory. We highlight key advantages of experimental methods, including high internal and construct validity, vividness in communicating findings, the capacity to examine complex and understudied phenomena, and the identification of microfoundations and theoretical mechanisms. We alleviate some concerns about external validity and offer guidance for designing and conducting sound, reproducible experimental research. Ultimately, we contend that the current experimental turn holds the potential to reorient organization theory. History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory. Funding: This work was supported by the Otto Moensted Foundation, which granted the Otto Moensted Visiting Professorship to S. S. Levine, and a National Science Foundation CAREER Award from the Directorate for Social, Behavioral and Economic Sciences [Grant 1943688] to O. Schilke. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2023.18093. [ABSTRACT FROM AUTHOR]

How do organizational structures influence organizational decision making? This article reveals organizational structures' dual function: they both (1) aggregate and (2) shape individuals' decisions. What makes this dual function so remarkable is that the two effects are diametrically opposed to one another. Ceteris paribus, a less stringent decision-making structure reduces the amount of support required for a given project to be greenlit at the organizational level, which should result in more investments getting approved. However, we find that this ceteris paribus assumption does not hold, because a less stringent decision-making structure also reduces individuals' tendency to provide their support for an investment. Our experimental investigation of organizational voting provides evidence for our position that organizational structure plays an important role beyond mere aggregation: voting thresholds also affect individuals' voting behavior. The combination of both effects explains why the organizational adoption of a new voting threshold may not yield the intended outcome. Funding: This work was supported by a National Science Foundation CAREER Award from the Directorate for Social, Behavioral and Economic Sciences [Grant 1943688] granted to O. Schilke. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2023.1653. [ABSTRACT FROM AUTHOR]

In this essay, we argue that the advent of the Fourth Industrial Revolution calls for a reexamination of trust patterns within and across organizations. We identify fundamental changes in terms of (1) what form organizational trust takes, (2) how it is produced, and (3) who needs to be trusted. First, and most broadly, trust is likely to become more impersonal and systemic. Trust between actors is increasingly substituted by trust in a system based on digital technology. Second, in terms of trust production modes, characteristic- and institution-based trust production will gain in importance. Third, despite the move toward system trust, there will nonetheless be a need to trust certain individuals; however, these trustees are no longer the counterparts to the interaction but rather third parties in charge of the technological systems and data. Thus, the focal targets of interpersonal trust are changing. [ABSTRACT FROM AUTHOR]

This study provides a comprehensive analysis of distribution channel choices of new entrepreneurial ventures (NEVs). First, factors that influence NEVs' choice of distribution channels are examined. Second, performance consequences of [...]

This article introduces the concept of "flexible reactivity" to describe and analyze a form of economic actors' response to multiple judgment devices. Using the example of government regulation in the Tuscan wine industry, we show that wineries can in part comply with the government's quality classifications system while, at the same time, also offering products outside the official classification system. Through this research, we provide novel insights into the role of judgment devices and contribute to a more nuanced understanding of organizational responses to institutional pressures. Extending prior institutional‐complexity research, our study illustrates that organizations' reactions to judgment devices are not limited to only the two options of either acquiescence or defiance. The third option—flexibile reactivity—encompasses an explicit combination of acquiescence and defiance at the actor level. Our findings shed new light on how organizations can cope with contradictory external demands such that contrasting logics compete for organizational resources and breed heterogeneous and continuously shifting product offerings. [ABSTRACT FROM AUTHOR]

Trust is key to understanding the dynamics of social relations, to the extent that it is often viewed as the glue that holds society together. We review the mounting sociological literature to help answer what trust is and where it comes from. To this end, we identify two research streams—on particularized trust and generalized trust, respectively—and propose an integrative framework that bridges these lines of research while also enhancing conceptual precision. This framework provides the springboard for identifying several important avenues for future research, including new investigations into the radius of trust, the intermediate form of categorical trust, and the interrelationships between different forms of trust. This article also calls for more scholarship focusing on the consequences (versus antecedents) of trust, addressing more fully the trustee side of the relation, and employing new empirical methods. Such novel approaches will ensure that trust research will continue to provide important insights into the functioning of modern society in the years to come. [ABSTRACT FROM AUTHOR]

The recent emergence of blockchains may be considered a critical turning point in organizing collaborations. We outline the historical background and the fundamental features of blockchains and present an analysis with a focus on their role as governance mechanisms. Specifically, we argue that blockchains offer a way to enforce agreements and achieve cooperation and coordination that is distinct from both traditional contractual and relational governance as well as from other information technology solutions. We also examine the scope of blockchains as efficient governance mechanisms and highlight the tacitness of the transaction as a key boundary condition. We then discuss how blockchain governance interacts with traditional governance mechanisms in both substitutive and complementary ways. We pay particular attention to blockchains' social implications as well as their inherent challenges and limitations. Our analysis culminates in a research agenda that explores how blockchains may change the way to organize collaborations, including issues of what different types of blockchains may emerge, who is involved and impacted by blockchain governance, why actors may want blockchains, when and where blockchains can be more (versus less) effective, and how blockchains influence a number of important organizational outcomes. [ABSTRACT FROM AUTHOR]

In this chapter, the authors weave together a set of ideas that lead us closer to a more general institutional theory - one that embraces multiple levels of analysis, including the micro-level. The authors build on the roots of micro-institutional thought - including phenomenological and ethnomethodological underpinnings - as well as very active, social-psychological research areas that address key mechanisms in institutionalization. Among these, the authors discuss the important roles of legitimacy, trust, social influence, and routines. There is great promise for micro-institutional inquiry to make an integral contribution to institutional theory by bringing processes and people back in. [ABSTRACT FROM AUTHOR]

The present study explores whether and how an organization's different types of governance modes—alliances, mergers, and divestitures—may be intertwined over time. As such, we consider whether boundary decisions may be socially embedded not just within, but across different governance modes. In particular, we focus the analysis on a specific three-stage temporal sequence, which represents a common trajectory of consecutive governance modes: (1) alliance, followed by (2) merger, followed by (3) divestiture. Based on data from the Securities Data Company (SDC) Platinum database and the Compustat database, our survival analysis results indicate that premerger alliances are significantly associated with divestiture likelihood: mergers between organizations that had been involved in an alliance before entering into the merger are found less likely to be divested. The article's results underline the merits of simultaneously considering multiple types of ties when analyzing issues related to organizational embeddedness, complement recent research on sequential corporate strategy patterns, and shed new light on the important empirical phenomenon of premerger alliances. Whiteboard Video [ABSTRACT FROM AUTHOR]

Despite substantial scholarly interest in the role of contracts in alliances, few studies have analyzed the mechanisms and conditions relevant to their influence on alliance performance. In this paper, we build on the information-processing view of the firm to study contracts as framing devices. We suggest that the effects of contracts depend on the types of provisions included and differentiate between the consequences of control and coordination provisions. Specifically, control provisions will increase the level of conflict between alliance partners, whereas coordination provisions will decrease such conflict. Conflict, in turn, reduces alliance performance, suggesting a mediated relationship between alliance contracts and performance. We also contribute to a better understanding of contextual influences on the consequences of contracts and investigate the interactions of each contractual function with both internal and external uncertainties. Key informant survey data on 171 alliances largely support our conceptual model. [ABSTRACT FROM AUTHOR]

Although the dynamic capabilities perspective has become one of the most frequently used theoretical lenses in management research, critics have repeatedly voiced their frustration with this literature, particularly bemoaning the lack of empirical knowledge and the underspecification of the construct of dynamic capabilities. But research on dynamic capabilities has advanced considerably since its early years, in which most contributions to this literature were purely conceptual. A plethora of empirical studies as well as further theoretical elaborations have shed substantial light on a variety of specific, measurable factors connected to dynamic capabilities. Our article starts out by analyzing these studies to develop a meta-framework that specifies antecedents, dimensions, mechanisms, moderators, and outcomes of dynamic capabilities identified in the literature to date. This framework provides a comprehensive and systematic synthesis of the dynamic capabilities perspective that reflects the richness of the research while at the same time unifying it into a cohesive, overarching model. Such an analysis has not yet been undertaken; no comprehensive framework with this level of detail has previously been presented for dynamic capabilities. Our analysis shows where research has made the most progress and where gaps and unresolved tensions remain. Based on this analysis, we propose a forward-looking research agenda that outlines directions for future research. [ABSTRACT FROM AUTHOR]

How do organizations build trust under varying degrees of uncertainty? In this article, we propose that different degrees of uncertainty require different bases of trust. We distinguish between three different forms of trust production (process-based, characteristics- based and institution-based) and develop hypotheses regarding their relative effectiveness under low versus high levels of product and performance uncertainty. Using survey data on 392 interorganizational buyer-seller relationships, we find support for our position that a high degree of uncertainty favours process-based trust production, whereas characteristics-based trust production is relatively more effective when uncertainty is low. The effectiveness of institution-based trust production is not significantly affected by uncertainty. We derive implications for organizational trust production under different degrees of uncertainty, which should encourage new research on trust. [ABSTRACT FROM AUTHOR]

The microlevel concept of social capital has received significant attention in management and sociological research but has not yet been empirically associated with the development of organizational capabilities. The major purpose of this paper is to investigate the relationship of social capital with marketing and research and development ( R&D) capability and to explore how the environmental context moderates the social capital-organizational capability link. It is suggested that top management's social capital provides a firm with important information and control benefits that facilitate effective access to the knowledge and resources necessary for building superior organizational capabilities. In addition, we identify the role of two important environmental factors influencing the social capital-organizational capability link: technological turbulence and competitive intensity. The strength of the relationship between social capital and organizational capabilities is proposed to vary depending on the level of these two environmental characteristics. This study conceptualizes and operationalizes social capital as a multidimensional construct reflected by the structural dimension of tie strength, the relational dimension of trust, and the cognitive dimension of solidarity. Survey and archival data on 280 firms from various industries are analyzed using structural equation modeling. Empirical support for the proposed three-dimensional structure of social capital is found. Results further indicate that social capital is a significant antecedent to both marketing and R&D capability, which in turn significantly affect firm performance. While a positive relationship between social capital and organizational capabilities is supported in general, the strength of this relationship depends on the environmental context the firm is embedded in. The positive effect of social capital on marketing capability increases in environments with high technological turbulence and competitive intensity; the opposite holds for R&D capability. This research contributes to the resource-based view by introducing social capital as an important microlevel factor promoting the development of organizational capabilities. By identifying and evaluating two important environmental contingencies, our study also decreases some of the ambiguity surrounding the effectiveness of antecedents to organizational capabilities. The findings further help practitioners decide under what circumstances investing in top-managers' social capital provides an effective means for achieving superior performance through enhanced organizational capabilities. This should have an important bearing on issues such as management training and incentives as well as on hiring policies. [ABSTRACT FROM AUTHOR]

Although the field of psychology is undergoing an immense shift toward the use of functional magnetic resonance imaging (fMRI), the application of this methodology to consumer research is relatively new. To assist consumer researchers in understanding fMRI, this paper elaborates on the findings of prior fMRI research related to consumer behavior and highlights the features that make fMRI an attractive method for consumer and marketing research. The authors discuss advantages and limitations and illustrate the proposed procedures with an applied study, which investigates loss aversion when buying and selling a common product. Results reveal a significantly stronger activation in the amygdala while consumers estimate selling prices versus buying prices, suggesting that loss aversion is associated with the processing of negative emotion. © 2011 Wiley Periodicals, Inc. [ABSTRACT FROM AUTHOR]

This research conceptualizes and operationalizes alliance management capability. The authors develop alliance management capability as a second-order construct to capture the degree to which organizations possess relevant management routines that enable them to effectively manage their portfolio of strategic alliances. In addition to identifying and measuring specific organizational routines as critical dimensions of alliance management capability, the authors advance knowledge on the performance effects of dedicated alliance structures and alliance experience based on survey data from 204 firms. Their primary contribution is a theoretically sound alliance management capability measure that is reflected by five underlying routines: interorganizational coordination, alliance portfolio coordination, interorganizational learning, alliance proactiveness, and alliance transformation. One of the key findings is that alliance management capability has a positive impact on alliance portfolio performance and mediates the performance effects of dedicated alliance structures and alliance experience. [ABSTRACT FROM AUTHOR]

Organizational scholars have long underscored the positive consequences of trust, yet trust can also have dysfunctional effects if it is not placed wisely. Though much research has examined conditions that increase individuals' tendencies to trust others, we know very little about the circumstances under which individuals are likely to make more accurate trust decisions (i.e., neither misplace their trust nor refrain from trusting when doing so would have been beneficial), especially when they must do so rapidly and in the absence of an exchange history. Put simply, we have little understanding of what drives the accuracy of swift trust judgments. Building on relevant literatures, we propose that short episodes of prior interpersonal contact with a partner can increase the accuracy of swift trust decisions. Across two experimental studies, we demonstrate that brief interpersonal contact leads trustors to both (a) become more accurate in their trust decisions; and (b) engage in other-focused perspective taking, which mediates the effect of interpersonal contact on trust accuracy. We then show that it is specifically because of verbal cues, rather than visual cues, that brief interpersonal contact enables other-focused perspective taking, and in turn, trust accuracy (Study 3). We contribute to the literature on trust by examining trust accuracy (rather than mere trust levels), identifying the significant role of brief interpersonal contact, and revealing other-focused perspective taking as a key mechanism in accurate swift trust decisions. (PsycINFO Database Record (c) 2018 APA, all rights reserved).