Communities and Organizations: Volume 33

How does organizations' embeddedness in social and cultural communities influence their behavior? And how has this changed with recent communication technology advances and globalization trends? In this introductory chapter to Research in the Sociology of Organization's volume on Communities and Organizations we consider how diverse types of communities influence organizations, as well as the associated benefit of developing a richer accounting for community processes in organizational theory. Our goal is to move beyond the focus on social proximity and networks that has characterized existing work on communities. We highlight how the notion of community provides a distinct institutional order that enables actors to tailor community logics that give cultural meaning to and govern specific institutional fields and furthermore how communities can function as an organizational form.

The concept of a community form is drawn upon in many subfields of organizational theory. Although there is not much convergence on a level of analysis, there is convergence on a mode of action that is increasingly relevant to a knowledge-based economy marked by porous and shifting organizational boundaries. We argue that communities play an underappreciated role in organizational theory – critical not only to occupational identity, knowledge transfer, sense-making, social support, innovation, problem-solving, and collective action but also, enabled by information technology, increasingly providing socioeconomic value – in areas once inhabited by organizations alone. Hence, we posit that organizations may be in the shadow of communities. Rather than push for a common definition, we link communities to an organization's evolution: its birth, growth, and death. We show that communities represent both opportunities and threats to organizations and conclude with a research agenda that more fully accounts for the potential of community forms to be a creator (and a possible destroyer) of value for organizations.

This chapter seeks to enhance organizational theory's current typology of organizational architectures to explain a flourishing modern architecture that has developed utilizing the inexpensive communication paths created by technology such as the Internet and wireless networks. As communication and coordination costs have dropped, new organizing methods have grown that are difficult to understand using the traditional organizational architectures. In this chapter, we introduce a new community architecture, the “C-form,” which is categorized by (1) fluid, informal peripheral boundaries of membership; (2) significant incorporation of voluntary labor; (3) information-based product output; and (4) significantly open sharing of knowledge. Although the domain of open source software (OSS) is frequently cited as an example of such communities, we argue that the form expands well beyond the domain of software to a wide variety of information-based products. Drawing on a culture frame, we develop an initial set of principles of C-forms and finally explore the implications of the C-form for the modern organizational world.

While going through a revival in sociology and business studies, the concept of communities, as used in those disciplines, appears to confront, in an unresolved tension, the development of differentiated and transnationally interconnected modern societies. We argue that there is a need not only to “rediscover” but in fact also to “renew” the notion of community. Building on insights from classical sociology, we propose a definition of transnational communities as social groups emerging from mutual interaction across national boundaries, oriented around a common project or “imagined” identity. Transnational communities are not static structures but fluid and dynamic processes. They are constructed through symbolic or “imagined” proximity rather than through physical propinquity. More often than not, they are “communities of limited liability” rather than the expression of permanent ascriptive markers. Finally, transnational communities go well beyond the provision of local protection and solidarities as they engage in different kinds of transnational activism. This chapter compares bottom-up and top-down patterns of transnational community development, exploring in both cases the role of those communities in the dynamics of transnational governance. We propose that transnational communities impact cross-border governance in at least six different ways. They contribute to the framing of a governance problem space. They allow the mobilization of collective action while also serving as public arenas. They foster preference transformation. They directly participate in rule-setting while also playing a key role when it comes to monitoring and control. In conclusion, we identify key directions for further research.

The geographically bounded community is explored as a political jurisdiction. Jurisdictions are important sites as local factors determine which political party is in power and because different professionals work within them. Jurisdictions are, thus, arenas for the expression of public policies, which have significant societal consequences. Specifically, we analyse 18 Danish municipalities and the local constructions of a new health-care organisation's focus either upon citizens in general or upon specific groups of patients. The study shows little evidence of specifically local translations. Instead, the study suggests the choice of focus – and underlying institutional logic – is influenced by the local actors' relationships with an external institutional context. Members of local political parties adopt the ideological position of the national party. Similarly, professionals employed locally push the ideology of their profession.

How do corporations define their communities? Corporate social responsibility (CSR) is one issue that may help us to answer this question. We argue that CSR represents actively adopted strategies in response to the pressures corporations face in the local institutional environments in which they are embedded, where corporations define geographically situated institutional variations as community. We show corporations (especially publicly traded corporations) have been aggressive in adopting CSR practice when they are located in (1) areas high in union density or (2) federal appellate jurisdictions that have been aggressive in protecting workers' rights, while being far less philanthropic if located in Right-to-Work jurisdictions. Drawing on research in neoinstitutional analysis, we interpret these findings to indicate corporations respond to localized union strength by adopting strategies that allow them to appear responsive to their social contract, and hence legitimate. Interestingly, corporations appear more concerned with their community's union strength than with regard to their own particular union exposure, at least as related to CSR practices.

This chapter examines the transition in the US banking industry from a community to a national logic, developing a general model to explain how and when shifts in institutional logics occur. Based on qualitative historical evidence and discrete-time event history analysis predicting the introduction of legislation favoring the national logic, this chapter proposes that dramatic exogenous events such as the Great Depression or more gradual processes such as modernization favored the industry's transition to the national logic, but that such exogenous events had a greater influence in areas where strategic actors could capitalize on them. The qualitative evidence presented here suggests that struggles involving organizational identity and “legitimacy politics” played an important role in the shift in logics. Our theorizing focuses on how, when the environment changes in an incremental fashion, actors are primed with new possibilities, which may shift their collective identities, but when environmental changes are discontinuous, they provide actors strategic opportunities to alter the balance of logics in the environment.

We explore the role of geographic communities in the construction of an organization's identity as narrated in the pages of Martha Stewart Living magazine, the flagship product of the Martha Stewart Living Omnimedia organization. We content analyzed 253 columns published between 1990 and 2004. We found that communities figured prominently in the emergence and institutionalization of the organization's identity, with over 800 mentions of specific places, from Stewart's childhood home of Nutley, New Jersey, to storied Paris, France. We examined how Stewart's use of places compared with descriptions of these same places in the Lonely Planet Travel. Our evidence suggests that the invocation of community enabled the organization to legitimate its product offerings as well as claim and partition complex and sometimes contradictory identity elements that included both highbrow culture and Americana “rural apple-pie goodness.”

We distinguish between two forms of local banks that build and maintain legitimacy in different ways: branches and unit banks. Branches gain legitimacy through the parent organization. Unit banks gain legitimacy through the personal reputation and social connections of the founders. Given the different ways in which legitimacy is built by these organizational forms, we think that the rural or urban nature of the community is likely to affect the founding rates of these two forms differently. Rural communities, in which personal and family relationships play an important role in both social and economic life, provide advantages to well-connected founders of unit banks. In these communities social networks serve as a demand buffer for unit banks, making the founding rate of this organizational form less sensitive to fluctuations in the demand for banking services in rural versus urban communities. In contrast, the founding rate of branches may not be greatly affected by the community context because branches gain legitimacy through a sponsoring organization whose legitimating characteristics are not local. Empirical analyses of foundings of local banks between 1976 and 1988 support these predictions. Supplemental empirical analyses also show no evidence of such buffering effect for unit retail establishments, which are expected to be less central in the social networks of rural communities than unit banks. Our results suggest that community organization channels resources to some kinds of organizations at the expense of others and that organizational research in general and organizational ecology in particular will benefit by paying more attention to community context.

Recent theory and research suggests that local relational networks among business organizations play an important role in establishing and preserving a locale's identity. Such networks facilitate the development, dissemination, and enforcement of norms and cognitive frames that guide local business behavior. They also provide a vehicle for the consolidation of local business interests and for the coordination of local business strategic action. We examine the factors that influenced the likelihood that the CEOs of large corporations sat on the board of directors of large locally headquartered commercial banks in the 1960s. We focused on the 1960s because doing so allows us to make use of an exceptional comprehensive data set on the attributes and relationships of large firms and their leaders. We examine connections to commercial banks because these banks played a crucial role in community development in the 1960s. We find that both the class attributes of corporate CEOs (as reflected in their ownership of the firm and their affiliation with elite educational, social, and policy-making institutions) and the organizational attributes of their firms (as reflected in their financial structure, geographic reach, and age) influenced a CEO's propensity to sit on the board of a locally headquartered bank. These results suggest that future research on participation in local relational networks should take into account both class and organizational theories. They also suggest that future research on the class and organizational underpinnings of relational networks should pay closer attention to spatial relations.

Social enterprise organizations (SEOs) arise from entrepreneurial activities with the aim to achieve social goals. SEOs have been identified as alternative and/or complementary to the actions of governments and international organizations to address poverty and poverty-related social needs. Using a number of illustrative cases, we explore how variation of local institutional mechanisms shapes the local “face of poverty” in different communities and how this relates to variations in the emergence and strategic orientations of SEOs. We develop a model of the productive opportunity space for SEOs as a basis and an inspiration for further scholarly inquiry.