Search results

Firm identities are central and enduring aspects of organizations. However, when firms develop unique identities, they also face an obvious paradox: strategic decisions that are inconsistent with those identities are likely to generate internal and external resistance. Indeed, decisions that entail identity-violating changes may have destabilizing consequences. Furthermore, firms typically face the demand of multiple audiences (or stakeholders) and, therefore, must conform to them in order to be seen as legitimate and have access to symbolic and material resources. Recognizing the influence of multiple audiences in identity construction opens the door to another paradox: what expectations should a firm heed while making those binding commitments that ultimately define its “identity”? These two paradoxes are at the heart of extant research on organizational identity, and addressing them requires a genuine engagement in conversations between disciplines, particularly among scholars working at the intersection between organization theory and strategy.