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The use of routines in the decision-making process of individuals, groups and organizations is a well accepted yet taken for granted phenomenon. One goal of organizations is to develop group routines that are efficient, but at the same time flexible. However, this presents a paradox because routines that are efficient at one point in time, or for a particular task, may persist, be unquestioned, and become increasingly inefficient for the group and the organization. This chapter develops a formal theory that describes the processes by which the legitimation of particular group structures impacts the development and use of group routines. The theory presented draws from theories of legitimation, expectation states theory, and institutional theory. The theory formally depicts three sources of legitimation: a referential belief structure (set of cultural beliefs) about expertise and leadership, authorization or superordinate support of a leader, and endorsement (support by group) of a leader. Specifically, the theory addresses: (1) how different sources of legitimation make groups more or less hierarchical; and (2) how the different sources of legitimation make group routines more or less flexible.

This paper investigates rose and rose oil production in the province of Isparta, Turkey, with reference to the discourses on and procedures of price formation. Farmers have been engaging in rose cultivation for over a century and rose oil production is considered to be a traditional industry. The market actors for rose oil are global cosmetic and local processing firms and almost all rose oil from Isparta is exported. Prices and production have been steadily increasing since 2010. Although prices are seen as good, there are concerns about overproduction and fierce competition between the rose oil firms to buy the harvest, hence pushing up rose prices and, leading to a crash in rose oil prices on the world market. Through careful observation of payment and price formation procedures, the paper raises issues concerning the moral economy of price formation. Findings are provisional and the research is on-going, but the discourse on just prices clearly suggests that value judgments are embedded in and implicitly critical of capitalist markets.