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With growing interest in the penalties associated with straddling market categories, it is important to develop a stock of evidence about the relative importance of consideration and valuation penalties in different empirical settings. In this chapter, we isolate the possible adverse implications for currently kosher Israeli wine producers that were established as non-kosher producers. Our analysis suggests that crossing the kosher categorical boundary exposes these producers to experience-based penalties that are reflected in lower product quality ratings. However, we find no evidence of additional penalties associated either with consideration (i.e., market access) or with the possession of a convoluted organizational identity.

We analyze how institutional persistence unfolds. Building on an historical analysis of 3,307 bottle labels in the Bordeaux wine community, France, between 1924 and 2005, we find that the persistence of a chateau tradition requires considerable effort at maintenance. Instead of greater compression and taken-for-grantedness, we propose that expansion along multimodal carriers provides a marker of a deepening institutionalization. We underscore the role of community organizations in enabling a wine tradition to persist. The implications of our findings for institutional theory and multimodality research are discussed.

In this paper, we aim to understand why consumers often prefer products made using traditional practices even when products made using new practices are not of lower quality. We argue that this resistance, which we call “production process conservatism,” is heightened when the product is used in the performance of a social ritual.

We develop this argument in the context of diamond jewelry, as consumers have generally been resistant to diamonds that are produced in laboratories, i.e., lab-created diamonds. Hypotheses were tested using experiments conducted with an online sample (Experiment 1) and with an MBA student sample (Experiment 2).

In Experiment 1, we find that married female respondents significantly prefer mined diamonds to lab-created diamonds when they are used as part of an engagement gift as opposed to a more routine gift. In Experiment 2, we find the same effect among women; in addition, the perceived risk associated with the ritual is found to mediate this production process conservatism.

This paper contributes to the understanding of a macrosocial phenomenon – acceptance of an innovation – by examining microinteractive processes in groups.

This paper develops an original theory that when individuals deviate from traditional aspects of rituals, they risk signaling a lack of commitment or cultural competence to the group even when such aspects are not explicitly stated.

We examine the construction of “empty categories” – that is, categories created prior to the existence of producers and consumers – and their implications for industry emergence. Drawing on the case of the ji-biru category among Japanese microbreweries, we exemplify how external actors – including governments, the media, consultants, and other entities – frequently create empty categories that are “legitimate yet not legitimated” (Vergne & Wry, 2014). We show how such empty categories generate lower entry barriers, resulting in higher founding rates and significant innovation. We highlight how empty categories impede evolutionary forces by inhibiting shared understandings of what constitutes a legitimate category member.

Strategic adaptation in complex environments with frequent changes must balance the search for innovative opportunistic ventures and conscious pursuit to achieve established goals and outcomes. This creates a tension between attempted efficiency gains from tight strategic controls that avoid diversion of corporate resources and the facilitation of dispersed initiatives in search for business opportunities. To assess this conundrum, the authors present an interactive strategic control model that combines planning and participative strategy-making with interactive control processes. This combination of management practices arguably creates an adaptive system that drives the upside performance outcomes from a guided adaptation of opportunistic insights. Various hypotheses are developed and tested based on survey data from among the 500 largest firms in Denmark. The results suggest a direct relationship between interactive controls, strategic planning, and participative leadership on upside performance outcomes. Moreover, the positive effect from interactive controls on the upside potential is enhanced by participative decisions.

We define diffusion as the spread of something within a social system. Diffusion is the most general and abstract term, and it embraces such processes as contagion, mimicry, social learning, organized dissemination, etc. (Strang & Soule, 1998). While the home territory of diffusion is innovation (see Rogers, 2003 for an authoritative review), more recent macro-diffusion research has developed, based on social movement and institutionalization arguments (Ansari, Fiss, & Zajac, 2010; Wejnert, 2002).

Although many employers continue to adopt various forms of worker participation or employee involvement, expected positive gains often fail to materialize. One explanation for the weak or altogether missing performance effects is that researchers rely on frameworks that focus almost exclusively on contingencies related to the workers themselves or to the set of tasks subject to participatory processes. This study is premised on the notion that a broader examination of the employment relationship within which a worker participation program is embedded reveals a wider array of factors impinging upon its success. I integrate labor relations theory into existing insights from the strategic human resource management literature to advance an alternative framework that additionally accounts for structures and processes above the workplace level – namely, the (potentially implicit) contract linking employees to the organization and the business strategies enacted by the latter. The resulting propositions suggest that the performance-enhancing impact of worker participation hinges on the presence of participatory or participation-supporting structures at all three levels of the employment relationship. I conclude with implications for participation research.

Purpose – Since risk management is crucial for achieving strategic objectives in a complex and uncertain environment and its effectiveness relies deeply on efforts to create a risk-conscious culture, this study aims at understanding whether risk management can be promoted and reinforced by the use of performance-based monetary incentives given to Board members and top managers.

Methodology/approach – This study is explorative in nature and investigates four case studies based on document analysis and semi-structured interviews with risk managers.

Findings – Results show that some companies have already adopted risk measures in incentive schemes. At the same time all interviewees agree with the usefulness of linking traditional performance-based monetary incentives to risk management objectives in order to improve the effectiveness of the latter and to create a risk-aware culture. However, the difficulty in identifying proper measures has been underlined.

Practical implications – The study confirms the feasibility of linking risk dimensions to reward systems and suggests that firms should move in this direction. The study also outlines and proposes some possible measures to reward managers.

Limitations – This study views risk as measurable and managerially actionable and focuses only on incentives while acknowledging the use of other mechanisms that can contribute to the creation of an informed risk culture. Furthermore, the integration of risk management with other management control systems and accounting instruments has not been analyzed.

Value of the paper – This study addresses firms and their stakeholders’ need to make top managers more accountable for risk in their decision-making.

The UK Coalition government introduced a raft of welfare reforms between 2010 and 2015. As part of its response to the financial crisis, reforms were designed to cut public expenditure on social security and enhance work incentives. Policy makers are required by legislation to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations between different people. This Public Sector Equality Duty is an evidence-based duty which requires public authorities to assess the likely effects of policy on vulnerable groups. This chapter explores the extent to which the Department for Work and Pensions adequately assessed the equality impacts of key welfare reforms when policy was being formulated. The chapter focuses on the assessment of the impact of reductions to welfare benefits on individuals with protected characteristics – age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion and belief, sex and sexual orientation – including individual and cumulative impacts. It also considers mitigating actions to offset negative impacts and how the collection of evidence on equality impacts was used when formulating policy. The chapter shows that the impacts of the reforms were only systematically assessed by age and gender, and, where data were available, by disability and ethnicity with no attempt to gauge cumulative impacts. There is also evidence of Equality Impact Assessments finding a disproportionate impact on individuals with protected characteristics where no mitigating action was taken.

In this paper, we explore the conditions under which organizations that compete in both market and non-market domains might engage in collective strategy. We study low-power FM radio activists in the U.S., who employed a collective strategy both within and across geographic communities to gain the right to broadcast in low-power broadcast spectra. By comparing and contrasting two stages of the micro-radio movement, we argue that, under certain conditions, for collective strategy to be viable, organizations competing on the dimensions of both ideology and resources must recognize themselves as members of an identity group, based on their common struggle against a stronger, more salient enemy. We highlight the role of collective strategies in the processes of organizational ecology, and discuss the generalizability of our argument.