Institutionalization and organizational long-term success



Document title: Institutionalization and organizational long-term success
Journal: BAR - Brazilian Administration Review
Database: CLASE
System number: 000331059
ISSN: 1807-7692
Authors: 1
Institutions: 1Universidade Federal do Rio de Janeiro, Instituto COPPEAD de Administracao, Rio de Janeiro. Brasil
Year:
Season: May-Ago
Volumen: 4
Number: 2
Pages: 64-80
Country: Brasil
Language: Inglés
Document type: Artículo
Approach: Analítico, descriptivo
English abstract Institutionalization processes have an ambivalent effect on organizational long-term success. Even though they foster organizational stability and permanence, they also bring about rigidity and resistance to change. As a result, successful organizations are likely to lose their competitive advantage over time. The paper addresses this issue through the investigation of the institutionalization processes of two long-lived companies: General Electric, a firm that has been a long-term success and its rival, Westinghouse, which was broken up after eleven decades of existence. The longitudinal, multilevel analysis of firms and industry has identified two different modes of organizational institutionalization. The reactive mode gives rise to rigidity and change resistance, much like institutional theory predicts; the proactive mode, on the other hand, neutralizes those negative effects of institutionalization processes. In the reactive mode, structure predominates. In the proactive mode, agency plays a major role in organizational institutionalization, and in managing the organization's relations with the environment, clearly contributing to environmental institutionalization
Disciplines: Economía
Keyword: Empresas,
Teoría institucional,
Organizaciones,
Exito empresarial,
Institucionalización
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