How have firms transformed and executed IT-enabled remote work initiatives during the COVID-19 pandemic? Conceptualization and empirical evidence from Spain

2023 | Information & Management | Citations: 0

Authors: Benitez, Jose; Castillo, Ana; Ruiz, Laura; Luo, Xin (Robert); Prades, Pedro

Abstract: This paper examines how firms have transformed and executed IT-enabled remote wo ... Expand

Abstract: This paper examines how firms have transformed and executed IT-enabled remote work initiatives during the COVID-19 pandemic. After examining archival data on a sample of 100 firms in Spain, we discover three types of IT-enabled remote work firm’s strategies: leader, agile, and survival. Leader companies have a competitive advantage over agile companies, which in turn have a competitive advantage over survival organizations. We find that firm size was crucial to executing remote work firm’s initiatives as a leader or survival. The industry significantly affected the implementation of remote work firm’s initiatives during the three pivotal periods in the telecommunications industry. Collapse

Topics: remote work IT supported collaboration pandemic competitive advantage organizational value

Methods: qualitative content analysis theory development partial least squares path modeling mediation analysis statistical power analysis

Theories: contingency theory resource based view of the firm organizational theory

Network Centralization and Collective Adaptability to a Shifting Environment

2023 | Organization Science | Citations: 1

Authors: Bernstein, Ethan S.; Shore, Jesse C.; Jang, Alice J.

Abstract: We study the connection between communication network structure and an organizat ... Expand

Abstract: We study the connection between communication network structure and an organization’s collective adaptability to a shifting environment. Research has shown that network centralization—the degree to which communication flows disproportionately through one or more members of the organization rather than being more equally distributed—interferes with collective problem-solving by obstructing the integration of existing ideas, information, and solutions in the network. We hypothesize that the mechanisms responsible for that poor integration of ideas, information, and solutions would nevertheless prove beneficial for problems requiring adaptation to a shifting environment. We conducted a 1,620-subject randomized online laboratory experiment, testing the effect of seven network structures on problem-solving success. To simulate a shifting environment, we designed a murder mystery task and manipulated when each piece of information could be found: early information encouraged an inferior consensus, requiring a collective shift of solution after more information emerged. We find that when the communication network within an organization is more centralized, it achieves the benefits of connectivity (spread of novel better solutions) without the costs (getting stuck on an existing inferior solution). We also find, however, that these benefits of centralization only materialize in networks with two-way flow of information and not when information only flows from the center of the network outward (as can occur in hierarchical structures or digitally mediated communication). We draw on these findings to reconceptualize theory on the impact of centralization—and how it affects conformity pressure (lock-in) and awareness of diverse ideas (learning)—on collective problem-solving that demands adaptation.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors acknowledge financial support from the Division of Research at the Harvard Business School for making this research possible. Collapse

Topics: social influence problem solving internet technology social network debugging

Methods: experiment machine learning simulation Poisson regression logistic regression

Theories: organizational theory

Theorizing Organizational Benevolence

2023 | Organization Science | Citations: 0

Authors: Beveridge, ‘Alim J.; Höllerer, Markus A.

Abstract: We extend research on stakeholder orientation by introducing and conceptualizing ... Expand

Abstract: We extend research on stakeholder orientation by introducing and conceptualizing “organizational benevolence”—a notion that refers to a firm’s inclination to pursue the welfare of an external stakeholder group as an end in itself manifested in a behavioral tendency in which benefiting the “other” is the ultimate goal of action. Employing a microfoundational approach, we propose a theoretical framework and a process model that explain how firms develop such a posture and how it eventually can become an enduring feature of these organizations. We build our framework on the core notion of collective commitment to the well-being of an external constituency by elaborating on the processes through which such collective commitment is mobilized, translated into collective intention, and stabilized in a behavioral tendency. Our article develops several propositions highlighting the crucial roles that emotionality and rhetoric play in these processes, alongside an enabling sociocognitive infrastructure. Overall, our work goes substantially beyond current theorizing and provides a detailed account for why some firms not founded with a prosocial mission nonetheless act consistently to benefit an external constituency in the absence of instrumental reasons to do so. Collapse

Methods: theory development business process modeling

Theories: stakeholder theory organizational theory

Organizations as Digital Enactment Systems: A Theory of Replacement of Humans by Digital Technologies in Organizational Scanning, Interpretation, and Learning

2023 | Journal of the Association for Information Systems | Citations: 0

Authors: Constantiou, Ioanna; Joshi, Mayur; Stelmaszak, Marta

Abstract: Digital transformation has become a dominant phenomenon of interest among infor ... Expand

Abstract: Digital transformation has become a dominant phenomenon of interest among information systems scholars. To account for this phenomenon, it is imperative to develop a theoretical understanding of its processes and objects. We adapt a seminal organizational theory that conceptualizes organizations as interpretation systems to a possible future of organizations. We theorize digital transformation as a progressive replacement of humans by digital technologies in performing an organization's fundamental activities underpinning the processes of scanning, interpretation, and learning that encompass an organization's interaction with its environment. As a result, organizations cease to be human interpretation systems and instead turn into digital enactment systems, where digital technologies, instead of humans, nearly autonomously create and act upon information. We illustrate this digital transformation theory using the example of high-frequency trading. This transformation redefines the relationship among organizations, information, and the environment, changing the role of humans and reshaping strategic decision-making. Thus conceived, digital transformation offers a concrete way of theorizing and accounts for deep implications on the nature of organizations and organizing in the digital age. Collapse

Topics: digital transformation IT work decision making electronic trading organization structure

Methods: theory development computational algorithm

Theories: general systems theory organizational theory

When Less Is More: How Statistical Discrimination Can Decrease Predictive Accuracy

2023 | Organization Science | Citations: 0

Authors: Csaszar, Felipe A.; Jue-Rajasingh, Diana; Jensen, Michael

Abstract: Discrimination is a pervasive aspect of modern society and human relations. Stat ... Expand

Abstract: Discrimination is a pervasive aspect of modern society and human relations. Statistical discrimination theory suggests that profit-maximizing employers should use all the information about job candidates, including information about group membership (e.g., race or gender), to make accurate predictions. In contrast, research on heuristics in psychology suggests that using less information can be better. Drawing on research on heuristics, we show that even small amounts of inconsistency can make predictions using group membership less accurate than predictions that do not use this information. That is, whereas statistical discrimination theory implies that better predictions can be achieved by using all available information about an individual (including group characteristics that may be correlated with but do not cause performance), our model shows that using all available information only improves predictive accuracy under a very specific set of conditions, thus suggesting that statistical discrimination often results in worse predictions. By understanding when statistical discrimination improves or worsens predictions, our work cautions decision makers and uncovers paths toward reducing the occurrence of situations in which statistical discrimination benefits predictive accuracy, thus reducing its pervasiveness in society. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1626. Collapse

Topics: productivity individual productivity decision making environmental uncertainty accounting

Methods: machine learning descriptive statistic theoretical contribution survey

Theories: organizational theory

External Interfaces or Internal Processes? Market Positioning and Divergent Professionalization Paths in Young Ventures

2023 | Organization Science | Citations: 0

Authors: DeSantola, Alicia; Gulati, Ranjay; Zhelyazkov, Pavel I.

Abstract: We explore how the initial market positioning of entrepreneurial ventures shapes ... Expand

Abstract: We explore how the initial market positioning of entrepreneurial ventures shapes how they professionalize over time, focusing specifically on the development of functional roles. In contrast to existing literature, which presumes a uniform march toward professionalization as ventures scale and complete developmental milestones, we advance a contingent perspective, distinguishing between the development of external interface functions (marketing & sales and customer development) and internal process functions (accounting, human resources, and finance). Specifically, we argue that positioning in an unconventional market space raises demand for external engagement that focuses ventures’ attention and resources toward developing external interface roles. At the same time, such unconventional ventures are less apt to elaborate their internal process roles relative to more conventional peers. We test these predictions using a novel longitudinal data set on the internal organizations of 3,748 U.S.-based entrepreneurial ventures. In contrast to common assumptions of convergent professionalization, our theory and findings advance the perspective that ventures pursue divergent professionalization paths based on their initial market positioning as they scale up. Funding: This research was generously funded in part by a Ewing Marion Kauffman Foundation Dissertation Fellowship awarded to the first author. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1561. Collapse

Topics: accounting marketing management human resource management database system entrepreneurship

Methods: qualitative interview robustness check longitudinal research statistical hypothesis test descriptive statistic

Theories: organizational theory contingency theory

The (Bounded) Role of Stated-Lived Value Congruence and Authenticity in Employee Evaluations of Organizations

2023 | Organization Science | Citations: 0

Authors: Deeds Pamphile, Vontrese; Ruttan, Rachel Lise

Abstract: A growing body of research documents that audiences reward organizations perceiv ... Expand

Abstract: A growing body of research documents that audiences reward organizations perceived to be authentic with positive evaluations. In the current work, we adopt a mixed-methods approach—using data collected from Glassdoor.com and two experiments—to establish that perceptions of authenticity are elicited by perceived congruence between an organization’s stated values (i.e., the values it claims to hold) and its lived values (i.e., values members perceive as embodied by the organization), which in turn lead to more positive organizational evaluations. We then explore the conditions under which audiences are less likely to respond favorably to organizational authenticity, finding that the positive effects of stated-lived value congruence on evaluations are attenuated when audiences have a lower preference for stated values. Although scholars have often explored whether and how organizations can successfully make themselves appear authentic to reap rewards, our findings suggest that the perceived authenticity that results from stated-lived value congruence may not prove fruitful unless the audience holds a higher preference for an organization’s stated values.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: This research was supported by the Interdisciplinary Research Award from the Management and Organizations Department at the Kellogg School of Management and by the Michael-Lee Chin Institute for Corporate Citizenship Research Grant from the Rotman School of Management.Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1578. Collapse

Topics: innovation management organizational value online review website organizational success

Methods: experiment parametric test product review statistical power analysis two-way ANOVA

Theories: cognitive dissonance theory organizational behavior theory organizational theory psychological theory

To Stem the Tide: Organizational Climate and the Locus of Knowledge Transfer

2023 | Organization Science | Citations: 0

Authors: Di Stefano, Giada; Micheli, Maria Rita

Abstract: Prior work has maintained that organizations benefit from managing the transfer ... Expand

Abstract: Prior work has maintained that organizations benefit from managing the transfer of proprietary knowledge. Transfer is often advantageous within organizational boundaries but may be harmful across them, because it might erode competitive advantage. Hence, we ask: How can organizations affect the direction in which knowledge flows? We examine the role of organizational climate as a governing mechanism for knowledge transfer. Our empirical strategy consists of a mixed-methods approach leveraging qualitative and experimental data over two cycles of theory building and theory testing. We start with an extensive field study of the European Organization for Nuclear Research (CERN), leveraging the insights from desk research, field observations, 53 interviews, and a laboratory-in-the-field experiment involving 518 physicists. We then provide a causal test of the emerging framework by means of two laboratory experiments with 389 participants. Our findings suggest employees are more likely to transfer knowledge to their colleagues when they identify as an integral part of the organization, but they would rather transfer knowledge to outside competitors when their organization encourages them to outperform coworkers. In the presence of an organizational climate that is unfavorable to preventing knowledge spillovers, we argue, organizations can redirect the locus of knowledge transfer internally by acting upon an individual employee’s job design and socialization regime.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: The authors acknowledge generous financial support from Bocconi University, the HEC Foundation of HEC Paris, and IESEG School of Management.Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1551. Collapse

Topics: knowledge sharing electronic mail pandemic knowledge spillover strategic management

Methods: experiment qualitative interview field study theory development laboratory experiment

Theories: organizational theory

“Who Am I When Everything has Changed?” The Impact of Scaled-agile Organizations on Professional Role Identity

2023 | International Conference on Information Systems | Citations: 0

Authors: Finze, Nikola; Frey, Julian; Hund, Axel; Beimborn, Daniel; Wagner, Heinz-Theo

Abstract: As digital technology continues to advance, organizations require more flexibil ... Expand

Abstract: As digital technology continues to advance, organizations require more flexibility to meet the needs of their customers and remain competitive. To do so, many incumbent organizations fundamentally change their established structures and processes to implement scaled-agile organizations (SAO), emulating digital organizations and leveraging development speed and customer focus. However, when everything changes, there are significant effects on the employees' identities. Thus, we explore how implementing an SAO affects employees' professional role identities (PRI). The paper follows a case study approach analyzing two cases with 21 interviews, observational, and secondary data collected over a period of 18 months. We contribute to the literature by identifying three effects of an SAO implementation on PRI (threat, empowerment, and extension) and describing how individuals react based on the effect on their PRI. We inform practitioners on the overall SAO implementation process and consequences for professionals, offering a new perspective on organizational transformation challenges. Collapse

Topics: organizational change productivity digital transformation project management new product development

Methods: qualitative interview theoretical contribution personal interview company material case study

Theories: organizational theory information systems theory

Building an Equilibrium: Rules vs. Principles in Relational Contracts

2023 | Organization Science | Citations: 0

Authors: Gibbons, Robert; Grieder, Manuel; Herz, Holger; Zehnder, Christian

Abstract: Effective collaboration within and between organizations requires efficient adap ... Expand

Abstract: Effective collaboration within and between organizations requires efficient adaptation to unforeseen change. We study how parties build relational contracts that achieve this goal. We focus on the “clarity problem”—whether parties have a shared understanding of the promises they make to each other. Specifically, (a) a buyer and seller play a trading game in several periods; (b) they know their environment will change but do not know how; and (c) before any trading occurs, they can reach a nonbinding agreement about how to play the entire game. We hypothesize that pairs whose initial agreement defines a broad principle rather than a narrow rule are more successful in solving the clarity problem and in achieving efficient adaptation after unforeseen change. In our baseline condition, we indeed observe that pairs who articulate principles achieve significantly higher performance after change occurred. Underlying this correlation, we also find that pairs with principle-based agreements were more likely to both expect and take actions that were consistent with what their agreement prescribed. To investigate a causal link between principle-based agreements and performance, we implement a “nudge” intervention that induces more pairs to articulate principles. The intervention succeeds in coordinating more pairs on efficient quality immediately after the unforeseen change, but it fails to coordinate expectations on price, ultimately leading to conflicts and preventing an increase in long-run performance after the shock. Our results suggest that (1) principle-based agreements may improve organizational performance but (2) high-performing relational contracts may be difficult to build.History: This paper has been accepted for the Organization Science Special Issue on Experiments in Organizational Theory.Funding: We gratefully acknowledge financial support from the Massachusetts Institute of Technology Sloan School's Program on Innovation in Markets and Organizations.Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2021.1503. Collapse

Topics: competitive advantage organizational productivity organizational culture anonymity

Methods: experiment descriptive statistic survey laboratory experiment statistical power analysis

Theories: game theory organizational theory