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Peer Interaction and Pioneering Organizational Form Adoption: A Tale of the Two First For-Profit Stock Exchanges

PublicationArticle (in press)
Comparative capitalism, comparative institutional analysis, Financial markets, Historical, Institutional theory, Longitudinal qualitative, national innovation systems, Organizational change, Organizational form, Research Design and Data Collection, Theoretical Perspectives, Topics

Abstract

Building on a historical case study on the first two stock exchanges to adopt the now globally dominant for-profit organizational form, the Stockholm Stock Exchange in 1993 and the Helsinki Stock Exchange in 1995, we argue that interaction among socially proximate peers contributes to pioneering organizational form adoption within an industry, particularly when such forms are introduced by established organizations. Peer interaction can induce a search for technically efficient organizational forms through the sharing of collective experiences, the establishment of collective assumptions, and a joint search for solutions. Together, these factors contribute to the legitimization of novel organizational forms in the local setting before the adoption of the first instantiation of those forms. We propose a context-sensitive multilevel model of peer-interaction-induced pioneering organizational form adoption that considers shared macro environmental drivers, idiosyncratic local environmental drivers, and peer interaction as central social mediators between the two.

Cheung, Z., Gustafsson, R. & Nykvist, R. (in press). Peer Interaction and Pioneering Organizational Form Adoption: A Tale of the Two First For-Profit Stock Exchanges. Organization Studies.

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Peer Interaction and Pioneering Organizational Form Adoption: A Tale of the Two First For-Profit Stock Exchanges
Artikel (in press)Publication
Cheung, Z., Gustafsson, R. & Nykvist, R.
Publication year

2021

Abstract

Building on a historical case study on the first two stock exchanges to adopt the now globally dominant for-profit organizational form, the Stockholm Stock Exchange in 1993 and the Helsinki Stock Exchange in 1995, we argue that interaction among socially proximate peers contributes to pioneering organizational form adoption within an industry, particularly when such forms are introduced by established organizations. Peer interaction can induce a search for technically efficient organizational forms through the sharing of collective experiences, the establishment of collective assumptions, and a joint search for solutions. Together, these factors contribute to the legitimization of novel organizational forms in the local setting before the adoption of the first instantiation of those forms. We propose a context-sensitive multilevel model of peer-interaction-induced pioneering organizational form adoption that considers shared macro environmental drivers, idiosyncratic local environmental drivers, and peer interaction as central social mediators between the two.

The matter of locality: Family firms in sparsely populated regions
Article (in press)Publication
Lundberg, H. & Öberg, C.
Publication year

2021

Abstract

This paper explores the interaction and interdependence between family firms and sparsely populated regions. Interactivity underlines the dynamics of the setting and how it changes based on activities between the firm and the context, whereas interdependence refers to how the family firm and the region become mutually reliant on one another. Five case studies show that while the firms act under similar conditions in terms of disparity, their interplay with and dependence on the region differ. The study points to how the citizenship of the family firms is fundamental and how employment is at the heart of the interdependence, while those firms interacting most strongly with the region are those expanding beyond what would be expected by a family firm in terms of traditions and risk aversion. This again indicates a complex pattern of interactivities and interdependencies between family firms and sparsely populated regions. The paper provides important dimensions to theories on family firms’ local contexts specifically related to under-researched settings of sparsely populated regions and important implications for managers, public actors and policy makers, not the least related to support to such contexts.

Managers on balancing employment protection and what’s good for the company: Intended and unintended consequences of a semi-coercive institution
Article (in press)Publication
Stern, C. & Weidenstedt, L.
Publication year

2021

Abstract

Sweden’s institutionalized employment protection legislation, ‘LAS’, is interesting theoretically because parts of it are semi-coercive. The semi-coerciveness makes it possible for firms and unions under collective agreements to negotiate departures from the law. Thus, the law is more flexible than the legal text suggests. The present study explores intended and unintended consequences of LAS as experienced by managers of smaller manufacturing companies. The results suggest that managers support the idea of employment protection in principle but face a difficult balancing act in dealing with LAS. From their point of view, the legislation’s institutional legitimacy is low, producing local cultures of hypocrisy and pretense. The article gives insights into how institutions aimed at specific, intended behavior sometimes end up producing unintended consequences fostering the opposite.

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