The article links leadership and legitimacy in globalizing business. It forwards a framework for analyzing how actors in organizations may build and maintain organizational legitimacy through different strategies. The discussion connects strategies for legitimizing organizational conduct across levels of analysis, highlighting the role of leadership in this process. The article builds on organizational discourse analysis to explain how individual actors may shape societal perceptions around organizational legitimacy. The presented framework highlights three generic strategies and the corresponding processes associated with leading toward legitimacy. In this way, it emphasizes mechanisms for gaining and maintaining legitimacy for each strategic response of the organization in relation to rhetorical tactics used to influence discourses and the resulting necessary leadership resources. The framework offers future theoretical and empirical research directions for the analysis of legitimacy discourses.
This paper proposes to study the constitution of organization at the interstice of order and disorder. By putting forward the processual, heterogeneous, and fragmented nature of organization, it explores the mediating role of communication in organizational becoming (Tsoukas and Chia, 2002). More specifically, the paper focuses on how organizations overcome the inherently precarious, contingent, and disorderly character of their existence in and through language use. Taking a communicative centered approach, the paper argues for considering language-in-use as intrinsically embedding both order and disorder. To do so it relies on the empirical material of three extensive qualitative case studies in three distinct project-based organizations: a science and technology diffusion program, a software development company, and a management consulting firm. The transversal analysis of these studies shows that efforts of ordering are continuously haunted by disordering, that is, the plurality of many potential orders, which are at work in communication. Furthermore, the analysis highlights the key and yet paradoxical role of ordering devices (in the three cases studied inscribed in texts), which are designed to create and maintain order, and because of their language-based nature, generate contingency and undecidability. Language is indeed a source of ambivalence (Weick, 1990). As such, the call for order can (usually does) trigger disorder and the other way around.
The implementation of Corporate Social Responsibility (CSR) is crucial for organizational legitimacy in today’s globalized world. In the absence of a global governance system, several initiatives have emerged to support companies in designing, implementing and communicating CSR. However, research has so far mainly neglected to empirically evaluate the impact of such initiatives on organizational practices. This study aims to close this gap by analyzing on a large quantitative basis how business participants in the largest voluntary CSR initiative - the UN Global Compact (UNGC) - embed CSR into their organizations. Drawing on insights from institutional and stakeholder theory, I derive determinants of UNGC implementation and analyze the accountability of the initiative. My study contributes to the literature in several ways: I develop a theoretical model to describe and explain variation in UNGC implementation, and scrutinize the new measure for UNGC implementation. My results show that the initiative affects organizational practices: Contrary to the bluewashing arguments of UNGC critics, the level of CSR implementation increases with the time of membership in the UNGC. However, my findings also suggest that the declared participant information still lacks credibility - higher UNGC implementation levels are not associated with significantly less UNGC scandals. Implications for CSR research, the Global Compact and its participants are discussed.
Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effects for large firms. The insignificant results we document for large firms coupled with the fact that these type of firms are over-represented in many support programs, including the one considered here, leads us to suggest a rethinking of support policies that often aim at large firms.
This paper provides non-experimental field evidence on positive and negative worker reciprocity. We analyze the performance reactions of professional workers to fair and unfair wage allocations in their natural environment. The objects of interest are professional soccer players in the German Bundesliga. This environment enables us to circumvent the main problems of observational studies on reciprocity because there is substantial transparency in individual player values and performance. Our main finding is that workers exhibit both positive and negative reciprocity toward employers who deviate from a player’s perception of a fair market wage. This perception of a fair wage follows from a Mincer-type wage equation that incorporates a worker’s past performance. The different results between changing and non-changing players are in line with theories of fairness perception but cannot be explained by private information from the employers or the personal career concerns of the players. Altogether, our findings provide strong evidence for the external validity of previous laboratory results on gift exchange in the labor market.
This paper provides a formal analysis of persuasive advertising when firms compete for consumers with heterogenous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive advertising varies across consumers and increases in the average degree of conformity. In equilibrium, both quality and cost leaders choose higher advertising intensities and charge higher prices than their competitors. In addition, we show that an increase in the average degree of conformity among consumers reinforces asymmetries between firms.
Although trainee pay is central to the economics of work-based training, institutionalists have paid it little attention, while economists typically assume that it is set by market clearing. We document large differences in the pay of metalworking apprentices in three countries: relative to the pay of skilled employees, it is high in Britain, middling in Germany, and low in Switzerland. Combining fieldwork evidence with national survey data, we associate apprentice pay with both institutional attributes and market forces: specifically, with trade union presence and goals, employer organisation, the contractual status of apprentices, the supply of eligible and interested young people, and public subsidies. Apprentice pay appears to have fallen in Britain and Germany as bargaining coverage has declined.
