Denise Fleck

Archetypes of Organizational Success and Failure

This paper presents inductive theoretical work inspired by the empirical study of the high-tech rivals General Electric and Westinghouse. Comparative historical analysis suggests that each firms responses to five organizational challenges have affected their chances of enjoying long-term success. In addition, the theoretical work advances two polar ideal types of organizational success and failure: the self-perpetuating and the self-destructive archetypes, respectively. These should be seen as extreme states of the existence of firms since, in reality, firms operate in some intermediary state. A process-oriented perspective of theory building advances relations of necessity towards organizational long-term success, and integrates the responses to challenges into a requisites model for the development of a propensity for organizational self-perpetuation

Ethicality in Negotiation: An Analysis of Attitudes, Intentions, and Outcomes

The study reported in this article examines the prediction and use of invalid information (e.g., exaggerated offers, false promises, misrepresented facts) in a two-party, property leasing negotiation in which participants from different countries negotiated seven issues via electronic mail. Prior to negotiating, attitudes and intentions towards questionable or unethical tactics were measured, and perceived behavior was measured through a post-negotiation questionnaire and compared with actual behavior and negotiated outcomes (differential and joint). The results suggest that the pre-negotiation questionnaire was a modest predictor of actual behavior, with general attitudes effective in predicting general behavior. Ethical behavior of the negotiator, ethical behavior of the other party, and perceived honesty of the other party were the best predictors of performance (perceived and actual), while likely use of unethical tactics and perceived honesty of the other party predicted whether or not an agreement was reached.

Institutionalization and organizational long-term success

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 organizations relations with the environment, clearly contributing to environmental institutionalization.

Crescimento, dominância continuada e declínio da empresa: insights das histórias da General Electric e da Westinghouse

The paper compares the growth trajectories of General Electric and Westinghouse during twelve decennia. While General Electric has enjoyed a continuing growth and a continued existence, Westinghouse grew but also experienced a three-decades long contraction and disappeared after 110 years of existence. The comparative analysis has revealed that apart from comparable capabilities in the development of high technology, the two firms differed in several respects. They played different roles in the structuring of the electrical industry and faced the challenges of increasing size in very distinct ways. Historical analysis suggests that General Electric has tended to develop managerial capabilities that have enhanced its chances of becoming self-perpetuating. Westinghouse, on the other hand, more often than not developed certain propensity for self-destruction.

Why we should dare to manage growth responsibly

Purpose – This paper seeks to suggest that the responsible management of the growth process can prevent the organization from becoming “too big to fail”. Moreover, responsibly managing growth enhances the organizational propensity to experience healthy longevity.Design/methodology/approach – Four growth‐related challenges provide the basic framework that organizes the discussion and inspires the main dimensions that make up the responsible management of growth.Findings – Responsibly managing growth comprises providing responsible responses to the growth challenges. It encompasses nurturing continued value creation; performing responsible risk management; securing value capture for the businesses (profits) and for the organization as a whole (legitimacy); performing systematic scanning of the environment; responsibly reacting to external pressures, preferably in anticipation of upcoming changes; sustaining the firms integrity, in face of increasing diversity; and equipping the organization with the right ...

Understanding propensity to initiate negotiations

Purpose – This paper seeks to introduce a model of the initiation process in negotiations, and to describe a study of the effects of culture and personality on propensity to initiate and assertiveness in negotiations.Design/methodology/approach – Using a survey research approach and hierarchical regression analyses, initiation propensity and assertiveness were regressed against two country cultures diverse with respect to perceived appropriateness of initiation (Brazil and the USA) and four measures of personality (self‐efficacy, locus of control, risk propensity, Machiavellianism).Findings – Regression analyses found three personality factors (risk propensity, self‐efficacy, Machiavellianism) to be most significantly associated with initiation propensity/assertiveness, along with an interaction effect involving country culture and risk propensity.Research limitations/implications – Future studies might benefit from a broader, more diverse subject pool (beyond the two countries studied). This would allow ...

THE ROUTE TO LONG-TERM SUCCESS OF TECHNOLOGY COMPANIES

Long-term success requires the challenging task of persistently creating and capturing value. Institutional theory addresses persistence in organisations and inter-organisational fields, but uncovers a paradox: while institutionalisation increases survival chances, it generates inertia, rigidity, and resistance to change, and therefore reduces long-term competitive advantage. The historical analysis of two long-lived electrical manufacturing companies (General Electric and Westinghouse) suggests that both developed a distinctive technological competence, and, for many decades, persistently created value. However, General Electrics distinctive competences also included dynamic and value-capture capabilities. These findings suggest that long-term success may occur in the presence of institutionalisation, if institutionalisation encompasses dynamic capabilities. In addition, this paper suggests that a resource-preservation dimension be included in the dynamic capabilities construct and in institutional theory, and that depending on how institutionalisation is conducted, the organisation may create habits that prevent or foster the side effects of institutionalisation processes.

Dois motores do crescimento corporativo

This paper advances the general structure of two motors in corporate growth processes. They are: the continuing growth motor, whichcomprises a process whereby growth produces more growth, and the co-evolution motor, relating the concomitant growth of parts and whole, such as firms (parts) and their industry (whole). The paper drew on Chandler´s “The Visible Hand” (1977) to derive the proposed motors. Chandler’s book was thoroughly examined within Mohr’s (1982) process-oriented perspective seeking to answer the question “what is Chandler’s theory on how and why did the modern business enterprise (MBE) appear and grow?” Four processes – MBE formation, MBE development, industryformation and industry development – were identified and described by means of chains of necessary relations (base on necessary conditions).Although endowed with less predictive power than causal relations (based on necessary and sufficient conditions), necessary relations are likely tobetter describe the complexity of social processes. Finally, the microcomputers industry growth was examined in the light of the proposed motors. The analysis revealed their adequacy to explain the emergence of modern industries, suggesting that the proposed motors are potentially transhistorical, contributing therefore to a general theory and to the management of corporate growth.

Truth or consequences: The effects of competitive-unethical tactics on negotiation process and outcomes

Purpose – This paper aims to describe a study of the negotiation process, focusing on the use of seven competitive-unethical tactics in dyadic negotiations. The initial use of these tactics and their effects on process and outcomes are examined. Design/methodology/approach – In total, 230 Brazilian professionals from a large financial institution participated in two-party, property-leasing negotiations involving eight issues with assigned point values. Negotiations were conducted online and, from the recorded transcripts, seven competitive-unethical tactics were tracked and analyzed with respect to the negotiation process and outcomes (individual and joint, perceived and actual). Findings – The study found that most participants employed one or more tactics, the stage and incidents of initial use affected overall employment, and participants often reciprocated when tactics were employed. Reciprocation was best described by a logarithmic function, with a small number of tactics answered with as many or mor...

Factors affecting desire to negotiate again

Purpose The purpose of this paper is to investigate the effects of negotiation process and outcome on an individual’s desire to negotiate again with the same counterpart. Design/methodology/approach Data were collected from 115 dyads representing two companies negotiating an eight-issue property leasing agreement via e-mail. Desire to negotiate again was regressed on demographic/personality, process, and outcome measures. Findings Reaching an agreement was found to be significantly related to desire to negotiate again, while the number of messages exchanged and the mean number of competitive tactics employed were positively and negatively associated with reaching an agreement, respectively. Further, perceived honesty of self and counterpart were also associated with an individual’s desire to negotiate again. Originality/value This study focuses on an aspect of real negotiations often overlooked by researchers – the likelihood of future encounters with the same party – and examines three categories of factors that could affect a party’s desire to negotiate with a counterpart again – demographic/personality, process, and outcome (actual and perceived).