Elaine Romanelli

Organizational Transformation as Punctuated Equilibrium: An Empirical Test

The punctuated equilibrium model of organizational transformation has emerged as a prominent theoretical framework for explaining fundamental changes in patterns of organizational activity. To date...

Convergence and Upheaval: Managing the Unsteady Pace of Organizational Evolution

What distinguishes between success and failure as organizations respond to turbulent environments? This article demonstrates that the most successful firms evolve through periods of incremental change, punctuated by discontinuous, organization-wide transformations. While the most successful firms initiate these strategic reorientations prior to competition, mediocre firms initiate these changes only after performance crises, and failing firms are caught by inertia and never initiate reorientations. This article discusses the roots of organization inertia, the necessity for both convergent and frame-breaking change, and the role of the senior management team in initiating and implementing frame-breaking change.

Regional Industrial Identity: Cluster Configurations and Economic Development

We explore the concept of regional industrial identity as an important missing component in our understanding of the development of metropolitan regions and the spatial arrangements of industries. While economists and sociologists have explained the location of industry clusters on the basis of unevenly distributed resources, and historians have provided rich descriptive insight into the developmental dynamics of particular metropolitan regions, little systematic theory has been advanced to explain cross-regional inflows and outflows of resources, especially with respect to patterns in cluster development. This paper examines the concept of regional industrial identity as a social code that (1) arises from the shared understandings of residents and external audiences about the suitability of a region for particular kinds of business activity and (2) influences decisions about where to locate investments. We argue that such understandings are principally informed by configurations of industry clusters that have already formed in a region. Clusters, which are the results of historical investments, are also important signals about the types of business that can thrive in the future. We develop theoretical propositions linking characteristics of regional industry cluster configurations, in particular cluster dominance and cluster interrelatedness, to the strength and focus of regional identity and, as a result, to the types and amounts of resources that will develop within and flow into and out of regions.

Executive succession, strategic reorientations, and organization evolution: The minicomputer industry as a case in point

Abstract This longitudinal study investigates the determinants and effects of executive succession for high- and low-performing minicomputer organizations. Findings suggest that performance shortfalls drive executive succession in low performers, while strategic reorientations prompt succession for high-performing firms. The effects of succession depend on whether strategic reorientation accompanies executive change. Only when executive succession occurs with reorientations does future organization performance increase. Otherwise, there is no association between executive succession and subsequent organization performance. Executive succession and strategic reorientation appear to be important strategic levers affecting organizational performance over time.

Executive Succession, Strategic Reorientation and Organization Evolution

Abstract This longitudinal study investigates the determinants and effects of executive succession for high- and low-performing minicomputer organizations. Findings suggest that performance shortfalls drive executive succession in low performers, while strategic reorientations prompt succession for high-performing firms. The effects of succession depend on whether strategic reorientation accompanies executive change. Only when executive succession occurs with reorientations does future organization performance increase. Otherwise, there is no association between executive succession and subsequent organization performance. Executive succession and strategic reorientation appear to be important strategic levers affecting organizational performance over time.

Before Identity: The Emergence of New Organizational Forms

The evolution of new organizational forms has attracted growing theoretical and empirical attention, but little research has considered the microsocial processes that promote the emergence of groups of quasi-similar organizations that sometimes evolve into new organizational forms. Drawing from social psychological and sociological theories of identity formation, we explain processes of individual identification and collective identity development that precede and promote the formation of similar clusters, which audiences can then recognize and distinguish from established organizational populations and other emerging similarity clusters.

Organizational Legacy and the Internal Dynamics of Clusters: The U.S. Human Biotherapeutics Industry, 1976–2002

Using data on the human biotherapeutics industry in the United States from the period 1976 through 2002, the authors explore the organizational origins of entrepreneurs to understand the location and size of industry clusters. Specifically, they examine the effect that different types of organizational legacy—defined as the organization in which the entrepreneurs were previously employed—have on the entry of new firms. The study reveals that regional resources influence the location of industry clusters but that concentrations of entrepreneurs who hail from the same population exert an important, differentiating influence and define a local culture that affects the propensity for information-sharing and collaboration. This research shows that the largest impact on local entry stems from a concentration of founders with prior experience in organizations that are more networked than hierarchical.

Executive Succession, Strategie Reorientations, and Organization Evolution: The Minicomputer Industry As a Case in Point

This longitudinal study investigates the determinants and effects of executive succession for high- and low-performing minicomputer organizations. Findings suggest that performance shortfalls drive executive succession in low performers, while strategic reorientations prompt succession for high-performing firms. The effects of succession depend on whether strategic reorientation accompanies executive change. Onlywhen executive succession occurs with reorientations does future organization performance increase. Otherwise, there is no association between executive succession and subsequent organization performance. Executive succession and strategic reorientation appear to be important strategic levers affecting organizational performance over time.