Eric Abrahamson

Managerial Fads and Fashions: The Diffusion and Rejection of Innovations

Reviews indicate that the dominant perspective in the diffusion of innovation literature contains proinnovation biases which suggest that innovations and the diffusion of innovations will benefit adopters. As a result, it is difficult to either address or begin answering the questions: when and how do technically inefficient innovations diffuse? or when and how are technically efficient innovations rejected? This article has two goals: (1) to develop a typology that focuses attention on three less dominant perspectives that can be used to guide research on these questions and (2) to suggest how organizational scientists can develop more encompassing theories of innovation diffusion and rejection by using the theoretical tensions that exist between the dominant perspective and the three perspectives developed in this article. These resolutions are important because they indicate that processes which prompt the adoption of efficient innovations may coexist with processes that prompt the adoption of ineffici...

Assessing Managerial Discretion across Industries: A Multimethod Approach

Industries differ widely in how much managerial discretion, or latitude of action, they allow. This research contributes to the reliable and valid measurement of this important but hard-to-measure ...

Concealment of Negative Organizational Outcomes: An Agency Theory Perspective

To explore if, when, and how intentionally corporate officers conceal negative organizational outcomes from shareholders, we used computer-assisted content analysis of over 1,000 presidents letters contained in annual reports to shareholders. Results suggest that outside directors, large institutional investors, and accountants limit such concealment, but small institutional investors and outside directors who are shareholders prompt it. Low disclosure is associated with subsequent selling of stock by top officers and outside directors. This result supports the claim that concealment by officers and its toleration by outside directors may be intentional.

Movements, bandwagons, and clones: Industry evolution and the entrepreneurial process

Abstract Entrepreneurship research has paid insufficient attention to the context in which new businesses are started. Consequently, efforts to identify factors that consistently lead to entrepreneurial success have failed. This is because what works in one context will not necessarily work in another. Even worse, factors that lead to success in one context may lead to failure in another. This article addresses this problem by drawing from the concept of industry evolution to identify three broad but distinct organizing contexts—emerging, growth, and mature industries—and demonstrating how each context presents a different set of entrepreneurial challenges. An industry is defined not as a group of firms producing close substitutes, but instead, as a group of firms of the same organizational form. Industry evolution is understood therefore as the diffusion of an organizational form, with emerging, growth, and mature stages corresponding to the creation, exploitation and erosion of competitive advantage. Defining an industry in this manner makes it possible to overcome the problem of shifting industry boundaries and enables us to distinguish between entrepreneurial activities that shake up existing industries by creating new and competing organizational forms and entrepreneurial activities that replicate well-known organizational forms and drive an industry toward equilibrium. It also enables us to draw from the work of industrial organization economics, strategy, and population ecology. Entrepreneurship is defined as the creation of new organizations and is viewed as a context-dependent social process. New organizations are enacted as critical stakeholders change their behaviors in ways that allow the organization to emerge. The process is successful when the short-term existence of a new organization is no longer at risk. A typological theory of entrepreneurial success is developed by examining how the fit between context and four other critical dimensions cause successful foundings. The theory is multiplicative and probabilistic. It is multiplicative in that all dimensions need to fit for a founding to be successful. Poor fit in any one area can lead to failure. It is probabilistic in that the better the overall fit, the better the odds of success. In addition to context, the dimensions we examine are entrepreneurial networks, entrepreneurial confidence-building behaviors, the motivation of stakeholders, and organizational structures and strategies. In terms of entrepreneurial networks, we examine whether entrepreneurs have weak-tie or strongtie networks, and whether their networks are homogeneous or include subgroups that are unrelated. In terms of confidence-building behaviors, we explore the use of informal (e.g., repeated personal interaction) versus formal (e.g., contracts) mechanisms. With respect to stakeholder motivations, we ask whether stakeholders are driven by social or instrumental motivations. In terms of structure and strategy, we consider two issues. First, we explore whether the emerging organization is market or hierarchy based, and we consider the extent to which the organization is innovative versus imitative. We argue that these various dimensions come together in three logical configurations, that we label movements, bandwagons, and clones. EMERGING INDUSTRY ORGANIZING: MOVEMENTS Movements are the organizing processes through which new organizational forms are created. Pioneers of new forms of organizations have unique personal networks that enable them to see the potential of bringing the factors of production together in new combinations. They have strong ties to two or more nonoverlapping networks. To succeed, they must overcome problems associated with lack of legitimacy. Theentrepreneur is joined by highly committed stakeholders who are motivated by social factors. Belief in the ventures success is achieved through informal confidence building, such as incremental personal exchange and third-party reputation. In this manner, stakeholders develop personal familiarity with the form and make positive assessments about the entrepreneurs competence and trustworthiness. The organizing structure is market based with participant commitments being secured through flexible, cooperative agreements. The strategic emphasis is on innovation and experimentation. The belief in the importance and viability of the new organizational form serves as a loose ideology for controlling and coordinating the actions of participants. GROWTH INDUSTRY ORGANIZING: BANDWAGONS Bandwagons are organizing processes that seek to exploit the potential of a newly legitimated form. The strategic challenge at this stage is to prosper newly legitimated form. The strategic challenge at this stage is to prospeamidst rapid growth and change. The successful entrepreneur has an extensive network of high status individuals that can be tapped to quickly mobilize resources within a narrow window of opportunity. Stakeholders are motivated less by social factors, than by a desire to secure the benefits of being early movers. Formal confidence-building mechanisms dominate. In an effort to achieve efficiencies, develop sources of competitive advantage, and preempt the competition, more value-chain activities are developed in house. The strategic posture remains entrepreneurial; however, more emphasis is placed on following the example of other firms. MATURE INDUSTRY ORGANIZING: CLONES Clones are the organizing processes that replicate existing forms and incorporate all that has been learned about a given industry and type of business. Strong competition along with stable demand and technology make it difficult to find a source of competitive advantage in a mature industry. At this stage, the successful founder is someone with extensive industry knowledge and contacts who is capable of extracting operating efficiencies and/or identifying some underserved market segment. Expected returns are modest and stakeholders need to be motivated partly by social factors. However, the large amount of information now available about the form and the market itserves enables stakeholders to base their participation decisions on a rational assessment of expected future benefits. Given increased experience with the form, the relationships between the organization and its stakeholders are more predictable and as a consequence, subject to greater formalization. Models exist showing how to structure theserelationships, facilitating greater use of more specific contracts and guarantees. With tight margins and the need for efficiency, greater use is made of hierarchy in an attempt to manage costs. These same highly competitive conditions also make mistakes very expensive. The organization needs to draw upon the knowledge that others have learned about the form. Consequently, it adopts a more conservative strategic posture and is less likely to deviate from established practice. IMPLICATIONS FOR FUTURE RESEARCH If we are ever to understand what leads to entrepreneurial success, we must pay more attention to the context in which organizing occurs. Our typology suggests that fundamentally different processes may be at work at different stages of industry evolution. In addition to empirically testing our theory, an opportunity exists to reexamine the existing entrepreneurship literature through a new conceptual lens, asking how our interpretation of the research would differ if context was considered explicitly. Our theory also has the potential to inform questions about the role of organizational foundings in the diffusion of competitive advantage and to examine the impact of.founding conditions on long-term strategic adaptation.

The Emergence And Prevalence Of Employee Management Rhetorics: The Effects Of Long Waves, Labor Unions, And Turnover, 1875 To 1992

Five employee management rhetorics have swept U.S. managerial discourse over the last century: welfare work, scientific management, human relations and personnel management, systems rationalism, an...

Employee-management Techniques: Transient Fads or Trending Fashions?

In this theory development case study, we focus on the relations across recurrent waves in the amount and kind of language promoting and diffusing, and then demoting and rejecting, management techniques—techniques for transforming the input of organizational labor into organizational outputs. We suggest that rather than manifesting themselves as independent, transitory, and un-cumulative fads, the language of repeated waves cumulates into what we call management fashion trends. These trends are protracted and major transformations in what managers read, think, express, and enact that result from the accumulation of the language of these consecutive waves. For the language of five waves in employee-management techniques—management by objectives, job enrichment, quality circles, total quality management, and business process reengineering—we measure rational and normative language suggesting, respectively, that managers can induce labor financially or psychologically. The results reveal a gradual intensification in the ratio of rational to normative language over repeated waves, suggesting the existence of a management fashion trend across these techniques. Lexical shifts over time, however, serve to differentiate a fashion from its predecessor, creating a sense of novelty and progress from the earlier to the later fashions.

Modeling Reputational and Informational Influences in Threshold Models of Bandwagon Innovation Diffusion

Bandwagon innovation diffusion is characterized by a positive feedback loop where adoptions by some actors increase the pressure to adopt for other actors. In particular, when gains from an innovation are difficult to quantify, such as implementing quality circles or downsizing practices, diffusion is likely to occur through a bandwagon process. In this paper we extend Abrahamson and Rosenkopf&2018;s (1993) model of bandwagon diffusion to examine both reputational and informational influences on this process. We find that the distribution of reputations among the set of potential adopters affects the extent of bandwagon diffusion under conditions of moderate ambiguity, and we find that bandwagons occur even when potential adopters receive information about others&2018; unprofitable experiences with the innovation.

PERSPECTIVE---Researchers Should Make Thoughtful Assessments Instead of Null-Hypothesis Significance Tests

Null-hypothesis significance tests (NHSTs) have received much criticism, especially during the last two decades. Yet many behavioral and social scientists are unaware that NHSTs have drawn increasing criticism, so this essay summarizes key criticisms. The essay also recommends alternative ways of assessing research findings. Although these recommendations are not complex, they do involve ways of thinking that many behavioral and social scientists find novel. Instead of making NHSTs, researchers should adapt their research assessments to specific contexts and specific research goals, and then explain their rationales for selecting assessment indicators. Researchers should show the substantive importance of findings by reporting effect sizes and should acknowledge uncertainty by stating confidence intervals. By comparing data with naive hypotheses rather than with null hypotheses, researchers can challenge themselves to develop better theories. Parsimonious models are easier to understand, and they generalize more reliably. Robust statistical methods tolerate deviations from assumptions about samples.

Creativity, Innovation, and Entrepreneurship in China

As the largest and fastest growing transition economy in the world, Chinas entrance onto the global stage has been swift and dramatic. As such, almost every facet of entrepreneurship, from the identification of nascent opportunities to the challenges of managing triple-digit growth to the transformation of firms from dying to emerging industries, can be studied as natural experiments. The four papers in this issue are dedicated to exploring entrepreneurial innovation in the Chinese private economy. They include two clinical studies, one on the impact of the Beijing Olympics on entrepreneurship, and the other on the co-evolution of guanxi networks and entrepreneurial growth. Two studies test theories explaining the organizational drivers of innovation and entrepreneurship. In the best traditions, these four studies offer theoretical insights on the broader implications of entrepreneurship research in the Chinese context. We locate the findings offered by these four papers in the systems, organizational and social contexts of creativity, innovation, and entrepreneurship research. Finally, we offer some suggestions for future research and ways in which advances in the theoretical conversation should proceed.

22 Things I Hate: Mini Rants on Management Research

This article does not present one long rant about the state of our field. Rather, it articulates a series of 22 mini rants—short rants that do not exceed 116 words in length. The mini rants range from theory generation; to the positioning of articles in our field; to hypothesis generation; to data, methods analysis, and results; to academic writing; and to our field in general. The shotgun approach presented by mini rants serves as a device to maximize the number of potential thoughtful, or even rant-like, responses to each of the authors mini rants.