Greta Hsu

Identities, Genres, and Organizational Forms

In recent years, there has been an increasing emphasis within organizational ecology on identity as a fundamental basis for the conceptualization and identification of organizational forms. This paper highlights the benefits of an identity-based conceptualization of organizational forms and outlines an identity-based agenda for organizational ecology. We begin by discussing fundamental properties of organizational identity, drawing extensively from the formal-theoretical conceptualization proposed by Polos et al. (2002). We then build on this foundation by proposing a number of systematic ways in which forms can be specified and differentiated in terms of identity. We also address the challenge of measuring forms by discussing various approaches researchers may use to assess the beliefs contemporaneous audiences hold regarding organizational identities. This paper concludes with a discussion of research questions revolving around three issues core to an ecological approach to organizations: (1) the emergence of identities, (2) the persistence of identities, and (3) the strategic trade-offs among different types of identities.

Multiple Category Memberships in Markets: An Integrative Theory and Two Empirical Tests

This article examines the effects of market specialization on economic and social outcomes. Integrating two perspectives, we explore why products that span multiple categories suffer social and economic disadvantages. According to the audience-side perspective, audience members refer to established categories to make sense of products. Products that incorporate features from multiple categories are perceived to be poor fits with category expectations and less appealing than category specialists. The producerside view holds that spanning categories reduces ones ability to effectively target each categorys audience, which decreases appeal to audience members. Rather than treating these as rival explanations, we propose that both processes matter and offer a systematic, integrated account of how penalties arise as a consequence of audience-side and producer-side processes. We analyze data from two dissimilar contexts, eBay auctions and U.S. feature-film projects, to test the central implications of our theory. Together, these tests provide support for our integrated approach and suggest that both processes contribute to the penalties associated with category spanning.

RESEARCH ON CATEGORIES IN THE SOCIOLOGY OF ORGANIZATIONS

The concept of a “category” and the social process of “categorization” occupy a crucial place in current theories of organizations. In this introductory chapter to Research in the Sociology of Organizations volume on Categories in Markets: Origins and Evolution, we review published work in various streams of research and find that studies of organizational forms and identities, institutional logics, collective action frames, and product conceptual systems have key commonalities and predictable differences.

In the Company of Women Gender Inequality and the Logic of Bureaucracy in Start-Up Firms

Perspectives on inequality differ greatly regarding whether the logic of bureaucracy undermines sex-based ascription in work organizations by reducing subjectivity in personnel decisions, or instead merely serves to obscure or “scientize” inequality. Past research has tended to operationalize bureaucratization in terms of the adoption of formal procedures and structures; the authors argue instead that disagreements about whether bureaucracy promotes or ameliorates inequality and segregation have less to do with the contours of bureaucracy than with the underlying logic of bureaucratic organization. Accordingly, the authors assess the link between bureaucratic organization and labor-market ascription by characterizing the logics underlying organizational employment systems. Using data on young high-technology companies in California’s Silicon Valley, they find evidence that bureaucratization improves employment prospects for women in core scientific-technical roles within these enterprises. They further explore path dependence in organizational logics and find that such logics, when adopted, have powerful enduring effects on labor-force composition.

Typecasting, Legitimation, and Form Emergence: A Formal Theory*

We propose a formal theory of multiple category memberships. This theory has the potential to unify two seemingly unconnected theories: typecasting and identity-based form emergence. Typecasting, a producer-level theory, considers the consequences of specializing versus spanning across category boundaries. Identity-based form emergence considers the evolution of categories and how the attributes of producers entering a category shape its likelihood of gaining legitimacy among relevant audiences. Both theory fragments treat the processes by which audience members assign category memberships to producers. This article develops this common foundation and outlines the arguments that lead to central implications of each theory. The arguments are formalized using modal expressions to represent key categorization processes according to the theory-building framework developed by Hannan et al. (2007).

Explaining Variation in Organizational Identity Categorization

In explaining why constituent groups often vary in their perceptions of the most salient aspects of an organization’s identity, existing research has drawn, almost exclusively, on social identity research and self-enhancement motives. This research suggests that when different organizational identity categorizations are enhancing to some groups but not others, variation in organizational identity perceptions arises. In this paper, by contrast, we explore the role that unmotivated or “spontaneous” cognitions may play in influencing variation in constituents’ organizational identity categorizations. Based on data from a study of U.S. business school constituents, we develop a dual-path model through which both motivated and spontaneous processes influence the different organizational identity categorizations constituent groups find to be most salient. We discuss both the theoretical and practical implications of these findings.

Evaluative Schemas and the Mediating Role of Critics

How do critics enable producers and consumers to come to mutually agreeable terms of trade? We propose that critics offer more guidance to those who set prices when their quality assessments are structured by clearer evaluative schemas. Schema clarity enables producers to accurately anticipate the quality assessments that critics will disseminate to the market. This allows their posted prices to center more faithfully on prevailing conceptions of quality. We then argue that the position of a producer within the markets social structure—in terms of its prior coverage, reputation, and niche width—influences the degree to which it is guided by clear evaluative schemas. We test these predictions in the market for U.S. wines. After elaborating a novel approach to inferring the clarity of evaluative schemas within different varietal categories, we demonstrate that list prices are less variable around expected levels when the schemas used to evaluate quality are clearer. Moreover, this effect is stronger among more relevant and more focused producers in each category.

Category Taken-for-Grantedness as a Strategic Opportunity The Case of Light Cigarettes, 1964 to 1993

Theories within organizational and economic sociology that center on market categories often equate taken-for-grantedness with increased constraint on category members’ features. In contrast, we develop a novel perspective that considers how market participants’ changing category-related attributions decrease the scrutiny of category offerings, opening up strategic opportunities for firms. We further argue that whether producers should be expected to take advantage of these opportunities depends on the extent to which they are incentivized to do so. We use the case of the light cigarette category to test this thesis. We argue and find evidence that increasing taken-for-grantedness of the light cigarette category created greater opportunity for tobacco firms to strategically manipulate category features.

QUALITY, EXCHANGE, AND KNIGHTIAN UNCERTAINTY

Sociologists have long recognized that stable patterns of exchange within a market depend on the ability of market actors to solve the problem of cooperation. Less well recognized and understood is a second problem that must be solved – the problem of Knightian uncertainty. This chapter posits that the problem of Knightian uncertainty occurs not only in the market; it underlies a variety of exchange contexts – not just markets, but art worlds and professions as well. These three exchange contexts are similar in so far as a generally accepted quality schema arises as an important solution to the problem of Knightian uncertainty; however, the quality schemas that arise in these three contexts differ systematically along two dimensions – the complexity of the schema and the extent to which the “non-producers” have a voice in the determination of the quality schema. By comparing and contrasting the way in which quality schemas arise in these three domains, this chapter (1) gives some specificity to the notion of quality as a social construction; (2) provides some preliminary insight into why a particular good or service becomes perceived as a market, artistic, or professional offering; and (3) offers an imagery for conceptualizing the mobility of goods and services between these three domains.

Emergence of Market Orders: Audience Interaction and Vanguard Influence

Research in the sociology of markets finds that shared meanings facilitate valuation and exchange by providing frameworks for perceiving and evaluating products and producers. Whereas studies of local sensemaking explain how meanings emerge in market interaction, and macro sociological accounts explain how meanings embodied in conventions, structures, and institutions are used in markets, understanding of the links between these two levels of analysis remains underdeveloped. In this paper, we propose a theory of how engagement and influence at the micro level gives rise to conventional labels and categories. Our theory proposes three processes through which audiences in markets come to share meanings: (i) through interaction among the audience; (ii) through influence of vanguard audience members on lay audiences; and (iii) through vanguard influence on authorities. We investigate some of the propositions on label use and category differentiation in 23 product categories on eBay.