Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization: A Markov Model

Patrick Haack, Dirk Martignoni, Dennis Schoeneborn

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    Organizations adopt formal policies often ceremonially, meaning that policy adoption is not substantive and lacks alignment with actual practice. Prior research in institutional theory has largely assumed as static view of adoption and suggests that a situation of opacity (characterized by the difficulty or impossibility of evaluation) stabilizes ceremonial adoption and thus impedes substantive adoption. This paper offers a dynamic view of adoption sequences and re-examines the role of opacity in promoting substantive adoption among multiple organizations within a given industry. Using a three-state Markov chain model, we explore the boundary conditions under which initial opacity paired with an endogenous change towards transparency (characterized by the relative ease or possibility of evaluation) maximizes the overall number of substantive adoptions. We show that the hypocritical adoption of formal policies might prove instable and yield long-term institutional consequences, not only because of instability of decoupling within a single organization, but also because of sequence and endogeneity effects at the institutional field level. We illustrate our arguments by drawing on the case of corporate responsibility, one the most prominent global management practices. Overall, this paper contributes to the development of a general theory of diffusion and decoupling by formalizing the mutual constitution of a specific evaluation regime (opacity/transparency) and the behavioral disposition of organizations to adopt and eventually implement a policy (ceremonial adoption/substantive adoption).
    Original languageEnglish
    Publication date2013
    Number of pages34
    Publication statusPublished - 2013
    Event75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013 - Julius-Maximilians-Universität, Würzburg, Germany
    Duration: 23 May 201325 May 2013
    Conference number: 75
    http://www.bwl2013.de/home/

    Conference

    Conference75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013
    Number75
    LocationJulius-Maximilians-Universität
    CountryGermany
    CityWürzburg
    Period23/05/201325/05/2013
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Cite this

    Haack, P., Martignoni, D., & Schoeneborn, D. (2013). Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization: A Markov Model. Paper presented at 75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013, Würzburg, Germany.
    Haack, Patrick ; Martignoni, Dirk ; Schoeneborn, Dennis . / Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization : A Markov Model. Paper presented at 75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013, Würzburg, Germany.34 p.
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    Haack, P, Martignoni, D & Schoeneborn, D 2013, 'Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization: A Markov Model' Paper presented at, Würzburg, Germany, 23/05/2013 - 25/05/2013, .

    Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization : A Markov Model. / Haack, Patrick; Martignoni, Dirk ; Schoeneborn, Dennis .

    2013. Paper presented at 75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013, Würzburg, Germany.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization

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    AU - Haack, Patrick

    AU - Martignoni, Dirk

    AU - Schoeneborn, Dennis

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    N2 - Organizations adopt formal policies often ceremonially, meaning that policy adoption is not substantive and lacks alignment with actual practice. Prior research in institutional theory has largely assumed as static view of adoption and suggests that a situation of opacity (characterized by the difficulty or impossibility of evaluation) stabilizes ceremonial adoption and thus impedes substantive adoption. This paper offers a dynamic view of adoption sequences and re-examines the role of opacity in promoting substantive adoption among multiple organizations within a given industry. Using a three-state Markov chain model, we explore the boundary conditions under which initial opacity paired with an endogenous change towards transparency (characterized by the relative ease or possibility of evaluation) maximizes the overall number of substantive adoptions. We show that the hypocritical adoption of formal policies might prove instable and yield long-term institutional consequences, not only because of instability of decoupling within a single organization, but also because of sequence and endogeneity effects at the institutional field level. We illustrate our arguments by drawing on the case of corporate responsibility, one the most prominent global management practices. Overall, this paper contributes to the development of a general theory of diffusion and decoupling by formalizing the mutual constitution of a specific evaluation regime (opacity/transparency) and the behavioral disposition of organizations to adopt and eventually implement a policy (ceremonial adoption/substantive adoption).

    AB - Organizations adopt formal policies often ceremonially, meaning that policy adoption is not substantive and lacks alignment with actual practice. Prior research in institutional theory has largely assumed as static view of adoption and suggests that a situation of opacity (characterized by the difficulty or impossibility of evaluation) stabilizes ceremonial adoption and thus impedes substantive adoption. This paper offers a dynamic view of adoption sequences and re-examines the role of opacity in promoting substantive adoption among multiple organizations within a given industry. Using a three-state Markov chain model, we explore the boundary conditions under which initial opacity paired with an endogenous change towards transparency (characterized by the relative ease or possibility of evaluation) maximizes the overall number of substantive adoptions. We show that the hypocritical adoption of formal policies might prove instable and yield long-term institutional consequences, not only because of instability of decoupling within a single organization, but also because of sequence and endogeneity effects at the institutional field level. We illustrate our arguments by drawing on the case of corporate responsibility, one the most prominent global management practices. Overall, this paper contributes to the development of a general theory of diffusion and decoupling by formalizing the mutual constitution of a specific evaluation regime (opacity/transparency) and the behavioral disposition of organizations to adopt and eventually implement a policy (ceremonial adoption/substantive adoption).

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    Haack P, Martignoni D, Schoeneborn D. Exploring the Dynamics of Decoupling and Recoupling in Corporate Responsibility Standardization: A Markov Model. 2013. Paper presented at 75. Wissenschaftliche Jahrestagung Verband der Hochschullehrer für Betriebswirtschaft (VHB). 2013, Würzburg, Germany.