From the eyes of change: Writing macro organizational shifts into theories of organization Masoud...

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From the eyes of change:

Writing macro organizational shifts

into theories of organization

Masoud Shadnam

July 2015

Folk Reputation of Theory

Theory• Theory versus Practical• “There is nothing so practical as a good theory”

Kurt Lewin

• Theory versus Empirical• Theory is not free-floating products of imagination;

rather, it is closely intertwined with the empirical

• “organization theory as the queen of the social sciences, uniquely able to explain the dominant social structures of our times”

Davis & Marquis, 2005

Theories of organization

• Contingency theories• Economic theories: Transaction-cost; Agency

theory• Resource-based theories• Institutional theories• Ecological theories

These theories have all been developed during 1960s and 1970s!

Awareness and Response

• “… organizational research can sometimes appear like a living museum of the 1970s”

Gerald F. Davis, 2010

• Academy of Management Review (AMR) published a special topic forum on “Where are the new theories of organization?”

April 2011

• Several articles since then have provided plenty of proposals to break out of the deadlock

This is the conversation to which I aim to contribute

Post-positivism• “all scientific development is a two-tiered

process, propelled as much by theoretical as by empirical argument”

Alexander, 1982: 30

• Theorizing as two performative acts:o Reading the external reality as a text from the eyes of

existing theorieso Writing theories as a text for a specific audience, mostly for

academics in the same field

Two Models for Developing New Theories of

Organization• The current suggestions fall under the following

two models:

Theories New Theorie

s

New Organization

al Reality

Organization

al Reality

Time

Rereading

WritingTheories New

Theories

New Organization

al Reality

Organization

al Reality

Time

Reading Writing

Model 1 Model 2

An Alternative Model• Our proposed model:

Theories New Theorie

s

New Organization

al Reality

Organization

al Reality

Time

Reading Writing

Model 3

Macro Organizational

Shift

Historical Examples• Although the proposed third model is an unusual,

marginal practice in today organization studies, it has historically been used to develop many of the renowned theories in social sciences

Economic and Social Theories

Marxist Theorie

s

New RealityReality

Time

Reading Writing

Marx

Capitalism

Social and Political Theories

Weberian

Theories

New RealityReality

Time

Reading Writing

Weber

Modernity

Examples in Organization Research

Theories New Theorie

s

New Organization

al Reality

Organization

al Reality

Time

Reading Writing

Agency Theory

Separation of ownership and

control

Theories New Theorie

s

New Organization

al Reality

Organization

al Reality

Time

Reading Writing

Institutional Theory

Domination of rationalized

myths

Comparison between Models

Model 1 Model 2 Model 3

Object of reading

Theories Present organizational reality

Shifts of organizational reality

Object of writing

Non-empirical refinements of past theories

Empirical refinements of past theories

New theories (transformed from past theories)

Connection of new theories with the external reality

Weak Strong Strong

Reception of new theories in the academic community

Easy Hard Easy

Illustration: Textualization

• Organizational members are expected to engage in producing, disseminating, and consuming myriad texts, both spoken and written, in a manner far beyond the traditional boundaries of their jobo Regimes of participative management with several kinds

of talks and meetings to reflect upon the work and suggest adjustments or changes in the work processes

o Empowered employees and self-managing teams that screen and digest large amounts of readily available text on internet and intranets in search of solutions to their problems

o Open communication with others who are not necessarily your coworkers regarding your concerns, issues, opinions, and suggestions

Institutional Theory• Explaining the dynamics of organizational forms through

embedding the organizations in an institutional contexto Rather than explaining through the more customary examinations of the

managers’ objectives, beliefs, styles, motivations, and their conscious decision making process

• It showed how seemingly rational decisions of smart top executives can be predicted by stepping back and looking at the myths and meanings in their institutional environment

• This theory could very well describe the organizational reality of its time, which was observed as organizations operating in the same field over time become structurally similar (isomorphism)

Writing Textualization into Institutional

Theory• All the continuous textualizing that oblige organizational

members to constantly reflect upon processes and structures and courageously try out alternatives has led organizational forms to become highly unstable, fluid, and flexible

• The access of organizational members to the world of meanings is no longer primarily through interactions with actors in the same field; rather, it is through their access to numerous texts of various sorts from diverse geographical and historical sources => Isomorphism is increasingly giving way to variation and heterogeneity

• Access to a way larger pool of texts has heterogenized the sources of rationality and legitimacy

Toward a New Theory• Textualization has changed patterns of

communication, which in turn have changed patterns of the social processes that constitute organizational reality

• The new theory has to highlighto Textualizing and silencing practiceso Distribution channels of textso The ways that texts influence other texts

Conclusion• A red flag about the stagnation of organization

studies with respect to shortage of new theories

• The proposals that have been suggested in response to this red flag are categorized into two models

• I articulated a third model with promising potentials to complement the other two models

• The core idea of the third model: Reading shifts of the organizational reality and writing them into existing theories of organization