Opportunism, hold-up and the (contractual) theory of the firm

This paper considers the role of opportunism in three contractual theories of the firm: rent-seeking theory, property rights theory, and agency theory. In each case I examine whether it is possible to have a functioning contractual theory of the firm without recourse to opportunism. Without opportunism firms may still exist as a result of issues arising from (incomplete) contracting. Far from posing a problem for the theory of the firm, questioning the role of opportunism and the ubiquity of the hold-up problem helps us understand more about the purpose and functions of contracts which go beyond mere incentive alignment.

An institutional perspective on management accounting change in the public sector : a case study from Canada

This thesis reports on a four-year field study conducted at the Saskatchewan regional office of the Department of Indian Affairs and Northern Development, a large department of the Government of Canada. Over the course of the study, a sweeping government-wide accounting reform took place entitled the Financial Information Strategy. An ethnographic study was conducted that documented the management accounting processes in place at the regional office prior to the Financial Information Strategy reform, the organization’s adoption of the new accounting system associated with this initiative, and the state of the organization’s management accounting system once the implementation was complete. This research, therefore, captures in detail a management accounting change process in a public sector organization. This study employs an interpretive perspective and draws on institution theory as a theoretical framework. The concept of loose coupling and insights from the literature on professions were also employed in the explanation-building process for the case. This research contributes to institution theory and the study of management accounting change by recognizing conflicting institutional forces at the organizational level. An existing Old Institutional Economics-based conceptual framework for management accounting change is advanced and improved upon through the development of a new conceptual framework that incorporates the influence of wider institutional forces, the concepts of open and closed organizational systems and loose coupling, and the recognition of varying rates of change and institutionalization of organizational activity sets. Our understanding of loose coupling is enhanced by the interpretation of institutional influences developed in this study as is the role of professionalization as a normative influence in public sector organizations.

Antecedents, mechanisms and processes of deinstitutionalization and institutional change:a case study approach to understanding enterprise under duress

Adopting a grounded theory methodology, the study describes how an event and pressure impact upon a process of deinstitutionalization and institutional change. Three case studies were theoretically sampled in relation to each other. They yielded mainly qualitative data from methods that included interviews, observations, participant observations, and document reviews. Each case consisted of a boundaried cluster of small enterprises that were not industry specific and were geographically dispersed. Overall findings describe how an event, i.e. a stimulus, causes disruption, which in turn may cause pressure. Pressure is then translated as a tension within the institutional environment, which is characterized by opposing forces that encourage institutional breakdown and institutional maintenance. Several contributions are made: Deinstitutionalization as a process is inextricable from the formation of institutions – both are needed to make sense of institutional change on a conceptual level but are also inseparable experientially in the field; stimuli are conceptually different to pressures; the historical basis of a stimulus may impact on whether pressure and institutional change occurs; pressure exists in a more dynamic capacity rather than only as a catalyst; institutional breakdown is a non-linear irregular process; ethical and survival pressures as new types were identified; institutional current, as an underpinning mechanism, influences how the tension between institutional breakdown and maintenance plays out.

The French fifth Republic as an opportunity structure:a neo-institutional and cultural approach to the study of leadership politics

The Gaullist settlement of 1958 reconfigured the political institutions of France, introducing into the republican mainstream a new form of leadership politics. Adapting the literature on political opportunity structure (POS) theory, and using the French left as a case study, can help us understand how political parties, ideology and leadership adapt to political institutions and norms. It also illuminates what the consequences are of such adaptation in the contemporary period, particularly as regards the institutionally bound roles of political 'character', protocol and discourse. The paper appraises the relevance and appropriateness of POS theory to leadership politics in France.

Ownership control of foreign affiliates:a property rights theory perspective

This paper applies property rights theory to explain changes in foreign affiliates’ ownership. Post-entry ownership change is driven by both firm-level characteristics and by the differences in the institutional environments in host countries. We distinguish between financial market development and the level of corruption as two different institutional dimensions, such that changes along these dimensions impact upon ownership change in different ways. Furthermore, we argue that changes in ownership are affected by the foreign affiliate’s relatedness with its parent’s sector, as well as by the affiliate’s maturity. We use firm level data across 125 host countries to test our hypotheses.

Organizations in time:history, theory, methods

Book review: Organizations in Time, edited by R Daniel Wadhwani and Marcelo Bucheli, Oxford University Press, 2014. The title of this edited volume is slightly misleading, as its various contributions explore the potential for more historical analysis in organization studies rather than addressing issues associated with time and organizing. Hopefully this will not distract from the important achievement of this volume—important especially for business historians—in further expanding and integrating business history into management and organization studies. The various contributions, elegantly tied together by R. Daniel Wadhwani and Marcelo Bucheli in their substantial introduction (which, by the way, presents a significant contribution in its own right), opens up new sets of questions, especially in terms of future methodological and theoretical developments in the field. This book also reflects the changing institutional location of business historians, who increasingly make their careers in business schools rather than history departments, especially in Europe, reopening old questions of history as a social science. There have been several calls to teach more history in business education, such as the Carnegie Foundation report (2011) that found undergraduate business education too narrow in focus and highlighted the need to integrate more liberal arts teaching into the curriculum. However, in the contemporary research-driven environment of business and management schools, historical understanding is unlikely to permeate the curriculum if historical analysis cannot first deliver significant theoretical contributions. This is the central theme around which this edited volume revolves, and it marks a milestone in this ongoing debate. (In the spirit of full disclosure, I should add that even though I did not contribute to this volume, I have coauthored with several of its contributors and view this book as central to my current research practice.)