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ORGANIZATIONAL WRONGDOING AS THE “FOUNDATIONAL” GRAND CHALLENGE

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RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS

Series Editor: Michael Lounsbury

Recent Volumes:

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RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS ADVISORY BOARD

Series Editor

• Michael Lounsbury

  Professor of Strategic Management & Organization

  University of Alberta School of Business

RSO Advisory Board

• Howard E. Aldrich, University of North Carolina, USA

• Shaz Ansari, Cambridge University, UK

• Silvia Dorado Banacloche, University of Massachusetts Boston, USA

• Christine Beckman, University of Southern California, USA

• Marya Besharov, Oxford University, UK

• Eva Boxenbaum, Copenhagen Business School, Denmark

• Ed Carberry, University of Massachusetts Boston, USA

• Lisa Cohen, McGill University, Canada

• Jeannette Colyvas, Northwestern University, USA

• Erica Coslor, University of Melbourne, Australia

• Gerald F. Davis, University of Michigan, USA

• Rich Dejordy, California State University, USA

• Rodolphe Durand, HEC Paris, France

• Fabrizio Ferraro, IESE Business School, Spain

• Peer Fiss, University of Southern California, USA

• Mary Ann Glynn, Boston College, USA

• Nina Granqvist, Aalto University School of Business, Finland

• Royston Greenwood, University of Alberta, Canada & University of Edinburgh, UK

• Stine Grodal, Northeastern University, USA

• Markus A. Hoellerer, University of New South Wales, Australia

• Ruthanne Huising, emlyon business school, France

• Candace Jones, University of Edinburgh, UK

• Sarah Kaplan, University of Toronto, Canada

• Brayden G. King, Northwestern University, USA

• Matthew S. Kraatz, University of Illinois at Urbana-Champaign, USA

• Tom Lawrence, Oxford University, UK

• Xiaowei Rose Luo, Insead, France

• Johanna Mair, Hertie School, Germany

• Christopher Marquis, Cambridge University, UK

• Renate Meyer, Vienna University, Austria

• William Ocasio, University of Illinois at Urbana-Champaign, USA

• Nelson Phillips, University of California at Santa Barbara, USA

• Prateek Raj, Indian Institute of Management Bangalore, India

• Marc Schneiberg, Reed College, USA

• Marc-David Seidel, University of British Columbia, Canada

• Paul Spee, University of Queensland, Australia

• Paul Tracey, Cambridge University, UK

• Kerstin Sahlin, Uppsala University, Sweden

• Sarah Soule, Stanford University, USA

• Eero Vaara, University of Oxford, UK

• Marc Ventresca, University of Oxford, UK

• Maxim Voronov, York University, Canada

• Filippo Carlo Wezel, USI Lugano, Switzerland

• Melissa Wooten, Rutgers University, USA

• April Wright, University of Queensland, Australia

• Meng Zhao, Nanyang Business School & Renmin University, China

• Enying Zheng, Peking University, China

• Tammar B. Zilber, Hebrew University of Jerusalem, Israel

Title Page

RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS - VOLUME 84

ORGANIZATIONAL WRONGDOING AS THE “FOUNDATIONAL” GRAND CHALLENGE: DEFINITIONS AND ANTECEDENTS

Edited by

CLAUDIA GABBIONETA

University of York, UK

MARCO CLEMENTE

ZHAW School of Management and Law, Switzerland

and

ROYSTON GREENWOOD

University of Alberta, Canada & University of Edinburgh, UK

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2023

Editorial matter and selection © 2023 Claudia Gabbioneta, Marco Clemente and Royston Greenwood.

Individual chapters © 2023 The authors.

Published under exclusive licence by Emerald Publishing Limited.

Reprints and permissions service

Contact: permissions@emeraldinsight.com

No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-83753-279-7 (Print)

ISBN: 978-1-83753-278-0 (Online)

ISBN: 978-1-83753-280-3 (Epub)

ISSN: 0733-558X (Series)

Contents

List of Figures and Tables

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Chapter 10

Chapter 11

About the Editors

Claudia Gabbioneta holds a Chair in Accounting and Management at the School for Business and Society at University of York. Her research interests include professions, organizational wrongdoing, and professional misconduct. Her work has been published in prestigious international journals, such as Accounting, Organizations and Society, Human Relations, Work, Employment and Society, and Research in the Sociology of Organizations. She is a Senior Editor of Organization Studies and sits in the Editorial Board of the Journal of Management Studies and the Journal of Strategic Contracting and Negotiation. She has organized several PDW at the Academy of Management and EGOS on organizational wrongdoing and corporate scandals and was an invited panelist at the sub-panel on organizational wrongdoing at the 2019 EGOS colloquium.

Marco Clemente is a Professor of Management and Sustainability, Head of Research Center at the ZHAW, School of Management and Law. His research interests include business ethics, sustainability, organizational misconduct, and corporate scandals. He has analyzed a variety of contexts, including automotive, advertising, and sports. He has published in leading academic journals, including the Academy of Management Review, Journal of Management Inquiry, and Research in the Sociology of Organizations. He has organized several PDWs at the Academy of Management and EGOS on organizational wrongdoing and corporate scandals.

Royston Greenwood graduated from the University of Birmingham in the UK. He is Professor Emeritus at the University of Alberta, and Professorial Fellow at the University of Edinburgh. He is a Fellow of the Academy of Management, Honorary Member of the European Group for Organization Studies, and Fellow of the Royal Society of Canada. His research interests include organizational and institutional change from an institutional perspective. His research has been published in various journals including the Administrative Science Quarterly, Academy of Management Journal, Academy of Management Review, and the Academy of Management Annals. He is a former chair of the OMT Division of the Academy of Management, and former editor of the Academy of Management Annals.

About the Contributors

John Amis, Professor, holds the position of Chair in Strategic Management & Organisation at the University of Edinburgh where he is also the Head of the Strategy Group and Co-Director of the Centre for Strategic Leadership. His research, largely centering on issues of organizational, institutional, and societal change, has been published in leading journals that include Academy of Management Review, Academy of Management Journal, Academy of Management Annals, American Journal of Public Health, Human Relations, Journal of Management Studies, Organization Science, and Organization Studies. He is an Associate Editor at Academy of Management Review and sits on several editorial boards. He is a former Chair of the Organization Development & Change division of the Academy of Management. In 2022, he won the Best Published Paper Award from the Organization & Management Theory Division of the Academy of Management and has twice been runner-up for the annual Academy of Management Journal’s Best Paper Award.

Meena Andiappan is an Assistant Professor of Management & Organization at the Institute of Health Policy, Management and Evaluation, University of Toronto. She was previously an Associate Professor of Organizational Behavior at Montpellier Business School, France. She received her doctorate in Organization Studies from Boston College. Her work has been published in Academy of Management Review, Health Services Management Research, Organizational Behavior and Human Decision Processes, Journal of Applied Psychology, Journal of Business Ethics, and PLOS One, amongst other outlets. Her research focuses on the intersections of ethics, emotions, AI, and health. Her current projects include theoretical studies on healthcare workers’ moral emotions; quantitative work on jealousy, envy, and ostracism; longitudinal qualitative work on misconduct evolution; the effects on necessary evil enactment on healthcare workers; and attitudes toward AI in the workplace. She is a phenomenon-driven researcher.

Elena Antonacopoulou PhD is a Professor of Organizational Behavior and Strategy at Ivey Business School, Canada. Her principal research expertise is in The Future of Work, Organisational Learning and Strategic Resilience and Renewal, with a focus on the Leadership implications that foster human flourishing. She is published widely in international refereed journals and edited books (over 100 publications) as well as policy reports. Her practice-relevant scholarship has earned her many research grants, awards, and accolades recognizing the impact of the ideas developed. She has been elected and served in multiple leadership roles in the top professional bodies in the management field and has received several awards for her outstanding leadership and service contributions and teaching excellence. ORCID: 0000-0002-0872-7883 https://www.linkedin.com/in/elena-p-antonacopoulou-a179013/

Regina F. Bento is a Professor of Management at the University of Baltimore, where she holds the BGE Distinguished Chair of Business. Originally trained as a psychiatrist (MD, Federal University of Rio de Janeiro-UFRJ), her interest in decision-making led to an MS in management (COPPEAD, UFRJ), and doctoral studies at Harvard and MIT (PhD Sloan School of Management, MIT, 1990). She has served as the Chair of the Academy’s MED Division, and spent sabbaticals as a Visiting Professor at MIT’s Sloan School and an Associate Director of the Christensen Center at Harvard Business School.

Giulia Cappellaro is an Assistant Professor at the Department of Social and Political Sciences at Bocconi University. She received her PhD in Management from the University of Cambridge. Her research studies dynamics of collaboration and change in sectors of public interest, in contexts characterized by ambiguous or competing pressures. Her work is published in scholarly outlets such as Academy of Management Journal, Organization Science, Cambridge University Press, and Public Administration.

Amelia Compagni is an Associate Professor in the Department of Social and Political Sciences at Bocconi University. She received her PhD from the University of Vienna and a Master from Bocconi. Her research focuses on the interplay between fields and organizations when issues of social relevance are at stake, and how this reflects on organizational members’ discourse and practices.

Trevor Coppins is a PhD candidate in Industrial/Organizational (I/O) Psychology at Western University, London, Ontario, Canada. Trevor’s research is focused on how multiple identities can be accurately measured and relate to a variety of job attitudes and behaviors. Trevor also currently consults in the HR tech industry on the science of employee/organizational development.

Yasir Dewan is an Assistant Professor of Strategy and Business Policy at HEC Paris. He received his PhD in Organization and Strategy from Tilburg University, The Netherlands. His research focuses on social status, political ideology, and corporate scandals.

Lucas Dufour, Phd ESSEC-IAE Aix-en-Provence, is currently an Assistant Professor in Organizational Behavior at the Ted Rogers School of Management at Toronto Metropolitan University. After having completed his post-doctoral work at MIT and Boston College, he worked for 10 years in France as an Assistant then Associate Professor of Organizational Behavior at Montpellier business school, and then 3 years in Canada at University of Toronto and at University of Windsor. His main domains of expertise are creativity/innovation, the socialization of newcomers but also ethics and emotions. He has published several peer-reviewed articles in outlets such as Academy of Management Review, Organization Science, Organizational Behavior and Human Decision Processes, Journal of Management Studies, Journal of Organizational Behavior, and Journal of Business Ethics, and has co-authored three books.

Michel Ehrenhard is an Associate Professor of Strategic Entrepreneurship at the Department of Hightech Business & Entrepreneurship, University of Twente. He studies entrepreneurial strategies for responsible organizing, especially where technology is an enabler for change and/or a market opportunity. Examples are risks associated with mission drift caused by algorithmic decision making, opportunity recognition for sustainable nanotechnology, and impact measurement of a rural services platform.

Laura Fey is a PhD student in the Strategy Group at the University of Edinburgh Business School. She holds a University of Edinburgh Business School scholarship and an ESRC scholarship from the Scottish Graduate School of Social Science. Her research is mainly focused on organizational design and change. She is the current doctoral representative at large for the Organizational Development & Change division of the Academy of Management. In 2022, she was nominated for the best symposium award in the Organizational Management Theory Division of the Academy of Management.

Timo Fiorito is a Postdoctoral Researcher at the Department of Organization Sciences, Vrije Universiteit Amsterdam (VU). His research deals with corporate responsibility and misconduct, organizational institutionalism, governance, values, and related institutional processes.

Jerayr Haleblian is a Professor at the University of California-Riverside. He received his PhD from the University of Southern California. His research focuses on strategic decisions and their performance outcomes in the contexts of mergers and acquisitions and strategic leadership.

Przemysław G. Hensel is a Professor of Management at the University of Warsaw, Faculty of Management. He was a Senior Fulbright Scholar at Stanford University. His research interests focus on the integrity, transparency, and replicability of management research. He currently studies trust toward scientists and threats to external validity in management and organization studies, while he is also interested in IT-related forms of organizational misconduct.

Richard Hoff is a University Lecturer of Compliance, Integrity and Supervision at the Vrije Universiteit Amsterdam (VU). His core topics are regulation, supervision, and enforcement.

Michael Jensen is a Professor of Strategy at Stephen M. Ross School of Business, University of Michigan and an International Research Fellow at Oxford University Centre for Corporate Reputation. He received his PhD in Management and Organizations from Northwestern University. His research focuses on the role of social structures in markets with a particular emphasis on status, reputation, and identity.

Julien Jourdan is an Associate Professor of Management at HEC Paris and a Fellow at Imperial College London. He received his PhD in Strategic Management from HEC Paris. His research explores social evaluations and their implications for organizational strategy and governance.

Eve Lamargot is an Assistant Professor at the Lazaridis School of Business & Economics at Wilfrid Laurier University in Waterloo, Canada. She holds a PhD in Management Control from HEC Montréal and two master’s degrees from French business schools. Her recent publications and current projects focus on the cognitive, individual, and social underpinnings as well as impacts of managerial accounting systems and practices used for performance management and accountability. She has a special interest in hybrid organizations. She is also a passionate managerial accounting educator.

Esther R. Maier earned her PhD from the Ivey Business School at the University of Western Ontario and is currently an Associate Professor at the Lazaridis School of Business & Economics at Wilfrid Laurier University in Waterloo, Canada. Her research explores the unfolding nature of collective processes in complex organizational and institutional environments. Her current research explores environmental, social, and governance issue with a particular focus on corporate wrongdoing. Her work has been published in Perspectives on Process Organization Studies, Management Accounting Research, and Journal of Cultural Economy.

Piotr T. Makowski is a Professor of Management and Philosophy at the University of Warsaw, Poland. He was a Senior Fulbright Scholar at University of California, Davis and Kosciuszko Visiting Professor at University of California, Riverside. Published his research inter alia in Academy of Management Review, Technological Forecasting and Social Change and Palgrave Macmillan. He researches management and philosophy, focusing on Theory building, Philosophy of Science, and Strategy.

Ivana Naumovska is an Assistant Professor at INSEAD. Her research focuses on the antecedents and consequences of practices that are either illegal or counter-normative specifically (a) corporate misconduct and (b) controversial practices, focusing on capital markets. She received a PhD in Management and Finance from Erasmus University.

Lionel Paolella is an Associate Professor of Strategy and Organization at the Cambridge Judge Business School, University of Cambridge, and affiliated with the Center on the Legal Profession at Harvard Law School. He received his PhD from HEC Paris. His main line of work explores the categorization processes in markets as well as diversity in organizations.

Rasmus Pichler is a PhD candidate in Strategic Management at the University of Cambridge, Judge Business School and incoming Assistant Professor in Organization Theory at Erasmus University, Rotterdam School of Management. His research focuses on organizational wrongdoing and its social construction, the social evaluation of corporations, and the interplay of top management with corporate governance.

Alexandru V. Roman is an Assistant Professor at CSULA. He received his PhD from the University of California Riverside. His research falls at the intersection of strategy and grand social issues.

Thomas J. Roulet is an Associate Professor in Organisation Theory at the Cambridge Judge Business School, and the Co-Director of the King’s Entrepreneurship Lab, King’s College, University of Cambridge. His work on social evaluations, deviance, and institutions has been published in the Academy of Management Journal, the Academy of Management Review or Organization Science among other. His latest book The Power of Being Divisive: Understanding Negative Social Evaluations was the runner up for the AOM Terry award in 2021.

Eero Vaara is a Professor in Organisations and Impact at Saïd Business School at University of Oxford. He also serves as Visiting Distinguished Professor at Aalto University. His research focuses on strategic and institutional change, which he examines primarily from discursive and historical perspectives. He has served in editorial roles (e.g., AE in AMJ) and in leadership positions in international societies and associations (e.g., GOS, AOM, EIASM). He is an Academy of Management Fellow and a lifetime member in the Finnish Academy of Sciences and Letters and the Finnish Society of Sciences and Letters.

Johanna Weststar is an Associate Professor in the DAN Department of Management and Organizational Studies at Western University, London, Ontario, Canada. She is cross-appointed to the I/O Psychology area at Western and also affiliated with the Department of Gender, Sexuality, and Women’s Studies. She specializes in labor and employment relations. Her primary area of research is the video game industry where she is interested in issues of workplace citizenship, representation and unionization, working conditions and the labor process, project management and occupational identity. She has also published research on workplace learning among computer programmers, labor representation on pension boards, pregnancy leave policies, industrial relations climate, and underemployment. She is a Past President of the Canadian Industrial Relations Association (CIRA), a member of the International Labour and Employment Relations Association (ILERA) Executive Committee and the Acting President of the Editorial Committee of the Canadian employment relations journal Relations Industrielles/Industrial Relations. She is also a member of the Interuniversity Research Centre on Globalization and Work (CRIMT).

Lourdes F. White is a Professor of Accounting at the Merrick School of Business at the University of Baltimore. She graduated with a doctorate in business from Harvard University with a specialization in management accounting and control systems. Her research interests are in performance measurement, risk management, corporate social responsibility, ethics, and sustainability. Prior to her academic career, she worked as an auditor for the City of Rio de Janeiro, Brazil.

List of Contributors

Foreword

Research in the Sociology of Organizations (RSO) publishes cutting edge empirical research and theoretical papers that seek to enhance our understanding of organizations and organizing as pervasive and fundamental aspects of society and economy. We seek provocative papers that push the frontiers of current conversations, that help to revive old ones, or that incubate and develop new perspectives. Given its successes in this regard, RSO has become an impactful and indispensable fount of knowledge for scholars interested in organizational phenomena and theories. RSO is indexed and ranks highly in Scopus/SCImago as well as in the Academic Journal Guide published by the Chartered Association of Business schools.

As one of the most vibrant areas in the social sciences, the sociology of organizations engages a plurality of empirical and theoretical approaches to enhance our understanding of the varied imperatives and challenges that these organizations and their organizers face. Of course, there is a diversity of formal and informal organizations – from for-profit entities to non-profits, state and public agencies, social enterprises, communal forms of organizing, non-governmental associations, trade associations, publicly traded, family owned and managed, private firms – the list goes on! Organizations, moreover, can vary dramatically in size from small entrepreneurial ventures to large multi-national conglomerates to international governing bodies such as the United Nations.

Empirical topics addressed by Research in the Sociology of Organizations include: the formation, survival, and growth or organizations; collaboration and competition between organizations; the accumulation and management of resources and legitimacy; and how organizations or organizing efforts cope with a multitude of internal and external challenges and pressures. Particular interest is growing in the complexities of contemporary organizations as they cope with changing social expectations and as they seek to address societal problems related to corporate social responsibility, inequality, corruption and wrongdoing, and the challenge of new technologies. As a result, levels of analysis reach from the individual, to the organization, industry, community and field, and even the nation-state or world society. Much research is multi-level and embraces both qualitative and quantitative forms of data.

Diverse theory is employed or constructed to enhance our understanding of these topics. While anchored in the discipline of sociology and the field of management, Research in the Sociology of Organizations also welcomes theoretical engagement that draws on other disciplinary conversations – such as those in political science or economics, as well as work from diverse philosophical traditions. RSO scholarship has helped push forward a plethora theoretical conversations on institutions and institutional change, networks, practice, culture, power, inequality, social movements, categories, routines, organization design and change, configurational dynamics, and many other topics.

Each volume of Research in the Sociology of Organizations tends to be thematically focused on a particular empirical phenomenon (e.g., creative industries, multinational corporations, entrepreneurship) or theoretical conversation (e.g., institutional logics, actors and agency, microfoundations). The series publishes papers by junior as well as leading international scholars, and embraces diversity on all dimensions. If you are scholar interested in organizations or organizing, I hope you find Research in the Sociology of Organizations to be an invaluable resource as you develop your work.

Professor Michael Lounsbury

Series Editor, Research in the Sociology of Organizations

Canada Research Chair in Entrepreneurship & Innovation

University of Alberta