Strategy doctoral ppt 4
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04/10/2023 Akshay S Bhat, XLRI Jamshedpur 1
CHANGE AGENTS, NETWORKS, AND
INSTITUTIONS:A CONTINGENCY
THEORY OF ORGANIZATIONAL
CHANGE
Paper Review by Akshay S. Bhat, XLRI
Academy of Management Journal2012, Vol. 55, No. 2, 381–398.
04/10/2023 Akshay S Bhat, XLRI Jamshedpur 2
Abstract
Development of a contingency theory for how structural
closure in a network
terms of the extent to which an actor’s network contacts are connected to
one another,
affects the initiation and adoption of
change in organizations
68 organizational change initiatives undertaken in the United Kingdom’s National Health
Service were analyzed
Structural holes aid more divergent changes, Hinder Less divergent
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Introduction
Political Nature of Organizations
Organizational Changes require premeditated changes
Change Implementation Social Influence Exercise
Change : attitude/behaviour of one due to acts of another
Studied : challenges of Change Implementation
Not Studied : Characteristics of Change Implementation affectIn Organizations
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Organizational Change - DOC• One dimension of variation : Extent to which they break with existing
institutions• Existing Institutions are defined as patterns that taken for granted actors
perceive them as the only possible ways of acting and organizing• Divergent Organizational Changes : Move away from the status quo (very
challenging)• Iconoclastic
“They require change agents to distance themselves from their existing institutions and persuade other organization members to adopt practices that not only are new, but also break with the norms of their institutional environnent (Battilana, Leca, & Boxenbaum,2009; Greenwood & Hinings, 1996; Kellogg,2011)”
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Article Need
• Examinations of conditions• Change agents are able to influence other organization
members• For adoptions of changes with different degrees of
divergence from the institutional status quo• Key resource : Informal Network
“we focus on how change agents’ positions in such networks affect their success in initiating and implementing organizational change”
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Network Research
• Structural Closure (degree to which an actors network contacts are connected to on another)
• SC has important implications for– Generating Novel Ideas– Exercising Social Influence
• High SC : More cohesiveness• Low SC : Creation of structural holes and brokerage
potential• Higher Structural Holes more novel ideas• But studies contradict : Whether High or Low network
closure favour change adoption
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Illustration
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Motivation
• Reconcile findings by developing a contingency theory
• Will examine the role of network closure in the initiation and adoption of Organizational Change
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Network Closure and Divergent Organizational Change
• In order to survive, organizations must convince the public of their legitimacy (Meyer & Rowan, 1977) by conforming, at least in appearance, to the prevailing institutions that define how things are done in their environment
• Forces them to adopt a set of practices• Organizations facing same institutional pressures tend to adopt similar
practices• Motivation exists to adopt changes that do not affect the organizations
alignment with existing institutions• Not all changes will be convergent with the status quo• The variability in the degree of divergence of organizational changes poses
two questions: (1) what accounts for the likelihood that an organization member will initiate a change that diverges from the institutional status quo and (2) what explains the ability of a change agent to persuade other organization members to adopt such a change.
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Network Closure and Divergent Organizational Change
Studies have focused on the change agents formal position in the initiation of divergent change
And position in the social networks
Network Positions should affect the ability of the individual
to
• Initiate divergent changes
• Persuade others
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Network Closure and Divergent Organizational Change
• Divergent Schools of thought promulgate the there exists a –ve influence between network closure and generation of new ideas
• Occupying a hole rich network : non redundant information, more creative ideas
“creativity is more likely to be engendered by exposure to non-redundant than to repetitious information. As for normative pressure, network cohesion not only limits the amount of novel information that reaches actors, but also pressures them to conform to the modus operandi and norms of the social groups in which they are embedded”
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And therefore Hypothesis 1
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Network Closure and Divergent Organizational Change
• Degree of closure affects the adoption of organizational changes• Brokerage opportunities may aid adaptive implementation : Ability to carry out
projects and take advantage of opportunities from the ability to detect opportunities• But it may help change initiation (incoming benefits) rather than change adoption
(outgoing benefits) #Structural Holes• Benefits can then be classified as structural reach and tailoring• Reach concerns a change agent’s social contact with the constituencies that a change
project would affect, information about the needs and wants of these constituencies, and information about how best to communicate how the project will benefit them.
• Tailoring refers to a change agent’s control over when and how to use available information to persuade diverse audiences to mobilize their resources in support of a change project.
• Being the only connection among otherwise disconnected others, brokers can tailor their use of information and their image in accordance with each network contact’s preferences and requirements
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Network Closure and Divergent Organizational Change
• Refer page 383 ~ 384 (Last para to first para)• Organizations are political arenas• Not only imp to decide who but when and
how are also important aspects concerning involvement
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Hypothesis 2. The more a change diverges fromthe institutional status quo, the more closure in
a change agent’s network of contacts diminishesthe likelihood of change adoption.
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Methodology
• Quantitative and Qualitative Study• 68 Change initiatives in UK’s NHS• 600 Organizations – Administrative Units– Primary Care Service– Secondary Care Service
• Aim of NHS was to provide free health care
• NHS was highly institutionalized• Professional groups role division
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Sample
• Focal point of study was variability in divergence and adoption of organizational change initiatives, population germane to the study was self appointed change agents
• Self driven and motivated actors• 68 clinical managers who initiated and attempted to
implement change initiatives out of 95 (27 chose not to respond)
• 35~65 yr old, mid to top management positions• Unpaired t tests were to control for potential non
response bias
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Procedure
• Longitudinal study for 12 months which focused on collecting demographic characteristics, formal positions, professional trajectories and social networks of change agents
• 20~40 mins taken twice, gap 12 months• Peer verification
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Dependent and Independent Variables
• Will be explained on the blackboard
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Results
• Will be explained on the blackboard
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Contributions
• Degree of variation from the status quo has impacts on adoption of change initiatives
• Synthesis of the two anti-theism schools of thought
• Articulated properly• Advanced body of work on social networks
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Drawbacks
• Ego network• Time structure• Kotter not included• Transformation of organizations is not covered