Legitimacy Maintenance After a Corporate Social Irresponsibility Scandal: Lessons From The Parmalat Case

From the organizations’ perspective, maintaining legitimacy in such contexts has been considered relatively unproblematic (Patriotta, 2011; Scherer et al., 2013) as it entails following adaptive strategies and conforming substantially (or even merely symbolically) to the dominant institutional logics (Suchman, 1995; Elsbach, 1994; Scherer et al., 2013). 3 Nonetheless, whilst the implementation of a adaptive strategy to maintain the corporation with its main audiences is a necessary phase, it cannot be considered sufficient to assure the maintenance of audience support. Audiences evaluate competitive advantage and other sources of reassurance that supporting the company is worthwhile from a rational perspective. This restoration process may be complemented by the corporations’ power over resource dependent audiences. Independent audience decisions are based on the competitive advantage of firm in each business. When their are untouched, the adaptive strategy leads to audience support and successful business rehabilitation processes with all audiences, even with those that were initially harmed. However, if competitive advantage is feeble independent audiences will not sustain the weak business (or corporation) even if adaptive strategies have been implemented. The presence of an unharmed competitive strategy is crucial to the selection of which parts of an organization (or the organization as a whole) can be reintegrated with all the main audiences of the company after a CSI scandal, including the “harmed” audience. The richness of the empirical setting allows us to highlight that a significant difference between firm characteristics that plays a crucial role in determining the reactions of the main constituent audiences and, consequently, the possibility for maintain the legitimacy. The post-crisis turnaround processes to succeed is the possession of sound source(s) of competitive advantage in one (or more) of the business(es) in which the firms operates

Contesti istituzionali e sviluppo d'impresa: un approccio economico-manageriale

Dottorato di ricerca in economia aziendale. 12. ciclo. A.a. 1998-99. Tutore Carlo Dominici. Coordinatore Carmelo Butta'Consiglio Nazionale delle Ricerche - Biblioteca Centrale - P.le Aldo Moro, 7, Rome; Biblioteca Nazionale Centrale - P.za Cavalleggeri, 1, Florence / CNR - Consiglio Nazionale delle RichercheSIGLEITItal

Structural and Knowledge Dynamics in Inter-firm Complex Systems

The paper aims to scrutinize the drivers of interfirm network structural dynamics and their influence on knowledge creation and diffusion over time. Interfirm knowledge networks are complex webs of linkages connecting a variety of idiosyncratic firms within and across industries. By serving as conduits through which information, knowledge and other resources flow and reputations are signaled (Poldony, 2001; Owen-Smith & Powell, 2004), they support cooperation in knowledge sharing and creation processes

Structural Dynamics of Interfirm Knowledge Networks

In this chapter, we investigate the drivers of interfirm network structural dynamics and their influence on knowledge creation and diffusion processes that occur in such networks over time. Interfirm knowledge networks are complex webs of linkages connecting a variety of idiosyncratic firms within and across industries. Aimed to contribute to answer the recent calls for a more dynamic and multilevel view to understand network structures and processes, we leverage the complex network research to formulate a multilevel theoretical framework that clarifies the structural dynamics and knowledge creation and diffusion potential of interfirm networks

Learning to synthesise contradictions: an Austrian approach to bridging time concepts in the strategic theory of the firm

Moving from an inquiry on the notions of time underlying strategy studies, in this paper we lay the groundwork for the elaboration of a multitemporal view of the firm. We draw on the Austrian process view in economic studies and on Nonaka's idea of synthesising capabilities to formulate a methodological framework which consents the elaboration of a multitemporal view of the resource-based firm, in which different time concepts are bridged and main actor behaviours crucial for prolonged firm success are encompassed. We then show how the multitemporal view of the firm which emerges from the deployment of the integration of the Austrian and Nonakian approaches consents the reinterpretation and maintenance of the concepts elaborated within both the static and the dynamic strategy literature and, eventually, also to expand our understanding of the causal relationships between strategic management and a number of other areas of inquiry in the management field