Reasoning with Partial Knowledge

We investigate how sociological argumentation differs from the classical first-order logic. We focus on theories about age dependence of organizational mortality. The overall pattern of argument does not comply with the classical monotonicity principle: adding premises does not overturn conclusions in an argument. The cause of nonmonotonicity is the need to derive conclusions from partial knowledge. We identify meta-principles that appear to guide the observed sociological argumentation patterns, and we formalize a semantics to represent them. This semantics yields a new kind of logical consequence relation. We demonstrate that this new logic can reproduce the results of informal sociological theorizing and lead to new insights. It allows us to unify existing theory fragments and paves the way towards a complete classical theory

The Strawberry Growth Underneath the Nettle: the emergence of entrepreneurs in China

Chinese entrepreneurs innovatively manage organisations in the absence of strong economic institutions, under conditions of high environmental and technological uncertainty. This paper presents the findings of an empirical study designed to investigate how Chinese entrepreneurs can be successful in such an environment. We found that Chinese entrepreneurial activity relies on social institutions rather than on economic institutions. We offer a sociological theory which explains why the reliance on social institutions leads to such an unprecedented success. We conclude that the strong rule-enforcement mechanisms generate reliable behavioral patterns, and that these in turn efficiently reduce uncertainty to tolerable levels

Typecasting and legitimation : a formal theory

We develop a unifying framework to integrate two of organizational sociology’s theory fragments on categorization: typecasting and form emergence. Typecasting is a producer-level theory that considers the consequences producers face for specializing versus spanning across category boundaries. Form emergence considers the evolution of categories and how the attributes of producers entering a category shapes its likelihood of gaining legitimacy among relevant audiences. Both theory fragments emerge from the processes audiences use to assign category memberships to producers. In this paper, we develop this common foundation and clearly outline the arguments that lead to central implications of each theory. We formalize these arguments using modal expressions to represent key categorization processes and the theory-building framework developed by Hannan, Polos, and Carroll (2007). Categorization in market contexts has attracted considerable interest in recent years, spurred in large part by Zuckerman’s (1999) seminal work in capital markets. Empirical work on this subject covers a range of topics, including category emergence, proliferation, and erosion (Carroll and Swaminathan 2000; Ruef 2000; Rao, Monin, and Durand 2005; Bogaert, Boone, and Carroll 2006; Pontikes 2008), the consequences of different categorical positions and category structures for individual producers (Zuckerman and Kim 2003; Hsu, 2006; Negro, Hannan, and Rao 2008; Hsu, Hannan, and Koçak 2008), and the role of audience members in structuring understanding of categories (Boone, Declerck, Rao, and Van Den Buys 2008; Koçak 2008; Koçak, Hannan, and Hsu 2008).This paper focuses on two theory fragments, typecasting and form emergence, which exemplify the different emphases in research approaches. Typecasting theory focuses on well-established categories and considers the implications for individual producers of specializing in versus generalizing across categorical boundaries (Zuckerman, Kim, Ukanwa, and von Rittman 2003). Research suggests that audiences have an easier time making sense of specialists but that a clear association with a single category restricts the range of future opportunities. Form-emergence theory considers how the attributes of producers associated with an emerging category shapes its likelihood of gaining legitimacy among relevant audiences (McKendrick and Carroll 2001; McKendrick, Jaffee, Carroll, and Khessina 2003). Work in this area finds that a category is more likely to become a well-established form when new entrants have focused identities (as in the case of de-novo entrants, the producers who begin as members of the category). These theory fragments have progressed largely independently of one another. This is not surprising given differences in levels of analysis and key outcomes. Yet, they are clearly conceptually connected. Both theory fragments address the positioning of producers in a space of categories and the effect of such positions on an audience’s understandings. In this paper, we flesh out these connections to clarify the processes that lie at heart of theories of ategorization. In particular, demonstrate that a common foundation, a theory of partiality in memberships, gives rise to predictions central to both of these fragments. We use the formal theory-building tools and framework developed by Hannan, Pólos, and Carroll (2007) and extended by Pólos, Hannan, and Hsu (2008). These accounts developed modal constructions that allow for subtle formalization of key sociological concepts such as legitimation, identity, and social form, which revolve around the beliefs held by relevant audiences. As we aim to illustrate, this approach to theory building has Series: DBS Working Papers in Economics We begin with a brief overview of key concepts from recent heoretical work by Hannan et al. (2007) on category and form emergence. We extend this theory to develop a theorem that fits the typecasting imagery developed by Zuckerman and colleagues. Then, with a few additional considerations, we establish a formal proof of a foundation for McKendrick and Carroll’s arguments regarding form emergence

Modal constructions in sociological arguments

This paper introduces modal logics to a sociological audience. We firstprovide an overview of the formal properties of this family of models andoutline key differences with classical first-order logic. We then build amodel to represent processes of perception and belief core to social theories. To do this, we define our multi-modal language and then addsubstantive constraints that specify the inferential behavior of modalities forperception, default, and belief. We illustrate the deployment of this language to the theory of legitimation proposed by Hannan, Polos, andCarroll (2007). This paper aims to call attention to the potential benefits ofmodal logics for theory building in sociology

Foundations of a Theory of Social Forms

In the early transition era in Russia entry barriers for commercial banks were about absent. It resulted in the mushrooming of hundreds of small, poorly-endowed and inexperienced banks. In this paper we address the question whether the claimed benefits of low entry barriers - competition and market dynamics - have resulted. We use a sample of commercial saving banks for the 1994-97 period. We conclude that there were important mobility barriers and that the removal of entry barriers did not lead to intensified competition

Reasoning with Partial Knowledge

We investigate how sociological argumentation differs from the classical first-order logic. We focus on theories about age dependence of organizational mortality. The overall pattern of argument does not comply with the classical monotonicity principle: adding premises does not overturn conclusions in an argument. The cause of nonmonotonicity is the need to derive conclusions from partial knowledge. We identify meta-principles that appear to guide the observed sociological argumentation patterns, and we formalize a semantics to represent them. This semantics yields a new kind of logical consequence relation. We demonstrate that this new kind of logical consequence relation. We demonstrate that this new logic can reproduce the results of informal sociological theorizing and lead to new insights. It allows us to unify existing theory fragments and paves the way towards a complete classical theory.

Modal Constructions in Sociological Arguments

This paper introduces modal logics to a sociological audience. We first provide an overview of the formal properties of this family of models and outline key differences with classical first-order logic. We then build a model to represent processes of perception and belief core to social theories. To do this, we define our multi-modal language and then add substantive constraints that specify the inferential behavior of modalities for perception, default, and belief. We illustrate the deployment of this language to the theory of legitimation proposed by Hannan, Polos, and Carroll (2007). This paper aims to call attention to the potential benefits of modal logics for theory building in sociology.

Typecasting and Legitimation: A Formal Theory

We develop a unifying framework to integrate two of organizational sociology’s theory fragments on categorization: typecasting and form emergence. Typecasting is a producer-level theory that considers the consequences producers face for specializing versus spanning across category boundaries. Form emergence considers the evolution of categories and how the attributes of producers entering a category shapes its likelihood of gaining legitimacy among relevant audiences. Both theory fragments emerge from the processes audiences use to assign category memberships to producers. In this paper, we develop this common foundation and clearly outline the arguments that lead to central implications of each theory. We formalize these arguments using modal expressions to represent key categorization processes and the theory-building framework developed by Hannan, Polos, and Carroll (2007). Categorization in market contexts has attracted considerable interest in recent years, spurred in large part by Zuckerman’s (1999) seminal work in capital markets. Empirical work on this subject covers a range of topics, including category emergence, proliferation, and erosion (Carroll and Swaminathan 2000; Ruef 2000; Rao, Monin, and Durand 2005; Bogaert, Boone, and Carroll 2006; Pontikes 2008), the consequences of different categorical positions and category structures for individual producers (Zuckerman and Kim 2003; Hsu, 2006; Negro, Hannan, and Rao 2008; Hsu, Hannan, and Koçak 2008), and the role of audience members in structuring understanding of categories (Boone, Declerck, Rao, and Van Den Buys 2008; Koçak 2008; Koçak, Hannan, and Hsu 2008). This paper focuses on two theory fragments, typecasting and form emergence, which exemplify the different emphases in research approaches. Typecasting theory focuses on well-established categories and considers the implications for individual producers of specializing in versus generalizing across categorical boundaries (Zuckerman, Kim, Ukanwa, and von Rittman 2003). Research suggests that audiences have an easier time making sense of specialists but that a clear association with a single category restricts the range of future opportunities. Form-emergence theory considers how the attributes of producers associatedwith an emerging category shapes its likelihood of gaining legitimacy among relevant audiences (McKendrick and Carroll 2001; McKendrick, Jaffee, Carroll, and Khessina 2003). Work in this area finds that a category is more likely to become a well-established form when new entrants have focused identities (as in the case of de-novo entrants, the producers who begin as members of the category). These theory fragments have progressed largely independently of one another. This is not surprising given differences in levels of analysis and key outcomes. Yet, they are clearly conceptually connected. Both theory fragments address the positioning of producers in a space of categories and the effect of such positions on an audience’s understandings. In this paper, we flesh out these connections to clarify the processes that lie at heart of theories of categorization. In particular, demonstrate that a common foundation, a theory of partiality in memberships, gives rise to predictions central to both of these fragments. We use the formal theory-building tools and framework developed by Hannan, Pólos, and Carroll (2007) and extended by Pólos, Hannan, and Hsu (2008). These accounts developed modal constructions that allow for subtle formalization of key sociological concepts such as legitimation, identity, and social form, which revolve around the beliefs held by relevant audiences. As we aim to illustrate, this approach to theory building has

Modal Constructions in Sociological Arguments

This paper introduces modal logics to a sociological audience. We first provide an overview of the formal properties of this family of models and outline key differences with classical first-order logic. We then build a model to represent processes of perception and belief core to social theories. To do this, we define our multi-modal language and then add substantive constraints that specify the inferential behavior of modalities for perception, default, and belief. We illustrate the deployment of this language to the theory of legitimation proposed by Hannan, Polos, and Carroll (2007). This paper aims to call attention to the potential benefits of modal logics for theory building in sociology.

Structural Inertia and Organizational Change Revisited I: Architecture, Culture and Cascading Change

This paper develops a formal theory of the structural aspects of organizational change. It concentrates on the significance of changes in an organization's architecture and culture, each represented as a code system. A change is significant when it prompts other changes and generates a cascade of change. The argument ties significance to the time that it takes an organization to complete reorganizations and the associated opportunities costs. The central theorem holds that the magnitude of the effects of a change in architecture on an organization's hazard of mortality increases with the architectural and cultural significance of the change. A related theorem holds that the chances of mortality rise monotonically with the length of time in reorganization (positive duration dependence).