THE ADOPTION OF INSITUTIONALLY CONTESTED ORGANIZATIONAL PRACTICES: THE EMERGENCE OF STOCK OPTION PAY IN GERMANY

THE ADOPTION OF INSITUTIONALLY CONTESTED ORGANIZATIONAL PRACTICES: THE EMERGENCE OF STOCK OPTION PAY IN GERMANY

Examining the transnational diffusion of organizational practices from institutional environments in which they are legitimate to environments in which key institutional actors contest them, we contrast processes facilitating pioneering adoptions of contested practices with processes that diffuse th...

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Bibliographic Details
Published in:Academy of Management journal Vol. 50; no. 1; p. 33
Main Authors: Sanders, Wm Gerard, Tuschke, Anja
Format: Journal Article
Language:English
Published: Briarcliff Manor Academy of Management 01-02-2007
Subjects:
Hypothesis testing
Organizational behavior
Stock options
Studies
Germany
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Summary:Examining the transnational diffusion of organizational practices from institutional environments in which they are legitimate to environments in which key institutional actors contest them, we contrast processes facilitating pioneering adoptions of contested practices with processes that diffuse the contested practices. Courageous adopters of contested practices are likely to have (1) exposure to high-status institutional environments in which the practices are legitimate and (2) experience with other contested practices. Regulatory legitimization and institutional isomorphism processes then diffuse the contested practices within an environment. The results of a study of stock option pay adoption among large German firms generally support our hypotheses. [PUBLICATION ABSTRACT]
ISSN:0001-4273
1948-0989