Knowledge that Transforms

When employees commit transgressions, organizations often use tools of organizational control to prevent them from transgressing again. We investigate whether organizations can use transgression transparency to rehabilitate transgressors. Although making transgressions transparent—which may result in stigmatization or public shaming—is generally assumed to be purely punitive, we show when and how it can foster rehabilitation. We draw on a longitudinal, qualitative dataset of 23 similarly situated transgressors at a military academy that added transparency to traditional punishment by requiring transgressors to wear a pin that signaled their transgression. Data from transgressors and from other organizational members revealed that instead of prompting persistent stigmatization, social awareness of the transgression prompted others’ inquiry, gradually engaging transgressors in a coactive process to develop a mutually acceptable narrative of their transgression through a mechanism we call personal narrative control. For that personal narrative to endure, transgressors needed to exercise self-control and avoid further transgressions, as they did in our study even after the pin was removed, signaling rehabilitation. We induce four contextual conditions for transgression transparency to trigger personal narrative control and theorize how they might generalize to other organizations seeking to rehabilitate transgressors.

Many organizations rely on group work to generate creativity, but existing research lacks theory on how groups’ responses to recognition for creative achievement shape their subsequent creative outcomes. Through an inductive study of bands nominated for a Best New Artist Grammy from 1980 to 1990, we develop a theory of reactions to early recognition in creative groups. Our multi-method analyses include oral histories from members of each band and quantitative data, which we use to triangulate the processes they describe. Our findings reveal that groups developed sets of emergent reactions and active adjustments to the recognition and its consequences, which we call “recognition orientations.” We identify three such orientations—absorbing, insulating, and mixed—that reflect how groups interpret recognition and integrate it into their subsequent processes. Most groups struggled by absorbing recognition, which led to internalizing expectations and opening their relationships to outsiders, ultimately inhibiting creativity. Some groups began to insulate themselves from recognition by externalizing expectations and bounding relationships, allowing them to sustain creative output over time. Finally, other groups developed a mixed orientation, initially experiencing the pitfalls of elevated recognition-seeking but ultimately attempting to insulate their need for external recognition by refocusing on their creative process. These findings reveal that recognition can upend the creative process, and groups that begin absorbing recognition are, ironically, less likely to earn it again in the future. Filling a critical research gap on creative production among groups that intend to continue working together, the results distinguish the skills needed to manage recognition from those needed to generate creativity, and offer insight into how groups enact longevity.

When organizations take radically new forms, employees’ minds and bodies can also take radically new forms, but prior organizational research has lacked the concepts and data to understand such qualitative changes in persons. For 17 years, I studied a profound societal change, the market turn, inside organizations at their center, investment banks on Wall Street. The banks took a new, market-like form that facilitated the emergence of a cultural–historical new form of personhood, the body entrepreneur. Unlike traditional organizations, which predictably reward employee effort, the banks gradually decoupled rewards from effort, paying bankers for winning first internal and then external competitions and increasingly exposing them to market risk. Bankers internalized this entrepreneurial positioning by transforming their minds and bodies into resources for competitive success regardless of health consequences. As rewards became more elusive, bankers invested more resources, first the mind and then the body, and controlled them in progressively more powerful ways, first through cognitive techniques, then through self-experimentation with drugs. Bankers thus intervened more radically in their minds and bodies than organizations legitimately can, resulting in two qualitative person changes. One, bankers constructed personhood in cultural–historical new ways, changing from the traditional psychological self, which locates processes such as emotions and motivation in the mind, toward a somatic self, the body entrepreneur, which locates them in the body as brain states that bankers could self-design. Two, the body functioned in new ways: not inside–out as a biological imperative but outside–in, fluidly adjusting to changing situations. Whereas prior organizational theories have assumed what the body is, I problematize it, empirically studying the self-technologies through which people construct the culturally situated biologies that compel them to unproblematically reproduce new, market-like organizations.

This article examines whether intermediaries and consumers exert similar influence on producers’ boundary-spanning efforts. I propose that boundary spanning is primarily constrained by intermediaries specialized in the market, not by consumers. Consequently, producers are more likely to obscure boundaries when intermediaries’ power weakens. To test these ideas, I exploit a natural experiment that shifted the hitmaking power of genre-specific radio stations to general consumers and thus partially democratized the market mediation structure of the U.S. commercial music industry. The results indicate that after democratization occurred in 2012, record labels were more likely to introduce crossover offerings that incorporated features from other popular genres. Through mechanism triangulation efforts, I found that strategic reorientation, or producers’ attempt to appeal to a broader spectrum of consumers across genre lines, plausibly explains the crossover effect. This study highlights democratizing changes that dilute intermediaries’ influence as a novel explanation of why constraints on producers’ boundary decisions have weakened in some markets. The findings suggest that intermediaries’ and consumers’ expectations may diverge, acting as conflicting forces that organizations must carefully manage. Many organizations closely monitor intermediaries that are deemed influential, but their influence should not be taken for granted as marketplaces empower consumers and become more democratized.

Kensbock, Alkærsig, and Lomberg (KAL) (2022) address the important topic of employee mental health in organizations. For three reasons, we caution readers against embracing KAL’s proposition that employee mobility spreads mental disorders across organizations through a contagion process. First, we view harmful contagion as the least plausible of three theoretical mechanisms that imply similar empirical results. Second, despite detailed employment and healthcare data from Denmark, the empirical analysis does not distinguish harmful contagion from the alternative mechanisms. Third, KAL’s infectious disease metaphor and language risk further stigmatization of vulnerable populations with mental disorders. We offer suggestions for continuing research on healthy organizations.

Color is omnipresent, but organizational research features no systematic theory or established method for analyzing it. We develop a relational approach to color, conceptualizing it as a means of positioning relative to a reference group or style and validating it through a computational method for processing digital images. The research context is Norwegian black metal—a genre of extreme metal music that achieved notoriety in the early 1990s through band members’ criminal activity. Our analysis of 5,125 album covers between 1989 and 2019 confirms the alignment of aesthetic and music features and articulates the role of color in the construction of a relational identity based on forces of association and disassociation. Black metal bands associated with past color choices of non-black metal bands up to a point, after which they started to disassociate from them. The positioning is dynamic, pursuing adaptation to external events. Black metal bands reacted to their stigmatization in Norwegian society by increasing colorfulness and later returning to a darker aesthetic in defiance of the genre’s commercialization. Our analysis attests to color’s ability to organize producers’ exchange of information and attention, illustrating the interweaving of aesthetic features and relational processes in markets.

The misuse of prescription drugs is a pressing public health crisis in the United States that is fueled by high-risk prescribing. We show that high-risk prescribing comprises two distinct practices: (1) routinely overprescribing to patients whose prescription -fill patterns are consistent with misuse or abuse, which conforms to the definition of deviance in sociology, and (2) routinely overprescribing to patients whose prescription-fill patterns are within possible bounds of medical use, which does not. We call the second practice “liminal prescribing,” a term that indicates it is legally and morally ambiguous. Using 213.9 million prescriptions to construct a four-year panel of the patient-sharing networks of 500,472 physicians, we find that deviant and liminal prescribers have starkly different social network structures and social influence processes; larger and more cohesive networks among prescribers are associated with more deviance but less liminality. Physicians’ ties to liminal prescribers increase liminal prescribing but do not increase deviance. Our results suggest that liminal prescribing is distinct from deviant prescribing and is not a milder form of deviant prescribing. Liminal prescribing is far more prevalent than deviance and accounts for most of the oversupplied benzodiazepines in our dataset (55.8 versus 8.7 percent, respectively). Our study highlights that the social structures supporting liminal practices differ from those that support either rule-abiding practices or deviance.

We draw on the behavioral theory of the firm and prospect theory to examine how performance feedback (decision context) and the characteristics of the alternatives (decision content) that decision makers face jointly determine organizational risk-taking choices. While the behavioral theory of the firm has identified performance feedback’s important role in driving organizational risk-taking decisions, it has not considered the intrinsic attributes of alternatives, specifically the magnitude and likelihood of their outcomes, which have been the focus of prospect theory. We argue that these two attributes play a key role in decision makers’ assessment of alternatives, but because achieving organizational goals is the prime objective in organizations, performance feedback drives how decision makers process information regarding these attributes. Analyzing 23,895 fourth-down decisions from the U.S. National Football League, we find that decision makers weigh attainment discrepancy and the magnitude and likelihood of outcomes in their choices, depending on deadline proximity. Furthermore, the size and valence of attainment discrepancy modify the weight of the magnitude and likelihood of outcomes in risky choices. Our arguments and findings suggest extensions to the behavioral theory of the firm and imply modifications to prospect theory when applied to the organizational context.

I develop and test a theory that explains why organizations may struggle to adapt in the face of change even when their members are aware of change, are motivated to adapt, and have the resources to do so. I build on complex-systems theory, which posits that organizations face a hierarchy of interdependent problems: they must choose how to fulfill different specialized tasks and choose processes to integrate the outputs of these tasks. Because these choices are interdependent, environmental change that directly affects only a few tasks in isolation can indirectly affect the viability of major organizational processes. Recognizing these ripple effects is difficult, however: understanding complex interdependencies is challenging for decision makers, and the division of labor within organizations can create an illusion of separability between tasks. As a result, organizations may respond to such change by engaging in “modular search” for new ways to fulfill specialized tasks, but they may fail to engage in “systemic search” for new processes integrating the outputs of specialized tasks unless they can rely on information-processing structures that help decision makers better understand interdependencies among choices. I test my theory by applying sequence analysis methods to micro-level behavioral data on competitive video gaming (esports) teams. Qualitative fieldwork and an online experiment provide additional evidence of my proposed mechanisms.

This article suggests that regulations targeting the U.S. public sector may influence racial inequality in the private sector. Since the 1990s, nine states have banned affirmative action practice in public universities and state governments. I theorize that although these bans have no legal jurisdiction over private-sector firms, they could influence such firms normatively. After such a ban, executives who have been skeptical of Equal Employment Opportunity (EEO) policies may feel more normative license to reduce commitment to EEO practices. Using a difference-in-differences estimation on 11,311 firms from 1985 to 2015, I find that the bans are indeed associated with slower racial progress in private-sector firms: after a state adopts the affirmative action ban, growth in the proportion of Black managers in establishments with corporate headquarters in that state slows by more than 50 percent, and this slowdown is mostly concentrated in firms with politically conservative CEOs. These findings suggest a mechanism for the persistence of racial inequality and show that regulations can influence actors well beyond legal jurisdictions.