Lecture 17 Institutional Theory

Lecture 17 Institutional Theory - Macro OB Perspectives...

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Macro OB Perspectives:  Resource Dependence (cont.)  Institutional Theory Professor Pamela Tolbert November 12, 2008
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IOR Strategies: Mergers Involves legal joining of  two organizations into  single entity Types  Symbiotic/vertical  integration- take in  supplier  (Competitive)- take in  another airline (Diversification)- airline  compnay now going into  cars Problem: unpredictable 
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Determinants of IOR Strategies:  Relative Power of Exchange Partners  The power of a focal organization vis-à-vis (face to  face) another is a function of: Importance of resources controlled by other  organization Availability of alternative sources of resources The relative power depends on whether the other  organization also controls resources that are  important to the focal organization and the availability  of those resources from other sources
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Which Form of IOR When? Bargaining:  dependence of both exchange partners  is relatively low Cooptation: dependence of a focal organization is 
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This note was uploaded on 03/18/2009 for the course ILROB 1220 taught by Professor Goncaloj during the Spring '07 term at Cornell.

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Lecture 17 Institutional Theory - Macro OB Perspectives...

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