Cognitive Underpinnings of Institutional Persistence and Change: A Framing Perspective

HKUST Business School Research Paper No. 07-26

Academy of Management Review, Vol. 31, No. 2, pp. 347-365, 2006

20 Pages Posted: 22 Aug 2007

See all articles by Elizabeth George

Elizabeth George

Hong Kong University of Science & Technology (HKUST)

Prithviraj Chattopadhyay

University of Auckland

Sim B. Sitkin

Duke University-Fuqua School of Business

Jeffrey Q. Barden

University of Washington - Michael G. Foster School of Business

Abstract

We integrate the predictions of prospect theory, the threat-rigidity hypothesis, and institutional theory to suggest how patterns of institutional persistence and change depend on whether decision makers view environmental shifts as potential opportunities for or threats to gaining legitimacy. We argue that in the event that decision makers face ambiguity in their reading of the environment, they initiate decoupled substantive and symbolic actions that simultaneously accommodate the predictions of prospect theory and the threat-rigidity hypothesis.

Suggested Citation

George, Elizabeth and Chattopadhyay, Prithviraj and Sitkin, Sim B. and Barden, Jeffrey Q., Cognitive Underpinnings of Institutional Persistence and Change: A Framing Perspective. HKUST Business School Research Paper No. 07-26; Academy of Management Review, Vol. 31, No. 2, pp. 347-365, 2006. Available at SSRN: https://ssrn.com/abstract=1008749

Elizabeth George (Contact Author)

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

Prithviraj Chattopadhyay

University of Auckland ( email )

12 Grafton Road
Auckland
New Zealand

Sim B. Sitkin

Duke University-Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7946 (Phone)

Jeffrey Q. Barden

University of Washington - Michael G. Foster School of Business ( email )

Box 353200
Seattle, WA 98195-3200
United States

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