When Do Interlocks Matter? Institutional Logics and the Diffusion of Multiple Corporate Governance Practices

Academy of Management Journal, Forthcoming

43 Pages Posted: 25 Sep 2009

See all articles by Andrew V. Shipilov

Andrew V. Shipilov

INSEAD

Henrich R. Greve

INSEAD

Tim Rowley

University of Toronto - Rotman School of Management

Date Written: September 24, 2009

Abstract

Despite the wealth of research on the origins of institutions, little is known about how institutions and their underlying logics are extended following initial diffusion stage. We argue that institutional extension happens through multi-wave diffusion of related practices such that an organization’s adoption of practices from an institutional logic implies its acceptance of the logic. This makes organizational adoption of subsequent practices sharing the same logic more likely, irrespective of these practices’ adoptions by the organization’s network contacts. We show evidence of such effects though analyzing the diffusion of governance practices related to the logic of board reform in Canada.

Keywords: networks, diffusion, corporate governance, institutional logics

Suggested Citation

Shipilov, Andrew V. and Greve, Henrich R. and Rowley, Tim, When Do Interlocks Matter? Institutional Logics and the Diffusion of Multiple Corporate Governance Practices (September 24, 2009). Academy of Management Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1477962

Andrew V. Shipilov (Contact Author)

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau
France

Henrich R. Greve

INSEAD ( email )

F-77305 Fontainebleau Cedex
France

Tim Rowley

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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