Following Fashion: Visible Progressiveness and the Social Construction of Firm Value

Forthcoming in Strategic Organization

68 Pages Posted: 1 Nov 2015

See all articles by Jurriaan Nijholt

Jurriaan Nijholt

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Pieter-Jan Bezemer

Queensland University of Technology - School of Management

Patrick Reinmoeller

Cranfield School of Management, Cranfield University; Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

Date Written: October 29, 2015

Abstract

A central tenet underlying studies on management fashions, is that the diffusion of novel forms, models and techniques is driven by an institutional norm of progress, which is the societal expectation that managers will continuously use ‘new and improved’ management practices. We add to the literature on management fashions by arguing that, if the display of progressiveness in the manner of managing and organizing is expected of organizations, firms that are visibly progressive would be evaluated more positively by organizational audiences following this institutional prescription. Using article counts of co-occurrences of firms and various fashionable management practices in Wall Street Journal, we hypothesize positive effects of such associations on security analysts’ evaluations of these firms. Results support this hypothesis. Our study enriches the management fashion literature by highlighting the consequential relevance of organizational adherence to the norm of progress.

Keywords: Diffusion, Management Fashion, Management Practices, Progressiveness, Fashion Dynamics, Security Analysts

Suggested Citation

Nijholt, Jurriaan and Bezemer, Pieter-Jan and Reinmoeller, Patrick, Following Fashion: Visible Progressiveness and the Social Construction of Firm Value (October 29, 2015). Forthcoming in Strategic Organization. Available at SSRN: https://ssrn.com/abstract=2683589

Jurriaan Nijholt

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

Rotterdam
Netherlands

Pieter-Jan Bezemer

Queensland University of Technology - School of Management ( email )

Brisbane, Queensland 4001
Australia

Patrick Reinmoeller (Contact Author)

Cranfield School of Management, Cranfield University ( email )

United Kingdom

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship

RSM Erasmus University
Netherlands

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