Unfit to Learn? How Long View Organizations Adapt to Environmental Jolts

40 Pages Posted: 12 Apr 2007

See all articles by Pursey P.M.A.R. Heugens

Pursey P.M.A.R. Heugens

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

Stelios C. Zyglidopoulos

University of Cambridge - Judge Business School

Date Written: March 28, 2007

Abstract

Long view organizations have a technical core combining high levels of Woodwardian (1958) technological complexity and Thompsonian (1967) technological intensity. This significantly diminishes their capacity for operational flexibility and strategic adaptation. Little is known about how such organizations manage to learn from rare events. We shed light on this issue by reporting a thirteen-year longitudinal study of a major oil company, tracing its experiences with a socio-political crisis from original preparations to learnings that did not fully materialize until years after the event. We use three alternate templates to interpret the organization’s struggle to maintain its technical core under conditions of fierce contestation by changing constituent groups and dwindling public support: (1) a stakeholder template mapping shifts in the salience of constituent groups that punctuate long-standing negotiated equilibria; (2) a legitimacy template showing migration towards new forms of legitimacy while old forms crumble; and (3) a capability template highlighting how pre-existing stocks of capabilities hinder learning before being supplanted by new ones. These templates are tied together in a set of integrative propositions stating how long view organizations learn from rare events.

Keywords: Institutional theory, Alternate templates, Environmental jolts, Oil industry, Organizational learning, Resource-based view, Stakeholder theory

Suggested Citation

Heugens, Pursey P.M.A.R. and Zyglidopoulos, Stelios C., Unfit to Learn? How Long View Organizations Adapt to Environmental Jolts (March 28, 2007). ERIM Report Series Reference No. ERS-2007-014-ORG. Available at SSRN: https://ssrn.com/abstract=977099

Pursey P.M.A.R. Heugens (Contact Author)

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

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
0031 10 408 2365 (Phone)
0031 10 408 9012 (Fax)

Stelios C. Zyglidopoulos

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom
+44 (0) 1223 760576 (Phone)
+44 (0) 1223 339701 (Fax)

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