Acting Globally but Thinking Locally? The Enduring Influence of Local Communities on Organizations

Christopher  Marquis; Julie  Battilana

Article | Research in Organizational Behavior | 2009

Acting Globally but Thinking Locally? The Enduring Influence of Local Communities on Organizations

by Christopher Marquis and Julie Battilana

Abstract

We develop an institutionally oriented theory of how and why local communities continue to matter for organizations in a global age. Since globalization has taken center stage in both practitioner and academic circles, research has shifted away from understanding effects of local factors. Our approach runs counter to the idea that globalization is a homogeneity-producing process, and to the view that society is moving from particularism to universalism. We argue that with globalization, not only has the local remained important, but in many ways local particularities have become more visible and salient. We unpack the market, regulative, social, and cultural mechanisms that result in this enduring community influence while reviewing classic and contemporary research from organizational theory, sociology, and economics that have focused on geographic influences on organizations. In this paper, our aim is to redirect theoretical and empirical attention back to understanding the determinants and importance of local influences. We suggest that because organizations are simultaneously embedded in geographic communities and organizational fields, by accounting for both of these areas, researchers will better understand isomorphism and change dynamics.

Keywords: Globalized Firms and Management; Business and Community Relations; Local Range; Civil Society or Community; Power and Influence;

Format: Print

20 pages

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Citation:

Marquis, Christopher, and Julie Battilana. "Acting Globally but Thinking Locally? The Enduring Influence of Local Communities on Organizations." Research in Organizational Behavior 29 (2009): 283–302.

Vox Capital was the first certified impact investing fund in Brazil. Founded in 2009, it provides early-stage capital for companies offering innovative and scalable solutions to enhance the lives of low-income Brazilians, while aiming to simultaneously generate attractive market-rate financial returns for investors. This case examines the evolution of Vox Capital, across understanding the landscape, launching, raising funds, selecting investees, structuring deals, building investee capacities, tracking performance, developing internal systems, and advancing the field of impact investing.

Brothers André and Daniel Albuquerque founded the company Terra Nova in 2001 to mediate land disputes between poor families illegally living in urban areas and the official landowners—with the aspiration to improve the lives of the poor. A business-led approach to the issue, like Terra Nova’s, was innovative and contested amid the widespread belief that land disputes fell solely within the public sector’s purview. After struggling to develop a viable business model, the company received support from impact investing firm MOV Investimentos. By 2019, Terra Nova finally broke even and was exploring opportunities for scaling. But its leaders had to decide the right expansion model for the social business.

Chapter | Handbook of Inclusive Innovation | 2019

Problem, Person, and Pathway: A Framework for Social Innovators

Julie Battilana, Brittany Butler, Marissa Kimsey, Johanna Mair, Christopher Marquis and Christian Seelos

As the appetite for learning about social innovation intensifies, how can we better prepare practitioners for the work of addressing the world’s pressing social problems at the relevant scale? This chapter presents the “3P” framework that we developed to help address this challenge, grounded in our experience researching, teaching, and advising social innovators around the world. In this framework, we propose three key lenses to help social innovators contribute to social change, unpacking the nature of: the problem at hand, the person pursuing change, and the pathway to change. Considering the alignment of these 3Ps provides an organizing template for social innovators to think about how they can effectively contribute to solving social problems. We illustrate how we engage new and experienced social innovators in this learning journey by discussing our pedagogical approach as educators. In conclusion, we discuss future research directions to help address unanswered questions.

Keywords: social innovation; Social Entrepreneurship; Social Issues; Change; Problems and Challenges;

Citation:

Battilana, Julie, Brittany Butler, Marissa Kimsey, Johanna Mair, Christopher Marquis, and Christian Seelos. "Problem, Person, and Pathway: A Framework for Social Innovators." In Handbook of Inclusive Innovation: The Role of Organizations, Markets and Communities in Social Innovation, edited by Gerard George, Ted Baker, Paul Tracey, and Havovi Joshi, 61–74. Cheltenham, UK: Edward Elgar Publishing, 2019. View Details

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Acting Globally but Thinking Locally? The Enduring Influence of Local Communities on Organizations

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