Turnkey or Tailored? Relational Pluralism, Institutional Complexity, and the Organizational Adoption of More or Less Customized Practices

Ryan  Raffaelli; Mary Ann  Glynn

Article | Academy of Management Journal

Turnkey or Tailored? Relational Pluralism, Institutional Complexity, and the Organizational Adoption of More or Less Customized Practices

by Ryan Raffaelli and Mary Ann Glynn

Abstract

We examine how the organizational adoption of new practices is influenced by relational pluralism, i.e., an organization's multiple ties to actors inside and outside its industry. We theorize that institutional mechanisms of practice diffusion underlying relational networks, and filtered by organizational characteristics, influence the adoption of practices that are more customized (tailored) or less customized (turnkey). We hypothesize first, that organizations participating in extra-industry professional networks will, through normative conformity, be more likely to adopt turnkey practices; second, that the normative pressure of professional networks will interact with the mimeticism of industry peers such that organizations will be more likely to adopt tailored practices; and third, organizational filters will affect adoption of all practices. Using unique survey data from 161 F500 organizations, supplemented by archival and qualitative data, we focus on two Corporate Social Responsibility (CSR) practice variants. We find significant support for our first two hypotheses and mixed support for our third: organizational infrastructure and identity significantly affect practice adoption, albeit in different ways, but only marginal support for leadership and elite organizational status. Our results point to how a complex web of relational ties affects the organizational adoption of practice variants that differ in their degree of customization.

Keywords: Networks; Corporate Social Responsibility and Impact; Business Processes; Adoption; Customization and Personalization;

Format: Print

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Raffaelli, Ryan, and Mary Ann Glynn. "Turnkey or Tailored? Relational Pluralism, Institutional Complexity, and the Organizational Adoption of More or Less Customized Practices." Academy of Management Journal 57, no. 2 (April 2014): 541–562.

Case | HBS Case Collection | November 2018 (Revised August 2020)

The Reinvention of Kodak

Ryan Raffaelli and Christine Snively

The Eastman Kodak Company (Kodak) was a name familiar to most Americans. The company had dominated the film and photography industry through most of the 20th Century and was known for making affordable cameras (and the “Kodak Moment”) and supplying the movie industry with film. At its peak in 1997, Kodak had a market value of $30 billion. Despite inventing the first digital camera, Kodak stumbled to capitalize on the new technology and by 2011 the company was in Chapter 11 bankruptcy protection. In September 2013, Kodak emerged from bankruptcy as a smaller business-to-business (B2B) digital imaging company. The following March, Jeff Clarke took over as Kodak’s new CEO. The company continued to produce and sell film to moviemakers, but Clarke, who needed to reinvent Kodak, wondered if keeping that business line made sense. To some inside the company, film was a “sacred cow” and fundamental to Kodak’s identity. In January 2016, Clarke and his executive team traveled to Las Vegas, Nevada, for the annual Consumer Electronics Show (CES) where the company unveiled a prototype of its new Super 8 camera—an analog motion picture camera initially launched in 1965 to shoot home movies—with updated features. Over the course of the four-day event, media and other industry players had overwhelmed the Kodak booth, excited to catch a glimpse of the camera, asking when they could expect to see the Super 8 on shelves. While the business-to-business (B2B) side of the company appeared to be growing, the new Super 8 reflected the culture and identity of a firm originally rooted in film and consumer products. Sentiment aside, Clarke needed to decide if the new Super 8 fit into the company’s overall strategy and whether Kodak was focused on the right markets for growth. What was the optimal path to reinvention?

Keywords: CEO; Leadership; Asset Management; Transformation; Organizational Change and Adaptation; Competitive Strategy;

Citation:

Raffaelli, Ryan, and Christine Snively. "The Reinvention of Kodak." Harvard Business School Case 419-012, November 2018. (Revised August 2020.) View Details

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This multimedia case asks students to consider how leaders of non-profit organizations manage difficult financial, operational, and cultural turnarounds. Since its founding in 1947, St. Anthony Shrine had been a central partner in serving the Downtown Boston community. But in 2002, a steep decline in church attendance seesawed with a growing need to serve the poor and marginalized in the community. The group of Roman Catholic Franciscan Friars, who lived at and managed the Shrine, responded by making a strategic shift from a traditional ministry model to a social service model. However, the decision to focus on social services led to costly programming. After years of accumulated operational inefficiencies, financial missteps, and personnel problems, the friars faced a crisis that required drastic change. In 2013, Father Tom Conway, a Franciscan priest who held Ph.D. in accounting, was appointed the Shrine's new Executive Director. Upon arrival, Fr. Tom confronted a culture of fear that negatively affected the morale of the staff and friars. He also realized that the Shrine’s depleted finances and operational inefficiencies would require bold action to ensure its doors would remain open. The case examines Fr. Tom’s efforts to turn around the finances and operations at the Shrine while also bolstering low employee morale. The case is designed to help students explore how leaders manage a successful turnaround effort. This multimedia case requires minimal pre-class student preparation. In class, instructors show a sequence of video clips, followed by a series of discussions that unfold during the session.

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Turnkey or Tailored? Relational Pluralism, Institutional Complexity, and the Organizational Adoption of More or Less Customized Practices

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