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Refraining from Imitation: Professional Resistance and Limited Diffusion in a Financial Market

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  • Stefan Jonsson

    (Department of Marketing and Strategy, Stockholm School of Economics, 113 83 Stockholm, Sweden, and Department of Business Administration, Uppsala University, 751 05 Uppsala, Sweden)

Abstract

Why do some practices not spread? Although this is an important question for both diffusion theorists and those interested in institutional change, we know surprisingly little about the limitations on diffusion because most diffusion studies sample on successful diffusion. I address the question of why some practices fail to spread by introducing the concept of a “deviance discount.” A deviance discount is a systematic downgrading of the observed adoption performance of controversial practices, which limits the contagion of such practices. I test and find qualitative and quantitative support for my thesis in the product introduction behavior of Swedish mutual fund firms. My findings hold implications for diffusion theory and theories of endogenous institutional change.

Suggested Citation

  • Stefan Jonsson, 2009. "Refraining from Imitation: Professional Resistance and Limited Diffusion in a Financial Market," Organization Science, INFORMS, vol. 20(1), pages 172-186, February.
    • Handle: RePEc:inm:ororsc:v:20:y:2009:i:1:p:172-186
    DOI: 10.1287/orsc.1080.0370
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    3. Alexander C. Lewis & Arkangel M. Cordero & Rachael Xiong, 2021. "Too Red for Crowdfunding: The Legitimation and Adoption of Crowdfunding Across Political Cultures," Entrepreneurship Theory and Practice, , vol. 45(3), pages 471-504, May.
    4. Mike Danilovic & Marleen Hensbergen & Maya Hoveskog & Liudmila Zadayannaya, 2015. "Exploring Diffusion and Dynamics of Corporate Social Responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(3), pages 129-141, May.
    5. Nelson, Andrew & Earle, Andrew & Howard-Grenville, Jennifer & Haack, Julie & Young, Doug, 2014. "Do innovation measures actually measure innovation? Obliteration, symbolic adoption, and other finicky challenges in tracking innovation diffusion," Research Policy, Elsevier, vol. 43(6), pages 927-940.
    6. Paul S. Adler & Seok-Woo Kwon, 2013. "The Mutation of Professionalism as a Contested Diffusion Process: Clinical Guidelines as Carriers of Institutional Change in Medicine," Journal of Management Studies, Wiley Blackwell, vol. 50(5), pages 930-962, July.
    7. Grégoire Croidieu & Charles-Clemens Ruling & Bilal-Ahmed Jathol, 2017. "Complex field-positions and non-imitation: Pioneers, strangers, and insulars in Australian fine-wine," Grenoble Ecole de Management (Post-Print) hal-01609429, HAL.
    8. Fabrizio Ferraro, 2019. "Going political? Towards deliberative corporate governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(1), pages 3-20, March.
    9. Koppman, Sharon & Leahey, Erin, 2019. "Who moves to the methodological edge? Factors that encourage scientists to use unconventional methods," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    10. Anne Jacqueminet, 2020. "Practice Implementation Within a Multidivisional Firm: The Role of Institutional Pressures and Value Consistency," Organization Science, INFORMS, vol. 31(1), pages 182-199, January.
    11. Hedström, Peter & Wennberg, Karl, 2016. "Causal Mechanisms in Organization and Innovation Studies," Ratio Working Papers 284, The Ratio Institute.
    12. Grégoire Croidieu & Charles-Clemens Ruling & Bilal-Ahmed Jathol, 2017. "Complex field-positions and non-imitation: Pioneers, strangers, and insulars in Australian fine-wine," Post-Print hal-01609429, HAL.

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