IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v19y2008i1p124-142.html
   My bibliography  Save this article

Human Agents, Contexts, and Institutional Change: The Decline of Family in the Leadership of Business Groups

Author

Listed:
  • Chi-Nien Chung

    () (Department of Management and Organization, National University of Singapore Business School, Singapore 117592)

  • Xiaowei Luo

    () (Department of Business Administration, University of Illinois, Urbana-Champaign, Champaign, Illinois 61820)

Abstract

This study examines the interaction between change-minded human agents and environmental and organizational contingencies to understand contested change in highly institutionalized practices. We propose a theory of how individuals, including those who are structurally highly embedded, can become change agents when confronted with amplified institutional contradictions. Using the empirical example of family presence in the leadership of Taiwanese business groups, we argue that despite the structural constraints on second-generation key leaders, these leaders are more likely to actualize their motivation to reduce family presence in the contexts of market-oriented transition and highly diversified business groups, and that key leaders with a management education from the United States are more likely to deviate from this institutionalized practice than are non-U.S.-educated key leaders, because they can transport ideas from different business models. A longitudinal analysis of the top 100 business groups in Taiwan between 1977 and 1998 largely supports our arguments. This study contributes to recent endeavors to understand antecedents to institutional change with an explicit focus on the interplay between agency and context, and to business-group research by examining the change of one foundational feature of the group form.

Suggested Citation

  • Chi-Nien Chung & Xiaowei Luo, 2008. "Human Agents, Contexts, and Institutional Change: The Decline of Family in the Leadership of Business Groups," Organization Science, INFORMS, vol. 19(1), pages 124-142, February.
  • Handle: RePEc:inm:ororsc:v:19:y:2008:i:1:p:124-142
    DOI: 10.1287/orsc.1070.0272
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1070.0272
    Download Restriction: no

    References listed on IDEAS

    as
    1. Granovetter, Mark, 1995. "Coase Revisited: Business Groups in the Modern Economy," Industrial and Corporate Change, Oxford University Press, vol. 4(1), pages 93-130.
    2. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
    3. Gibson, Michael S., 2003. "Is Corporate Governance Ineffective in Emerging Markets?," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 38(1), pages 231-250, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea Dello Sbarba & Alessandro Marelli, 2018. "Family-controlled businesses and management control: the framing of “shareholder-oriented” practices," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(4), pages 417-456, February.
    2. Xuesong Geng & Toru Yoshikawa & Asli M. Colpan, 2016. "Leveraging foreign institutional logic in the adoption of stock option pay among Japanese firms," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1472-1492, July.
    3. Holmes, R. Michael & Hoskisson, Robert E. & Kim, Hicheon & Wan, William P. & Holcomb, Tim R., 2018. "International strategy and business groups: A review and future research agenda," Journal of World Business, Elsevier, vol. 53(2), pages 134-150.
    4. Torres, Juan Pablo & Jara Bertín, Mauricio & López-Iturriaga, Félix J., 2017. "Corporate control and firm value: The bright side of business groups," Journal of Family Business Strategy, Elsevier, vol. 8(2), pages 99-108.
    5. Schmid, Stefan & Altfeld, Frederic & Dauth, Tobias, 2018. "Americanization as a driver of CEO pay in Europe: The moderating role of CEO power," Journal of World Business, Elsevier, vol. 53(4), pages 433-451.
    6. Miller, Danny & Amore, Mario Daniele & Le Breton-Miller, Isabelle & Minichilli, Alessandro & Quarato, Fabio, 2018. "Strategic distinctiveness in family firms: Firm institutional heterogeneity and configurational multidimensionality," Journal of Family Business Strategy, Elsevier, vol. 9(1), pages 16-26.
    7. Danny Miller & Isabelle Le Breton‐Miller & Richard H. Lester, 2011. "Family and Lone Founder Ownership and Strategic Behaviour: Social Context, Identity, and Institutional Logics," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 1-25, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:19:y:2008:i:1:p:124-142. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew Walls). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.