Royston Greenwood

This study examines the role of professional associations in a changing, highly institutionalized organizational field and suggests that they play a significant role in legitimating change. A model...

Royston Greenwood, C. R. Hinings, Understanding Radical Organizational Change: Bringing together the Old and the New Institutionalism, The Academy of Management Review, Vol. 21, No. 4 (Oct., 1996), pp. 1022-1054

This paper describes the role of rhetoric in legitimating profound institutional change. In 1997, a Big Five accounting firm purchased a law firm, triggering a jurisdictional struggle within accounting and law over a new organizational form, multidisciplinary partnerships. We analyze the discursive struggle that ensued between proponents and opponents of the new organizational form. We observe that such rhetorical strategies contain two elements. First are institutional vocabularies, or the use of identifying words and referential texts to expose contradictory institutional logics embedded in historical understandings of professionalism, one based on a trustee model and the other based on a model of expertise. A second element of rhetorical strategies is theorizations of change by which actors contest a proposed innovation against broad templates or scenarios of change. We identify five such theorizations of change (teleological, historical, cosmological, ontological, and value-based) and describe their characteristics.

Organizations face institutional complexity whenever they confront incompatible prescriptions from multiple institutional logics. Our interest is in how plural institutional logics, refracted through field-level structures and processes, are experienced within organizations and how organizations respond to such complexity. We draw on a variety of cognate literatures to discuss the field-level structural characteristics and organizational attributes that shape institutional complexity. We then explore the repertoire of strategies and structures that organizations deploy to cope with multiple, competing demands. The analytical framework developed herein is presented to guide future scholarship in the systematic analysis of institutional complexity. We conclude by suggesting avenues for future research.