This study shows that the relationship that organizations have with their audiences determines the emphasis they place on status signals in response to a rise in uncertainty. Bounded rationality is the default concept used to explain the relationship between uncertainty and status signals. I take a proximate yet distinct approach based on Bourdieu's concept of habitus. The argument is that the positive association between the emphasis placed on status signals and the level of uncertainty is contingent on the organizational habitus of the parties involved. Organizational habitus is built through the relationship that an organization has with its audiences. The hypotheses are tested against a data set of alliances between software firms between 1996 and 2002. The relationships that service oriented organizations have with their audiences lead them to place greater emphasis on status signals. Consistent with the theory, the results show that this greater emphasis is accentuated when uncertainty is high. The findings highlight the importance of the relationship between cognition and social relations in the understanding of the treatment of status signals.

ESADE

Back to home

Collet, François

A contingency perspective of the relationship between status and uncertainty: Alliance formation in the software industry

This study shows that the relationship that organizations have with their audiences determines the emphasis they place on status signals in response to a rise in uncertainty. Bounded rationality is the default concept used to explain the relationship between uncertainty and status signals. I take a proximate yet distinct approach based on Bourdieu's concept of habitus. The argument is that the positive association between the emphasis placed on status signals and the level of uncertainty is contingent on the organizational habitus of the parties involved. Organizational habitus is built through the relationship that an organization has with its audiences. The hypotheses are tested against a data set of alliances between software firms between 1996 and 2002. The relationships that service oriented organizations have with their audiences lead them to place greater emphasis on status signals. Consistent with the theory, the results show that this greater emphasis is accentuated when uncertainty is high. The findings highlight the importance of the relationship between cognition and social relations in the understanding of the treatment of status signals.
More Knowledge
A contingency perspective of the relationship between status and uncertainty: Alliance formation in the software industry
Collet, François
2010 Academy of Management Annual Meeting
Montreal, Quebec (Canada), 06/08/2010 - 10/08/2010

Related publications

Back to home