Abstract

Recent literature posits that the mismatch between organizational attention scope and issue scale leads to organizational inattention to strategic issues. This study extends this literature by identifying an underlying mechanism of the mismatch from a historical perspective. Drawing on the categories literature, we develop a novel framework wherein historical categorization is viewed as an important mechanism of contemporary organizational inattention. Based on historical ingredients and qualitative evidence, we use a specific organizational category, regional enterprise, to illustrate how category narrows organizational attention scope, and, in doing so, results in organization’s inattention to environmental issues. Our framework is supported by a longitudinal analysis of Chinese public firms’ reporting on environmental protection between 2008 and 2014.

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