The plurality of institutional embeddedness as a source of organizational attention differences

Abstract

This paper examines the plurality of institutional embeddedness as a source of organizational attention differences. Using data collected from seven Taiwanese personal computer firms, we argue that firms differ in the strength and intensity of their social relations. Different degrees of relationship define the extent to which firms are embedded in their institutional environments. The higher the degree of institutional embeddedness, the more the organization will attend to, and be shaped by, the prevailing institutional environment. Because firms differ in their senior management structures and organizational routines, the degree to which different firms are embedded in the institutional environment is an important source of firm attention variant. Furthermore, we argue that the diversity of organizational attention is built into the plurality of institutions. The wider the scope of institutional variation, the more the firm is freed from any singular institutionalization. To further demonstrate the validity of our comparative case studies, we analyze the order of entry timing of three leading case firms into China. We show that they made different decisions on the timing of entry into China according to their divergent attention structures.