Governmental Context Determines Institutional Value: Independently Certified Performance and Failure in the Spanish Newspaper Industry
Manuel Núñez-Nickel, Isabel Gutiérrez, Salvador Carmona
Organization Studies · 2006 · Volume 27 · Issue 10
Abstract
Many societies demand that independent professionals (e.g. auditors) certify the performance of firms. The value placed on such certification (i.e. the public perception of reliability/unreliability that may impact on an organization's success/failure) is not uniform, however, but contingent upon changing political contexts. This study presents and analyses data on the entire population of newspapers in Spain from 1966 to 1993, a time of peaceful transition from military dictatorship to capitalist democracy. Our results highlight the contingent nature of institutional life, demonstrating how changes in political contexts are associated with varying understandings of institutions. In particular, our findings support the prediction that, under a dictatorship, independently certified performance is not instrumental in organizational success or failure whereas, in a modern democracy, the certification process has a positive effect on the survival chances of firms.
Keywords
independently certified performance, institutional sociology, political regimes, newspaper organizations, organizational failure, Spain
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