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Entrenchment in status positions and the adoption of new norm-deviant organizational practices: Evidence from the Japanese banking industry, 1983–2005

Jesper Edman, Alex Makarevich

Organization Studies · 2021 · Volume 42 · Issue 10

DOI: 10.1177/0170840620910952

Abstract

We examine the effect of status entrenchment on the adoption of new norm-deviant organizational practices. Identifying organizational age and status mobility as factors affecting entrenchment, we extend the middle-status conformity theory by explicating how entrenchment moderates the relationship between status and adoption. Using original data from the Japanese loan syndication market, we show that young and new-in-status banks have a lower propensity to follow status-based adoption behavior than actors entrenched in the same status positions. We discuss implication of these results for the understanding of new practice adoption and organizational status effects.

Keywords

Japanese banks, legitimacy, middle-status conformity, norm-deviant behavior, organizational status, practice adoption

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