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Acting Globally but Thinking Locally? The Influence of Local
Communities on Organizations
An institutional theory of how
local communities continue to matter for organizations, and why community
factors are particularly important in a global age. |
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It
is a paradox that in a globalizing and "boundaryless"
economy, factors
associated with local communities—such as interpersonal networks, laws, and
tax rates, among others—remain important for understanding
organizational
behavior. As Marquis and Battilana argue, communities influence
organizational behavior not only as local markets and resource environments,
but also through a number of institutional pressures. Focusing on
communities as institutional environments provides fresh theoretical
insights into organizational behavior, in addition to offering a more
unified perspective to the diverse set of research that is emerging on local
communities. Key concepts include:
* Despite globalization, local factors remain important, and in many ways
local particularities have become more visible and salient as globalization
has proceeded.
* In today's environment, organizations are embedded both locally and
globally. Researchers need to account for these different levels in order to
understand organizational behavior and also perhaps advance theory.
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