IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v21y2010i2p432-450.html
   My bibliography  Save this article

Competition and Beyond: Problems and Attention Allocation in the Organizational Rulemaking Process

Author

Listed:
  • Bilian Ni Sullivan

    (Department of Management of Organizations, School of Business and Management, Hong Kong University of Science and Technology, Kowloon, Hong Kong)

Abstract

This study investigates how an organization allocates attention and generates solutions in response to new problems challenging existing routines, under the influences of different contexts surrounding problems and solutions. By examining the formation of airline safety rules by the Federal Aviation Administration, I show that although different types of problems compete for attention at the rule proposal stage when the organization searches for solutions to problems, at the rule finalization stage, attention is guided by “urgency” induced by the aggregate flow of new problems, which interacts with certain institutional factors and with an a priori “priority” given to different types of rules. The implications of the study on theories of organizational attention are discussed.

Suggested Citation

  • Bilian Ni Sullivan, 2010. "Competition and Beyond: Problems and Attention Allocation in the Organizational Rulemaking Process," Organization Science, INFORMS, vol. 21(2), pages 432-450, April.
  • Handle: RePEc:inm:ororsc:v:21:y:2010:i:2:p:432-450
    DOI: 10.1287/orsc.1090.0436
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1090.0436
    Download Restriction: no

    File URL: https://libkey.io/10.1287/orsc.1090.0436?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. N. Gregory Mankiw & Ricardo Reis, 2002. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1295-1328.
    2. Jane E. Dutton & Robert B. Duncan, 1987. "The influence of the strategic planning process on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 8(2), pages 103-116, March.
    3. Vinit M. Desai, 2008. "Constrained Growth: How Experience, Legitimacy, and Age Influence Risk Taking in Organizations," Organization Science, INFORMS, vol. 19(4), pages 594-608, August.
    4. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    5. repec:bla:econom:v:47:y:1980:i:187:p:247-83 is not listed on IDEAS
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Karl E. Weick & Kathleen M. Sutcliffe, 2006. "Mindfulness and the Quality of Organizational Attention," Organization Science, INFORMS, vol. 17(4), pages 514-524, August.
    8. Giovanni Gavetti, 2005. "Cognition and Hierarchy: Rethinking the Microfoundations of Capabilities’ Development," Organization Science, INFORMS, vol. 16(6), pages 599-617, December.
    9. Sims, Christopher A., 2003. "Implications of rational inattention," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 665-690, April.
    10. Anne S. Miner & Pamela R. Haunschild & Andreas Schwab, 2003. "Experience and convergence: curiosities and speculation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(4), pages 789-813, August.
    11. Andrew J. Hoffman & William Ocasio, 2001. "Not All Events Are Attended Equally: Toward a Middle-Range Theory of Industry Attention to External Events," Organization Science, INFORMS, vol. 12(4), pages 414-434, August.
    12. Sidney G. Winter & Gino Cattani & Alex Dorsch, 2007. "The Value of Moderate Obsession: Insights from a New Model of Organizational Search," Organization Science, INFORMS, vol. 18(3), pages 403-419, June.
    13. L.C.G. Rogers, 2001. "The relaxed investor and parameter uncertainty," Finance and Stochastics, Springer, vol. 5(2), pages 131-154.
    14. Theresa S. Cho & Donald C. Hambrick, 2006. "Attention as the Mediator Between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation," Organization Science, INFORMS, vol. 17(4), pages 453-469, August.
    15. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    16. Lynch, Anthony W, 1996. "Decision Frequency and Synchronization across Agents: Implications for Aggregate Consumption and Equity Return," Journal of Finance, American Finance Association, vol. 51(4), pages 1479-1497, September.
    17. Pertti H. Lounamaa & James G. March, 1987. "Adaptive Coordination of a Learning Team," Management Science, INFORMS, vol. 33(1), pages 107-123, January.
    18. Lant, Theresa K. & Montgomery, David B., 1987. "Learning from strategic success and failure," Journal of Business Research, Elsevier, vol. 15(6), pages 503-517, December.
    19. Wei-Ru Chen, 2008. "Determinants of Firms' Backward- and Forward-Looking R&D Search Behavior," Organization Science, INFORMS, vol. 19(4), pages 609-622, August.
    20. Rose, Nancy L, 1990. "Profitability and Product Quality: Economic Determinants of Airline Safety Performance," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 944-964, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rilinger, Georg, 2021. "The organizational roots of market design failure structural abstraction, the limits of hierarchy, and the California energy crisis of 2000/01," MPIfG Discussion Paper 21/6, Max Planck Institute for the Study of Societies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shinkle, George A. & Hodgkinson, Gerard P. & Gary, Michael Shayne, 2021. "Government policy changes and organizational goal setting: Extensions to the behavioral theory of the firm," Journal of Business Research, Elsevier, vol. 129(C), pages 406-417.
    2. Xavier Gabaix, 2017. "Behavioral Inattention," NBER Working Papers 24096, National Bureau of Economic Research, Inc.
    3. Balagopal Vissa & Henrich R. Greve & Wei-Ru Chen, 2010. "Business Group Affiliation and Firm Search Behavior in India: Responsiveness and Focus of Attention," Organization Science, INFORMS, vol. 21(3), pages 696-712, June.
    4. Linda Argote & Henrich R. Greve, 2007. "A Behavioral Theory of the Firm ---40 Years and Counting: Introduction and Impact," Organization Science, INFORMS, vol. 18(3), pages 337-349, June.
    5. Saemundsson, Rögnvaldur & Candi, Marina & Sigurjonsson, Throstur Olaf, 2022. "The influence of performance feedback and top management team orientation on decisions about R&D in technology-based firms," Technovation, Elsevier, vol. 113(C).
    6. Xavier Gabaix & David Laibson & Guillermo Moloche & Stephen Weinberg, 2005. "Information Acquisition: Experimental Analysis of a Boundedly Rational Model," Levine's Bibliography 666156000000000480, UCLA Department of Economics.
    7. Gabaix, Xavier & Laibson, David Isaac & Moloche, Guillermo & Stephen, Weinberg, 2003. "The allocation of attention: theory and evidence," MPRA Paper 47339, University Library of Munich, Germany.
    8. David W. Lehman & Jungpil Hahn & Rangaraj Ramanujam & Bradley J. Alge, 2011. "The Dynamics of the Performance--Risk Relationship Within a Performance Period: The Moderating Role of Deadline Proximity," Organization Science, INFORMS, vol. 22(6), pages 1613-1630, December.
    9. David W. Lehman & Jungpil Hahn, 2013. "Momentum and Organizational Risk Taking: Evidence from the National Football League," Management Science, INFORMS, vol. 59(4), pages 852-868, April.
    10. Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
    11. Philippe Bacchetta & Eric van Wincoop, 2005. "Rational Inattention: A Solution to the Forward Discount Puzzle," FAME Research Paper Series rp156, International Center for Financial Asset Management and Engineering.
    12. Ehrmann, M. & Pfajfar, D. & Santoro, E., 2014. "Consumer Attitudes and the Epidemiology of Inflation Expectations," Discussion Paper 2014-029, Tilburg University, Center for Economic Research.
    13. Elisa Giuliani & Federica Nieri & Andrea Vezzulli, 2019. "BEST IN CLASS BUT BIG WRONGDOERS: Exploring the financial performance and human rights infringe ments nexus in large emerging country companies," Discussion Papers 2019/250, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    14. Luca Gambetti & Nicolò Maffei-Faccioli & Sarah Zoi, 2022. "Bad News, Good News: Coverage and Response Asymmetries," Working Paper 2022/8, Norges Bank.
    15. Seasholes, Mark S. & Wu, Guojun, 2007. "Predictable behavior, profits, and attention," Journal of Empirical Finance, Elsevier, vol. 14(5), pages 590-610, December.
    16. Elizabeth Boyle & Zur Shapira, 2012. "The Liability of Leading: Battling Aspiration and Survival Goals in the Jeopardy! Tournament of Champions," Organization Science, INFORMS, vol. 23(4), pages 1100-1113, August.
    17. Philippe Bacchetta & Eric Van Wincoop, 2006. "Incomplete information processing: a solution to the forward discount puzzle," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
    18. Yuehua Xu & Guangtao Zeng, 2021. "Corporate social performance aspiration and its effects," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1181-1207, December.
    19. Driscoll, John C. & Holden, Steinar, 2014. "Behavioral economics and macroeconomic models," Journal of Macroeconomics, Elsevier, vol. 41(C), pages 133-147.
    20. Verver, Hugo & van Zelst, Marino & Lucas, Gerardus Johannes Maria & Meeus, Marius, 2019. "Understanding Heterogeneity in the Performance Feedback – Organizational Responsiveness Relationship: A Meta-Analysis," OSF Preprints hq4uw, Center for Open Science.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:21:y:2010:i:2:p:432-450. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.