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Breaking up is hard to do: Irrational inconsistency in commitment to an industry peer network

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  • Stoyan V. Sgourev

    (ESSEC Business School, France)

  • Ezra W. Zuckerman

    (MIT Sloan School of Management, USA, ewzucker@MIT.EDU)

Abstract

This paper strengthens the basis for a key claim of contemporary economic sociology — that strong ties among capitalists cannot be reduced to rational considerations. Support for this claim has been limited by reliance on an external standard of rationality, whereby irrationality in commitment to a partner or network is based on an observer’s evaluation of an actor’s interests. In this article we address this limitation by developing an internal standard for assessing the rationality of an actor’s commitment, which is derived from Davidson’s (1980) definition of akrasia or ‘incontinence.’ In addition, we clarify the mechanisms that produce ‘akratic’ commitment among capitalists: (a) short-term emotions that overwhelm rational calculation; and (b) a sense of loyalty that leads one to incorporate others’ interests into one’s own. Finally, we provide systematic evidence of akratic commitment and the proposed mechanisms from studies of an industry peer network in the remodeling construction industry.

Suggested Citation

  • Stoyan V. Sgourev & Ezra W. Zuckerman, 2011. "Breaking up is hard to do: Irrational inconsistency in commitment to an industry peer network," Rationality and Society, , vol. 23(1), pages 3-34, February.
    • Handle: RePEc:sae:ratsoc:v:23:y:2011:i:1:p:3-34
    DOI: 10.1177/1043463110396444
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    References listed on IDEAS

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    Cited by:

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    3. Marco Tortoriello & Ray Reagans & Bill McEvily, 2012. "Bridging the Knowledge Gap: The Influence of Strong Ties, Network Cohesion, and Network Range on the Transfer of Knowledge Between Organizational Units," Organization Science, INFORMS, vol. 23(4), pages 1024-1039, August.
    4. Pengfei Wang & Michael Jensen, 2019. "A Bridge Too Far: Divestiture as a Strategic Reaction to Status Inconsistency," Management Science, INFORMS, vol. 65(2), pages 859-878, February.
    5. Gulizhaer Aisaiti & Qi Dong & Ling Liang & Jiqing Xie & Jiaping Xie, 2022. "How the Target Positioning of the S&T Innovation Platform Impacts Its Network Innovation Capability in China," Sustainability, MDPI, vol. 15(1), pages 1-29, December.

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