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The Price of Admission: Organizational Deference as Strategic Behavior

Author

Listed:
  • Julien Jourdan

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

  • Rodolphe Durand

    (HEC Paris - Recherche - Hors Laboratoire - HEC Paris - Ecole des Hautes Etudes Commerciales)

  • Patricia Thornton

    (UNIV_TEXAS - University of Texas - Center for mechanics of solids)

Abstract

Why would market organizations engage in symbolic and material acts conveying appreciation and respect to other organizations that confirm their inferior position in an established hierarchy? Deference, we argue, is the price outsider organizations pay to pass categorical and symbolic boundaries, and gain acceptance in contexts where insiders regard them as impure. Because not all organizations can or are willing to pay the price, deference varies according to positional, dispositional, and interactional characteristics. We examine and find support for the view of organizational deference as strategic behavior using empirical evidence on market finance organizations investing in film production in France over two decades. Our analysis expands research on non-conflictual interactions and symbolic boundaries in market settings.

Suggested Citation

  • Julien Jourdan & Rodolphe Durand & Patricia Thornton, 2017. "The Price of Admission: Organizational Deference as Strategic Behavior," Post-Print hal-01629691, HAL.
    • Handle: RePEc:hal:journl:hal-01629691
    DOI: 10.1086/692248
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    Citations

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    Cited by:

    1. Julien Jourdan, 2018. "Institutional Specialization and Survival : Theory and Evidence From the French Film Industry," Post-Print hal-01819590, HAL.
    2. Xirong (Subrina) Shen & Heeyon Kim & Jizhen Li, 2022. "Funding ventures similar to one of us: How status dynamics within heterogeneous groups affect venture evaluation," Strategic Management Journal, Wiley Blackwell, vol. 43(10), pages 2135-2155, October.
    3. Diestre, Luis & Lumineau, Fabrice & Durand, Rodolphe, 2023. "Litigate or let it go? Multi-market contact and IP infringement-litigation dynamics," Research Policy, Elsevier, vol. 52(6).
    4. Julien Jourdan, 2018. "Institutional Specialization and Survival: Theory and Evidence from the French Film Industry," Strategy Science, INFORMS, vol. 3(2), pages 408-425, June.
    5. Youchung Kwon & Bo Kyung Kim, 2024. "When we unite, not divide: status homophily, group average status, and group performance in the Korean film industry," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 9-31, February.
    6. Virginie Svenningsen-Berthélem & Eva Boxenbaum & Davide Ravasi, 2018. "Individual responses to multiple logics in hybrid organizing: The role of structural position," Post-Print hal-02737160, HAL.
    7. Heeyon Kim & Bo Kyung Kim, 2022. "To be in Vogue: How mere proximity to high‐status neighbors affects aspirational pricing in the U.S. fashion industry," Strategic Management Journal, Wiley Blackwell, vol. 43(6), pages 1208-1230, June.
    8. Saverio Dave Favaron & Giada Di Stefano & Rodolphe Durand, 2022. "Michelin Is Coming to Town: Organizational Responses to Status Shocks," Management Science, INFORMS, vol. 68(9), pages 6925-6949, September.
    9. Giulia Cappellaro & Paul Tracey & Royston Greenwood, 2020. "From Logic Acceptance to Logic Rejection: The Process of Destabilization in Hybrid Organizations," Organization Science, INFORMS, vol. 31(2), pages 415-438, March.

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