Changing Organizational Routines Antecedents, Processes, Outcomes Inauguraldissertation zur Erlangung des Doktorgrades der Wirtschafts- und Sozialwissenschaftlichen Fakultät der Universität zu Köln 2013 vorgelegt von Dipl.-Kfm. Hendrik Wilhelm aus Ludwigshafen am Rhein Referent: Prof. Dr. Mark Ebers Korreferent: Prof. Dr. Ludwig Kuntz Tag der Promotion: 21.01.2014 Acknowledgements First, I would like to thank my fellow researchers with whom I worked together in developing the empirical inquiries that constitute this thesis: Suleika Bort, Jes- sica Chromik, Indre Maurer, Andreas Richter, Maren Schlömer, and Thorsten Semrau. Their contributions and support are much appreciated. They allowed me to master the challenges inherent in the study of change in organizational rou- tines. Furthermore, I would like to thank Mark Ebers, my dissertation advisor, for providing both the resources and freedom to pursue my research on organization- al routines. I have benefited from his profound expertise and I am indebted to him for his constructive feedback on my research. I am also grateful to Ludwig Kuntz for his substantial support and for serving as second reviewer of my dis- sertation. In addition, I want to thank my colleagues for providing valuable feed- back throughout my research. Finally, I am grateful to my family and Clarissa Weber for providing an envi- ronment of encouragement and serenity. Table of Contents List of Tables ......................................................................................................... vi List of Figures ....................................................................................................... vii 1 Introduction .................................................................................................... 1 1.1 History of Routines in Organization Research ..................................................... 2 1.1.1 Habit, Custom, and the Emergence of the Routine Concept .......................... 2 1.1.2 Behavioral Theory Approaches to Organizational Routines .......................... 4 1.1.3 Evolutionary Economics Approaches to Organizational Routines ................ 6 1.2 Contemporary Research on Organizational Routines .......................................... 9 1.2.1 Formation ...................................................................................................... 11 1.2.2 Endogenous Stability and Change ................................................................ 15 1.2.3 Organizational Outcomes ............................................................................. 18 1.3 Critique of Present Research and Thesis Outline ............................................... 21 1.3.1 Change Through Organizational Meta-Routines .......................................... 24 1.3.2 Change Within Organizational Routines ...................................................... 26 1.3.3 Managers and Organizational Routine Change ............................................ 29 1.4 Conclusion .......................................................................................................... 31 2 Exploring Change in Operating Routines ................................................. 33 2.1 Introduction ........................................................................................................ 33 2.2 Theory ................................................................................................................ 35 2.2.1 Stability and Change in Operating Routines ................................................ 35 2.2.2 Dynamic Capabilities and Change in Operating Routines ........................... 37 2.3 Sample and Method ............................................................................................ 38 2.3.1 Research Approach ....................................................................................... 38 2.3.2 Sample and Data Collection ......................................................................... 39 2.3.3 Measures ....................................................................................................... 41 2.3.4 Analytical Approach ..................................................................................... 43 2.4 Findings .............................................................................................................. 46 2.4.1 Type 1: Experiential ..................................................................................... 48 2.4.2 Type 2: Reactive ........................................................................................... 50 2.4.3 Type 3: Programmed .................................................................................... 52 2.4.4 Type 4: Analytic ........................................................................................... 54 2.4.5 Findings for Absence of Change in Operating Routines .............................. 55 2.5 Discussion .......................................................................................................... 56 2.6 Conclusion and Limitations ............................................................................... 59 iii 3 How Dynamic Capabilities Impact the Evolutionary and Technical Fitness of Operating Routines under High and Low Levels of Environmental Dynamism .......................................................................... 60 3.1 Introduction ........................................................................................................ 60 3.2 Theory ................................................................................................................ 61 3.2.1 Dynamic Capabilities and their Activity Components ................................. 61 3.2.2 Effects of Dynamic Capabilities on Operating Routines .............................. 62 3.2.3 Dynamic Capabilities and Environmental Dynamism ................................. 63 3.3 Hypotheses ......................................................................................................... 64 3.3.1 Dynamic Capabilities and the Evolutionary Fitness of Operating Routines under High versus Low Levels of Environmental Dynamism ...... 64 3.3.2 Dynamic Capabilities and Technical Fitness of Operating Routines under High versus Low Levels of Environmental Dynamism ..................... 65 3.4 Sample and Method ............................................................................................ 68 3.4.1 Sample Selection and Description ................................................................ 68 3.4.2 Survey Development .................................................................................... 70 3.4.3 Measures ....................................................................................................... 70 3.4.4 Validity and Reliability of Measures ............................................................ 74 3.4.5 Analytical Approach ..................................................................................... 74 3.5 Results ................................................................................................................ 75 3.6 Discussion .......................................................................................................... 79 3.7 Conclusion and Limitations ............................................................................... 80 4 When Do Written Rules Persist in Routines? ........................................... 82 4.1 Introduction ........................................................................................................ 82 4.2 Theory ................................................................................................................ 84 4.2.1 Organizational Routines as Endogenously Changing Entities ..................... 84 4.2.2 Written Rules as Enacted Artifacts in Organizational Routines ................... 85 4.2.3 Rules as Enablers in Guiding, Accounting, and Referring to Performative Aspects .................................................................................... 86 4.2.3.1 Institutional Embeddedness of Routine Participants: Social Sanctioning ...... 86 4.2.3.2 Organization of Routine Participants: Collective Coordination ..................... 87 4.2.4 Rules as Enablers in Creating, Maintaining, and Modifying Ostensive Aspects ......................................................................................... 88 4.3 Sample and Method ............................................................................................ 89 4.3.1 Research Approach ....................................................................................... 89 4.3.2 Sample and Data Collection ......................................................................... 91 4.3.3 Measures ....................................................................................................... 92 4.3.4 Analytical Approach ..................................................................................... 95 4.4 Findings ............................................................................................................ 102 4.5 Discussion ........................................................................................................ 103 4.5.1 Exploring Rule Persistence in Organizational Routines ............................. 103 4.5.1.1 Situation 1: Reducing Risk ........................................................................... 104 4.5.1.2 Situation 2: Securing Status .........................................................................