Radical Institutional Innovation: A Multilevel Framework Nada Otman Basir A dissertation submitted to the Faculty of Graduate Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy Graduate Program in Business Administration, Policy and Strategic Management Stream Schulich School of Business York University Toronto, Ontario, Canada September 2015 © Nada Basir 2015 ABSTRACT Prior research explores how knowledge brokers can bring about technological innovation and the structural and network features of brokers, yet little attention focuses on how these micro-level broker relations and processes can have significant macro-level consequences. This dissertation begins to fill this gap by examining the role of brokers in creating radical institutional innovation. Drawing on research in innovation and institutional field emergence, I explore how entrepreneurs create institutional building blocks through brokering and diffusing knowledge, resources and capabilities in an emerging field. More specifically, I employ an ethnographic approach that uses semi-structured interviews, participant observation, and archival data over a 2-year period to examine Libya’s rapid emergence of civil society after the fall of a dictator regime. A multi-level process framework emerging from the findings highlights the important role institutional brokers, actors embedded in both established institutions and in the emerging institutional field, play in bringing about radical institutional innovation. These institutional brokers do more than link organizations and individuals; they also transform ideas as they are ideally positioned to receive new and previously uncombined ideas. The framework developed illustrates the dynamics and mechanisms by which these institutional brokers bring about innovation and how their social position mediates their relation to the environment in which they are embedded, and drives their access to the resources and capabilities that support innovation. The findings supplement the rather static portrait of the role of knowledge brokers with a more in-depth understanding of the innovation process these individuals and organizations participate in as they create radical institutional innovation. The framework also extends current ii views of institutional field emergence by revealing the important, but often missed dynamics of bottom-up strategic action and institutional brokerage as critical drivers of institutional emergence. iii DEDICATION To Mama and Baba, who took the training wheels off, gave a big push, and never let go. And to my beloved Bashar. My greatest fortune is you. In memory of Dr. Brenda Zimmerman Ellis. iv ACKNOWLEDGEMENTS From the moment I started my PhD I have always looked forward to writing this part of the dissertation. In writing these acknowledgements I cannot help but be moved with emotion. This dissertation is the result of an incredible amount of collective energy and support. It has been a privilege to work on this project and to learn and grow with a range of different people who have made this process a rewarding and productive experience. Whatever has come out of this work, I owe to my mentors, colleagues, friends and family - thank you. I would first like to thank the members of my dissertation committee who have guided this work. My supervisor Ellen Auster, has become my mentor, my friend, and is the reason I pursued this challenging, but incredibly inspiring, research topic. I aspire to one day be as generous and giving as she is. Ellen, thank you for your radiant energy, time, and moral support while being incredibly attentive to the curve balls life throws at us sometimes. When Christine Oliver agreed to join my committee, I felt like I had won the dissertation-supervision lottery. She has been a source of intellectual stimulation, academic mentorship and moral support. Her comments and suggestions continue to stimulate my thinking. I was also most fortunate to have had the opportunity to have Brenda Zimmerman on my committee. Her departure from us is still a shock, but I will never forget her enthusiasm for my work, and her expertise in making the challenges and complexities of this context much more manageable. As I near the end of this dissertation journey, I cannot help but feel saddened that she is not reading what she so eloquently helped shape. I would also like to thank Mike Valente, who so generously stepped in. His incredible commitment to excellence in theoretical and methodological matters has greatly helped this dissertation and I am forever grateful for this. Financial assistance from the Social v Sciences and Humanities Research Council of Canada, and the Schulich School of Business is also gratefully acknowledged. A dissertation is a long, and many times tiring process. It requires inspiration. My inspiration came from the people I met in Libya. Many who became my friends. Their work inspired this research and inspired me. To Eunmi, Linda, Najia, Nura, Oliva, Oula, and Rania. I must have done something right in this lifetime to deserve such wonderful friends. You helped me remain sane in the most difficult of moments. I am so lucky to have you all in my life. To my dear colleagues at the Schulich School of Business thank you for your comradeship and intellectually stimulating discussions. I would especially like to thank Trish Ruebottom for her unwavering support, both as a friend and as a scholar, throughout this process. Most importantly, thank you to my family. Mom and Dad - thank you for your love and support in this and all my endeavors. Mossab, Affra, Sohyb, and Mawadda, you kept me grounded and reminded me of how lucky I truly am for being surrounded by a loving and supportive family. I would not be able to complete this work without the support of my husband Bashar. He let me cry when I needed to, gave me a push when I needed some encouragement, and provided much joy and laughter, when nothing else could. Lastly, to my little boys, Layth and Aydin. Your curiosity and wonder at this world is inspiring. One day you will hopefully understand why I did this. But until then, may you never stop asking “why?” and “how?” Knowledge is light. All praise to God, the most merciful, the most gracious. vi TABLE OF CONTENTS ABSTRACT ...................................................................................................................................ii DEDICATION .............................................................................................................................. iv ACKNOWLEDGEMENTS ............................................................................................................... v TABLE OF CONTENTS ................................................................................................................ vii CHAPTER 1: INTRODUCTION .......................................................................................................1 1.1 Theoretical Lens and Research Gap .................................................................................................................................2 1.2. Overview of the Methodology ............................................................................................................................................7 1.3. Organization of the Dissertation .......................................................................................................................................8 CHAPTER 2: THEORETICAL MOTIVATION AND LITERATURE REVIEW ...........................................9 2.1. Civil Society ..................................................................................................................................................................................9 2.2 Innovation and Institutions ............................................................................................................................................... 14 2.2.1 Institutional Theory ....................................................................................................................................................... 15 2.3. Institutional Innovation...................................................................................................................................................... 19 2.4. The Dynamics of Radical Institutional Innovation ............................................................................................... 25 2.4.1. Triggers of Radical Institutional Innovation .................................................................................................... 26 2.4.2. Institutional Entrepreneurs and their Social Position .................................................................................. 28 2.4.3. Recombination Institutional Work ........................................................................................................................ 30 2.4.4. Outcomes ............................................................................................................................................................................ 34 2.5. Conclusion ................................................................................................................................................................................. 35 CHAPTER 3: METHODOLOGY ....................................................................................................36 3.1. Empirical Setting ...................................................................................................................................................................