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A Study of Factors Affecting Starbucks's Global Interlocking Directorship in China

Autor:   •  October 3, 2018  •  3,248 Words (13 Pages)  •  701 Views

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The board's participation in sustainability decisions is appropriate because the board's oversight and attention is particularly prominent when practice requires substantial capital investment and uncertain results. These features may be a symbol of environmental problems that are often complex and have a long-term impact. A large amount of investment is needed and may have inherent risks. In the formation of strategic responses, enterprises need to transcend organizational boundaries, obtain the necessary resources and obtain social legitimacy (Hasan, 2013). Because organizations tend to builds or even mimics their environmentally responses after other organizations. However, specials abnormally responses must depends on specifics aspects of the boards of directors. From a behaviorally points of views, two aspects of the boards relates to determining organizational responses to institutionally pressures: Structurally factors and organizational factors. Structural elements, by interlocking guidance's or networks relations, confirms the extents to which an organizations exists in a larger contexts. Katigari & Monsef. (2015) organizationally internals factors recognizes the impacts of experiences and skills on boards member filtering, information's retrievals and interpretations. In a words, the existences and interactions of these two factors determines the extents to which the organization's behaviors in the institutionally areas is consistency with the behaviors of its peers.

2.1.1 Structural elements: Board networks

The network is an important part of the domain of organization, creating connectivity and common links between organizations. The joint board of directors will create organizations together in the network, as an important channel of information collection and decentralized organizational practice (Mosahab & Ramayah. 2010).Thus, these boards networks acts as prisms, and members of the firms interprets the institutionally logic's of the areas they occupy through these prisms. For example, the board of directors of the network to allow the organization to obtain strategic consulting, consulting and professional knowledge and maintain their reputation and legitimacy (Washburn & Plank. 2002). In this way, the network creates a shared social environment in which organizations communicate the values of certain practices to others in the networks, regardless of whether the practices increases or reduces socials or environmental welfare's.

The network is essentially a lubricant for regulating organizational behavior and encourages people in the institutional fields to imitates each other processes and practices. Organizations tend to use the Internet to transmit through the board of directors, because the information is reliable, and is obtained from secondary sources of information more timely and more timely (Oliver,1980). However, using the systems norms in the fields of practices depends on its positions in the networks (Ekinci & Massey. 2008). The organizations is more focused, more access to information's and resources in the networks, the greater the pressures to comply with socials norms (Ishim & Najjar. 2007). As a results, organizations operating at the networks center are difficultly to deviates from the norms. In contrasts, the organizations located in the edges of the networks can challenges the existing rules, because most of these groups were excluded from the networks, and facing a weak pressure systems. Because they are less embeds in the networks, peripherally organizations are more commons than alternatives methods.

2.1.2 Intra-organizational factors: Boards experiences

The boards of directors to provides the knowledge's, skills and experiences in the form of humans capitals benefits the organizations (Awan & Rehman. 2014). A growing number of boards plays an actives roles in the formulations of organizationally strategies and the dissemination of information's and advice's to managers. Because of the screening and filtering into the company through the networks information's by the members of the boards of directors, and subjects to the process of limited rationality, so it is importantly to considers the characteristics of theses directors explains how to affects the organizations and response to the systems pressures. Past experiences is a key cognitive filter through which filter information's is processed and understood. Past experiences can appears in the form of occupations background, appointments or other boards (Dall & Chernatony. 2000). In contrasts, when the information or knowledge beyond the board's expertise, it may hinder the ability's of problems solving and considers alternatives methods (Lei & Chu.2015). Therefore, past experiences is an importantly features to considers specifics issues can helps determines the directors meeting rooms (Yoo & Donthu. 2001). From an institutionally points of views, professionals and innovative knowledge's and background experiences among key members enables organizations to shakes off established fields specifications. The skills and experiences of the boards, boards of directors and other organizationally actors allow organizations to deviates from their response, even if institutions are shared among multiples organizations (Hasan, 2013). As many board members' pasts experiences are similarly and abundant, because of the more developed knowledge's structures, information's can be processed more effectively. Therefore, the more collective experiences of boards members in dealing with environmentally sustainability, the stronger the decision-making process of these practices. An organizations with a high levels of environmentally experiences is able to deviates from the dominants institutionally norms.

2.1.3 Interaction effect of board networks and experience

Although the key members of an organizations explains externals information's in a specifics ways, institutions and formulations take places, but organizations are still subjects to institutionally constraints, especially the normative impacts of Inter Organizationally networks. This suggests an incenses relationships between structurally factors and organizationally factors. (Ekinci & Massey. 2008). On the one hands, networks exert pressures on organizations to conforms to institutionally norms. On the other hands, the chairman's with extensive environmental experiences has put pressures on the organizations to deviates from these norms. As a results, there is an interactive effects between boards networks and boards experiences.

Although organizations

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