We examine the effect of status entrenchment on the adoption of new norm-deviant organizational practices. Identifying organizational age and status mobility as factors affecting entrenchment, we extend the middle-status conformity theory by explicating how entrenchment moderates the relationship between status and adoption. Using original data from the Japanese loan syndication market, we show that young and new-in-status banks have a lower propensity to follow status-based adoption behavior than actors entrenched in the same status positions. We discuss implication of these results for the understanding of new practice adoption and organizational status effects.
ASJC Scopus subject areas
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation