Lecture 1
Mainly an introduction about the structure of the course
Goals interdependence
The extent to which the achievement of a goal is hindered or facilitated by other goals.
Positive goal interdependence means that achieving goals 1 also helps to realize goal 2
Negative goal means that goal 1 hinders the realization of goal 2
Personal theories
Every day we work with personal and policy theory
We need both an integrated and a focused view
Integrative view
Only when you add up
- humans
- division of power
- teams, departments, business units, projects
- management
- manufacturing, purchasing
- product
- an environment
- et cetera
you have a full organization +Synergetic effects
You ALSO need a focused view
- Only when you understand, in detail
● human behavior
● division of power
● teams, departments, business units, projects
● management
● manufacturing, purchasing
● product
● an environment
● et cetera
- you can better understand the full organization
,The challenge with “theory”
We need an integrated AND a focused view!
Most people contrast practice with theory AND like examples more than theories.
BUT: practice, as we saw in our Case, suffers from partial views that hinder more complete
observation, and thus (better) explanations!!!
WHEREAS generalization – being able to claim the validity of a certain mechanism over a
large sample of organizations - requires abstraction from the individual firm or practice,
based on impartial observation.
SO.....: Nothing as practical as a good theory!
How to study theory is therefore challenging, but that is what this degree course aims at!
Lecture 2
What is an organization?
Social entities that are goal-directed, are designed as deliberately structured and
coordinated activity systems and are linked to distinct external environments.
Theory: A definition
‘A theory consists of a set of interrelated concepts, definitions, and propositions that
explain or predict events or situations by specifying relations among variables.‘
‘The word “theorize” comes from the Greek word “therein”, which consists of a blend of
two words, “thea” which means to see or observe, and “Horan” which means to see a thing
attentively or to contemplate it.’
A THEORY
- typically focuses on a small part of reality
- abstracts of many other relevant aspects
- helps us see detail this way
- helps us understand that limited part of reality better
- is NOT the whole story, and needs to be seen in a larger theoretical context
Whetten 1989
Building blocks that help you to understand every theory.
A theory consists of a set of concepts (what) and the relationships that tie them together
(how) into an explanation (why) of the phenomena of interest.
What refers to dependent and independent variables.
How refers to the influence of the independent variables on the dependent variables.
Why refers to why we think there is a logical effect.
,What to look for in a theory
Know the dependent (Y) and independent (X) variables
Define the concepts, specify the relations between the concepts and give arguments for
these relations
Be aware of the timeframe, place, unit of analysis to which your data apply.
Can reproduce, understand, and compare theories in terms of levels of analysis, main
assumptions, main concepts, main arguments.
How new theories develop
Option 1: change WHAT
- Same explanatory variables, but a new dependent variable
- Same dependent variable, but new/additional independent variables
Option 2: change WHY
- Same dependent and explanatory variables, but a different story for why they are
related
Option 3: change HOW
- Same dependent and explanatory variables, but a different relation between them
Option 4: Change when
- Same dependent variable and explanatory variables, but different time period
captured with data – say of 1 month, 1y, 5y
-
What is not theory
References are not theory
- the why is missing
- if one study to which you refer found something, that does not mean it is true in
other circumstances
, Data are not theory
- data are results
- data itself does not tell anything about reality
Lists of variables/concepts are not theory
- you need to know if there is causality
Diagrams are not theory
- just a model that does not tell you anything
Only hypotheses are not theory
- no explanation
The 5 theories offer answers to 6 big organizational questions, that allow you to
generate a BIGGER picture
Q1: How can organizations organize their interaction with the environment?
Inter-Organization Theories (TCT and RDT)
Inter-organization theories = TCT and RDT
TCT = transaction cost theory
RDT = resource dependent theory
Q2: How do organizations set goals? Goal-Setting Theory
Q4: What makes organizations different? Dynamic Capabilities Theory
Q5: What causes organizations to become accepted entities? Legitimacy Theory
Q6: When do (departments/teams in) organizations compete, when do organizations
collaborate? Social Interdependence Theory + Inter-Organizational Theories.
Mainly an introduction about the structure of the course
Goals interdependence
The extent to which the achievement of a goal is hindered or facilitated by other goals.
Positive goal interdependence means that achieving goals 1 also helps to realize goal 2
Negative goal means that goal 1 hinders the realization of goal 2
Personal theories
Every day we work with personal and policy theory
We need both an integrated and a focused view
Integrative view
Only when you add up
- humans
- division of power
- teams, departments, business units, projects
- management
- manufacturing, purchasing
- product
- an environment
- et cetera
you have a full organization +Synergetic effects
You ALSO need a focused view
- Only when you understand, in detail
● human behavior
● division of power
● teams, departments, business units, projects
● management
● manufacturing, purchasing
● product
● an environment
● et cetera
- you can better understand the full organization
,The challenge with “theory”
We need an integrated AND a focused view!
Most people contrast practice with theory AND like examples more than theories.
BUT: practice, as we saw in our Case, suffers from partial views that hinder more complete
observation, and thus (better) explanations!!!
WHEREAS generalization – being able to claim the validity of a certain mechanism over a
large sample of organizations - requires abstraction from the individual firm or practice,
based on impartial observation.
SO.....: Nothing as practical as a good theory!
How to study theory is therefore challenging, but that is what this degree course aims at!
Lecture 2
What is an organization?
Social entities that are goal-directed, are designed as deliberately structured and
coordinated activity systems and are linked to distinct external environments.
Theory: A definition
‘A theory consists of a set of interrelated concepts, definitions, and propositions that
explain or predict events or situations by specifying relations among variables.‘
‘The word “theorize” comes from the Greek word “therein”, which consists of a blend of
two words, “thea” which means to see or observe, and “Horan” which means to see a thing
attentively or to contemplate it.’
A THEORY
- typically focuses on a small part of reality
- abstracts of many other relevant aspects
- helps us see detail this way
- helps us understand that limited part of reality better
- is NOT the whole story, and needs to be seen in a larger theoretical context
Whetten 1989
Building blocks that help you to understand every theory.
A theory consists of a set of concepts (what) and the relationships that tie them together
(how) into an explanation (why) of the phenomena of interest.
What refers to dependent and independent variables.
How refers to the influence of the independent variables on the dependent variables.
Why refers to why we think there is a logical effect.
,What to look for in a theory
Know the dependent (Y) and independent (X) variables
Define the concepts, specify the relations between the concepts and give arguments for
these relations
Be aware of the timeframe, place, unit of analysis to which your data apply.
Can reproduce, understand, and compare theories in terms of levels of analysis, main
assumptions, main concepts, main arguments.
How new theories develop
Option 1: change WHAT
- Same explanatory variables, but a new dependent variable
- Same dependent variable, but new/additional independent variables
Option 2: change WHY
- Same dependent and explanatory variables, but a different story for why they are
related
Option 3: change HOW
- Same dependent and explanatory variables, but a different relation between them
Option 4: Change when
- Same dependent variable and explanatory variables, but different time period
captured with data – say of 1 month, 1y, 5y
-
What is not theory
References are not theory
- the why is missing
- if one study to which you refer found something, that does not mean it is true in
other circumstances
, Data are not theory
- data are results
- data itself does not tell anything about reality
Lists of variables/concepts are not theory
- you need to know if there is causality
Diagrams are not theory
- just a model that does not tell you anything
Only hypotheses are not theory
- no explanation
The 5 theories offer answers to 6 big organizational questions, that allow you to
generate a BIGGER picture
Q1: How can organizations organize their interaction with the environment?
Inter-Organization Theories (TCT and RDT)
Inter-organization theories = TCT and RDT
TCT = transaction cost theory
RDT = resource dependent theory
Q2: How do organizations set goals? Goal-Setting Theory
Q4: What makes organizations different? Dynamic Capabilities Theory
Q5: What causes organizations to become accepted entities? Legitimacy Theory
Q6: When do (departments/teams in) organizations compete, when do organizations
collaborate? Social Interdependence Theory + Inter-Organizational Theories.
