Tuesday, May 26, 2015

Learning to Let Go: Social Influence, Learning, and the Abandonment of Corporate Venture Capital Practices

GABA Vibha, DOKKO Gina
Access the publisher's website
Strategic Management Journal (forthcoming)

This study examines the abandonment of organizational practices. We argue that firm choices in implementing practices affect how firms experience a practice and their subsequent likelihood of abandonment. We focus on utilization of the practice and staffing, i.e. career backgrounds of managers, as two important implementation choices that firms make. The findings demonstrate that practice utilization and staffing choices not only affect abandonment likelihood directly but also condition firms’ susceptibility to pressures to abandon when social referents do. Our study contributes to diffusion research by examining practice abandonment – a relatively unexplored area in diffusion research – and by incorporating specific aspects of firms’ post-adoption choices into diffusion theory.