Normative and resource flow consequences of local regulations in the American brewing industry, 1845-1918

Citation
Jb. Wade et al., Normative and resource flow consequences of local regulations in the American brewing industry, 1845-1918, ADM SCI QUA, 43(4), 1998, pp. 905-935
Citations number
94
Categorie Soggetti
Management
Journal title
ADMINISTRATIVE SCIENCE QUARTERLY
ISSN journal
00018392 → ACNP
Volume
43
Issue
4
Year of publication
1998
Pages
905 - 935
Database
ISI
SICI code
0001-8392(199812)43:4<905:NARFCO>2.0.ZU;2-T
Abstract
In this study, we investigate the impact of state-level prohibitions on the founding and mortality rates of breweries in prohibition-free states. Our results suggest that particularistic institutional action such as nonunifor m government regulation creates externalities of two kinds. First, it creat es resource flow opportunities for organizations that are not directly affe cted by such action. Second, it imposes indirect coercive pressures by infl uencing cultural norms in the environment of organizations that are not dir ectly affected by the regulations. The overall direction and strength of th ese effects vary with the centrality of organizations in terms of their loc ation, the time elapsed since an environmental change, and organizational a ge. We discuss the implications of our findings for organization theory, pa rticularly the relationship between social movements and institutional acti on, the effects of institutional action on industry structure, and the link age between environmental change, organizational age, and organizational mo rtality.(. )