INTERNAL AND EXTERNAL SOURCES OF ORGANIZATIONAL CHANGE: Corporate Form and the Banking Industry
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How do internal and external constraints impact the likelihood that organizations enact organizational change? Resource dependence theory argues that organizational change is a response to internal and external constraints. However, the interaction of these constraints remains theoretically and empirically underconsidered. Using longitudinal data from the U.S. banking industry, I examine this question from a resource dependence perspective and I also incorporate explanations from transaction cost economics, organizational ecology, and institutional theoretical perspectives. I find that external constraints limit the impact of internal constraints on organizational change. I explore how this finding fits within resource dependence theory. 2007 Midwest Sociological Society.
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