Decay, Shock, and Renewal: Operational Routines and Process Entropy in the Pharmaceutical Industry

• 成果类型: Article
• 署名作者: Anand, Gopesh; Gray, John; Siemsen, Enno
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; University System of Ohio; Ohio State University; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: ORGANIZATION SCIENCE
• ISSN/ISSBN: 1047-7039
• DOI: 10.1287/orsc.1110.0709
• 发表日期: 2012
• 页码: 1700-1716
• 关键词: operational routines; process entropy; mergers; acquisitions; quality control

摘要

In this study, we examine decay in adherence to operational routines over time. Our empirical setting is the worldwide pharmaceutical industry, and we focus on operational routines used to maintain product quality. Based on an analysis of longitudinal data from U.S. Food and Drug Administration (FDA) inspections, we find that the tendency of operational routines to decay is widespread. Our results also illustrate that FDA inspections act as external renewals that halt decay in adherence to routines. In addition, manufacturing plants are found to vary significantly in their level of decay. Using data on mergers and acquisitions affecting these plants, we find that mergers appear to cause decay in adherence to routines. However, acquisitions appear to serve as renewals and halt such decay. Based on our overall findings, we present theoretical implications for research in organizational routines and practical insights for companies and regulatory authorities.