Academic SeminarHOW FIRMS’ STRATEGIC ALINGMENT WITH COMMUNITY ALIGNMENT AFFECTS ORGANIZATIONAL SURVIVAL: EVIDENCE FROM U.S. COMMERCIAL BANKS
- 2019-09-05 ~ 2019-09-05
- School of Management Engineering
We would like to invite you to participate in Management Engineering (ME) Seminar.
1. When: September 5th (Thursday), 16:00 ~ 17:30
2. Where: Building no.9, 7th #9701
3. Speaker: Prof. Jaemin Lee (Imperial College London)
4. Topic: HOW FIRMS’ STRATEGIC ALINGMENT WITH COMMUNITY ALIGNMENT AFFECTS ORGANIZATIONAL SURVIVAL: EVIDENCE FROM U.S. COMMERCIAL BANKS
5. Research field: Organization and Strategic Management
* Lecture will be delivered in Korean.
Despite an increasing academic interest in the interaction between corporations and
geographic communities, we know little about how companies strategically align themselves to
communities, and when they benefit from such practices. Based on research on resource
dependence and institutional legacies, we develop a theory on community alignment by
organizations. We propose that companies can attempt to align by adjusting key organizational
elements or fulfilling the community’s social needs. The benefits of such efforts offset the added
costs, particularly at times of financial crisis, through the forging of mutual dependency which
offers informational advantage, access to community social capital and joint actions. Testing our
hypotheses using data from the U.S. commercial banking industry, we find that banks with
stronger organizational and social community alignment are less likely to fail, especially during
economic crises. Our theory and findings contribute to research on organization and community
interactions, institutional legacies, and competition between large and small firms.