Organizational attention and learning under regulatory intervention: Governmental investigation into auto engine quality. (26th May 2017)

• Record Type: Journal Article
• Authors: Rhee, Mooweon; Kim, Young‐Choon
• Is Part Of: Revue canadienne des sciences de l'administration. Volume 35:Number 3(2018)
• Page Start: 457
• Page End: 472
• Publication Date: 2017-05-26
• Subjects: behavioural theory -- organizational learning -- organizational attention -- government investigations -- automotive industry; théorie comportementale -- apprentissage organisationnel -- attention organisationnelle -- enquêtes gouvernementales -- industrie de l'automobile; Management -- Periodicals; Management -- Canada -- Periodicals; 658.005
• DOI: 10.1002/cjas.1445
• Languages: English
• ISSNs: 0825-0383

Abstract

Abstract: We examine the efficacy of government regulation on a firm's product. We draw on the behavioural approach of organization research in order to understand the micromechanisms whereby the regulatory intervention process affects corporate operation. We suggest that while government investigations may limit the improvements in product quality by distracting a firm's attention, this unintended outcome depends on the extent to which the firm engages in a substantive problem‐solving process with the regulator during an investigation process. A longitudinal analysis of the US government's investigation into motor vehicle engine production offers overall support for our argument. The paper concludes with a discussion of the implications that our findings present to learning theory and institutional literature. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.