Publisher's Synopsis
Excerpt from Failure-Induced Change and Threat-Rigidity Under Economic Adversity: The Case of Insider Vs. Outsider Ceo Succession; Working Paper No. 3597-93
Organizational scripts result both from past experience of the organization and from the experience of other organizations in its sector or field. Prior adoption of a program in an organization increases its availability in organizational memory, and this knowledge becomes encoded in the form of organizational scripts that link sequences of action to environmental stimuli. With the organizational adoption of a program of action, it becomes embedded in the memory of the organization and its members. In the event of a subsequent opportunity for organizational decision-making, the probability that the this type of solution will be invoked by organizational participants is likely to increase. Organizational restructuring, strategic reorientations and top management turnover are all examples of programs of action that when successfully adopted become more salient in organizational memory and increase the likelihood of subsequent adoption.
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