Beyond the Insider-Outsider Divide: Heterogeneous Effects of Organizational Identity and Category Taken-for-Grantedness on Conformity

Abstract

Categories that become taken-for-granted tend to acquire rule-like standing. That is, people begin to strongly expect certain behaviors from entities that have claimed affiliation with them, and these expectations tend to induce conformity. However, conformity does not always ensue, and we lack an explanation of why the effects of category taken-for-grantedness might diverge. In this paper, we propose that the effects of increasing category taken-for-grantedness hinge upon an organization’s identity. We first argue that the relationship between organizational identity and the likelihood of conformity is U-shaped, with insiders and outsiders being more likely to conform relative to those with middling identities. We then propose that greater category taken-for-grantedness should reduce scrutiny for those whose identities mark them as more of insiders, subsequently making them less likely to conform. In contrast, outsiders become more likely to conform as taken-for-grantedness increases. We test our arguments in the empirical context of Islamic banking, using data on 118 Islamic banks worldwide between 2001 and 2014. We examine the likelihood that banks in the sector make what are known as zakat payments as a function of category taken-for-grantedness and the extent to which a bank’s identity is Islamic. We discuss implications for the literatures on categories and identity.

Factors affecting faculty conformity in South China universities

“…Organizational identification significantly predicted faculty conformity ( β = 0.255, p < 0.001, M3 in Table 2 ), consistent with Paolella and Syakhroza (2021) ; thus, H1 is supported. Regression analysis of moderated mediation shows that the interaction between organizational identification and conflict management style shows faculty conformity ( β = 0.105, p < 0.01, M5 in Table 2 ); thus, H2 and H3 is supported.…”

“…The partial mediating effects showed that organizational identification has a positive impact on formalization of organizational structure ( Maraghoush et al, 2021 ). A higher level of organizational identification is more likely to produce faculty conformity ( Paolella and Syakhroza, 2021 ), and formalization of organizational structure can also contribute to faculty conformity ( Borry et al, 2018 ; Li et al, 2021 ). This validates the social contagion theory.…”

“…This sense of belonging motivates people to integrate group and individual interests, thus triggering the participation of non-direct stakeholders and generating conformity ( Klandermans, 2002 ). Studies also suggest that when a large number of organizational members identify with the organization, their expectations are consistent and they are likely to develop conformity ( Paolella and Syakhroza, 2021 ). Abbasi et al (2021) also suggest that organizational identification has a significant positive effect on behavior ( Demir, 2015 ; Sharma, 2021 ), leading to the following hypothesis:…”

“…Identification is an attitude, or an internal process that maintains relationships with the group or intervenes in an individual’s attitudes ( Wu et al, 2022 ). Thus, the higher the organizational identification, the more likely it will produce conformity ( Paolella and Syakhroza, 2021 ). When faculty members identify with the organization they serve, they incorporate organizational values and cultural goals into their personal objectives, internalize various behavioral codes in the formalization of organizational structure, and produce behaviors of faculty conformity that are consistent with organizational goals ( De Cremer and Tyler, 2005 ; Wu et al, 2022 ).…”

Executive Functions, Self-Regulation and External-Regulation: Relations and new evidence

“…Identification is an attitude, or an internal process that maintains relationships with the group or intervenes in an individual's attitudes (Wu et al, 2022). Thus, the higher the organizational identification, the more likely it will produce conformity (Paolella and Syakhroza, 2021). When faculty members identify with the organization they serve, they incorporate organizational values and cultural goals into their personal objectives, internalize various behavioral codes in the formalization of organizational structure, and produce behaviors of faculty conformity that are consistent with organizational goals (De Cremer and Tyler, 2005;Wu et al, 2022).…”