Social Goals in the Theory of the Firm: A Systems Theory View

Valentinov, Vladislav; Roth, Steffen; Pies, Ingo

doi:10.1177/0095399720933826

Cited by 20 publications

(15 citation statements)

References 91 publications

(148 reference statements)

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“…The systems theory better describes the PM system than any other specific theory, according to the findings from this review (Schleicher et al , 2018). Systems theory is a method that has recently received a lot of attention (Valentinov, 2021). According to systems theory, the components of the system cannot readily describe the complete system, and the total should be prioritised above the parts or subsystems (Luhmann, 1995).…”

Section: Feedbackmentioning

confidence: 99%

Managing the most important asset: a twenty year review on the performance management literature

Justin

Joy

2022

JMH

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Purpose The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and to illustrate the theoretical perspectives. It would be fascinating for the practitioners and researchers to see the latest trends in the PM system, which is not yet covered in previous reviews. The study covers the historical and theoretical perspectives of human resource management practices. We also try to unveil some of the theoretical debates and conflicts regarding the topic. Design/methodology/approach We reviewed 139 studies on PM published within the last 20 years (2000–2020). The method used here is the integrative review method. The criteria used to determine studies are articles from peer-reviewed journals regarding the PM system published between 2000 and 2020. The initial search for studies was conducted using an extensive journal database, and then an intensive reference-based search was also done. Each selected article was coded, themes were identified, and trends for every 5 years were determined. All the articles were analysed and classified based on the methodology used to identify qualitative and quantitative studies. Findings The review concludes that PM literature's emphasis shifted from traditional historical evaluations conducted once or twice a year to forward-looking, feedback-enriched PM systems. By segregating the studies into 5-year periods, we could extract five significant trends that prevailed in the PM literature from 2000 to 2020: reactions to PM system, factors that influence PM system, quality of rating sources, evaluating the PM system and types of the PM system. The review ends with a discussion of practical implications and avenues for future research. Research limitations/implications It is equally a limitation and strength of this paper that we conducted a review of 139 articles to cover the whole works in PM literature during the last 20 years. The study could not concentrate on any specific PM theme, such as exploring employee outcomes or organizational outcomes. Likewise, the studies on public sector and non-profit organizations are excluded from this review, which constitutes a significant share of PM literature. Another significant limitation is that the selected articles are classified only based on their methodology; further classification based on different themes and contexts can also be done. Originality/value The study is an original review of the PM literature to identify the latest trends in the field.

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Section: Feedbackmentioning

confidence: 99%

Managing the most important asset: a twenty year review on the performance management literature

Justin

Joy

2022

JMH

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“…In recent years, Niklas Luhmann's (1994Luhmann's ( , 2012Luhmann's ( , 2013Luhmann's ( , 2018 theory of social systems has gained considerable attention in organization and management research (Cooren and Seidl, 2020;Czarniawska, 2017;Deroy and Clegg, 2015;Roth, 2021;Schneider et al, 2017;Schoeneborn et al, 2014;Becker, 2006, Sundgren andStyhre, 2006;Valentinov, 2021;Valentinov and Pérez-Valls, 2021). In this paper, we draw in particular on contributions to organization theory founded on Luhmann's integration of theories of communication, functional differentiation, and organizational decision-making (see Ahrne et al, 2016;Apelt et al, 2017;Besio and Pronzini, 2014;Gregory, 2006;, 2020Martens, 2006;Schoeneborn et al, 2014;Seidl and Becker, 2016;Thompson and Valentinov, 2017;Valentinov and Thompson, 2019;Valentinov et al, 2020;Will et al, 2018). In line with many other sociologists (e.g.…”

Section: Theoretical Framework: Applying Social Systems Theory To the Process Of Pmimentioning

confidence: 99%

From play to pay: a multifunctional approach to the role of culture in post-merger integration

Sales

Roth

Grothe‐Hammer

et al. 2021

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PurposeThe literature on Mergers and Acquisitions (M&A), cultural differences between organizations have frequently been identified as one of the main challenges in the process of post-merger integration (PMI). Existing research has explored a broad variety of cultural differences in perceptions, such as those relating to expectations, norms, values and beliefs within the respective organizations, and how these affect the process and success of PMI. However, less attention has been paid to the relevance of the macro-societal context to PMI. The ambition of this article is, therefore, to advance our understanding of how macro-level societal factors define organizational cultures and affect the success of PMI.Design/methodology/approachWe draw on social systems theory as devised by Niklas Luhmann, assuming that organizations are always embedded in the macro-level societal context of distinctive realms of social reality—such as the economy, politics, religion and the arts—that make up the so-called “function systems”. Looking at the case of the integration of a Brazilian technology start-up into a market-leading corporation, we analyze the dominant orientations towards these function systems, and the changes in these orientations over time.FindingsThe results suggest that differences in organizational culture in PMI can be partly explained by differences in orientations to the function systems. Moreover, forcing dramatic changes of orientations towards the function systems within a merged entity can severely damage its raison d'etre in the first place, potentially leading to, in some sense, an account of “culture murder”.Originality/valueThis article is unique in demonstrating that organizations are multifunctional systems whose culture is defined by the highly specific and potentially varying degrees of importance they place on individual function systems and that knowledge or neglect of these functional profiles may seriously affect the success of post-merger integration. Against this backdrop, the article presents a multifunctional profiling method that may easily translate into PMI management tools.

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“…In a similar fashion, corporations may be advised to deviate from the goal of long-run profit maximization if pursuing this goal generates unintended adverse side-effects that put organizational sustainability on the line (Valentinov et al, 2020). Deviating from the goal of long-run profit maximization means giving primacy to other goals, such as seeking social welfare, social and ecological sustainability or assuming political responsibility (Pies et al, 2019).…”

Section: Exploring the Common Groundmentioning

confidence: 99%

“…In somewhat more detail, this means that only operationally closed systems can develop a high level of inner complexity, which can then serve to specify the respects in which the system reacts to conditions of its environment, while in all other respects, thanks to its autopoiesis, it can remain indifferent” (Luhmann, 2012, p. 34). The complexity-sustainability trade-off elaborates the complementarity between the ideas of systemic openness and closure while seeking to replace the Luhmannian communication-theoretic focus with an actor focus which, among other things, enables meaningful connections to the fields of management and business ethics (Valentinov et al , 2020, 2019; Roth et al , 2020a, 2020b; Valentinov, 2019).…”

Section: A Systems-theoretic Frameworkmentioning

confidence: 99%

“…For example, corporate stakeholder management strategies may be planned in such a way as to close the gap between the organizational complexity-reducing function and the critical dependencies on the turbulent business environment (Valentinov et al , 2019). In a similar fashion, corporations may be advised to deviate from the goal of long-run profit maximization if pursuing this goal generates unintended adverse side-effects that put organizational sustainability on the line (Valentinov et al , 2020). Deviating from the goal of long-run profit maximization means giving primacy to other goals, such as seeking social welfare, social and ecological sustainability or assuming political responsibility (Pies et al , 2019).…”

Section: Managerial Implicationsmentioning

confidence: 99%

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Corporate social responsibility and the nonprofit sector: exploring the common ground

Valentinov

2020

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Purpose Many nonprofit missions and the goals of socially responsible corporations are often found to refer to similar moral ideals related to improving the quality of human life. To take account of this salient fact, the paper aims to theorize the functional equivalence between corporate social responsibility (CSR) and the nonprofit sector. Design/methodology/approach The argumentative strategy is to draw on the conceptual construct of the complexity-sustainability trade-off to develop a systems-theoretic interpretation of Roger Lohmann’s vision of the commons as an embodiment of collective voluntary action. Findings The emerging conceptual imagery is that of corporations and nonprofits as social systems continually seeking to sustain themselves by processing and codifying their societal environment which includes the commons in which Lohmann took a central interest. The possible functional equivalence of corporations and nonprofits is traced back to their struggling to develop and improve their responsiveness to the respective commons. Originality/value This argument is shown to cut across a range of issues in the modern nonprofit sector scholarship, while shedding new light on the ongoing debates on CSR and stakeholder theory.

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Social Goals in the Theory of the Firm: A Systems Theory View

Cited by 20 publications

References 91 publications

Managing the most important asset: a twenty year review on the performance management literature

Managing the most important asset: a twenty year review on the performance management literature

From play to pay: a multifunctional approach to the role of culture in post-merger integration

Corporate social responsibility and the nonprofit sector: exploring the common ground

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