Symbolic Management: Governance, Strategy, and Institutions

By James Westphal and Sun Hyun Park

The theory of symbolic management reveals a pervasive pattern of 'symbolic decoupling' - a separation between appearances and reality - at every level of the governance system. At each level the processes of governance are less efficient or effective than they appear; from interpersonal relations within organizations such as those between CEOs and directors, top managers and lower-level employees, to relations between firm leaders and external stakeholders such as journalists and security analysts. There is even a separation between appearances and reality at the level of the governance system itself.

In this book, James Westphal and Sun Hyun Park develop symbolic management into a major theoretical perspective on governance. Not only does symbolic management provide a compelling behavioral alternative to economic perspectives such as agency theory, but it subsumes economic theory. Agency theory is reconceived as a historically contingent institutional logic that became taken for granted among corporate stakeholders for a period of time and eventually replaced by a new logic of governance. Through a body of extensive empirical research Westphal and Park demonstrate how the symbolic management activities of firm leaders have contributed to this historical shift in prevailing logics of governance, and present a warning to regulators, investors, and the general public.

• Format: Hardcover
• Language: English
• ISBN: 0198792050
• ISBN13: 9780198792055
• Release Date: May 2020
• Publisher: Oxford University Press
• Length: 272 Pages
• Weight: 1.20 lbs.
• Dimensions: 0.9" x 6.2" x 9.3"