Eric Abrahamson

Macrocultures: Determinants and Consequences

Coauthor(s): Charles Fombrun. View Publication

Abstract:
Faced with turbulent national and international environments, entire U.S. industries-most notably steel and automobiles-have revealed a distinct propensity to overlook radically new types of competitors, cling to traditional technologies, and remain mired in similar, yet outdated, strategic postures. In this article, we ascribe the adaptive failures of entire industries not only to the microcultures of single organizations, but also to what we term interorganizational "macrocultures"-relatively idiosyncratic beliefs that are shared by managers across organizations. More specifically, we propose that value-added networks linking organizations into collectivities both induce and reflect the existence and persistence of more or less homogeneous macrocultures. In turn, homogeneous macrocultures (a) increase the level of inertia these organizations experience, (b) influence the inventiveness of organizations and the diffusion of innovations among them, and (c) increase the similarity of member organizations' strategic profiles.

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