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Partners in crime: the effects of diversity on the longevity of cartels created by Olivier Bertrand and Fabrice Lumineau

By: Contributor(s): Material type: TextTextSeries: Academy of management journal ; Volume 59, number 3Nw York: Academy of Management, 2016Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
ISSN:
  • 00014273
Subject(s): LOC classification:
  • HD28 ACA
Online resources: Abstract: Despite the importance of organizational misconduct, still not much is known about coordinated misconduct between firms. In this study, we seek a better understanding of how the profile of the partners involved in cartels affects the longevity of their joint misconduct activities. Drawing upon diversity theory, we leverage a distinction between three types of diversity—variety of age-based experience, separation in uncertainty avoidance, and power disparity—in collective organizational misconduct between firms, and study their respective influence on the longevity of cartels. Our empirical analysis gives support to our main arguments: the longevity of cartels tends to be increased by the level of variety of age-based experience and power disparity between partners but reduced by their level of separation in uncertainty avoidance. Implications for the literature on organizational misconduct are discussed.
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Holdings
Item type Current library Call number Vol info Copy number Status Notes Date due Barcode
Journal Article Journal Article Main Library - Special Collections HD28 ACA (Browse shelf(Opens below)) Vol. 59, no. 3(pages 983-1008) SP26437 Not for loan For in house use

Despite the importance of organizational misconduct, still not much is known about coordinated misconduct between firms. In this study, we seek a better understanding of how the profile of the partners involved in cartels affects the longevity of their joint misconduct activities. Drawing upon diversity theory, we leverage a distinction between three types of diversity—variety of age-based experience, separation in uncertainty avoidance, and power disparity—in collective organizational misconduct between firms, and study their respective influence on the longevity of cartels. Our empirical analysis gives support to our main arguments: the longevity of cartels tends to be increased by the level of variety of age-based experience and power disparity between partners but reduced by their level of separation in uncertainty avoidance. Implications for the literature on organizational misconduct are discussed.

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