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Organizationsin Two periods of radical political-economic change in the
Changing former East Germany illuminate dynamics of
organization-environment relationships that generally are
Environments:The hidden from view. Historical, qualitative, and survey data
Case of East German from a longitudinal comparative study of 78 orchestras in
Symphony Orchestras four nations show that the contexts of East German
orchestras changed significantly when the socialist
Jutta Allmendinger regime took power after World War 11,and then again in
Munich University 1990 when that regime fell. Socialist rule only modestly
J. Richard Hackman affected orchestras' institutional features, however; they
HarvardUniversity continued to reflect centuries-old German musical
traditions. The collapse of socialism in 1990, by contrast,
provoked differentiation among orchestras-some
adapted successfully to the new political-economic
context, but others floundered. Successful adaptation
was found to be a joint function of an orchestra's prior
strength as an organization and the kinds of leadership
initiatives taken by orchestra leaders and players.
Overall, the findings suggest that the size and character
of environmental effects depend on the degree to which
contextual changes alter (a) the strength of the link
between organizational actions and resources obtained
(resource contingency) and (b) organizations' latitude to
manage their own affairs (operational autonomy).
In the decades since Stinchcombe's (1965) landmark
statements on the relationshipbetween organizationsand
their societal contexts, an abundantresearch and theoretical
literatureon organization-environment relationshipshas
developed. In this paper,we take a fresh look at those
? relationsin historicallyuniquecircumstances-specifically,
1996 by CornellUniversity.
0001-8392/96/4103-0337/$1.00. duringthe two periods of radicalpolitical-economicchange
0 that occurredin the former East Germanyin the last
Portionsof the researchreportedhere half-century.The first change took place in the years
were supportedby the Max Planck immediatelyafter WorldWar 11when the socialist regime
Institutefor Bildungsforschung and by
the HarvardGraduateSchool of Business took power; the second occurredin 1990 when that regime
Administration. We thankLarissa fell and the Germanstates reunified.Ourfocal institutionis
Kowal-Wolk, ErinLehman,and Rebecca the professionalsymphony orchestra,which has been
Rotersfor theircollaborationon the
project;Jay Tuckerfor help in translating integralto East Germanculturefor over a century. By
and coding researchmaterials;and Ben examiningthe impactof the two revolutionarychanges on
Dattner,AdamGalinsky,and Tuck
Pescosolido for assistance in library this deeply rooted culturalinstitution,we seek to identify
researchand data analysis.Helpful and illuminatedynamics of organization-environment
comments on this paperwere provided relationshipsthat generallyare hiddenfrom scholarlyview.
by JudithBlau,HannahBruckner,
Thomas Ertman,PaulDiMaggio,Connie There is no dearthof conceptual models of organization-
Gersick,StephanLiebfried,Andy
Molinsky,FrancieOstrower,Charles environmentrelations(fora brief review, see Allmendinger
Perrow,KlausJOrgenPeter, and Aage and Hackman,1994). Institutionalmodels (Meyer and
Sorensen. Assistance in enumeratingthe Rowan, 1977; Zucker,1977; DiMaggioand Powell, 1983;
populationof orchestrasand in gaining
access to those selected for the research Scott, 1987) describe the processes by which organizations
was providedby the AmericanFederation situated in similarenvironmentstend to become isomorphic
of Musicians(AFM),the American
SymphonyOrchestraLeague(ASOL),the with those environments,increasinglysimilarto one another,
Arts Councilof GreatBritain(ACGB),the and persistent over time. Populationecology models
EuropeanConferenceof Symphony (Hannanand Freeman, 1977, 1989; Aldrich,1979) explain
Orchestras(ECSO),the International
Conferenceof Symphonyand Opera how environmentalchanges reshape the populationof
Musicians(ICSOM),and the Regional organizationsin a domain. Over time, organizationsthat fit
OrchestraPlayersAssociation(ROPA). well with their environmentsprosperand reproduce,
We give special thanksto KennethBaird
(ACGB),BradBuckley(ICSOM), whereas those that do not eventuallydie out. In the
RosemaryEstes (ROPA),Catherine populationecology view, there is little that organizational
French(ASOL),KenHaas (Boston
SymphonyOrchestra),and Lew Waldeck actors can do to alter ecological forces or to adapt to them.
(AFM). Adaptationmodels, such as organization-environment fit
337/AdministrativeScience Quarterly,41 (1996): 337-369
theory (Lawrenceand Lorsch,1967; Thompson, 1967),
resource dependency theory (Salancikand Pfeffer, 1977;
Pfeffer and Salancik,1978), and models of organizational
responses to threat and failure(Staw, Sandelands, and
Dutton, 1981; Meyer, 1982; Haveman,1992; Ocasio, 1995),
derive from a conception of organizationsas rationalactors
(Barnard,1938; Child,1972). Althoughadaptationmodels
vary in the strength of their presumptionof managerial
rationality-intheir view of organizationalaction as
instrumentalor mainlysymbolic and in their relativefocus on
actions that are internallyor externallyoriented-a common
theme in these models is that leaders can do constructive
things to help their organizationsrespond appropriatelyto
environmentalchanges.
All of these approachescan provideuseful explanationsof
organization-environment relationships.Despite the fact that
they sometimes generate incompatiblepredictions,and
despite the occasional attempts by scholars to pit them
against one another (Singh, House, and Tucker,1986;
Zucker,1987: 457-459; Astley and Van de Ven, 1983), they
are not directlycompeting theories (Hambrickand
Finkelstein,1987: 370). We view them, instead, as likelyto
be differentiallyuseful in explainingorganization-environment
relationsin differenthistoricaland organizational
circumstances.As Gersick(1994: 11) noted, now may be
the time to cease asking whether or not organizationsadapt
or managerialchoices matterand to focus instead on "when
and how organizationssteer successfully throughchanging
environments"(emphasis added).
The overallaim of the present study is to identifythe times
and circumstances underwhich significantenvironmental
changes engender institutionaldynamics or ecological
processes or adaptiveinitiativesby affected organizations.
We draw on quantitative,observational,archival,and
interviewdata about professionalsymphony orchestras in
the former East Germany-supplemented by paralleldata
from orchestras in the formerWest Germany,the United
Kingdom,and the United States-to do this.
Symphonyorchestras in East Germanyprovidea uniquely
appropriatesetting for this analysis because they
experienced in this centurytwo episodes of radicalsocietal
change-both well defined but invokingopposite social
policies-separated by a long interveningperiodof relative
social stability.The experience of East Germanorchestras
between 1945 and 1990 has many of the features of a
naturallyoccurringexperiment. State centralcontrolwas
introducedafter 1945, allowed to runfor over 40 years, and
then abruptlydismantledin 1990. There are, moreover,
several nonequivalentcontrolgroups availablefor use in
interpretingfindingsfrom East Germanorchestras-those in
West Germany,which have the same musical traditionas
orchestras in East Germanybut, after 1945, a sharply
differentpolitical-economiccontext; and those in other
Western nations, which share with East Germanorchestras
neither musicaltraditionnor political-economiccontext.
Research Focus
We approachour overallresearch agenda of identifyingthe
kinds of processes set in motion by significant
338/ASQ, September 1996
Symphony Orchestras
METHOD
Selection of Orchestras
The populationof symphony orchestras in each of the four
countrieswas enumerated by listingall orchestras that
advertisedat least one open playerposition between 1985
and 1989. We obtainedthe 1989 playersalarybudget for
each of those orchestras and used the distributionof salary
budgets to select approximatelyequal numbers of "major"
and "regional"orchestras from each country.Major
orchestraswere randomlydrawnfrom the top decile (or, in
the United Kingdom,which had relativelyfewer orchestras,
quintile)of the distribution;regionalorchestras were
randomlydrawnfrom each of the remainingdeciles (or
quintiles)untilwe obtaineda sample of about 20 orchestras
from each country.Of the 81 orchestras invitedto
participatein the study, 78 agreed (96 percent). One regional
orchestrain the United States and one majorand one
regionalorchestrain the United Kingdomdeclined.
Characteristicsof the orchestras in the sample are
summarizedin Table 1. A numberof differences across
nationand orchestrastanding (majorvs. regional)are
evident. Only in the UnitedStates do all orchestras perform
concerts exclusively.The United Kingdomand the two
Germannations have several orchestras whose main
mission is broadcastperformances.Only half of the German
orchestras performconcerts exclusively; many also perform
for opera and theater productions.As might be expected,
given their multiplemissions, the mean size of German
orchestras is largerthan that of orchestras in the two
English-speakingcountries. Regionalorchestras in all
countries tend to be more recentlyfounded than major
orchestras, to have a largerpercentage of women players
(especiallyin the UnitedStates and the United Kingdom),
and (for East and West Germanyonly) to have a larger
percentage of foreign workers. There are no major
differences across nations in playerdemographics.
Qualitative and Archival Data
Before beginningfieldwork,we studied published
informationsuch as orchestra histories, scholarlypapers, and
newspaper or magazinearticles about orchestras in each
342/ASQ, September 1996
Symphony Orchestras
Table 1
Characteristics of Orchestras by Country and Standing
Mean date founded 1818 1867 1920 1917 1904 1943 1904 1931
Orchestra composition
Mean percent women players 11 23 11 23 25 47 24 39
Mean percent foreign players 1 20 21 42 3 1 4 3
Playermotivationand satisfaction
Generalsatisfaction 3 5.61 1.21 .74
Internalwork motivation 3 6.21 0.79 .69
Job involvement 1 4.70 2.04
Satisfactionwith:
Compensation 2 3.87 1.75 .73
Job security 2 4.82 1.48 .88
Management 3 4.28 1.48 .86
Workrelationships 3 4.93 0.98 .58
Growthopportunities 4 4.84 1.17 .79
Playermotivationand satisfaction
Generalsatisfaction 0% 33% 4%
Internalwork motivation 17% 8% 0%
Job involvement 6% 61% 0%
Satisfactionwith:
Compensation 27% 0% 11%
Job security 5% 2% 12%
Management 0% 16% 2%
Workrelationships 10% 4% 6%
Growthopportunities 4% 7% 4%
* Based on plannedcontrasts of an analysisinvolvingthe mainand interactiveeffects of country,standing(majorvs.
regional),and orchestra.N = 72 orchestras.
Table 4
Cross-national Comparison of Measures from the Player Survey*
* Country means are the average of the means of individual orchestras. N = 72 orchestras.
Table 5
Major
_________4______-________ Regional
1990 1991 1990 1991
~--Regional -Regional
5- 5-
4r4 -
1990 1991 1990 1991
Major or-
1990 1991
Table 6
Correlations between Change in Music Director Organizational Initiatives and Orchestra- and
Player-level Measures*
Table7
Comparison of Orchestras That Did and Did Not Change Leaders
between 1990 and 1991
Measure Yes No t
Music director replaced
Adequacyof resources 2.86 4.12 -2.29--
Stability(Organizationnot fallingapart) 5.23 6.31 - 2.74---
Satisfactionwith job security 3.58 4.80 - 2.29--
N 6 15
Technical director replaced
Integrityas an ensemble 5.20 5.59 - 1.75-
Adequacyof resources 2.96 4.05 -2.07--
Recognition(Excellentplayingpays off) 5.62 6.16 - 2.62--
Recruitment(Fairand effective) 5.13 5.82 -2.32--
Sections (Area key organizational
feature) 4.47 5.40 -2.15"
Qualityof internalprocesses 4.59 5.08 -2.15--
N 7 14
*p < .10; *-p < .05; seep < .01.
Player Initiatives
To further explore the role of players in shaping the
post-reunification prospects of East German orchestras, we
turned to our observational data to identify eight orchestras
in which players took significant leadership initiatives
between 1990 and 1991. As shown in Table 8, those eight
orchestras were significantly lower on many of our
measures than were the thirteen orchestras in which players
did not take organizational initiatives. This finding adds
credence to the interpretation that players more often take
action in orchestras with serious problems than in those that
are in relatively good shape. And it is organizational
difficulties that are especially likely to incite players:
Orchestras in which players took leadership initiatives scored
significantly lower on six of our seven measures of
organizational features, but on only three of the twelve
measures in other domains.
That the consequences of players taking control of their
orchestras varied from orchestra to orchestra is illustrated by
the following two cases. In a middle-size ensemble near a
large city, players fired their music director just as soon as
the collapsing political system made it possible to do so. As
a replacement, they chose a very young conductor
experienced in the ways of Western orchestras. They gave
him a short-term contract, keeping other candidates on hold,
so they could assess his performance before confirming the
appointment-which, after a year and a half, they did. At this
writing, the new music director is firmly in control and the
orchestra is prospering.
Players in another orchestra, located in a small community
near a resort area, were less successful. With the
cooperation of the town mayor, who wanted a fine orchestra
that would draw tourists and thereby help the local
economy, they fired both the music directorand the
technical director.A famous conductorfrom another country
359/ASQ, September 1996
Table8
Comparison of Orchestras in Which Players Did and Did Not Take LeadershipInitiatives
Player leadership initiatives
Measure Yes (N = 8) No (N = 13) t
features of the orchestra
Organizational
Integrity as an ensemble 5.14 5.59 - 2.15--
Orchestrastructure:Taskand composition 4.55 5.22 -2.55--
Playerinvolvementand opportunities 4.21 4.70 -2.77---
Adequacy of resources 2.95 4.16 -2.30--
Single items:
Recognition(Excellentplayingpays off) 5.77 6.08 - 1.36
Recruitment(Fairand effective) 5.24 5.76 - 1.76-
Sections (Area key organizational
feature) 4.43 5.41 -2.42--
findings,althoughcorrelational,supportthe propositionthat
competent leadershipcan significantlyhelp organizations
adapt to exogenous shocks. On the other hand, leadership
initiativesby players-which often includedreplacement of
existing leaders with others of their own choosing-occurred
mainlyin orchestras that alreadywere troubled-and such
initiativeswere by no means certainto improveeither
orchestrahealth or playerwell-being.
How are these two findingsto be reconciled?We
hypothesize that the degree to which leadershipinitiatives
are helpfulto an organizationin respondingto an
environmentalshock depends on the priorhealth of the
organizationas a social system. When a shock hits an
organizationthat is alreadystrong, members are unlikely
either to replace their leaders or to take significant
leadershipinitiativesthemselves. In this case, competent
leadership(indexed here as increased organizational
initiativesby existing leaders) is likelyto aid adaptationto the
exogenous event (Table6). The situationis reversed,
however, when a shock hits an organizationthat alreadyis
dysfunctional.Members of such organizationsare more
likelyto replace existing leaders and/orto take over the
leadershipof the enterprisethan are members of stronger
organizations(Tables7 and 8). But if the organization's
troubles are serious, members' initiativesare unlikelyto
accomplishthe needed repairsand, perversely, may even
make things worse. This state of affairs,which is akin to
what is seen in the United States when employees convert
an already-failing business into a workercooperative,
characterizesthe experience of several small and struggling
East Germanorchestras duringthe reunificationyears.
Takentogether, our findingsabout the moderatingeffects of
orchestrastandingand organizationalleadershipsuggest that
as the economic context of East Germanorchestras
becomes even more market-oriented,self-fueling
performancespirals(Lindsley,Brass, and Thomas, 1995)
may furtherwiden the existing gap between majorand
regionalorchestras in that country.Only majororchestras,
for example, appearto have materialresources and network
contacts sufficientto engage technical directorsand music
directorsof the qualityneeded to see them throughwhat is
certainto be a highlyturbulenttransitionperiod.As McCann
and Selsky (1984: 465-466) noted, hyperturbulencecan
result in a kindof social triage that separates organizations
that have adequate adaptivecapacityfrom those that do not.
The eventual outcome could be a repartitioningof the
populationof orchestras in the former East Germany,from
the three classes of orchestras created by the socialist
government into two groups: strong orchestras occupying
what McCannand Selsky call "social enclaves" that
preserve their adaptivecapacities and weaker orchestras
caught in downward-spiraling "social vortices" of suboptimal
functioning.
DISCUSSIONAND CONCLUSION
Two conceptualdimensions are helpfulin accounting for the
differentialimpact of the 1945 and the 1991
political-economicchanges on East Germanorchestras and
361/ASQ, September 1996
players: (1) the effect of the changes on resource
contingencies (the degree to which the resources available
to organizationsdepend on their actions) and (2) the impact
of the changes on organizations'operationalautonomy (the
amount of latitudeorganizationshave to manage their own
affairs).
The Advent of State Socialism
The first change, to state socialism, simultaneouslyreduced
both resource contingencyand operationalautonomy. Prior
to 1945, orchestras could negotiate with government agents
about resources and, throughtheir actions, potentially
improvetheir standing.This was no longer possible under
socialism. All orchestraswithin each of the three hierarchical
classes received roughlyequivalentfinancial,material,and
human resources. There was nothingan orchestra could do
to improveits situation,nor was there any real riskthat its
situationwould worsen.
Orchestras'operationalautonomyalso decreased sharply
undersocialism. State agencies, ratherthan orchestras, now
controlledmost personnel matters, how financialresources
were to be used, where orchestras were to performand for
whom, and more. The reductionof orchestras' autonomy
providedstabilityand predictability.But it also blurredthe
boundariesamong smallerand poorerorchestras as they
struggledtogether to accomplishtheir centrallyassigned
tasks with fewer resources than were actuallyneeded to do
so, fostering among them the kinds of linkages that can
mitigatethe impactof exogenous changes (Miner,
Amburgey, and Stearns, 1990).
The simultaneous reductionof resource contingency and
operationalautonomy undersocialism significantly
strengthened institutionalforces for East Germanorchestras.
Consistent with the predictionsof DiMaggioand Powell
(1983: 155), they became homogeneous within class as
their transactionswith state agencies became more
extensive and consequentialand as the numberof visible
alternativemodels decreased. Moreover,as both the need
and opportunityfor orchestras to take entrepreneurial
initiativesdeclined, the historicaland culturaltraditionsthat
orchestras shared with each other became increasingly
salient.
The power of these institutionalforces is illustratedby what
happened to the repertoireplayed by East German
orchestras understate socialism. The officialpolicy of the
state concert and theater agency was that orchestras would
emphasize in their programsmusic by contemporary
composers from socialist countries. Althoughmost people
we interviewedassured us that this policy had been
implemented,the data say otherwise. We selected one
concert programfrom each orchestra in our sample
(excludingspecial or festival programsand concerts led by
guest conductors)and recordedthe birthdatesof the
composers whose works were played. Only 8 percent of the
works performedby East Germanorchestras were by
composers born in the twentieth century, compared with 20
percentfor West Germany,24 percentfor the UnitedKingdom,
and 32 percent for the UnitedStates. Also informativeare
362/ASQ, September 1996
Symphony Orchestras
CHANGEIN RESOURCECONTINGENCY
Decrease Increase
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