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Good Fences Make Good Neighbors: A Longitudinal Analysis of an Industry Self-Regulatory Institution

Barnett, Michael L. and King, Andrew A. (2008) Good Fences Make Good Neighbors: A Longitudinal Analysis of an Industry Self-Regulatory Institution. Academy of Management Journal, 51 (6). pp. 1150-1170.

Abstract

We extend theories of self-regulation of physical commons to analyze self-regulation of intangible commons in modern industry. We posit that when the action of one firm can cause "spillover" harm to others, firms share a type of commons. We theorize that the need to protect this commons can motivate the formation of a self-regulatory institution. Using data from the U.S. chemical industry, we find that spillover harm from industrial accidents increased after a major industry crisis and decreased following the formation of a new institution. Additionally, our findings suggest that the institution lessened spillovers from participants to the broader industry.

Item Type: Article
Keywords: chemical industry, industry self-regulation, occupational health, cooperative strategy
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Date Deposited: 02 Sep 2009 15:15
Last Modified: 26 Apr 2019 15:10
URI: http://eureka.sbs.ox.ac.uk/id/eprint/7

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