A multilevel study of social networks and collective reactions to organizational change

Abstract

SummaryThe purpose of this study is to examine the micro‐level dynamics underlying macro‐level associations between organizational change and its outcomes, focusing in particular on the role of networks in shaping individual reactions to change. Drawing upon multilevel research on situational and individual antecedents of change, we first argue that the magnitude of change at the unit level has a nonlinear effect on change recipients' tendency to resist change, which in turn influences their adaptive behaviors. We argue, further, that the attitudinal and structural composition of the professional networks in which change recipients are embedded account for differences in their adaptive behaviors. Finally, we argue that individual adaptivity coalesces at the collective, that is, unit level, and predicts the attainment of desired change goals. We find general support for our arguments in a longitudinal study using multi‐source data on 170 physicians in 29 units of a large hospital that experienced a major restructuring intervention. Results confirm that multilevel mechanisms involving individuals and their social context fundamentally undergird macro‐level outcomes of change. We discuss the theoretical and practical implications of bringing a network perspective to bear on issues of individual and collective reactions to organizational change.