Values Practices and Identity Sustenance in Dual-identity Organizations

Abstract

A dual identity organization refers to an organization having two, often mutually conflicting, self-referential definitions of ‘who we are’ as an organization (Albert & Whetten, 1985). Values practices are defined as ‘the sayings and doings in organizations that articulate and accomplish what is normatively right or wrong, good or bad, for its own sake’ (Gehman, Trevino, & Garud, 2013, p. 84). In this paper, I study influence of values practices on sustenance of an organizational identity in dual-identity organizations. I adopted a qualitative approach and single case study method for providing a rich narrative of the phenomenon. I collected data from an Indian software organization involved in both software services and software products businesses. The case data show that values practices manifested inside dual-identity organizations in the form of comparisons of the two identities by internal audiences. The study identifies three types of distinct, but interrelated, values practices: (1) values infusion, (2) collective perceptions of pragmatic alignment and (3) collective expectations of equality and equity. The case data show that ineffective management of these values practices was detrimental to the sustenance of an organizational identity that failed to perform well on conventional performance parameters.