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Enabling rapid financial response to disasters: Knotting and reknotting multiple paradoxes in inter-organizational systems

Jarzabkowski, P. ORCID: 0000-0001-8674-6628, Bednarek, R., Chalkias, K. and Cacciatori, E. (2021). Enabling rapid financial response to disasters: Knotting and reknotting multiple paradoxes in inter-organizational systems. Academy of Management Journal, doi: 10.5465/amj.2019.0745

Abstract

While market-based solutions are increasingly being proposed to address major societal and development issues, they are also often considered antithetical to issues such as climate change, poverty alleviation and disaster response. In particular, the interorganizational systems involved in such market solutions gives rise to multiple contradictory tensions, known as paradoxes. We therefore adopt a paradox lens to explain the dynamics through which different actors within these systems navigate the contradictions that are generated. Drawing on a global qualitative study of multi-country risk pools that provide rapid capital in the immediate aftermath of disaster, we advance paradox theory by showing how organizational actors’ interactions i) maintain equilibrium by generating mutually reinforcing balance among paradoxes, whilst ii) the clustering of poles from different paradoxes generates disequilibrium, and iii) the reknotting of poles from different paradoxes restores equilibrium. As our process framework shows, these dynamics form an iterative cycle between equilibrium and disequilibrium that is essential in enhancing the promise of market-based solutions to address development issues; in our study increasing the rapid availability of capital to respond to disasters such as hurricanes, earthquakes and droughts.

Publication Type: Article
Publisher Keywords: Longitudinal, Research Design, Research Methods, Qualitative orientation (General), Qualitative Orientation, Research Methods, Environmental Sustainability, Topic Areas, Social issues in management (General), Social Issues in Management, Topic Areas
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HG Finance
H Social Sciences > HN Social history and conditions. Social problems. Social reform
Departments: Bayes Business School > Management
Date available in CRO: 24 Aug 2021 10:06
Date deposited: 24 August 2021
Date of acceptance: 22 July 2021
Date of first online publication: 30 July 2021
URI: https://openaccess.city.ac.uk/id/eprint/26646
[img] Text - Accepted Version
This document is not freely accessible until 30 July 2022 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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