Flexible Use of Referents in the Construction of Organizational Identity: A Longitudinal Case Study

Abstract

Rapid growth, acquisitions, and diversification are examples of major changes that often result in the need to redefine the distinctive characteristics of the organization in question thereafter. However, a sudden identity presentation that significantly differs from the past lacks credibility among both the organizational members and the organization’s external constituents. We contribute to previous research by showing the previously neglected potential that lies in the flexible selection, valuation, and spatio-temporal positioning of referents, and how this enables the construction of an identity that is simultaneously sufficiently congruent with the organization’s present activities and continuous with its previous identity. Moreover, we also reveal how this use of referents changes across the phases of organizational evolution. Empirically, our findings are grounded on an intensive case study of an organization over a 20-year time frame that evolved from a minor spin-off to a prominent and eventually to a major diversified company.