Organizations and societal economic inequality: A review and way forward

• Main Authors: BAPUJI, Hari, ERTUG, Gokhan, SHAW, Jason D.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Income inequality; employee performance; wage inequality; pay dispersion; gender; Organizational Behavior and Theory; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6250; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7249/viewcontent/2019_07_24_AMA_Organizations_and_Inequality_av.pdf
• Institution: Singapore Management University

We review research on the organizational causes (how do organizations contribute?) and consequences (how are organizations affected?) of economic inequality. Our review of 151 conceptual and empirical articles indicates that organizational research on economic inequality encompasses a wide range of topics at multiple levels of analysis, but also that this broad-scope literature exhibits conceptual ambiguities and lacks overarching organizing frameworks. To address these two issues, we develop an organizational perspective on economic inequality and clarify it as uneven distribution in the endowment and/or access to resources in a society, which manifests in differential abilities and opportunities to engage in value creation. Following this, we integrate the reviewed research to highlight the bi-directional relationship between societal economic inequality and organizations, and eight mechanisms that drive this relationship. We conclude by identifying opportunities for future research on economic inequality in research on management and organizations.