David Stark's *The Sense of Dissonance. Accounts of Worth in Economic Life* explores the complex interplay between value and values in economic and organizational contexts. Stark challenges the traditional economic view that individuals maximize utility based on well-defined preferences, arguing instead that values are central to decision-making and cannot be easily traded. He critiques the "Parsons's Pact," which divides the study of values between economists and sociologists, and instead proposes a more integrated approach that combines insights from new economic sociology, economic anthropology, organizational sociology, and the "economics of conventions."
Stark emphasizes the role of entrepreneurship as the ability to maintain multiple evaluative principles and exploit the friction between them. He contrasts this with Ronald Burt's concept of structural holes, arguing that entrepreneurship is not about accessing information but about navigating diverse evaluative frameworks. He also highlights the importance of heterarchies—distributed systems of evaluation where units are accountable according to different principles. In such systems, innovation arises from the interplay of multiple values, and authority is decentralized.
Stark uses three ethnographic case studies to illustrate his arguments: a Hungarian factory during the collapse of communism, a new-media company in Manhattan, and a trading room of an international investment bank. These cases show how different evaluative principles shape organizational practices and how conflicts and friction between values drive innovation and adaptability.
The book also proposes five new directions for economic sociology and organizational analysis, including a shift from classification to search, from diversity of organizations to organizations of diversity, from unreflective action to reflexive cognition, from shared understanding to coordination through misunderstanding, and the importance of ethnographic studies in understanding heterarchies.
Stark's work bridges the gap between economic and sociological perspectives, emphasizing the importance of values in shaping economic life and advocating for a more reflexive and heterogeneous approach to understanding organizations and society.David Stark's *The Sense of Dissonance. Accounts of Worth in Economic Life* explores the complex interplay between value and values in economic and organizational contexts. Stark challenges the traditional economic view that individuals maximize utility based on well-defined preferences, arguing instead that values are central to decision-making and cannot be easily traded. He critiques the "Parsons's Pact," which divides the study of values between economists and sociologists, and instead proposes a more integrated approach that combines insights from new economic sociology, economic anthropology, organizational sociology, and the "economics of conventions."
Stark emphasizes the role of entrepreneurship as the ability to maintain multiple evaluative principles and exploit the friction between them. He contrasts this with Ronald Burt's concept of structural holes, arguing that entrepreneurship is not about accessing information but about navigating diverse evaluative frameworks. He also highlights the importance of heterarchies—distributed systems of evaluation where units are accountable according to different principles. In such systems, innovation arises from the interplay of multiple values, and authority is decentralized.
Stark uses three ethnographic case studies to illustrate his arguments: a Hungarian factory during the collapse of communism, a new-media company in Manhattan, and a trading room of an international investment bank. These cases show how different evaluative principles shape organizational practices and how conflicts and friction between values drive innovation and adaptability.
The book also proposes five new directions for economic sociology and organizational analysis, including a shift from classification to search, from diversity of organizations to organizations of diversity, from unreflective action to reflexive cognition, from shared understanding to coordination through misunderstanding, and the importance of ethnographic studies in understanding heterarchies.
Stark's work bridges the gap between economic and sociological perspectives, emphasizing the importance of values in shaping economic life and advocating for a more reflexive and heterogeneous approach to understanding organizations and society.