Business, organization theory, and the current challenge of neocharisma

Business and Society Review 124 (2):261-281 (2019)
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Abstract

An argument is made in this article that there exists a trend in today's society toward a phenomenon that can tentatively be called neocharisma and that this trend poses important challenges to organization theory and the modern organization. This phenomenon, it is suggested, is expressed in today's intense pressure for innovation, something that makes it imperative to develop a distinction between constructive and destructive innovation. Organization theory has some difficulty in handling innovations, radical change, and irrationality, as a review of the literature shows. In order to better understand a phenomenon such as neocharisma, it is proposed that organizations be seen as embedded in society in a typology based on Max Weber's four types of social order (tradition, instrumental rationality, value rationality, and charisma). The article ends with a comparison between charisma and neocharisma, a discussion of what differentiates constructive from destructive innovations, and suggestions for future research related to neocharisma.

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