Using qualitative data from interviews with multiple respondents in 45 garment brands and retailers, as well as respondents from unions and other stakeholders, the authors analyze the emergence of the Action Collaboration Transformation (ACT) living wages initiative. They ask how the inter-firm coordination and firm–union cooperation demanded by a multi-firm transnational industrial relations agreement (TIRA) developed. Synthesizing insights from the industrial relations and private governance literatures along with recent collective action theory, they identify a new pathway for the emergence of multi-firm TIRAs based on common group understandings, positive experiences of interaction, and trust. The central finding is that existing union-inclusive governance initiatives provided a platform from which spillover effects developed, facilitating the formation of new TIRAs. The authors contribute a new mapping of labor governance approaches on the dimensions of inter-firm coordination and labor inclusiveness, foregrounding socialization dynamics as a basis for collective action and problematizing the limited scalability of this mode of institutional emergence.

This chapter addresses the concern that much theory building in organization and management (OM) research suffers from de-contextualization. The authors argue that de-contextualization comes in two main forms: reductionism and grand theory. Whereas reductionism tends to downplay context in favor of individual behavior, grand theory looks at context only in highly abstract ahistorical terms. Such de-contextualization is problematic for at least two reasons. First, the boundary conditions of theories remain unexplored in ways that threaten scientific validity. Second, de-contextualization limits the potential of OM theory to fully understand the role of organizations in society and thereby address societal grand challenges. These claims are exemplified through critical reviews of four fields in OM research -gender, employee voice, corporate social responsibility (CSR), and institutional logics -and counterpoints that may help to overcome de-contextualized research are presented.

We also want to thank three anonymous reviewers and the handling editor, Jennifer Howard-Grenville, for detailed and constructive comments and excellent guidance. We gratefully acknowledge funding by the Volkswagen Foundation for the project "Changes in the Governance of Garment Global Production Networks: Lead Firm, Supplier, and Institutional Responses to the Rana Plaza Disaster" under the European and Global Challenges Program. All correspondence should be directed to lead author Elke S. Schüßler

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