Managing the threat of decoupling in the U.S. affordable housing industry

Abstract

Decoupling, or the practice of communicating different organizational values and goals than those rigorously pursued, is a concept discussed in the organization theory literature. Organizations engage in it when their legitimacy hinges on obtaining the support of stakeholders with disparate interests, and they attempt to appease some stakeholders with words and others with actions. One problem with decoupling is that it can lead organizations to operate in ways that are not reflective of their stated missions. With this concern in mind, the analysis presented here explores the prevalence of decoupling in the U.S. affordable housing industry and considers how, when, and why it occurs, and to what effect. Thematic analysis of interview data collected from industry practitioners suggests decoupling is common, comes in multiple forms, and must be effectively managed if municipal governments hope to partner with for-profit and nonprofit affordable housing providers to achieve their social policy goals.