| Being Efficiently Fickle: A Dynamic Theory of Organizational Choice |
| | Nickerson, Jack A. | Washington U. | nickerson@wuolin.wustl.edu | 314-935-6374 |
| | Zenger, Todd R. | Washington U. | zenger@wuolin.wustl.edu | 314-935-6399 |
| | A central proposition in organization theory is that discrete organizational forms are matched in a discriminating way to environmental conditions,
business strategies, or exchange conditions. This paper develops a contrary theoretical proposition. We argue that efficiency may dictate
modulating between discrete governance modes in response to a stable set of exchange conditions. If governance choices are discrete as
much of organizational theory argues, then the consequent steady-state functionality delivered by these organizational forms is itself discrete.
However, if the desired functionality lies in between the functionality delivered by two discrete choices, then efficiency gains may be available by
modulating between modes. We develop a formal model of organizational modulation and examine factors that influence wehn modulation
is efficiency enhancing as well as the optimal rate of modulation. We conclude that, under certain conditions, organizational modulation
is efficiency enhancing. Further, contrary to theories that highlight the potentially destructive consequences of inertia on organizational
survival, we identify significant efficiency yielding benefits of inertia. |
| | Keywords: Vacillation |
| Measuring the Concept of Contingency Fit in Organizational Research: Theoretical Advances and New Empirical Evidence from China |
| | Schlevogt, Kai A. | Harvard U. | kschlev@fas.harvard.edu | (617)-495-4046 |
| | Donaldson, Lex | The University of New South Wales | lexd@agsm.edu.au | 61-(2)-9931-9352 |
| | Central to contingency theory is the idea that the fit of organizational structure to the contingency factor affects organizational effectiveness. A number of different approaches to measuring fit have been developed. The present paper examines three of these: the pattern variable, theoretical and empirical approaches. In an empirical study of 124 companies in China the pattern variable approach is shown to be superior in its power to explain organizational effectiveness. The paper identifies reasons for the superiority of the pattern variable approach to the measurement of fit and suggests that future research may benefit by employing this approach. It also stresses the importance of building up strong theoretical and empirical foundations to construct better "fit archetypes", i.e. theoretical fit lines for various contingencies and structural dimensions. |
| | Keywords: contingency theory; fit; China |
| Contrasting Organizational Learning and Contingency Theory: A Study of the Interaction Effects of Formalization and Uncertainty on Performance |
| | Meilich, Ofer | Washington U. | meilich@mail.olin.wustl.edu | (314)-935-6354 |
| | Contingency theory argument that formalization is detrimental to organizational performance in high-uncertainty environments is confronted with an organizational learning-based counter-argument that formalization can enhance performance especially when uncertainty is greater. This may occur if, contrary to contingency theory assumption, formalization need not imply rigidity. In this case, organizations can learn by changing their set of formalized routines. Because, compared to placid environments, high-uncertainty environments encapsulate greater performance-enhancing potential, organizations that codify best practices may realize this potential better than those who don't.
This study reports regression results, based on a national multi-industry sample (the National Organizations Survey), in which moderating effects are modeled as interaction terms affecting organizational performance. Results indicate a rather intricate relationships, implying that contingency theory is itself contingent. It was found that a third variable, the extent to which an organization rewards its employees' knowledge, determines which of the two logics are at work. + |
| | Keywords: formalization; environmental uncertainty; organizational performance |
| Organization and Management in the Versatile Project-based Organization |
| | Turner, John Rodney | Erasmus U., Rotterdam | turner@few.eur.nl | (3110)-408-2723 |
| | Keegan, Anne | Erasmus U., Rotterdam | keegan@few.eur.nl | (3110)-408-1315 |
| | Throughout the latter half of the 20th century, there has been a shift in the management paradigm, from the functional, bureaucratic approach, almost universally adopted in the first half of the century, to project and process-based approaches. This shift has been in response to the changing nature of work from mass production, with essentially stable customer requirements and slowly changing technology, to the current situation where every product supplied may be against a bespoke design, and technology changes continuously and rapidly. Whereas the functional, bureaucratic approaches to management are underpinned by a strong theoretical basis, the classical theory of management developed during the late 19th and early 20th centuries, the process and project-based approaches do not have such a theoretical basis. + |
| | Keywords: operational control; governance; subsidiarity |