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This paper examines how structural recombination of business units within a firm impacts subsequent firm innovation. We argue that structural recombination is both a means for firms to unlock the potential for intraorganizational knowledge recombination and a source of disruption to the firm's existing knowledge resources, so that the overall effect of structural recombination on innovation will depend on the balance between these two effects. Structural recombination will have a positive effect on innovation where there are substantial intraorganizational knowledge synergies, where path dependence is low, and where knowledge resources are of high quality, limiting disruption. Results from a 20-year panel of 71 firms operating in the U.S. medical sector confirm these arguments. The study thus provides a contingent view of the effects of structural recombination on firm innovation while highlighting the role of structural recombination in realizing untapped knowledge synergies within the firm. [ABSTRACT FROM AUTHOR]

This paper examines how multinational corporations (MNCs) selectively assign supervisory responsibilities to units in countries with varying levels of institutional quality. Arbitraging across institutional contexts is an important function of MNCs, but it also creates coordination challenges. The choice of organization structure, such as the differential assignment of supervisory responsibilities, is an important tool for managing these coordination challenges. Using data on the business activities and supervision relationships within U.S. multinational manufacturers in 1996-2008, I find that frontline subsidiaries in countries with weaker institutions are more likely to be supervised by foreign rather than domestic supervisory units. Foreign supervision is even more likely when subsidiaries in weak-institution countries conduct activities that are more central to or interdependent with their parents' global operations. These findings confirm that MNCs use differential supervision to enhance global coordination. The paper highlights one of the most unique features of MNCs: a multinational hierarchy that resides within a firm's boundary but across national borders. It also connects MNCs' hierarchical structure with institutional imperfections that give rise to the emergence of the firm in the first place. [ABSTRACT FROM AUTHOR]

This paper studies the impact of task complexity and decomposability on the degree of organizational divisionalization and hierarchy within firms. Drawing upon the team theory and modularity literature, it argues that the degree of divisionalization is predicated not only on the extent of interdependence (complexity) among tasks but also on the extent to which those interdependent relationships are decomposable. As such, the feasibility and benefits of modularization in organizational design may be overstated when the underlying tasks are not decomposable. In addition, this paper argues that organizational hierarchy serves to mitigate the tension between complexity and decomposability by facilitating a higher degree of divisionalization. These arguments are tested using data on the business activities and organization structures of U.S. equipment manufacturers in 1993-2003. Results show that divisionalization increases with task complexity, suggesting that complex task systems encourage more division of managerial responsibilities. However, divisionalization decreases as task systems become less decomposable. Meanwhile, organizational hierarchy increases with task complexity, and it increases as task systems become less decomposable. These findings highlight the constraints firms face in designing modular organization structures and the role of hierarchy in coordinating complex task systems that are not fully decomposable. [ABSTRACT FROM AUTHOR]

We develop a theoretical perspective on how inconsistencies between formal and informal organization arising from reorganization can help create ambidextrous organizations. We argue that under some conditions, the informal organization can compensate for the formal organization by motivating a distinct but valuable form of employee behavior that the formal organization does not emphasize, and vice versa--an effect we label compensatory fit. We illustrate the concept of compensatory fit by drawing on qualitative data from a reorganization at Cisco Systems. We also derive formal boundary conditions for compensatory fit using a simple game theoretic representation. We show that compensatory fit can only work when there is a powerful informal organization already in existence, and when the gains from ambidexterity are substantial. Further, depending on the strength of the informal organization, breakdown in the conditions necessary for compensatory fit may lead to performance declines and further reorganizations. [ABSTRACT FROM AUTHOR]

School districts have made several attempts at decentralizing. However, decentralization in school districts can mean so many different things that the term has nearly lost its meaning. This paper reports a study of three large urban school districts that, over almost 30 years, adopted nearly identical approaches to decentralizing, granting control to principals and expanding freedom of choice for families. In all three cases, the goal of improving student achievement was achieved, although with a very small sample. These three districts are compared to the three largest public districts in North America. The comparisons reveal that the three decentralized districts attained a high level of principal control over school budgets, staffing, schedule, and teaching methods. [ABSTRACT FROM AUTHOR]

With the increasing globalization of business, there has been growing interest in how to create and manage a successful international enterprise. Although researchers and practitioners have grappled with the issue of globalization for some time, there is no one model that encompasses the range of phenomena we observe in the global economy, nor have those models that do exist been precisely formalized. This paper provides an expanded approach to thinking about the organizational forms and linkages that exist in international business operations. Building on the popular integration-responsiveness framework of international strategic orientation, we develop a more expansive approach that is better able to account for the diversity of organizational forms and strategic choices open to managers. By adding a third set of environmental pressures, incorporating the beliefs of managers, and by employing the idea of efficient frontiers, we reformulate the integration-responsiveness framework, making it more consistent with modern economic models of the firm. Our integration-responsiveness- completeness (IRC) model argues that global firms can respond to these fundamental and competing pressures by configuring themselves in a variety of ways--rather than normatively prescribing that the transnational form is optimal. In addition, our model has methodological ramifications. Its formal structure suggests that empirical techniques that focus on the best rather than average performance are necessary to adequately investigate the performance differences among alternative organizational forms. This may explain the paradoxical lack of empirical support for a link between organizational form and performance. [ABSTRACT FROM AUTHOR]

This paper addresses three weaknesses in the literature on new organizational forms: the limited mapping of the extent of contemporary organizational change; confusion about how contemporary changes link together; and the lack of systematic testing of the performance consequences of this kind of change. Drawing on a large-scale survey of organizational innovation in European firms, the paper finds widespread but not revolutionary change in terms of organization structure, processes, and boundaries. Using the economics notion of complementarities, the paper develops contingency and configurational approaches to suggest that organizational innovations will tend to cluster in particular ways and that the performance benefits of these innovations depend on their clustering. Complementarities in performance are explored from both inductive and deductive perspectives. Consistent with the expectations of complementarity theory, high-performing firms appeared to be innovating more and differently than low-performing firms. Again consistent with complementarities, piecemeal changes--with the exception of IT--were found to deliver little performance benefit, while exploitation of the full set of innovations was associated with high performance. Though few European firms were found to exploit the complementarities of new organizational practices, those that did enjoyed high-performance premia. [ABSTRACT FROM AUTHOR]

Electronic communication has been proposed as a key technology enabling new organization forms and structures, work designs, and task processes. This view assumes that organization structure and form can be defined in terms of communication linkages among organizational units. Communication is a social process, however. Therefore, to better understand the potential for these technologies to enable fundamental organizational change, we must understand how existing structures and social contexts influence patterns of organizational communication. This research examined the use of electronic messaging by ongoing management groups performing a cooperative task. By means of an in-depth multimethod field study of the editorial group of two daily newspapers, it examined the influence of the groups' social context on the patterns of face-to-face and computer-mediated communication. The results show that different groups using the same functional structure and performing the same task with identical communication technologies, but operating within different social contexts, appropriated the communication technology differently and in a way that was consistent with and reinforcing to their existing social structure. This finding suggests that researchers must, at the very least, explicitly take into account social context when studying the effects of introducing technologies which may alter group interaction. Additionally, researchers should look to social context as an important explanatory construct to be explicitly varied and investigated with regard to effects and outcomes of these technologies. The findings also suggest that managers must diagnose and explicitly manage the social context of the workplace prior to implementing technologies, if their intent is to restructure the patterns of interaction and information exchange in support of new organizational forms. [ABSTRACT FROM AUTHOR]

Advanced manufacturing technology (AMT) includes such technologies as computer-aided design (CAD) and manufacturing (CAM), as well as computer-integrated manufacturing (CIM). Numerous case studies have found that organization structure (e.g., centralization of decision making) changes when firms introduce AMT. but the findings from such studies have been inconsistent. This paper reports the findings of a large-sample study of the relationship between AMT and organization structure. Two alternative patterns in the relationship between these two concepts were considered. The Marxist perspective, which holds that automation is used by managers as a tool to subordinate the workforce, leads to predictions that AMT will be associated with increasing differentiation (more hierarchical levels and job classifications), centralized decision making, and high levels of formalization (management by rules). The Idealist perspective, which involves the belief that managers should use new technologies to empower the workforce, leads to predictions that AMT will be associated with less differentiation, decentralized decision making, and limited formalization. The study was conducted using questionnaires, which were returned by general managers from 185 firms in the metalworking industries (SIC codes 33-37), The findings provide some support for both perspectives, as AMT was associated with both decentralization of decision making and formalization. We interpret these results as stemming from the characteristics of AMT, particularly integration, flexibility, and risk. Seen in this light, organizations have less need to centralize decisions, as AMT's capacity for integration allows information to be brought together at lower levels of the firm, and its flexibility allows departments to more easily adapt to decisions made by other departments. The risk and expense associated with AMT, however, may lead firms to institutionalize those practices associated with effective use of the technology through formal rules. In other words, formalization may be a mechanism for safely decentralizing. In general, researchers are urged to strike a balance between focusing on the intentions of management and the constraints of the technology when they study technology and organization. [ABSTRACT FROM AUTHOR]