Microdivisionalization as a way toward dynamic capability
ISSN: 0025-1747
Article publication date: 27 April 2020
Issue publication date: 4 May 2021
Abstract
Purpose
As entrepreneurial top management teams in multidivisional forms are typically treated in pertinent literature as the default organizational solutions for developing dynamic capabilities, the emerging innovative organizational forms tend to be overlooked, even though they could be a viable means of transforming established enterprises. The present case study examines how Haier's microenterprise and platforms influenced the firm's dynamic capabilities development.
Design/methodology/approach
The paper presents a qualitative case study of Haier Group Corporation in China.
Findings
The findings indicate that Haier employed a loosely coupled relationship between its headquarters and the microenterprises, developed quasi market-based exchange relationships and established peer-to-peer learning opportunities and coordination among its microenterprises. Data analyses further revealed that Haier has adopted three-step routines to capture market opportunities and enhance operational efficiency. This research extends the sensing-seizing-reconfiguration model typically recommended in the existing literature. It also demonstrates that organizational configuration is an important aspect of dynamic innovation. In summary, the study results showcase microdivisionalization as a new way for developing dynamic capabilities to better adapt to the ever-changing market environments.
Originality/value
In summary, our study showcased microdivisionalization as a new way for firms to change the organization structure and business strategies to better adapt to the ever-changing market environments.
Keywords
Acknowledgements
This work was supported by National Natural Science Foundation of China (NSFC) (No. 71702024) and China Business Studies Initiative (CBSI) at University of San Francisco. We are grateful for the comments from anonymous reviewers and special issue editor Dr. Angelina Zubac.
Citation
Chen, R.(R)., Wang, L., Li, E.P.H. and Hu, G. (2021), "Microdivisionalization as a way toward dynamic capability", Management Decision, Vol. 59 No. 3, pp. 506-523. https://doi.org/10.1108/MD-09-2019-1329
Publisher
:Emerald Publishing Limited
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