Search results

Boundaries are a popular topic among organizational researchers, many of whom argue that over the past decade we have witnessed a trend toward permeable boundaries and in some cases a blurring between organization and environment. Contrary to received wisdom, we argue that the question as to whether organizational boundaries have become more permeable or not cannot be decided empirically but is mainly a theoretical issue. Whether or not data indicate permeability or impermeability depends on the theoretical lens employed. Against this backdrop, we review how two prominent approaches to the study of boundaries, sociological systems theory and new institutionalism, not only arrive at different conclusions but also mandate diverging avenues of research. We focus in depth on several empirical trends: advances in information and communication technologies, increasingly dynamic fields and markets, invasive transparency regimes, and meta-organizations. We then introduce the contributions in this volume, showing how they elaborate on these and other empirical trends, drawing on different theoretical perspectives, to advance our understanding of the importance of boundaries within and around organizations.

What happens to nonelite workers’ meaning, belonging, and identity when work is “on-demand”? On-demand organizations, such as Uber and TaskRabbit, have ambiguous boundaries and locations of workers. This qualitative study investigated how organizational and societal boundary discourse and the organization of the work itself, constructed sometimes conflicting worker roles that influenced how ride-hailing workers understood the boundaries of the on-demand organization and their location with respect to it. The roles of app–user and driver–partner constructed ride-hailing workers as outside the boundaries of the organization, while the driver–bot role constructed them as (nonhuman) elements of organizational technology. While the driver–partner role had positive and empowering identity, meaning, and belongingness associations, its conflict with the other roles blocked these positive associations, and led to cynicism and fatalism. We reflect on the possible impacts of the on-demand economy on society, workers, and the practice of work, particularly for nonelite workers.

Work–nonwork policies and practices provide support for employee well-being, as well as a competitive advantage that can help differentiate organizations. However, not all work–nonwork policies and practices are effective, utilized, or relevant. In this chapter, the authors introduce “organizational boundary management strategy” as a way to leverage these policies and practices, making them more widely adopted and more effective. Organizational boundary management strategy refers to how an organization as a whole tends to support workers’ work–nonwork boundaries (i.e., via segmentation, integration, or somewhere in between). Although boundary management has historically tended to focus on how individuals navigate distinctions between work and personal life, the authors extend boundary management to the organization to suggest how understanding and aligning the organization’s overall boundary management strategies can support worker well-being. To expound on this, the authors present a model suggesting how organizational boundary management can be used to support worker well-being.

As a company that has continuously achieved business innovation, Apple in the United States has successfully applied strategic knowledge creation to produce a series of products that integrate various digital devices as well as diverse contents and applications, such as the iPod, iPhone, and iPad, based on a corporate vision of a digital hub concept. At the same time, the redefining of corporate boundaries that expanded Apple’s business in a horizontal direction from the Macintosh PC business to the delivery of music, smartphones, and tablets is also an indication of the evolution of a corporate vision involving Apple’s strategic transformation. This chapter presents the strategic and creative processes that enabled practitioners, including the late Steve Jobs, to demonstrate “strategic innovation capability” by “holistic leadership” at every level of management at Apple and successfully achieve a business ecosystem strategy through “creative collaboration” across diverse boundaries within and outside the company.

This chapter explores the multiplicity, formation, and porosity of organizational boundaries in new, fluid forms of production. Conceptualizing them as “partial organizations,” we argue that both the intentional design of organizational elements (such as membership, hierarchy, rules, monitoring, and sanctioning) as well as unintended adjustments of “unorganized” aspects drive boundary formation and impact boundary porosity. In addition, we contend that structuring dynamics will create specific trajectories for boundaries over time. Empirically, we further our theoretical framework on the basis of an in-depth case study of the Apache open-source software community during its formative years (1995–2002). We find that both the salience and formalization of boundaries increase over time. However, different conceptions of boundaries (such as efficiency, competence, power, and identity) become salient at different points in time. While design and adjustment drive boundary formation with regard to all boundary conceptions in our empirical case, porosity develops differently for each of them. We also demonstrate that the formalization of boundaries does not necessarily reduce boundary porosity, but actually may increase it.

Financial accounting necessarily depends on an entity assumption that shapes the way it recognizes and accounts for organizational exchanges with social environments. It thereby constructs boundaries and frames permeability in terms of what counts, is accounted for, as being inside and outside of the organization. Yet there are different possible entity concepts reflecting different values about the relationship between the organizational entity and society. This essay considers four problem areas in which these values and the entity–society relationship are at stake within financial accounting: the problem of control within group accounting; accounting for externalities; the economization of public organizations; and the construction of organizational actorhood. These four problematics suggest that financial accounting, its boundary determining assumptions, and the forms of organizational permeability it permits are deeply intertwined and subject to continuous pressure for change.

Assuming that organizations are open and have increasingly permeable boundaries, one risks overlooking the strategies employed by organizations to defend their own logics and routines, as illustrated by the example of the implementation of active labor market policies. It is often assumed that only open, networked organizations can fulfill the demand of offering individualized employment and social services to citizens. On the basis of an in-depth case study, we show how a jobcenter organization dealt with these challenges by developing its own decision-making criteria on a procedural, structural, and personal dimension. This implies not only cognitive openness but also operational closure and increased internal “requisite variety,” in the language of systems theory.

Scholars typically view cross-legacy boundary spanners – employees who develop and maintain social relationships with coworkers from both legacy organizations – as the key integrators in mergers and acquisitions (M&As). Organizations even formally appoint employees with cross-legacy responsibilities to support the post-merger integration process. Recent research has started to emphasize, however, how difficult it can be to reap the benefits of a boundary-spanning position. Building and maintaining formal or informal boundary-spanning ties is costly because it requires time, attention, and political savviness. To better understand the perks and pitfalls of cross-legacy boundary-spanning, the authors identify and describe its structural and sociocultural dimensions and explain how they influence cross-legacy boundary-spanning in M&A contexts. The authors argue that the two dimensions can be seen as boundary conditions to the positive relationship between cross-legacy boundary spanning and post-merger integration. This chapter highlights the potential dark side of cross-legacy boundary-spanning and proposes a multi-dimensional model to explain how cross-legacy boundary spanners can avoid the pitfalls and promote the perks of their position in support of successful post-merger integration.

Rather than organize as traditional firms, many of today’s companies organize as platforms that sit at the nexus of multiple exchange and production relationships. This chapter considers a most basic question of organization in platform contexts: the choice of boundaries. Herein, I investigate how classical economic theories of firm boundaries apply to platform-based organization and empirically study how executives made boundary choices in response to changing market and technical challenges in the early mobile computing industry (the predecessor to today’s smartphones). Rather than a strict or unavoidable tradeoff between “openness-versus-control,” most successful platform owners chose their boundaries in a way to simultaneously open-up to outside developers while maintaining coordination across the entire system.

This chapter goes into deeper discussion and consideration of holistic leadership through the concept of holistic leadership presented in Part 1 and analysis of a number of case studies presented in Part 2. The chapter first analyzes and considers the concept of dialectical leadership, which is an element for achieving a balance between centralized leadership and distributed leadership at the psychological boundary layer located at the boundary layer between the formal organizational layer and the informal organizational layer from the perspective of four dimensions: the time axis, spatial axis, strategic axis, and management axis. This is because there is new knowledge gained from multiple case analyses and because dialectical leadership has an impact on management elements in these four dimensions when companies execute strategic knowledge creation processes to achieve business innovation. Second, the chapter discusses the concept of leadership interaction which occurs among leaders at the individual boundaries of the three-layered structure (practice layers) of the informal organization layer located in the business community, the psychological boundary layer located in the boundary layer of the business community, and the formal organization layer located in the formal organization, and the three management layers. Third, as demonstrated in the cases of Apple, Cisco Systems, Dyson, SoftBank, and Sony, strategic collaboration with other companies including customers is extremely important for those practitioners who are promoting business ecosystem strategies across different companies. To achieve this, synchronization of leadership at the three practice layers and three management layers in holistic leadership through boundary negotiations among individual leaderships across different companies is important. These concepts are discussed in this chapter. Fourth, this chapter indicates that excellent holistic leadership is necessary for practitioners to achieve strategic knowledge creation high in quality, but this requires leadership for value creation for the formation of new business communities that originate in the formation of “Ba.” The chapter also indicates that “practical wisdom” is an important element for practitioners in such value creation, and the presence of this element is a necessary condition for generating excellent holistic leadership.