Search results

The purpose of this paper is to test the assertion that the relationship between corporation performance and organizational complexity follows an inverted U-shape curve, and a corporation gains the best performance when its organizational complexity fits its environmental complexity.

This research did not directly measure environmental complexity to verify the relationship between corporation performance and complex environment, but measured organizational complexity to subtly display the effect of the organizational complexity on the corporation performance while controlled the environmental complexity. To do so, a set of corporations that shared the similar environment was selected, and then these corporations’ performance and organizational complexity were calculated, the related hypotheses were tested empirically.

The paper proved the inverted U-shape relationship between organizational complexity and corporation performance, and also found that different corporation chooses different complex adaptive way, so the inverted U-shape relationship displays hierarchy.

Future research should search out to calculate corporation’s environment complexity the fitness of organizational complexity for testing hypotheses.

The regularity of relationship between organizational complexity and corporation performance is helpful for managers to understand that a way to improve a corporation’s performance is to enhance the fitness of organizational complexity and environmental complexity.

Organizational complexity may be competitive advantage, but excessive growth of it will be harmful.

Usually organizational complexity is thought of as a negative factor to corporation performance and tends to be constrained, but this research explored the role of organizational complexity to corporation performance and the findings helps managers to understand when to enhance organizational complexity and when to weaken it. The methodology of calculating the fitness of organizational complexity and environmental complexity by fixing environment is a contribution to complexity theory research.

Purpose: The purpose of the chapter is to determine the dependence of the process of decision making in modern business systems on their organizational structure and to substantiate the necessity for considering the requirements to the process of decision making during designing the organizational structure of a business system.

Methodology: A new simplified classification of the organizational structure of business systems according to the criterion of complexity is offered, and its two main types are distinguished – organizational structure of low complexity and organizational structure of high complexity.

Conclusions: According to the offered classification, dependence of the process of decision making in modern business systems on complexity of their business structure at each stage of making of managerial decisions is determined. As a result of analysis of statistical data, it is determined that business systems with organizational structure of low complexity dominate in Russia. By the example of modern Russian business systems with the organizational structure of high complexity – Sberbank, Lukoil, Gazprom, and Rosneft – it is shown that formation of the structure of this type and supporting its functioning requires resources and thus is inaccessible for most modern business systems. Moreover, the expected advantages, related to high probability of making of optimal managerial decisions, are not always gained in practice.

Originality/value: It is substantiated that the process of decision making in modern business systems largely depends on the complexity of their organizational structure. With increase of complexity of a business system, resource intensity of decision making and duration of this process increase, but the risk of nonoptimal decisions decreases. Organizational structure of low complexity is peculiar for business systems that have deficit of financial and human resources, which does not allow using the means of optimization and fully control the process of decision making. However, in this case, managerial decisions are made much quicker. In the conditions of modern market economy, it is necessary to make quick optimal decisions, which cannot be achieved within the organizational structure of either low or high complexity. Thus, it is necessary to find a way to make quick optimal managerial decisions beyond the design of organizational structure.

This paper aims to explore organizational structure, efficiency and evolution, and its relationship to bureaucracy. A new mathematical model is utilized to generate theoretically consistent relationships between economic performance and organizational scale and structure, and to develop a taxonomy of organizational structure.

A systems approach is used to model structural evolution and generate consistent, testable hypotheses concerning organizational sustainability and financial performance. This theoretical treatment seeks to reconcile contradictory views of bureaucracy, modeling both positive and negative impacts on performance and behavior. A variant of agency theory is used as an organizing paradigm, based on three competing organizational needs: control, autonomy and ownership of consequences.

Simulations reveal that organizations evolve through five stages of development: from an entry (flat/parallel) stage, through a hybrid or mixed stage, to the massively serial (hierarchical) stage. As firms evolve, the risk/return ratio first falls as employment expands, but later rises as higher levels of hierarchy appear. Eventually, organizational complexity rises sufficiently to produce lower levels of managerial ownership of consequences and professional autonomy, as well as higher levels of control, leading to a collapse of organizational efficiency. A subtle variation of agency theory is revealed: upper-management may maximize organizational depth, increasing salary differences between levels.

This paper uses an internally consistent, deductive framework to elucidate relationships between task complexity, skill level, industry life-cycle and firm age – providing the first known attribute-based metric for organizational complexity. This approach is reminiscent of Perrow’s (1999) non-mathematical treatment of organizational systems complexity.

In this chapter, we explore the relationship between organizational complexity and firm-level innovation. We define and operationalize a new construct, experienced complexity, which is the extent to which the organizational environment makes it challenging for decision makers to do their jobs effectively. We distinguish experienced complexity from structural complexity, which is the elements of the organization, such as the number of reporting lines or integrating mechanisms, that are deliberately put in place to help the organization deliver on its objectives, and we argue that structural complexity correlates positively with firm-level innovation, while experienced complexity correlates negatively with innovation. Using a novel dataset combining survey and objective data on 209 large firms, we find support for our arguments.

The purpose of this paper is to describe and discuss complexity approaches of management theory, by focusing on their capacity to use efficiently contingence in organizations. As a theoretical framework the theory of social systems (Luhmann) is used, where a difference is made between complexity reduction and condensation. Complexity reduction is related to certain functional needs to control a hierarchical system. Complexity condensation redesigns communicative structures towards participative norm development, offering discursive connectivity, and decision making in networks. It is described how heterogeneous cultures in organizations have the chance to be successful by focusing their functional needs to include, to orient, and to motivate.

The paper opted for discussing theoretical frameworks to reconstruct management approaches to develop towards more diversity capacity in organizations. Theory of social systems is employed as basic methodology.

The chosen research reconstructs management approaches to focus on functional imperatives of organizational systems as well as the development of functional equivalents. The logic figure of functional equivalents describes alternatives of exclusive organizational cultures. Heterogeneity in organizations is based on the redesign of communicative procedures, structures and cultures.

The aim of the paper is diversity theory development. It offers heuristic moments which might be useful in empirical research, too. Following the suggestion homogeneity is just an outcome of certain organizational decisions to deal with contingency and complexity, it might offer practical relevance by testing the capacity to change communication and interaction patterns. The culture‐function matrix also might offer an opportunity to discuss the paradigms of organizational development towards more diversity.

There might be the possibility to enhance conditions of observing organizations, but the practical implications might be rather limited.

Using theory of social systems (Luhmann) as theory which focuses complexity traits is rather undeveloped. It could offer insights in the capacity to deal with contingency, and the attempts to suppress it. Complexity in social systems could offer a prerequisite to support the interdisciplinary research in diversity studies.

This study aims to review and try to understand the importance of complexity management for maritime business to gain competitiveness in global business environment. The purpose of the study is to discuss and evaluate managing change and requirements of understanding the complexity management.

To find peer-reviewed journal publications, a large scientific database used by searching Web of Science and Scopus as the most relevant abstract and citation databases that provide peer-reviewed literature data for many different academic disciplines and selected papers evaluated from the maritime business context.

As a conceptual paper, the contribution of the study is to offer practical/required management applications with the help of six proposes for making better management decisions to confront future challenges to catch organizational competitiveness and success. With adaptation of complexity management, maritime stakeholders able to create an important core competency.

The research has some limitations and further research into this area should be extended. This study is designed as a first step to provide an insight to the field and to understand the main views of the subject. Subsequently, complexity management in maritime business is a slightly deficient area of research, which offers remarkable research opportunities. First, it would be fruitful to collect qualitative data to examine the current issues and changing business environment of the maritime business. Second, it would be helpful develop quantitative models to offer practical solutions from the maritime stakeholders’ point of view according to loading/discharging/transportation requirements. Future studies should deepen the subject with the help of simulation models of operations or agent based applications of stakeholder problems or vessel/ship-owner management implementations to understand changing circumstances of new business environment for the sake of managing complexity.

As the core point of view in strategic management; “achieving and sustaining” competitive advantage in organizations always takes an important place in organizational survival. With the help mentioned proposes stakeholders of the system could understand the ways of dealing with the complexities of new business world which enhances organizational competitiveness.

Maritime business could be defined as a social ecosystem which has it is own dynamics and customs. Socio-eco systems, like all complex systems, show unique non-linear dynamics in space and time which could be tough to define via classical quantitative methods. Organizations co-exist and co-evolve with their environment. It is possible that organizations effect their environment and gain some control over it while at the same time affected from environment and should steer the new trends.

The originality of the study lies in highlighting the importance of change management as a handler of complexity management for maritime business. The contribution of the paper is to indicate expected opportunities and challenges of smart changes for relevant readiness of maritime business for better management decisions, benefiting maritime business stakeholders by simultaneously enhancing effectiveness to confront future demands to achieve organizational competitiveness. With the help of proper complexity management lenses organizations could able to create their source of competitive advantage that represents capacity to align and enable required functions under tough contextual environment.

The purpose of this paper is to describe the complicated characteristics of the environment, the relationship between complicated organization and organizational transformation, and the coupling domino effect between the complication of external environment and organizational complexity by making conceptual systematic analysis.

The relative stability and certainty of the organizational structure are being replaced by uncertainty and complexity. Organizational learning and its reform are becoming all the more important to gain organizational competitive advantage. This paper designs the system analysis method to discuss the complexity of organizational environment, the relationship between organizational complexity and organizational structure reform, and also the coupling effect of the complexity of external environment and that of the organization.

It is found that organizational learning, the ways of strategic reform, and the focal point must remain consistent under the complicated environment.

The main limitation is how to construct the mathematical models describing complicated characteristics of the environment.

The paper contains very useful advice for human resource managers.

The paper focuses on the selection of learning patterns and strategic management of different organizational learning and the reform of organizational structure.

Managing organizations in complex environments is a major challenge. Complexity is not only due to the external environment (market and/or technological turbulence) but also to the internal configuration and specificities. A recent stream of studies in organizational literature suggested that organizations should develop and deploy specific capabilities for facing complexity, namely dynamic capabilities. This means becoming more flexible. The paper aims to discuss these issues.

This paper proposes four main capabilities to face four dimensions of complexity. It then investigates if it is more appropriate to focus on a specific capability when facing higher levels of a specific dimension of complexity. The research methodology is a multiple case study in seven different organizational units of the same super-store corporate.

Data showed some important results. First of all, internal complexity is unit specific rather than corporate or industry specific. Moreover, it can derive not only from unpredictability and rate of change, but also from variety of elements and their interactions. All these elements form complexity. Internal complexity is characterized by four main elements: uncertainty, dynamicity, diversity and interdependence. Finally, for each of these elements, different organizational strategies are used: in case of uncertainty, for example, a strategy used by the companies is the sharing of information and the development of redundancy.

Originality lies in linking different capabilities with different dimensions of internal complexity.

The aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate entrepreneurial culture and processes and successfully manage organizational ambidexterity.

A qualitative multiple-case study was conducted to explore successful practices of innovation ambidexterity (IA) and their organizational design, entrepreneurial culture and mindset, processes and leadership. Two internationally established firms that have launched and established IA programs provided deep insight, revealing their strategy and learning on the path toward effective IA.

The findings show that accepting and managing the inherent complexity increases within an ambidextrous organization strategy is a decisive factor in achieving effective IA. As a result, segmenting small organizational units and granting them extensive autonomy is proposed for managing the complexity of an organization while increasing its effectiveness. Furthermore, it is shown that this helps foster entrepreneurial culture, mindsets and processes as additional mediators for achieving effective IA. Coaching, empowerment and trust were identified as key factors of ambidextrous leadership values that encourage entrepreneurial behavior and decision-making.

To the best of the authors knowledge the first study connecting the research fields of complexity management, organizational ambidexterity theory and entrepreneurial culture while applying the fundamentals of systems theory to propose a practical management framework for successfully responding to disruptive innovation.

The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive advantage provided by BI capability is not well researched. To fill this gap, this study attempts to develop a model for successful BI deployment and empirically examines the association between BI deployment and sustainable competitive advantage. Taking the telecommunications industry in Malaysia as a case example, the research particularly focuses on the influencing perceptions held by telecommunications decision makers and executives on factors that impact successful BI deployment. The research further investigates the relationship between successful BI deployment and sustainable competitive advantage of the telecommunications organizations. Another important aim of this study is to determine the effect of moderating factors such as organization culture, business strategy, and use of BI tools on BI deployment and the sustainability of firm’s competitive advantage.

This research uses combination of resource-based theory and diffusion of innovation (DOI) theory to examine BI success and its relationship with firm’s sustainability. The research adopts the positivist paradigm and a two-phase sequential mixed method consisting of qualitative and quantitative approaches are employed. A tentative research model is developed first based on extensive literature review. The chapter presents a qualitative field study to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. The study includes a survey study with sample of business analysts and decision makers in telecommunications firms and is analyzed by partial least square-based structural equation modeling.

The findings reveal that some internal resources of the organizations such as BI governance and the perceptions of BI’s characteristics influence the successful deployment of BI. Organizations that practice good BI governance with strong moral and financial support from upper management have an opportunity to realize the dream of having successful BI initiatives in place. The scope of BI governance includes providing sufficient support and commitment in BI funding and implementation, laying out proper BI infrastructure and staffing and establishing a corporate-wide policy and procedures regarding BI. The perceptions about the characteristics of BI such as its relative advantage, complexity, compatibility, and observability are also significant in ensuring BI success. The most important results of this study indicated that with BI successfully deployed, executives would use the knowledge provided for their necessary actions in sustaining the organizations’ competitive advantage in terms of economics, social, and environmental issues.

This study contributes significantly to the existing literature that will assist future BI researchers especially in achieving sustainable competitive advantage. In particular, the model will help practitioners to consider the resources that they are likely to consider when deploying BI. Finally, the applications of this study can be extended through further adaptation in other industries and various geographic contexts.