Implementing Role Efficacy through a Multidimensional Organizational Design
Abstract
Customers of multinational enterprises (MNEs) exist almost everywhere. Cross border B2C e-commerce is expected to double by 2022 according to Forrester Research. How do MNE’s efficiently leverage their talent or adapt to changing business environments across products and geographic markets? Leadership efficacy is critical in a global multidimensional organization due to the complexities inherent in the design. Embedding leadership in an organization is a strategic priority that must be implemented with rigor. In this case study an MNE utilized a multidimensional organization design to reach global markets. The author presents empirical findings from this case and ultimately extracts nineteen propositions to show how leadership can be embedded across a global supply chain. Absent this understanding, risk of revenue loss is enhanced significantly.
References
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Davis, R. & Thomas, L. G. (1993). Direct estimation of synergy, a new approach to the diversity-performance debate. Management Science, 39(11), 1334-1346.
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Katz, D., & Kahn, R. (1966). The Social Psychology of Organizations: John Wiley &Sons.
Kotter, J. P. & Heskett, J. L. (1992). Corporate culture and performance. New York, NY: The Free Press.
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Moustakas, C. (1994). Phenomenological research methods. Thousand Oaks, CA: Sage.
Pankratz, H. (1991). Strategic alignment: Managing for synergy. Business Quarterly, 55(3), 66-71.
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Prahalad, C. K. (1980). The concept and potential of multidimensional organizations. In F. Stevens (Ed.). Managing Managers. (pp. 159-176). Eindhoven: NV Philips’ Gloeilampenfabrieken.
Prahalad, C. K. & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91.
Punch, K. F. (1998). Introduction to social research: Quantitative and qualitative approaches. London, UK: Sage Publications.
Roberts, J. (2004). The modern firm: Organizational design for performance and growth. Oxford, UK: Oxford University Press.
Rosen, S. (2004). Markets and diversity. Cambridge, MA: Harvard University Press.
Ruigok, W., Achtenhagen, L., Wagner, M., & Ruegg-Sturm, J. (2000). ABB: Beyond the global matrix towards the network multidivisional organization. In A. Pettigrew & E. Fenton (Eds.), Process and practices of new forms of organizing. London and Thousand Oaks, CA: Sage.
Srinivasan, K., & Jomon, M. G. (2018). Personal Effectiveness and Self-efficacy as Predictors of Individual Role Efficacy: An Analysis Based on PLS Path Modeling. South Asian Journal of Management, 25(4), 28-53.
Stake, R. E. (1995). The art of case study research. Thousand Oaks, CA: Sage Publications.
Strauss, A. & Corbin, J. (1990). Basics of qualitative research techniques and procedures for developing grounded theory. New York, NY: Sage Publications.
Strauss, A. & Corbin, J. (1996). Grounded Theory: Grundlagen qualitative sozialforschung. Weinheim, Germany: Beltz.
Strikwerda, J., & Stoelhorst, J. W. (2009). The emergence and evolution of the multidimensional organization. California Management Review, 51(4), 11-31.Sutton, R. T. & Straw, B. M. (1995). What theory is not. Administrative Studies Quarterly, 40, 371-384.
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Van Wart, M. & Kapucu, N. (2011). Crisis management competencies: The case of emergency managers in the USA. Public Management Review, 13(4), 489-511.
Weick, K. (1995). What theory is not, theorizing is. Administration Science Quarterly, 40, 385-391.
Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. (2005). Organizing and the process of sensemaking. Organization Science, 16(4), 409-421.
Wiessmeier, G.F. L., Axel, T. & Christoph, S. (2012). Leveraging synergies between R&D and key account management to drive value creation. Research Technology Management, 55(3), 15-22.
Williamson, O.E. (1975). Markets and hierarchies. New York, NY: The Free Press.
Williamson, O. E. (1985). The economic institutions of capitalism. New York, NY: The Free Press.
Yin, R. K. (1994). Case study research: design and methods. Newbury Park, CA: Sage Publications.
Acton, B. P., Foti, R. J., Lord, R. G., & Gladfelter, J. A. (2018). Putting emergence back in leadership emergence: A dynamic, multilevel, process-oriented framework. The Leadership Quarterly.
Amit, R. & Livnat, J. (1988). Diversification strategies, business cycles and economic performance. Strategies Management Journal, 9, 99-110.
Armour, H. & Teece, D. (1978). Organization structure and economic performance: A test of the multidivisional hypothesis. The Bell Journal of Economics, 9, 106-122.
Armstrong, D. J., & Cole, P. (2002). Managing distances and differences in geographically distributed work groups. Distributed Work, 167-186.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 151-166.
Bartlett, C. A. (1982, Summer). How multinational organizations evolve. The Journal of Business Strategy, 3(1), 20-32.
Bartlett, C. A. & Ghoshal, S. (1993). Beyond the M-form: Toward a managerial theory of the firm. Strategic Management Journal, 14(1993, Special Winter Issue), 23-46.
Behrendt, P., Matz, S., & Göritz, A. S. (2017). An integrative model of leadership behavior. The Leadership Quarterly, 28(1), 229-244.
Berggren, C. (1996). Building a truly global organization? ABB and the problems of integrating a multi-domestic enterprise. Scandinavian Journal of Management, 12(2), 123-137.
Bower, J. L. (1986). Managing the Resource Allocation Process. Boston, MA: Harvard Business School Press Books.
Burns, T. & Stalker, G. M. (1992). Mechanistic and organic systems. In J. M. Shafritz & J. S. Ott (Eds.), Classics of organizational theory (3rd ed., pp. 207-211). Pacific Grove, CA: Brooks/Cole Publishing.
Caughron, J. J., & Mumford, M. D. (2012). Embedded leadership: How do a leader's superiors impact middle-management performance?. The Leadership Quarterly, 23(3), 342-353.
Coggin, W. C. (1974). How the multinational structure works at Dow Corning. Harvard Business Review, 52(1), 54-65.
Chandler, A. D. (1962). Strategy and structure: Chapters in the history of American enterprise. Cambridge, MA: MIT Press.
Contractor, F. J. & Ra, W. (2002). How knowledge attributes influence alliances governance choices: A theory development note. Journal of International Management, 8, 11-27.
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks, CA: Sage.
D’Aveni, R. A., Dagnino, G. B., & Smith, K. G. (2010). The age of temporary advantage. Strategic Management Journal, 31, 1371-1385.
Davis, R. & Thomas, L. G. (1993). Direct estimation of synergy, a new approach to the diversity-performance debate. Management Science, 39(11), 1334-1346.
Denzin, N. (1989). The research act. Englewood Cliffs, NJ: Prentice Hall.
Depraz, N., Varela, F., & Vermersch, P. (2003). On becoming aware: A pragmatics of experiencing. Philadelphia, PA: John Benjamins.
Drucker, P. F. (1992). The new society in organizations. Harvard Business Review, 70(5), 95-104.
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14: 532-550.
Eisenhardt, K. M. & Bharia, M. M. (2002). Organization computation and complexity. In J. A. C. Baum (Ed.), Companion to Organizations. Malden, MA: Blackwell.
Festinger, L., Riecken, H. W., & Schachter, S. (2008). When prophecy fails. London, UK: Printer & Martin.
Florida, R. (2004). The rise of the creative class. New York, NY: Basic Books.
Freeman, W. J. (2000). How brains make up their minds. New York, NY: Columbia University Press.
Galbraith, J. R. (1971). Matrix organizational designs. Business Horizons, 14(1), 29.
Galbraith, J. R. (1973). Designing complex organizations. Reading, MA: Addison-Wesley.
Galbraith, J. R. (1977). Organization design. Reading, MA: Addison Wesley.
Galbraith, J. R. (2005). Designing the customer-centric organization: A guide to strategy, structure, and process. New York, NY: Wiley & Sons.
Galbraith, J. R. (2009). Designing matrix organizations that actually work. San Francisco, CA: Jossey-Bass.
Goold, M. & Campbell, A. (2003). Structured networks: Towards the well-designed matrix. Long Range Planning, 36(5), 427-439.
Grant, R. M. (1996). Toward a knowledge‐based theory of the firm. Strategic Management Journal, 17(S2), 109-122.
Grossman, L. (2005). What’s next? Innovation. How Apple does it? Time Magazine, November 14.
Gupta, A. K. & Govindarajan, V. (1986). Resource sharing among SBUs: Strategic antecedents and administrative implications. Academy of Management Journal. 30, 477-500.
Gupta, R. K., Singh, S. J. & Singh, B., Challenges in Scaling up a Globally Distributed Legacy Product: A Case Study of a Matrix Organization, 2018 IEEE/ACM 13th International Conference on Global Software Engineering (ICGSE), Gothenburg, 2018, pp. 72-76.
Hirschheim, R. & Klein, H. K. (1994). Realizing emancipatory principles in information systems development: The case for ethics. MIS quarterly, 18(1), 83-109.
Inkpen, A. C. (1997). An examination of knowledge management in international joint ventures. In: P. Beamish & J. Killings (Eds.). Cooperative strategies, North America perspectives. (pp. 337-369). San Francisco, CA: New Lexington Press.
Katz, D., & Kahn, R. (1966). The Social Psychology of Organizations: John Wiley &Sons.
Kotter, J. P. & Heskett, J. L. (1992). Corporate culture and performance. New York, NY: The Free Press.
Lamnek, S. (1995). Qualitative sozial/forschung. (3rd ed.). Muenchen, Germany: Psychologie Verlags Union.
Li, J. & Forzati, M. (2018). The Social-Economic Impact of Fiber Broadband: A Hype or a Reality? 2018 20th International Conference on Transparent Optical Networks (ICTON), Bucharest, pp. 1-7.
Life in a matrix. (1980). Management Review, 69(7), 36.
Lincoln, Y. S. & Guba, E. G. (1985). Naturalistic inquiry. Newbury Park, CA: Sage.
Lovas, B. & Ghoshal, S. (2000). Strategy as guided evolution. Strategic Management Journal, 21, 875-896.
Markides, C. C. & Williamson, P. J. (1994). Related diversification, core competencies and corporate performance. Strategic Management Journal, 15, 149-165.
Mayring, P. (1996). Einfuehrung in die qualitative sozialforschung: Eine anleitung zu qualitativem denken. Weinheim: Belz/PVU.
Moustakas, C. (1994). Phenomenological research methods. Thousand Oaks, CA: Sage.
Pankratz, H. (1991). Strategic alignment: Managing for synergy. Business Quarterly, 55(3), 66-71.
Pareek, U. (1993). Making organizational roles effective. New Delhi, India: TataMcGraw-Hill.
Prahalad, C. K. & Doz, Y. L. (1979). Strategic reorientation in the multidimensional organization. (Working Paper No. 195). Retrieved from: http://deepblue.lib.umich.edu/ bitstream/handle/2027.42/35980/b1375490.0001.001.pdf?sequence=2&isAllowed=y.
Prahalad, C. K. (1980). The concept and potential of multidimensional organizations. In F. Stevens (Ed.). Managing Managers. (pp. 159-176). Eindhoven: NV Philips’ Gloeilampenfabrieken.
Prahalad, C. K. & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79-91.
Punch, K. F. (1998). Introduction to social research: Quantitative and qualitative approaches. London, UK: Sage Publications.
Roberts, J. (2004). The modern firm: Organizational design for performance and growth. Oxford, UK: Oxford University Press.
Rosen, S. (2004). Markets and diversity. Cambridge, MA: Harvard University Press.
Ruigok, W., Achtenhagen, L., Wagner, M., & Ruegg-Sturm, J. (2000). ABB: Beyond the global matrix towards the network multidivisional organization. In A. Pettigrew & E. Fenton (Eds.), Process and practices of new forms of organizing. London and Thousand Oaks, CA: Sage.
Srinivasan, K., & Jomon, M. G. (2018). Personal Effectiveness and Self-efficacy as Predictors of Individual Role Efficacy: An Analysis Based on PLS Path Modeling. South Asian Journal of Management, 25(4), 28-53.
Stake, R. E. (1995). The art of case study research. Thousand Oaks, CA: Sage Publications.
Strauss, A. & Corbin, J. (1990). Basics of qualitative research techniques and procedures for developing grounded theory. New York, NY: Sage Publications.
Strauss, A. & Corbin, J. (1996). Grounded Theory: Grundlagen qualitative sozialforschung. Weinheim, Germany: Beltz.
Strikwerda, J., & Stoelhorst, J. W. (2009). The emergence and evolution of the multidimensional organization. California Management Review, 51(4), 11-31.Sutton, R. T. & Straw, B. M. (1995). What theory is not. Administrative Studies Quarterly, 40, 371-384.
Sutton, R. T. & Straw, B. M. (1995). What theory is not. Administrative Studies Quarterly, 40, 371-384.
Van Wart, M. & Kapucu, N. (2011). Crisis management competencies: The case of emergency managers in the USA. Public Management Review, 13(4), 489-511.
Weick, K. (1995). What theory is not, theorizing is. Administration Science Quarterly, 40, 385-391.
Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. (2005). Organizing and the process of sensemaking. Organization Science, 16(4), 409-421.
Wiessmeier, G.F. L., Axel, T. & Christoph, S. (2012). Leveraging synergies between R&D and key account management to drive value creation. Research Technology Management, 55(3), 15-22.
Williamson, O.E. (1975). Markets and hierarchies. New York, NY: The Free Press.
Williamson, O. E. (1985). The economic institutions of capitalism. New York, NY: The Free Press.
Yin, R. K. (1994). Case study research: design and methods. Newbury Park, CA: Sage Publications.
Authors
[1]
“Implementing Role Efficacy through a Multidimensional Organizational Design”, Soc. sci. humanities j., vol. 3, no. 06, pp. 1239–1260, Jun. 2019, Accessed: Nov. 23, 2024. [Online]. Available: https://sshjournal.com/index.php/sshj/article/view/401
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