Performance-Driven Organizational Change: The Organizational Portfolio

Books

Lex Donaldson

  • Citations
  • Add to My List
  • Text Size

  • Chapters
  • Front Matter
  • Back Matter
  • Subject Index
  • Dedication

    To David J. Hickson teacher and mentor

    Copyright

    View Copyright Page

    Preface

    This book is the fourth I have written about organization theory. The previous three books defended structural contingency theory and debated against its critics. The present book is different; there is no debate or criticism of other theories. Instead, the book offers a new theory and thus is wholly constructive in tone. It builds upon contingency theory and takes it off in a new direction. In the process, the focus widens considerably from organizational structure to include all aspects of the organization.

    Structural contingency theory research has sought in the past to identify which structures fit each of the contingency factors, such as size, strategy, technology, and so on. Thus incremental research contributions within this approach seek to add a new structural variable, identify a new contingency factor, or demonstrate the effect of fit on performance and so on. These are important refinements for the structural contingency approach, but they are not, however, the approach taken here. Structural contingency theory has postulated a particular model of how organizational structure changes in response to changes in the contingency factors. This adaptation process is the focus of the present inquiry.

    Structural contingency theory research argues that an organization with a structure that misfits its contingency factors has, as a consequence, lower organizational performance. However, this lower performance from misfit is not enough to cause the organization to change its structure and thereby regain fit and performance. Other causes of organizational performance have to be depressing it, so that, in combination with misfit, overall performance becomes low enough to cause structural change. Performance has to drop considerably because organizational managers seek to attain not maximum organizational performance but, rather, a satisfactory, or satisficing, level that is substantially below the maximum performance level. Thus an organization in misfit can remain there for a lengthy period until other causes force its performance below the satisficing level. In the 1980s I conducted an empirical test that confirmed this model. This caused me to start thinking about the way that performance drove organizational change.

    The more I thought about performance driving organizational change, the more numerous the insights that occurred to me about various implications of this basic idea. This took me off into areas that were not the customary province of organization theory. My thinking was informed by some ideas from finance and economics about risk, portfolios, business cycles, and competition. This seemed to mark a fruitful infusion from other disciplines with which traditionally organization theory has had little contact. The result is a formal theory consisting of a large number of propositions. The subject matter has broadened considerably from organizational structure to adaptive organizational change of any kind, such as change in strategy, human resource management, and information technology. Thus the topic is organizational change in general and in both of its two dimensions of organizational adaptation and growth.

    There is theoretical reason to believe, and empirical evidence to support, the idea that a crisis of poor organizational performance is required to trigger adaptive organizational change in many aspects of the organization. There has been much study of the politics and conflict that accompany organizational change and much research into the psychological processes of organizational change. These political and psychological theories have produced prescriptions about how to manage organizational change processes. Similarly, there has been much research to define which organizational designs and human resource management practices are optimal for each organizational situation, and this also leads to prescriptions. Thus there is much prescriptive advice on offer. Yet without a performance crisis, there is a good chance that needed organizational changes will not be forthcoming. Moreover, the adaptive change induced by the crisis creates the capacity for fresh organizational growth. Through a series of adaptations and resulting growth spurts, the organization grows larger and more effective. Hence the organization requires recurrent crises of poor performance. This argues for more study to better understand the dynamics whereby performance-driven organizational change comes about. Hopefully, the present book is a modest step toward providing a theoretical framework to guide future empirical research in this area.

    Acknowledgments

    I should like to thank those who have supported me in this book project. Fred Hilmer, as Dean of the Australian Graduate School of Management from 1989 to 1996, generously provided me with the sabbatical leave to work on the book, and my colleagues in the Organizational Behavior group of the AGSM, such as Dexter Dunphy, Boris Kabanoff, and Bob Wood, encouraged me in my endeavors.

    Those in the Organizational Behavior Department of the Graduate School of Business at Northwestern University were good enough to have me spend my 6-month sabbatical with them where the first draft was completed. I enjoyed their good fellowship and made many friends there, including Paul Hirsch, Andy Hoffman, Willie Ocasio, and Marc Ventresca.

    The staff of the library at the AGSM, under Pam Taylor and then Sue Hornby, provided help in gathering sources and information. June Ohlson, as head of the Research Library of the Reserve Bank of Australia, helped find material on business cycles. We discussed the role of business cycles in organizational life extensively. As a freelance editor, June provided incisive, critical feedback on the book that made it more accessible and also improved its intellectual coherence.

    A number of scholars were kind enough to give me comments on draft chapters: Philip Bromiley, Richard Cyert, Jerald Hage, William McKelvey, Andrew Van de Ven, David Whetten, and Edward Zajac. Peter Heslin gave me comments on the entire book. I am grateful to them for their help, but, of course, I remain responsible for the errors and omissions in the final book.

  • References

    Abrahamson, Eric. 1997. “The Emergence and Prevalence of Employee Management Rhetorics: The Effects of Long Waves, Labor Unions, and Turnover, 1875 to 1992”. Academy of Management Journal40:491–533. http://dx.doi.org/10.2307/257051
    Aldrich, Howard E.1979. Organizations and Environments. Englewood Cliffs, NJ: Prentice Hall.
    Allen, Stephen A.1978. “Organizational Choices and General Management Influence Networks in Divisionalized Companies”. Academy of Management Journal21:341–365. http://dx.doi.org/10.2307/255719
    Amburgey, Terry L. and TinaDacin. 1994. “As the Left Foot Follows the Right? The Dynamics of Strategic and Structural Change”. Academy of Management Journal37:1427–1452. http://dx.doi.org/10.2307/256794
    Amihud, Y. and B.Lev. 1981. “Risk Reduction as a Managerial Motive for Conglomerate Mergers”. Bell Journal of Economics12:605–617. http://dx.doi.org/10.2307/3003575
    Amit, R. and J.Livnat. 1989. “Efficient Corporate Diversification: Methods and Implications”. Management Science35:879–897. http://dx.doi.org/10.1287/mnsc.35.7.879
    Argyris, Chris. 1964. Integrating the Individual and the Organization. New York: John Wiley.
    Argyris, Chris. 19641970. Intervention Theory and Method: A Behavioral Science View. Reading, MA: Addison-Wesley.
    Armour, Henry O. and David J.Teece. 1978. “Organizational Structure and Economic Performance: A Test of the Multidivisional Hypothesis”. Bell Journal of Economics9:106–122. http://dx.doi.org/10.2307/3003615
    Ball, Ray and PhilipBrown. 1980. “Risk and Return From Equity Investments in the Australian Mining Industry: January 1958-February 1979”. Australian Journal of Management5:45–66. http://dx.doi.org/10.1177/031289628000500203
    Barnett, W. P.1990. “The Organizational Ecology of a Technological System”. Administrative Science Quarterly35:31–60. http://dx.doi.org/10.2307/2393550
    Barnett, W. P. and T. L.Amburgey. 1990. “Do Larger Organizations Generate Stronger Competition?” Pp. 78–102 in Organizational Evolution: New Directions, edited by Jitendra V.Singh. Newbury Park, CA: Sage.
    Barnett, W. P. and G. R.Carroll. 1987. “Competition and Mutualism Among Early Telephone Companies”. Administrative Science Quarterly32:400–421. http://dx.doi.org/10.2307/2392912
    Barney, Jay B.1990. “The Debate Between Traditional Management Theory and Organizational Economics: Substantive Differences or Intergroup Conflict?”Academy of Management Review15:382–393.
    Baumol, William J., J. C.Panzar, and R. D.Willig. 1982. Contestable Markets and the Theory of Industry Structure. New York: Harcourt Brace Jovanovich.
    Baysinger, B. D., R. T.Kosnik, and T. A.Turk. 1991. “Effects of Board and Ownership Structure on Corporate R&D Strategy”. Academy of Management Journal34:205–214. http://dx.doi.org/10.2307/256308
    Baysinger, Barry D. and Henry N.Butler. 1985. “Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition”. Journal of Law, Economics and Organization1:101–124.
    Bennis, W. G.1971. “Theory and Method in Applying Behavioral Science to Planned Organizational Change”. Pp. 358–376 in Personnel Management and Organizational Development: Fields in Transition, edited by Wendell L.French and DonHellriegel. Boston: Houghton Mifflin.
    Berle, Adolf and GardinerMeans. 1932. The Modern Corporation and Private Property. New York: Macmillan.
    Bettenhausen, Kenneth L.1995. “Group Dynamics”. Pp. 203–204 in the Blackwell Encyclopedic Dictionary of Organizational Behavior, edited by NigelNicholson. Cambridge, MA: Black-well.
    Bishop, Matthew and JohnKay. 1988. Does Privatization Work? Lessons From the UK. London: Centre for Business Strategy, London Business School.
    Blau, Peter M.1970. “A Formal Theory of Differentiation in Organizations”. American Sociological Review35:201–218. http://dx.doi.org/10.2307/2093199
    Blau, Peter M.1972. “Interdependence and Hierarchy in Organizations”. Social Science Research1:1–24. http://dx.doi.org/10.1016/0049-089X%2872%2990055-5
    Blau, Peter M. and P. A.Schoenherr. 1971. The Structure of Organizations. New York: Basic Books.
    Bowman, E. H.1980. “A Risk/Return Paradox for Strategic Management”. Sloan Management Review21:17–31.
    Boyd, B.1995. “CEO Duality and Firm Performance: A Contingency Model”. Strategic Management Journal16:301–312. http://dx.doi.org/10.1002/smj.4250160404
    Brealey, Richard A. and Stewart C.Myers. 1996. Principles of Corporate Finance.
    5th ed.
    New York:McGraw-Hill.
    Bromiley, Philip. 1991a. “Testing a Causal Model of Corporate Risk Taking and Performance”. Academy of Management Journal34:37–59. http://dx.doi.org/10.2307/256301
    Bromiley, Philip. 1991b. “Paradox or at Least Variance Found: A Comment on ‘Mean-Variance Approaches to Risk-Return Relationships in Strategy: Paradox Lost’”Management Science37:1206–1206. http://dx.doi.org/10.1287/mnsc.37.9.1206
    Brown, J. A. C.1954. The Social Psychology of Industry: Human Relations in the Factory. London: Penguin Books.
    Buhner, R. and P.Möller. 1985. “The Information Context of Corporate Disclosures of Divisionalization Decisions”. Journal of Management Studies22:309–326. http://dx.doi.org/10.1111/j.1467-6486.1985.tb00078.x
    Burns, Tom and G. M.Stalker. 1961. The Management of Innovation. London: Tavistock.
    “That's Chairman Golub to You”. 1993. Business Week, July 12, p. 35.
    Cadbury, Adrian. 1992. Report of the Committee on the Financial Aspects of Corporate Governance. London: The Committee and Gee.
    Cameron, Kim S., M. U.Kim, and David A.Whetten. 1987. “Organizational Effects of Decline and Turbulence”. Administrative Science Quarterly32:222–240. http://dx.doi.org/10.2307/2393127
    Cameron, Kim S., Robert I.Suttan, and David A.Whetten, eds. 1988. Readings in Organizational Decline: Frameworks, Research, and Prescriptions. Cambridge, MA: Ballinger.
    Capon, Noel, ChrisChristodolou, John U.Farley, and James M.Hulbert. 1987. “A Comparative Analysis of the Strategy and Structure of United States and Australian Corporations”. Journal of International Business Studies18:51–74. http://dx.doi.org/10.1057/palgrave.jibs.8490399
    Carew, Edna. 1997. Westpac: The Bank That Broke the Bank. Sydney, Australia: Doubleday.
    Cascio, Wayne F.1993. “Downsizing: What Do We Know? What Have We Learned?”Academy of Management Executive7:95–104. http://dx.doi.org/10.5465/AME.1993.9411302334
    Chaganti, R. S., V.Mahajan, and S.Sharma. 1985. “Corporate Board Size, Composition and Corporate Failures in Retailing Industry”. Journal of Management Studies2:400–416. http://dx.doi.org/10.1111/j.1467-6486.1985.tb00005.x
    Chandler, Alfred D., Jr.1962. Strategy and Structure: Chapters in the History of the Industrial Enterprise. Cambridge: MIT Press.
    Chandler, Alfred D., Jr.1977. The Visible Hand: The Managerial Revolution in American Business. Cambridge, MA: Belknap Press.
    Chandler, Alfred D., Jr.1994. “The Functions of the HQ Unit in the Multibusiness Firm”. Pp. 323–360 in Fundamental Issues in Strategy: A Research Agenda, edited by Richard P.Rumelt, Dan E.Schendel, and David J.Teece. Boston: Harvard Business School Press.
    Channon, Derek F.1973. The Strategy and Structure of British EnterpriseLondon: Macmillan.
    Channon, Derek F.1978. The Service Industries: Strategy, Structure and Financial Performance. London: Macmillan.
    Chenhall, Robert H.1979. “Some Elements of Organizational Control in Australian Divisionalized Firms”. Australian Journal of Management, suppl. to 4, 1:1–36. http://dx.doi.org/10.1177/031289627900401S01
    Child, John. 1972. “Organizational Structure, Environment and Performance: The Role of Strategic Choice”. Sociology6:1–22. http://dx.doi.org/10.1177/003803857200600101
    Child, John. 1973. “Predicting and Understanding Organization Structure”. Administrative Science Quarterly18:168–185. http://dx.doi.org/10.2307/2392061
    Child, John. 1975. “Managerial and Organizational Factors Associated With Company Performance. Part 2: A Contingency Analysis”. Journal of Management Studies12:12–27. http://dx.doi.org/10.1111/j.1467-6486.1975.tb00884.x
    Child, John. 1997. “From the Aston Programme to Strategic Choice: A Journey From Concepts to Theory”. Pp. 45–72 in Advancement in Organizational Behaviour: Essays in Honour of Derek S. Pugh, edited by TimothyClark. Aldershot, Hants, England: Ashgate.
    Cibin, R. and R. M.Grant. 1996. “Restructuring Among the World's Leading Oil Companies, 1980–92”. British Journal of Management7:283–307. http://dx.doi.org/10.1111/j.1467-8551.1996.tb00120.x
    Clegg, Stewart and DavidDunkerley. 1980. Organization, Class and Control. London: Routledge & Kegan Paul.
    Clifford, Peter W. and Robert T.Evans. 1996. “The State of Corporate Governance Practices in Australia”. Corporate Governance: An International Review4:60–70. http://dx.doi.org/10.1111/j.1467-8683.1996.tb00135.x
    Cohen, Allan R., Stephen L.Fink, HermanGadon, and Robin D.Willits. 1976. Effective Behavior in Organizations: Learning From the Interplay of Cases, Concepts, and Student Experiences. Homewood, IL: Richard D. Irwin.
    Cummings, Thomas G. and Edgar F.Huse. 1989. Organization Development and Change.
    4th ed.
    St. Paul, MN: West.
    Cyert, Richard M. and James G.March. 1963. A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice Hall.
    Cyert, Richard M., Herbert A.Simon, and Donald B.Trow. 1956. “Observations of a Business Decision”. Journal of Business29:237–248. http://dx.doi.org/10.1086/294119
    Daily, Catherine M. and Dan R.Dalton. 1994a. “Corporate Governance and the Bankrupt Firm: The Impact of Board Composition and Structure”. Academy of Management Journal37:1603–1617. http://dx.doi.org/10.2307/256801
    Daily, Catherine M. and Dan R.Dalton. 1994b. “Bankruptcy and Corporate Governance: An Empirical Assessment”. Strategic Management Journal15:643–654. http://dx.doi.org/10.1002/smj.4250150806
    Daily, Catherine M. and Dan R.Dalton. 1997. “CEO and Board Chair Roles Held Jointly or Separately: Much Ado About Nothing?”Academy of Management Executive11:11–20. http://dx.doi.org/10.5465/AME.1997.9709231660
    D'Aveni, Richard A.1994. Hypercompetition: Managing the Dynamics of Strategic Maneuvering. New York: Free Press.
    Davis, Gerald F.1991. “Agents Without Principals? The Spread of the Poison Pill Through the Intercorporate Network”. Administrative Science Quarterly36:583–613. http://dx.doi.org/10.2307/2393275
    Davis, Gerald F., Kristina A.Diekmann, and Catherine H.Tinsley. 1994. “The Decline and Fall of the Conglomerate Firm in the 1980s: The Deinstitutionalization of an Organizational Form”. American Sociological Review59:547–570. http://dx.doi.org/10.2307/2095931
    Davis, Gerald F. and Walter W.Powell. 1992. “Organization-Environment Relations”. Pp. 315–375 in Handbook of Industrial and Organizational Psychology,
    2d ed
    , Vol. 3, edited by MarvinDunnette and Laetta M.Hough. Palo Alto, CA: Consulting Psychologists Press.
    Davis, Gerald F. and Tracy A.Thompson. 1994. “A Social Movement Perspective on Corporate Control”. Administrative Science Quarterly39:141–173. http://dx.doi.org/10.2307/2393497
    Davis, Jeremy G. and Timothy M.Devinney. 1997. The Essence of Corporate Strategy: Theory for Modern Decision Making. St. Leonards, NSW, Australia: Allen & Unwin.
    Davis, Stanley M.1972. “Trends in the Organization of Multinational Corporations”. Pp. 231–248 in Managing and Organizing Multinational Corporations, edited by Stanley M.Davis. New York: Pergamon.
    DiMaggio, Paul J. and Walter W.Powell. 1983. “The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organization Fields”. American Sociological Review48:147–160. http://dx.doi.org/10.2307/2095101
    Donaldson, Gordon. 1994. Corporate Restructuring: Managing the Change Process From Within. Boston: Harvard Business School Press.
    Donaldson, Lex. 1979. “Regaining Control at Nipont”. Journal of General Management4:14–30.
    Donaldson, Lex. 1982. “Divisionalization and Diversification: A Longitudinal Study”. Academy of Management Journal25:909–914. http://dx.doi.org/10.2307/256106
    Donaldson, Lex. 1985a. In Defence of Organization Theory: A Reply to the Critics. Cambridge, England: Cambridge University Press.
    Donaldson, Lex. 1985b. “Organization Design and the Life-Cycles of Products”. Journal of Management Studies22:25–37. http://dx.doi.org/10.1111/j.1467-6486.1985.tb00240.x
    Donaldson, Lex. 1987. “Strategy and Structural Adjustment to Regain Fit and Performance: In Defence of Contingency Theory”. Journal of Management Studies24:1–24. http://dx.doi.org/10.1111/j.1467-6486.1987.tb00444.x
    Donaldson, Lex. 1990a. “The Ethereal Hand: Organizational Economics and Management Theory”. Academy of Management Review15:369–381.
    Donaldson, Lex. 1990b. “A Rational Basis for Criticisms of Organizational Economics: A Reply to Barney”. Academy of Management Review15:394–401.
    Donaldson, Lex. 1994. “The Liberal Revolution and Organization Theory”. Pp. 190–208 in Towards a New Theory of Organizations, edited by J.Hassard and M.Parker. London: Routledge.
    Donaldson, Lex. 1995. American Anti-Management Theories of Organization: A Critique of Paradigm Proliferation. Cambridge, England: Cambridge University Press.
    Donaldson, Lex. 1996a. For Positivist Organization Theory: Proving the Hard Core. London: Sage.
    Donaldson, Lex. 1996b. “The Normal Science of Structural Contingency Theory”. Pp. 57–76 in The Handbook of Organization Studies, edited by Stewart R.Clegg, CynthiaHardy, and Walter R.Nord. London: Sage. http://dx.doi.org/10.4135/9781848608030
    Donaldson, Lex and James H.Davis. 1991. “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns”. Australian Journal of Management16:49–64. http://dx.doi.org/10.1177/031289629101600103
    Donaldson, Lex and James H.Davis1994. “Boards and Company Performance: Research Challenges the Conventional Wisdom”. Corporate Governance: An International Review2:151–160. http://dx.doi.org/10.1111/j.1467-8683.1994.tb00071.x
    Dotsey, Michael and Robert G.King. 1987. “Business Cycles”. Pp. 302–310 in The New Palgrave: A Dictionary of Economics, edited by JohnEatwell, MurrayMilgate, and PeterNewman. London: Macmillan.
    Dougherty, Deborah and CynthiaHardy. 1996. “Sustained Product Innovation in Large, Mature Organizations: Overcoming Innovation-to-Organization Problems”. Academy of Management Journal39:1120–1153. http://dx.doi.org/10.2307/256994
    Drazin, Robert and Andrew H.Van de Ven. 1985. “Alternative Forms of Fit in Contingency Theory”. Administrative Science Quarterly30:514–539. http://dx.doi.org/10.2307/2392695
    Dunning, John H., BruceKogut, and MagnusBlomström. 1990. Globalization of Firms and the Competitiveness of Nations. Lund, Sweden: Institute of Economic Research, Lund University.
    Dunphy, Dexter. 1981. Organizational Change by Choice. Sydney, Australia: McGraw-Hill.
    Dunphy, Dexter and DougStace. 1990. Under New Management: Australian Organizations in Transition. Sydney, Australia: McGraw-Hill.
    Dyas, Gareth P. and Heinz T.Thanheiser. 1976. The Emerging European Enterprise: Strategy and Structure in French and German Industry. London: Macmillan.
    Eccles, Robert G. and Dwight B.Crane. 1988. Doing Deals: Investment Banks at Work. Boston: Harvard Business School Press.
    Eccles, Robert G. and NitinNohria. 1992. Beyond the Hype: Rediscovering the Essence of Management. Boston: Harvard Business School Press.
    Egelhoff, William G.1988. Organizing the Multinational Enterprise: An Information Processing Perspective. Cambridge, MA: Ballinger.
    Eisenberg, Melvin A., Stanley A.Kaplan, Harvey J.Goldschmid, Marshall L.Small, Ronald J.Gilson, and John C.Coffee, Jr.1994. Principles of Corporate Governance: Analysis and Recommendations. St. Paul, MN: American Law Institute.
    Emery, Fred E. and E. L.Trist. 1965. “The Causal Texture of Organisational Environments”. Human Relations18:21–32. http://dx.doi.org/10.1177/001872676501800103
    Etzioni, Amitai. 1975. A Comparative Analysis of Complex Organizations: On Power, Involvement and Their Correlates. Revised and enlarged ed. New York: Free Press.
    Ezzamel, M. A. and R.Watson. 1993. “Organizational Form, Ownership Structure and Corporate Performance: A Contextual Empirical Analysis of UK Companies”. British Journal of Management4:161–176. http://dx.doi.org/10.1111/j.1467-8551.1993.tb00056.x
    Figenbaum, Avi and HowardThomas. 1986. “Dynamic and Risk Measurement Perspectives on Bowman's Risk-Return Paradox for Strategic Management: An Empirical Study”. Strategic Management Journal7:395–407. http://dx.doi.org/10.1002/smj.4250070502
    Finkelstein, Sydney and Donald C.Hambrick. 1996. Strategic Leadership: Top Executives and Their Effects on Organizations. Minneapolis/St. Paul: West.
    Fligstein, Neil. 1985. “The Spread of the Multidivisional Form Among Large Firms, 1919–1979”. American Sociological Review50:377–391. http://dx.doi.org/10.2307/2095547
    Fligstein, Neil. 1990a. The Transformation of Corporate Control. Cambridge, MA: Harvard University Press.
    Fligstein, Neil. 1990b. “Organizational, Demographic and Economic Determinants of the Growth Patterns of Large Firms, 1919–1979”. Pp. 45–76 in Business Institutions, Vol. 12, Comparative Social Research, edited by CraigCalhoun. Greenwich, CT: JAI.
    Fligstein, Neil. 1991. “The Structural Transformation of American Industry: An Institutional Account of the Causes of Diversification in the Largest Firms, 1919–1979”. Pp. 311–336 in The New Institutionalism in Organizational Analysis, edited by Walter W.Powell and Paul J.DiMaggio. Chicago: University of Chicago Press.
    Fligstein, Neil and PeterBrantley. 1992. “Bank Control, Owner Control, or Organizational Dynamics: Who Controls the Large Modern Corporation?”American Journal of Sociology98:280–307. http://dx.doi.org/10.1086/230009
    Freeman, J. and M. T.Hannan. 1975. “Growth and Decline Processes in Organizations”. American Sociological Review40:215–228. http://dx.doi.org/10.2307/2094346
    Galbraith, Jay R.1973. Designing Complex Organizations. Reading, MA: Addison-Wesley.
    Galbraith, Jay R. and Robert K.Kazanjian. 1988. “Strategy, Technology and Emerging Organizational Forms”. Pp. 29–41 in Futures of Organizations: Innovating to Adapt Strategy and Human Resources to Rapid Technological Change, edited by JeraldHage. Lexington, MA: Lexington Books.
    Graen, George and WilliamSchiemann. 1978. “Leadership-Member Agreement: A Vertical Dyad Linkage Approach”. Journal of Applied Psychology63:206–212. http://dx.doi.org/10.1037/0021-9010.63.2.206
    Grant, Robert M.1993. Restructuring and Strategic Change in the Oil Industry. Milano, Italy: Franco Agneli.
    Greiner, Larry E.1972. “Evolution and Revolution as Organizations Grow”. Harvard Business Review4:37–46.
    Grinyer, Peter H. and MasoudYasai-Ardekani. 1981. “Strategy, Structure, Size and Bureaucracy”. Academy of Management Journal24:471–486. http://dx.doi.org/10.2307/255569
    Hage, Jerald. 1974. Communications and Organizational Control: Cybernetics in Health and Welfare Settings. New York: Wiley Interscience.
    Hage, Jerald. 1980. Theories of Organization: Form, Process and Transformation. New York: John Wiley.
    Hage, Jerald. 1988. Futures of Organizations: Innovating to Adopt Strategy and Human Resources to Rapid Technological Change. Lexington, MA: Lexington Books.
    Halberstam, David. 1987. The Reckoning. New York: William Morrow.
    Hamilton, R. T. and G. S.Shergill. 1992. “The Relationship Between Strategy-Structure Fit and Financial Performance in New Zealand: Evidence of Generality and Validity With Enhanced Controls”. Journal of Management Studies29:95–113. http://dx.doi.org/10.1111/j.1467-6486.1992.tb00654.x
    Hamilton, R. T. and G. S.Shergill1993. The Logic of New Zealand Business: Strategy, Structure, and Performance. Auckland, New Zealand: Oxford University Press.
    Hannan, Michael T. and JohnFreeman. 1984. “Structural Inertia and Organizational Change”. American Sociological Review49:149–164. http://dx.doi.org/10.2307/2095567
    Hannan, Michael T. and JohnFreeman. 1989. Organizational Ecology. Cambridge, MA: Harvard University Press.
    Hannan, Michael T., J.Ranger-Moore, and J.Banaszak-Holl. 1990. “Competition and the Evolution of Organizational Size Distributions “ Pp. 246–268 in Organizational Evolution: New Directions, edited by Jitendra V.Singh. Newbury Park, CA: Sage.
    Harris, Barry C.1983. Organization: The Effect on Large Corporations. Ann Arbor: UMI Research Press.
    Helfat, Constance E. and David J.Teece. 1987. “Vertical Integration and Risk Reduction”. Journal of Law, Economics, and Organization3:47–67.
    Hill, Charles W. L.1985a. “Oliver Williamson and the M-Form Firm: A Critical Review”. Journal of Economic Issues19:731–751.
    Hill, Charles W. L.1985b. “Internal Organization and Enterprise Performance: Some UK Evidence”. Managerial and Decision Economics6:210–216. http://dx.doi.org/10.1002/mde.4090060404
    Hill, Charles W. L.1988. “Corporate Control Type, Strategy, Size and Financial Performance”. Journal of Management Studies25:403–417. http://dx.doi.org/10.1111/j.1467-6486.1988.tb00707.x
    Hill, Charles W. L., Michael A.Hitt, and Robert E.Hoskisson. 1992. “Cooperative Versus Competitive Structures in Related and Unrelated Diversified Firms”. Organization Science3:501–521. http://dx.doi.org/10.1287/orsc.3.4.501
    Hill, Charles W. L. and S. A.Snell. 1988. “External Control, Corporate Strategy, and Firm Performance in Research-Intensive Industries”. Strategic Management Journal9:577–590. http://dx.doi.org/10.1002/smj.4250090605
    Hofer, Charles W.1975. “Toward a Contingency Theory of Business Strategy”. Academy of Management Journal18:784–810. http://dx.doi.org/10.2307/255379
    Hopkins, H. Donald. 1988. “Firm Size: The Interchangeability of Measures”. Human Relations41:91–102. http://dx.doi.org/10.1177/001872678804100201
    Hoskisson, R. E., Charles W. L.Hill, and HicheonKim. 1993. “The Multidivisional Structure-Organizational Fossil or Source of Value?”Journal of Management19:269–298.
    Hoskisson, Robert E.1987. “Multidivisional Structure and Performance: The Contingency of Diversification Strategy”. Academy of Management Journal30:625–644. http://dx.doi.org/10.2307/256152
    Hoskisson, Robert E. and Craig S.Galbraith. 1985. “The Effect of Quantum Versus Incremental M-Form Reorganization on Performance: A Time-Series Exploration of Intervention Dynamics”. Journal of Management11:55–70. http://dx.doi.org/10.1177/014920638501100305
    Hoskisson, Robert E. and Michael A.Hitt. 1994. Downscoping: How to Tame the Diversified Firm. New York: Oxford University Press.
    Jaques, Elliott. 1951. The Changing Culture of a Factory. London: Routledge & Kegan Paul.
    legers, Marc. 1991. “Prospect Theory and the Risk-Return Relationship: Some Belgian Evidence”. Academy of Management Journal34:215–225. http://dx.doi.org/10.2307/256309
    Jennings, Daniel F. and Samuel L.Seaman. 1994. “High and Low Levels of Organizational Adaptation: An Empirical Analysis of Strategy, Structure and Performance”. Strategic Management Journal15:459–475. http://dx.doi.org/10.1002/smj.4250150604
    Jensen, Michael C.1986. “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers”. American Economic Review76:323–329.
    Jensen, Michael C. and William H.Meckling. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”. Journal of Financial Economics3:305–360. http://dx.doi.org/10.1016/0304-405X%2876%2990026-X
    Johnson, G.1987. Strategic Change and the Management Process. Oxford, England: Basil Blackwell.
    Kesner, Idalene F.1987. “Directors, Stock Ownership and Organizational Performance: An Investigation of Fortune 500 Companies”. Journal of Management13:499–508. http://dx.doi.org/10.1177/014920638701300306
    Kesner, Idalene F. and Dan R.Dalton. 1986. “Boards of Directors and the Checks and (Im)Balances of Corporate Governance”. Business Horizons, September-October, pp. 17–23. http://dx.doi.org/10.1016/0007-6813%2886%2990046-7
    Khandwalla, Pradip N.1973. “Viable and Effective Organizational Designs of Firms”. Academy of Management Journal16:481–495. http://dx.doi.org/10.2307/255008
    Khandwalla, Pradip N.1974. “Mass Output Orientation of Operations Technology and Organizational Structure”. Administrative Science Quarterly19:74–97. http://dx.doi.org/10.2307/2391789
    Khandwalla, Pradip N.1977. The Design of Organizations. New York: Harcourt Brace Jovanovich.
    Kraatz, Matthew S. and Edward J.Zajac. 1996. “Exploring the Limits of the New Institutionalism: The Causes and Consequences of Illegitimate Organizational Change”. American Sociological Review61:812–836. http://dx.doi.org/10.2307/2096455
    Kuczynski, M. G.1986. “Recent Developments in Business Cycle Theory”. Journal of Economic Dynamics and Control10:255–260. http://dx.doi.org/10.1016/0165-1889%2886%2990047-3
    Lant, Theresa K. and David B.Montgomery. 1987. “Learning From Strategic Success and Failure”. Journal of Business Research15:503–517. http://dx.doi.org/10.1016/0148-2963%2887%2990035-X
    Lawrence, Paul R.1993. “The Contingency Approach to Organizational Design”. Pp. 9–18 in Handbook of Organizational Behavior, edited by Robert T.Golembiewski. New York: Marcel Dekker.
    Lawrence, Paul R. and Jay W.Lorsch. 1967. Organization and Environment: Managing Differentiation and Integration. Boston: Division of Research, Graduate School of Business Administration, Harvard University.
    Likert, Rensis. 1961. New Patterns of Management. New York: McGraw-Hill.
    Lorsch, Jay W. and Stephen A.Allen. 1973. Managing Diversity and Interdependence: An Organizational Study of Multidivisional Firms. Boston: Division of Research, Graduate School of Business Administration, Harvard University.
    Mahoney, Joseph T.1992. “The Adoption of the Multidivisional Form of Organization: A Contingency Model”. Journal of Management Studies29:49–72. http://dx.doi.org/10.1111/j.1467-6486.1992.tb00652.x
    March, J. G. and H. A.Simon. 1958. Organizations. New York: John Wiley.
    March, James G.1988. “Variable Risk Preferences and Adaptive Aspirations”. Journal of Economic Behavior and Organization9:5–24. http://dx.doi.org/10.1016/0167-2681%2888%2990004-2
    March, James G. and ZurShapira. 1987. “Managerial Perspectives on Risk and Risk Taking”. Management Science33:1404–1418. http://dx.doi.org/10.1287/mnsc.33.11.1404
    Mayer, Roger C., James H.Davis, and F. DavidSchoorman. 1995. “An Integrative Model of Organizational Trust”. Academy of Management Journal20:709–734.
    McLennan, Roy. 1989. Managing Organizational Change. London: Prentice Hall International.
    McNamara, Gerry and PhilipBromiley. 1997. “Decision Making in an Organizational Setting: Cognitive and Organizational Influences on Risk Assessment in Commercial Lending”. Academy of Management Journal40:1063–1088. http://dx.doi.org/10.2307/256927
    Merton, R. K.1949. Social Theory and Social Structure. Chicago: Free Press.
    Miller, Kent D. and PhilipBromiley. 1990. “Strategic Risk and Corporate Performance: An Analysis of Alternative Risk Measures”. Academy of Management Journal33:756–779. http://dx.doi.org/10.2307/256289
    Miller, Kent D. and Michael J.Leiblein. 1996. “Corporate Risk-Return Relations: Returns Variability Versus Downside Risk”. Academy of Management Journal39:91–122. http://dx.doi.org/10.2307/256632
    Miner, J. B.1982. Theories of Organizational Structure and Process. Chicago: Dryden.
    Mintzberg, H. and James A.Waters. 1982. “Tracking Strategy in an Entrepreneurial Firm”. Academy of Management Journal25:465–499. http://dx.doi.org/10.2307/256075
    Mintzberg, Henry. 1979. The Structuring of Organizations: A Synthesis of the Research. Englewood Cliffs, NJ: Prentice Hall.
    Murphy, Kevin J. and JayDial. 1994. “General Dynamics: Compensation and Strategy (A) and (B)”. Harvard Business School case.
    Ocasio, William. 1995. “The Enactment of Economic Adversity: A Reconceptualization of Theories of Failure-Induced Change and Threat-Rigidity”. Research in Organizational Behavior17:287–331.
    Orton, J. Douglas and Karl E.Weick. 1990. “Loosely Coupled Systems: A Reconceptualization”. Academy of Management Review15:203–223.
    Palmer, D., R.Friedland, P. D.Jennings, and M. E.Powers. 1987. “The Economics and Politics of Structure: The Multidivisional Form and Large U.S. Corporation”. Administrative Science Quarterly32:25–48. http://dx.doi.org/10.2307/2392741
    Palmer, D., P. D.Jennings, and XuegangZhou. 1993. “Late Adoption of the Multidivisional Form by Large U.S. Corporations: Institutional, Political, and Economic Accounts”. Administrative Science Quarterly38:100–131. http://dx.doi.org/10.2307/2393256
    Parsons, Talcott. 1961. “Suggestions for a Sociological Approach to the Theory of Organizations”. Pp. 32–47 in Complex Organizations: A Sociological Reader, edited by AmitaiEtzioni. New York: Holt, Rinehart & Winston.
    Parsons, Talcott. 1963. “On the Concept of Political Power”. Proceedings of the American Philosophical Society107:232–262.
    Pavan, Robert J.1976. “Strategy and Structure: The Italian Experience”. Journal of Economics and Business28:254–260.
    Perrow, Charles. 1986. Complex Organizations: A Critical Essay.
    3d ed.
    New York: Random House.
    Pettigrew, Andrew M.1973. The Politics of Organizational Decision-Making. London: Tavistock.
    Pettigrew, Andrew M.1985. The Awakening Giant. Oxford, England: Basil Blackwell.
    Pfeffer, Jeffrey. 1982. Organizations and Organization TheoryBoston: Pitman.
    Pfeffer, Jeffrey and Gerald R.Salancik. 1978. The External Control of Organizations: A Resource Dependence Perspective. New York: Harper & Row.
    Pitts, Robert A.1974. “Incentive Compensation and Organization Design”. Personnel Journal53:338–344.
    Pitts, Robert A.1976. “Diversification Strategies and Organizational Policies of Large Diversified Firms”. Journal of Economics and Business28:181–188.
    Pitts, Robert A.1977. “Strategies and Structures for Diversification”. Academy of Management Journal20:197–208. http://dx.doi.org/10.2307/255394
    Popper, Karl. 1963. Conjectures and Refutations: The Growth of Scientific Knowledge. London: Routledge & Kegan Paul.
    Porter, M. E.1985. Competitive Advantage. New York: Free Press.
    Porter, M. E.1990. The Competitive Advantage of Nations. New York: Free Press.
    Powell, Thomas C.1992. “Organizational Alignment as Competitive Advantage”. Strategic Management Journal13:119–134. http://dx.doi.org/10.1002/smj.4250130204
    Powell, Walter W. and Paul J.DiMaggio, eds. 1991. The New Institutionalism in Organizational Analysis. Chicago: University of Chicago Press.
    Pugh, D. S., D. J.Hickson, C. R.Hinings, and C.Turner. 1968. “Dimensions of Organization Structure”. Administrative Science Quarterly13:65–105. http://dx.doi.org/10.2307/2391262
    Pugh, D. S., D. J.Hickson, C. R.Hinings, and C.Turner1969. “The Context of Organization Structures”. Administrative Science Quarterly14:91–114. http://dx.doi.org/10.2307/2391366
    Rumelt, Richard P.1974. Strategy Structure and Economic Performance. Boston: Division of Research, Graduate School of Business Administration, Harvard University.
    Rumelt, Richard P.1982. “Diversification Strategy and Profitability”. Strategic Management Journal3:359–369. http://dx.doi.org/10.1002/smj.4250030407
    Saloner, Garth. 1994. “Game Theory and Strategic Management: Contributions, Application and Limitations”. Pp. 155–194 in Fundamental Issues in Strategy: A Research Agenda, edited by Richard P. Rumelt, Dan E. Schendel, and David J. Teece. Boston: Harvard Business School Press.
    Salter, Malcolm S. and Wolf A.Weinhold. 1979. Diversification Through Acquisition: Strategies for Creating Economic Value. New York: Free Press.
    Samuelson, Paul A.1980. Economics.
    11th ed.
    New York: McGraw-Hill.
    Scott, Bruce R.1971. Stages of Corporate Development. Boston: Harvard Business School Press.
    Scott, W. Richard. 1987. “The Adolescence of Institutional Theory”. Administrative Science Quarterly32:493–511. http://dx.doi.org/10.2307/2392880
    Scott, W. Richard. 1992. Organizations: Rational, Natural and Open Systems.
    3d ed.
    Englewood Cliffs, NJ: Prentice Hall.
    Sharpe, William F.1970. Portfolio Theory and Capital Markets. New York: McGraw-Hill.
    Simon, Herbert A.1976. Administrative Behaviour: A Study of Decision-Making Processes in Administrative Organization.
    3d ed.
    New York: Free Press.
    Simon, Herbert A.1979. “Rational Decision Making in Business Organizations”. American Economic Review69:493–513.
    Simon, Herbert A.1983. Reason in Human Affairs. Stanford, CA: Stanford University Press.
    Singh, Jitendra V.1986. “Performance, Slack, and Risk Taking in Organizational Decision Making”. Academy of Management Journal29:562–585. http://dx.doi.org/10.2307/256224
    Smith, Chris, JohnChild, and MichaelRowlinson. 1990. Reshaping Work: The Cadbury Experience. Cambridge, England: Cambridge University Press.
    Stace, Doug and DexterDunphy. 1994. Beyond the Boundaries: Leading and Recreating the Successful Enterprise. Sydney, Australia: McGraw-Hill.
    Staw, Barry M., Lance E.Sandelands, and Jane E.Dutton. 1981. “Threat-Rigidity Effects in Organizational Behavior: A Multilevel Analysis”. Administrative Science Quarterly26:501–524. http://dx.doi.org/10.2307/2392337
    Stopford, J. M. and L. T.Wells, Jr.1972. Managing the Multinational Enterprise. New York: Basic Books.
    Suzuki, Y.1980. “The Strategy and Structure of Top 100 Japanese Industrial Enterprises, 1950–1970”. Strategic Management Journal1:265–291. http://dx.doi.org/10.1002/smj.4250010306
    Thompson, James D.1967. Organizations in Action. New York: McGraw-Hill.
    Tricker, R. I.1984. Corporate Governance: Practices, Procedures and Powers in British Companies and Their Boards of Directors. Aldershot, Hants, England: Gower.
    Usher, John M. and Martin G.Evans. 1996. “Life and Death Along Gasoline Alley: Darwinian and Lamarkian Processes in a Differentiating Population”. Academy of Management Journal39:1428–1466. http://dx.doi.org/10.2307/257004
    Utterback, J. M. and W. J.Abernathy. 1975. “A Dynamic Model of Process and Product Innovation”. Omega6:639–656. http://dx.doi.org/10.1016/0305-0483%2875%2990068-7
    Van de Ven, Andrew H. and RobertDrazin. 1985. “The Concept of Fit in Contingency Theory”. Pp. 333–365 in Research in Organizational Behaviour, Vol. 7, edited by B. M.Staw and L. L.Cummings. Greenwich, CT: JAI.
    Van Duijn, J. J.1983. The Long Wave in Economic Life. London: Allen & Unwin.
    Vroom, Victor H. and Philip W.Yetton. 1973. Leadership and Decision-Making. Pittsburgh, PA: University of Pittsburgh Press.
    Weber, Max. 1968. Economy and Society: An Outline of Interpretive Sociology, 3 vols., edited by GuentherRoth and ClausWittich. New York: Bedminster.
    Weick, Karl E.1976. “Educational Organizations as Loosely Coupled Systems”. Administrative Science Quarterly21:1–19. http://dx.doi.org/10.2307/2391875
    Whetten, David A.1980. “Sources, Responses, and Effects of Organizational Decline”. Pp. 342–374 in The Organizational Life Cycle: Issues in the Creation, Transformation and Decline of Organizations, edited by John R.Kimberly and Robert H.Miles. San Francisco: Jossey-Bass.
    Williamson, Oliver E.1964. The Economics of Discretionary Behavior: Managerial Objectives in a Theory of the Firm. Englewood Cliffs, NJ: Prentice Hall.
    Williamson, Oliver E.1970. Corporate Control and Business Behavior: An Inquiry Into the Effects of Organization Form on Enterprise Behavior. Englewood Cliffs, NJ: Prentice Hall.
    Williamson, Oliver E.1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. New York: Free Press.
    Williamson, Oliver E. and NarottamBhargava. 1972. “Assessing and Classifying the Internal Structure and Control Apparatus of the Modern Corporation”. Pp. 125–148 in Market Structure and Corporate Behaviour: Theory and Empirical Analysis of the Firm, edited by KeithCowling. London: Gray-Mills.
    Wiseman, Robert M. and PhilipBromiley. 1991. “Risk-Return Associations: Paradox or Artifact? An Empirically Tested Explanation”. Strategic Management Journal12:231–241. http://dx.doi.org/10.1002/smj.4250120306
    Wiseman, Robert M. and PhilipBromiley1996. “Toward a Model of Risk in Declining Organizations: An Empirical Examination of Risk, Performance and Decline”. Organization Science7:524–543. http://dx.doi.org/10.1287/orsc.7.5.524
    Wiseman, Robert M. and Anthony H.Catanach, Jr.1997. “A Longitudinal Disaggregation of Operational Risk Under Changing Regulations: Evidence From the Savings and Loan Industry”. Academy of Management Journal40:799–830. http://dx.doi.org/10.2307/256949
    Woodward, Joan. 1965. Industrial Organization: Theory and Practice. London: Oxford University Press.
    Yukl, Gary. 1994. Leadership in Organizations.
    3d ed.
    Englewood Cliffs, NJ: Prentice Hall.

    About the Author

    Lex Donaldson is Professor of Organization Design at the Australian Graduate School of Management. He holds a B.Sc. in behavioral sciences from the University of Aston and a Ph.D. from the University of London. His research interests are organization theory, organizational structure, and corporate governance. He has authored six books, including For Positivist Organization Theory: Proving the Hard Core (Sage, 1996) and American Anti-Management Theories of Organization: A Critique of Paradigm Proliferation (Cambridge University Press, 1995). His professional activities include being on the editorial boards of Corporate Governance, Organization Studies, and the Strategic Management Journal. He has held visiting appointments at the universities of Aston, Iowa, Maryland, Northwestern, and Stanford. Address: Australian Graduate School of Management, University of New South Wales, Sydney, NSW 2052, Australia. [E-mail: lexd@agsm.unsw.edu.au]


    • Loading...
Back to Top

Copy and paste the following HTML into your website