Session 217

Designing Organizations to Sustain Performance

Track E

Date: Wednesday, October 14, 2009


Time: 10:00 – 11:15

Common Ground

Room: Meeting Room 7

Jamal Shamsie, Michigan State University

Title: Complementarities in Organizations – An Empirical Review


  • Edgar Ennen, EBS University for Business and Law
  • Ansgar Richter, University of Surrey

Abstract: The concept of complementarity and its role in the design of organizations has enjoyed increasing attention over the past twenty years. We provide a systematic review of the empirical studies on complementarities that considers the nature of the organizational design elements among which complementarities are found to exist, and the effects of complementarities in organizations. Our findings suggest that complementarities result from the skillful matching of heterogeneous resources but the empirical evidence on complementarities between a firm’s resources and its organizational practices is not fully conclusive. We argue that complementarities exist within entire systems of organizational design elements. Therefore, future research should aim at uncovering complementarity effects among multiple design elements that capture organizational design systems better than a few selected design elements do.

Title: Dominant Logic - The Linkage between Management Cognition and Firm Performance: Preliminary Findings from an Empirical Study


  • Artur Baldauf, University of Bern
  • Karin Tremp, University of Bern

Abstract: ABSTRACT
Exposed to a great number and variety of environmental influences managers face an excess of information. Due to the limited and selective attentional capability of human beings, managers meet this ‘information challenge’ by refer-ring to mental models when interpreting complex situations and making decisions. Mental models facilitate decision making and allocate the attention of the managers. In strategically similar oriented (managed) business units, such mental models can result in a so-called (shared) dominant (general management) logic. Survey data from top-managers of European firms largely confirm this assumption and thereby help to deepen not only our understanding of dominant logic but also performance differences of diversified firms.

Title: Implications of Internal Organization Structure for Firm Boundaries


  • Carmen Weigelt, Tulane University
  • Douglas Miller, Rutgers University

Abstract: The knowledge-based view (KBV) argues that internal organization structure influences a firm’s ability to integrate and apply knowledge. Nevertheless, the question of how a firm’s internal structure conditions its boundary choice for tasks of different complexity has received scant attention. We study the role that internal structure (decentralized accountability, incentive intensity, and lateral coordination) plays in firm boundary decisions. The findings show that internal structure affects firm boundaries and that internal structure (decentralized task accountability and incentive intensity) moderates the relationship between task complexity and vertical integration. The empirical setting is the U.S. banking industry.

Title: Reconfiguring the Activities: Internetworking and Value Creation in Value Chains


  • Ulas Burkay, BI Norwegian School of Management

Abstract: Taking Internet as an enabler of conducting old functions with new methods at reduced costs, I demonstrate that how wide adoption of Internet enabled work practices, or internetworking, can affect activity configurations of the firms belonging traditional manufacturing industries. I bring a transactional value based explanation to the changes in boundaries of a business value system; in addition to the previous analysis which analysed effects of internetworking from a transaction cost viewpoint (Afuah, 2003). I forward five testable propositions about the possible structural effects of internetworking on the activity configurations of manufacturing firms given their strategic positioning.

Title: The Synergy of HR and Value Capture Strategy: Evidence From Service SMEs


  • Andreas Georgiadis, Centre for Economic Performance
  • Christos Pitelis, Brunel University

Abstract: The aim of this study is to identify the main HR factors, value capture strategies and their complementarities that are associated with superior performance of SMEs in the service industry using data from a large sample of businesses in the UK Tourism, Hospitality and Leisure (THL) sector. Our analysis suggests that the successful implementation of value capture strategies hinges critically on the skill, motivation and dedication of SMEs’ employees. Accordingly the interactions of value capture strategies with human resources characteristics are expected to be major determinants of firm on profitability. Our provisional results provide support for the above.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 256: Discipline Based Theories: What Do Theories of the Firm Say About Organizational Dynamics
Sun: 13:00 – 14:30
Session 257: Applying Theories: What Does Strategy & Organization Say About Health Care?
Sun: 15:00 – 16:30
Session 258: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 309: Competitive Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 159: Strategic Factor Markets: Antecedents, Consequences and Dynamics
Session 166: Competitive Strategy and the Business of Science
Mon: 15:45 – 17:00
Session 160: Emerging Strategies in Acquisition
Session 220: Contemporary Challenges to Organization Theory
Mon: 17:15 – 18:30
Session 157: Managerial Cognition and Dynamic Capabilities at the Crossroads: Current Issues and Novel Strands of Development
Session 222: Challenging Traditional Notions of Competitive Strategies and Competitive Advantage
Tue: 10:00 – 11:15
Session 161: Demand-based Approaches to Strategy: The Role of Customers and Communities
Session 163: Resources and Capabilities to Strengthen Alliance Formation and Execution
Tue: 11:30 – 12:45
Session 164: Competitive Strategy and Firm Performance
Session 165: Emerging Organizational Solutions for Exploration Strategies
Tue: 14:30 – 15:45
Session 158: Strategic Change and Dynamic Capabilities
Session 169: Unpacking Sources of Heterogeneity: Market Frictions, Firm Resources, Strategic Actions
Wed: 10:00 – 11:15
Session 216: Industry Evolution and Resource Architecture
Session 217: Designing Organizations to Sustain Performance
Wed: 11:30 – 12:45
Session 214: Managerial Capabilities and the Microfoundations of Strategy

Strategic Management Society

Washington DC