Prelims

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ORGANIZATION DESIGN

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ADVANCES IN STRATEGIC MANAGEMENT

Series Editor: Gino Cattani

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ADVANCES IN STRATEGIC MANAGEMENT VOLUME 40

ORGANIZATION DESIGN

EDITED BY

JOHN JOSEPH

University of California, Irvine, USA

OLIVER BAUMANN

University of Southern Denmark, Denmark

RICHARD BURTON

Duke University, USA

KANNAN SRIKANTH

Ohio State University, USA

United Kingdom – North America – Japan – India – Malaysia – China

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Emerald Publishing Limited

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First edition 2019

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A catalogue record for this book is available from the British Library

ISBN: 978-1-78756-330-8 (Print)

ISBN: 978-1-78756-329-2 (Online)

ISBN: 978-1-78756-331-5 (Epub)

ISSN: 0742-3322

About the Editors

John Joseph is Associate Professor of Strategy at the University of California Irvine’s Paul Merage School of Business. John received his PhD from the Kellogg School of Management at Northwestern University. He also holds an MBA from the Wharton School at the University of Pennsylvania. John’s research examines organizational designs for better strategic planning, technology development, and growth. John’s research has been published in the Strategic Management Journal, Organization Science, Academy of Management Journal, Long Range Planning, Advances in Strategic Management, Academy of Management Proceedings, and other peer-reviewed publications, and has also developed a number of case studies on design and strategic decision making. John is a member of the Academy of Management and is a representative-at-large of the behavioral strategy interest group of the Strategic Management Society. He is Co-editor for the Journal of Organization Design, and serves as an editorial board member of the management field’s top two journals: Administrative Science Quarterly and Strategic Management Journal. John’s experience outside academia includes managerial positions in the consulting, technology, pharmaceutical, and non-profit sectors. His speaking, research, and consulting engagements include a variety of profit and non-profit organizations.

Oliver Baumann is Professor with special responsibilities in Strategic Organization Design at the University of Southern Denmark. His research focuses on the implications of organization design for organizational search and learning. His work has appeared or is forthcoming in Administrative Science Quarterly, Organization Science, and the Strategic Management Journal, among others. He serves as Associate Editor for the Journal of Organization Design. Oliver received a PhD in business economics from LMU Munich, an MSc in business engineering from the Karlsruhe Institute of Technology, and an MS in engineering management from Portland State University. Prior to joining the University of Southern Denmark, he was Visiting Scholar at the Wharton School, University of Pennsylvania, and Assistant Professor at LMU Munich.

Richard Burton is Professor Emeritus of Organization and Strategy at The Fuqua School of Business, Duke University. Rich is also Professor of Management at the EIASM (European Institute for Advanced Studies in Management) in Brussels, and Honorary Professor at the University of Southern Denmark and the University of Aarhus, Denmark. He was Director of the Hartman Fund at Fuqua. He has DBA from the University of Illinois, as well as BS and MBA. He holds an Honorary Doctorate from the University of Aarhus, Denmark. Rich is Associate Editor for the Journal of Organization Design, Co-editor of a research series on Information and Organization. Previously, he was Senior Editor for Organization Science, Strategic Management Journal and Department Editor for Strategy, Organizational Design and Performance for Management Science. His research focuses on organizational design and particularly its relationship to strategy for the firm. His most recent book is Organizational Design: A Step-by-Step Approach, 2015, with Professors Obel and Haakansson is in its third edition. He has published 7 books and some 70 articles on strategy, organization and management science in Organization Science, Management Science, and Administrative Science Quarterly, among others. Rich taught Organization Theory and Computational Modeling for Organization Science in the PhD program.

Kannan Srikanth is Associate Professor of Strategy at the Fisher College of Business, Ohio State University. Prior to joining Fisher, he was Faculty of Strategy and Organization at the Lee Kong Chian School of Business, Singapore Management University and at the Indian School of Business, and Visiting Professor of Strategic Organization Design at the University of Southern Denmark. He received a PhD in Strategic and International Management from the London Business School. His research investigates how to design organizations and inter-organizational relationships to be more effective and more innovative. He has studied mergers and acquisitions, joint ventures, outsourcing and offshoring relationships, and global product development. He is a member of the editorial boards of Academy of Management Journal, Strategic Management Journal, Organization Science, Journal of Management, and Journal of Organization Design.

About the Authors

Karl Aschenbrücker is a Consultant at McKinsey & Company’s Zurich office. He is affiliated with the Institute for Strategy, Technology and Organization at LMU Munich and a member of its Organizations Research Group (ORG). His research interests are centered around the intersection of innovation, strategy, and organization design.

Lars A. Bach is an Assistant Professor at the Interacting Minds Centre, Aarhus University focusing on various forms of human interaction at Aarhus University, Denmark. His interdisciplinary research interests include behavioral organization, evolutionary game theory, and experimental economics. More specifically, he studies dynamic self-organization and emergent structures in evolutionary or incentive driven systems of interacting individuals.

Laura B. Cardinal is the SmartState Endowed Chair and Director for the Center for Innovation and Commercialization at the Darla Moore School of Business at the University of South Carolina. Her research covers the implementation of innovation goals and strategies, and includes the effects of organizational control and coordination on innovation, R&D, and new product development teams. She sits on the Board of Governors of the Academy of Management and previously served as Associate Editor of the Academy of Management Annals and on the Board of Directors of the Strategic Management Society. She published Organizational Control (2010) with Sitkin and Bijlsma-Frankema.

Xavier Castañer is a Professor of Strategy at the Faculty of Business and Economics of the University of Lausanne, Switzerland. He received his PhD in Strategic Management & Organization from the University of Minnesota. His research interests include corporate governance, strategy and development, organization learning and design, and creativity and innovation.

Felipe A. Csaszar is an Associate Professor of Strategy at the Ross School of Business, University of Michigan. He received his PhD from the Wharton School at the University of Pennsylvania. His research focuses on the effects of decision-making structures and managerial cognition on firm performance. He is interested in combining formal models and empirical analyses to study issues related to the foundations of strategy and organizations.

Dorthe Døjbak Håkonsson is the Director for the Interdisciplinary Center for Organizational Architecture (www.icoa.dk) and is a Professor at the Department of Management, Business and Social Sciences, Aarhus University, Denmark, Professor at Department of Business Development and Technology, Aarhus University, Denmark, and affiliated to the Interacting Minds Center at Aarhus University. She holds a PhD from University of Southern Denmark. Her research interests fall within behavioral organization design. She is Associate Editor of Journal of Organization Design, and member of the board of the Organizational Design Community.

Florian Englmaier is a Professor of Organizational Economics at LMU Munich’s Economics Department. He is a Co-Founder of LMU’s Organizations Research Group (ORG) and the Director of the Munich Graduate School of Economics (MGSE). His research interests are primarily in Organizational Economics and Industrial Organization, often focusing on the effects of recent behavioral economic insights for the design of (second-best) optimal institutions and incentives.

Nicolai J. Foss is the Rodolfo Debenedetti Professor of Entrepreneurship at the Bocconi University. His main research interests are entrepreneurship and the intersection of organization design theory and strategic management theory. Foss is a Member of the Academia Europaea.

Riitta Katila is a Professor of Management Science and Engineering at Stanford University. She received her PhD in strategy from the University of Texas at Austin and Dr Eng. from Helsinki University of Technology, Finland. Her research focuses on innovation strategy, technology entrepreneurship, and organizational learning.

Thomas Keil holds the Chair in International Management at the University of Zurich. His research focuses on strategic management of multinational enterprises, specifically strategic renewal and transformation, mergers and acquisitions, corporate entrepreneurship, and innovation. His work has been published in leading European (e.g., Journal of Management Studies, Harvard Business Manager) and North American (e.g., Academy of Management Review, Journal of Business Venturing, Journal of Management, Organization Science, Strategic Management Journal, Harvard Business Review, MIT Sloan Management Review) journals and has won several international awards.

Mikko Ketokivi is a Professor of Operations Management and Organization Design at IE Business School in Madrid, Spain. He received his PhD from the University of Minnesota. His research interests include organization design, decision making, operations management, and methodology.

Thorbjørn Knudsen is a Professor of Organization Design at the University of Southern Denmark (SDU). He is a Founder of the Strategic Organization Design Unit (SOD), and Co-Director of the Danish Institute for Advanced Study (DIAS). His research interests center around evolutionary and adaptive processes in organizations and the way organization design can shape these processes.

Özgecan Koçak is an Associate Professor in the Organization and Management area at Emory University’s Goizueta Business School. She studies how shared meanings emerge and how they shape behavior and outcomes in organizations and markets. Her research in progress examines how social structures of communication affect emergence of shared codes.

Tobias Kretschmer is a Professor of Strategy, Technology and Organization at LMU Munich. He is a Co-Founder of LMU’s Organizations Research Group (ORG) and a Research Fellow at the Centre for Economic Policy Research, London. His research interests are the intersection of strategy and organization design and he often uses fast-moving, technology-intensive industries as empirical setting. He is an Associate Editor of Strategic Management Journal.

Pasi Kuusela is a Postdoctoral Researcher at the University of Zurich. His research interests relate to topics in behavioral theory of the firm, such as aspirations, attention, and problemistic search, as well as mergers and acquisitions and innovation. His work has been published in leading international journals such as Strategic Management Journal.

Raymond Levitt is the Kumagai Professor of Engineering Emeritus, Recalled to Active Duty, and Academic Director of the Global Projects Center at Stanford University. His research focuses on organization and governance of projects and project-based organizations. Dr Levitt is a Co-Founder of three software companies: Design Power, Vite, and Rackwise. In 2017, he became an Operating Partner in Blackhorn Ventures, LLC.

Chris P. Long is an Associate Professor of Management and the Paul Naughton Research Fellow at the Tobin College of Business, St. John’s University in New York City. In his research, he examines the actions that leaders take to address control, trust and fairness issues within complex and dynamic business environments to accomplish a variety of key performance objectives. He holds a PhD in Management from Duke University and a Master in Public Policy from the John F. Kennedy School of Government at Harvard University.

C. Chet Miller is the C.T. Bauer Professor of Organizational Studies at the University of Houston. He has worked with a number of organizations to improve their positioning and impact. In addition, he is an award-winning teacher and researcher. His published research focuses on the functioning and effects of executive teams, the design of strategic decision processes within firms, and the use of seemingly impossible organizational goals. His work has appeared in outlets such as Harvard Business Review, Academy of Management Journal, Academy of Management Review, Academy of Management Annals, Strategic Management Journal, and Advances in Strategic Management.

Børge Obel is a Professor at the Department of Management, Business and Social Sciences, Aarhus University, Denmark and a Professor at EIASM, Brussels. He holds a PhD and a Dr Oecon. from Aarhus University, Denmark. His research interests fall within strategy, management, and organizational design. He teaches graduate courses in organizational design. Børge Obel has published several books including Organizational Design: A Step-By-Step Approach, Cambridge University (jointly with Richard Burton and Dorthe Håkonsson), Third edition, 2015. He has published numerous academic papers including papers in Strategic Management Journal, Organization Science, ASQ and Management Science.

Phanish Puranam is the Roland Berger Chair Professor of Strategy & Organization Design at INSEAD. He studies how organizations work and how to improve the way they work. His approach to organization design focuses on issues of (dis-)aggregation, as elaborated in his book The Microstructure of Organizations (2018). The current paper is part of his work on the design of the informal organization. He is also working on alternatives to hierarchy to effectively scale collaboration, and the mechanisms of self-organizing in team-based organizations.

Metin Sengul is an Associate Professor of Strategy at Boston College. He received his PhD from INSEAD. His research bridges competitive and corporate strategy by exploring the interdependence of organization design and strategy choices in multiunit-multimarket firms—such as diversified firms, business groups, and multinationals—and social enterprises. He is Co-editor for the Journal of Organization Design.

Dana Sheffer is the Executive Director of the Bronica Entrepreneurship Center at the Technion University in Haifa, Israel. Prior to that she was an Assistant Professor of Strategy at Bar Ilan University in Israel. She holds a BA degree from Harvard University and a PhD in Civil and Environmental Engineering from Stanford University. Her research focuses on the challenges of systemic innovation in mature, fragmented industries.

Sim Sitkin is the Michael W. Krzyzewski University Professor of Leadership, and a Professor of Management and Public Policy at Duke University. His research focuses on leadership and control systems, and their influence on risk taking, accountability, trust, learning, management and administration processes, and innovation. He is Editor of Behavioral Science and Policy and previously served as Editor of Academy of Management Annals, Senior Editor of Organization Science, and Associate Editor of the Journal of Organizational Behavior. His most recent books are Organizational Control (2010), The Six Domains of Leadership (2015) and Routledge Companion to Trust (2017).

Charles C. Snow is a Professor Emeritus of Strategy and Organization at The Pennsylvania State University and a Visiting Researcher at the Interdisciplinary Center for Organizational Architecture at the Aarhus School of Business and Social Sciences (Denmark). He is the former Co-editor of the Journal of Organization Design and a founding member of the Organizational Design Community.

Nils Stieglitz is a Professor of Strategy at the Frankfurt School of Finance & Management. His research interests include organizational adaptation and learning and his work has been published in leading management journals such as Administrative Science Quarterly, Organization Science, Management Science, and Strategic Management Journal.

Sangyoon Yi is an Assistant Professor at the Graduate School of Future Strategy, Korea Advanced Institute of Science and Technology (KAIST). His research centers around the sources and consequences of organizational reliability – in particular, the organizational and strategic mechanisms that not only foster learning and innovation, but also secure reliability in the process of competition and change.