Organizational design and incentive provision

We model the trade-off between the balance and the strength of incentives implicit in the choice between hierarchical and matrix or- ganizational structures. We show that managerial biases determine which structure is optimal: hierarchical forms are preferred when biases are low, while matrix structures are preferred when biases are high. Moreover, the results show that there is always a level of bias for which matrix design can achieve the expected profit obtained by shareholders if they could directly control the firm. We also show that the main trade-off, i.e., hierarchical versus matrix structure is preserved under asymmetric levels of bias among managers and when low-level workers perceive activities with complementary efforts.

Biased managers, organizational design, and incentive provision

We model the tradeoff between the balance and the strength of incentives implicit in the choice between hierarchical and matrix organizational structures. We show that managerial biases determine which structure is optimal: hierarchical forms are preferred when biases are low, while matrix structures are preferred when biases are high.

Discursos e a construção do "real": um estudo do processo de formação e institucionalização do campo da biotecnologia

Comprehension of the processes of formation of new organizational fields is the main objective that stimulated the theoretical reflection and empirical research that I present in this paper. My intention here is to uphold the potential for the application of seemingly dichotomous perspectives in terms of the objectivity/subjectivity dimension in the comprehension of the objective in question. The contribution of Foucault, with his concept of discourse, is linked to the proposal of critical constructivism represented by Latour and studies of science and technology. Juxtaposing these perspectives, I examined the dynamics of the biotechnological field on the basis of the dialectic of movements of demarcation/circularity, which is basically a simultaneous movement of (dis)construction of the boundaries of a field. The dialectic of demarcation/circularity is made up of the set of relations established between heterogeneous elements ¿ institutions, economic and social processes, behavioral patterns, systems of norms, techniques, types of classification, forms of characterization, in other words it finds ways of emerging in the course of discursive formations. This theoretical proposal ¿ which incorporates an overlooked dimension in institutional analysis, especially in organization studies (power) ¿ has the advantage of contributing to enhancing comprehension of the dynamics of institutionalization. By proposing that the institutional processes arise within discursive fields, the argument put forward is that such processes contribute to the productivity of the power relations in these fields. In empirical terms, I conducted a descriptive and exploratory research directed at the biotechnology sector. The research was based on a historical perspective, since the analysis spans the period from the origins of genetic science (beginning of the 20th century) through to recent developments in biotechnology in the USA (beginning of the 21st century). The USA was chosen as the locus of research, principally due to the fact that structuring of the field of biotechnology originated in that country, subsequently spreading to other countries around the world. Starting from this theoretical and methodological framework, three discursive formations are highlighted: organization, information and network. Each of the discursive formations is characterized by a dominant set of discourses that prepare the ground for the appearance and (trans)formation of the focus-objects under analysis. In this process, organizations appear in at least two ways: as boundary-organizations ¿ which are important for understanding the movement of the approximation of different discursive domains ¿ and as new organizations, which accompany the (trans)formation of new fields, whereby prevailing discourses materialize at a given historical moment and contribute to breathe life into new discourses, which in turn spark off new power relations. Among the conclusions of this work, I would highlight the following: questioning the 'organizational' dimension of the fields; the relationship revealed not only between the discourses and the institutionalized practices, but also with the process of construction of legitimacy; and the redefinition of the concept of organizations, based on new conceptions relating to the limits of the topic, the objectivity/subjectivity, and space/time dichotomy.

Organizational design as an enabler for innovation: evidence from a German Mechanical Engineering Company

Over the past two decades there has been a profusion of empirical studies of organizational design and its relationship to efficiency, productivity and flexibility of an organization. In parallel, there has been a wide range of studies about innovation management in different kind of industries and firms. However, with some exceptions, the organizational and innovation management bodies of literature tend to examine the issues of organizational design and innovation management individually, mainly in the context of large firms operating at the technological frontier. There seems to be a scarcity of empirical studies that bring together organizational design and innovation and examine them empirically and over time in the context of small and medium sized enterprises. This dissertation seeks to provide a small contribution in that direction. This dissertation examines the dynamic relationship between organizational design and innovation. This relationship is examined on the basis of a single-case design in a medium sized mechanical engineering company in Germany. The covered time period ranges from 1958 until 2009, although the actual focus falls on the recent past. This dissertation draws on first-hand qualitative empirical evidence gathered through extensive field work. The main findings are: 1. There is always a bundle of organizational dimensions which impacts innovation. These main organizational design dimensions are: (1) Strategy & Leadership, (2) Resources & Capabilities, (3) Structure, (4) Culture, (5) Networks & Partnerships, (6) Processes and (7) Knowledge Management. However, the importance of the different organizational design dimensions changes over time. While for example for the production of simple, standardized parts, a simple organizational design was appropriate, the company needed to have a more advanced organizational design in order to be able to produce customized, complex parts with high quality. Hence the technological maturity of a company is related to its organizational maturity. 2. The introduction of innovations of the analyzed company were highly dependent on organizational conditions which enabled their introduction. The results of the long term case study show, that some innovations would not have been introduced successfully if the organizational elements like for example training and qualification, the build of network and partnerships or the acquisition of appropriate resources and capabilities, were not in place. Hence it can be concluded, that organizational design is an enabling factor for innovation. These findings contribute to advance our understanding of the complex relationship between organizational design and innovation. This highlights the growing importance of a comprehensive, innovation stimulating organizational design of companies. The results suggest to managers that innovation is not only dependent on a single organizational factor but on the appropriate, comprehensive design of the organization. Hence manager should consider to review regularly the design of their organizations in order to maintain a innovation stimulating environment.

Influência da mudança organizacional na percepção dos papéis desempenhados no trabalho: o caso do arsenal de Marinha do Rio de Janeiro

O Objetivo desta pesquisa é analisar a influência da mudança organizacional sofrida pelo Arsenal de Marinha do Rio de Janeiro (AMRJ) sobre a percepção em relação aos papéis desempenhados pelos seus servidores, dos níveis gerencial e operacional, no que tange a valores e crenças sobre o seu trabalho. Esta pesquisa constitui um estudo de caso, e se deu por meio de pesquisa de campo, de cunho qualitativo, e por isso, os dados foram analisados de forma descritivo-interpretativa sobre a avaliação documental e do seu conteúdo. Os dados primários foram obtidos a partir de análise de documentos, tais como relatórios, normas, publicações e regulamentos internos; e os dados secundários foram provenientes de entrevistas semiestruturadas; e possibilitaram averiguar as categorias analíticas envolvidas na pesquisa. As amostras para as entrevistas foram selecionadas de populações, dentro do AMRJ que fossem semelhantes ou equivalentes a populações de indústrias privadas e os sujeitos das mesmas, que, igualmente, tivessem equivalência funcional em outras indústrias ou empresas a fim de serem representativas para a composição do conteúdo da pesquisa. Os dados coletados permitiram concluir que o AMRJ ainda se encontra em processo de acomodação à mudança que se iniciou, e que o trabalho passou a ser mais gratificante para o nível gerencial, assumindo uma perspectiva de desafio e crescimento profissional a partir de um novo enfoque dado a ele, porém, para o nível operacional, devido a uma motivação decrescente e a interesses frustrados, sua percepção considera o trabalho como menos gratificante que o outro nível, apesar do sentimento positivo que tem pela instituição. Concluiu-se, também, que as mudanças são necessárias, apesar das dificuldades inerentes a ela, e influenciam a percepção das pessoas, mas podem ficar comprometidas caso não seja levado em conta que deve haver uma equivalência na distribuição, entre todos os níveis, dos benefícios que podem favorecê-la.

Knowledge effect on firm performance in manufacturing and service firms

This thesis seeks to examine the difference between manufacturing and service firms with respect to the effects of knowledge on performance, and the influence of market turbulence in this relationship. Empirical data, resulting from a survey, was collected from more than 1,206 firms, involving several sectors. Two samples were analyzed, one with 334 manufacturing and other with 509 service firms. The findings indicate no significant difference in the importance of knowledge on performance between these sectors in the absence of market turbulence: knowledge development (KD) has a stronger effect than culture of competitiveness (CC) on firm performance. However, under market turbulence, manufacturers differ from service providers. The positive effect of KD is enhanced, while the positive effect of CC remains the same for manufacturing firms. On the other hand, the positive effect of KD is diminished, while the positive effect of CC is enhanced for service firms. This supports the argument concerning differences in the nature of manufacturing and service industries. From a managerial point of view, results confirm the importance of knowledge, irrespective of firm sector or market turbulence. However, while industrial firms should center efforts on KD, service firms must find a balance where knowledge development (e.g. norms, processes, routines) does not impair their culture of competitiveness (e.g. learning, innovation, action). The thesis contributes to existing literature by proposing that: (1) the positive effect of knowledge on performance is confirmed; (2) under turbulent markets manufacturing and service firms have different responses concerning the influence of knowledge on performance; (3) a multidimensional performance construct based on cost, profitability, and growth is an interesting way to evaluate firm sustained competitive advantage, rather than one-dimensional constructs; (4) the CC x KD interaction, found relevant for supply chains in previous studies, is not supported for firms; (5) differences in unit of analysis, e.g. from supply chains to firms, result in different effects of KD and CC on firm performance; (6) existing scales can be improved with the addition of more diverse indicators, capturing a wider range of concepts (e.g. information transfer measurement); and (7) results from previous studies are supported for Brazilian firms, contributing for theory generalization.

Social norms and money

In an economy where there is no double coincidence of wants and without recordkeeping of past transactions, money is usually seen as the only mechanism that can support exchange. In this paper, we show that, as long as the population is finite and agents are sufficiently patient, a social norm establishing gift-exchange can substitute for money. Notwithstanding, for a given discount factor, the growth of the population size eventually leads to the breakdown of the social norm, while money still works. 1 Introduction

Leader-organization fit: comparing the effectiveness of paternalistic and transformational leadership in different organizational cultures

Research on paternalistic leadership (PL) has been based exclusively on national cultures´ differences. However there are cues that other contextual variables can add to the explanation of this construct. Due to its capacity to influence expectations of individuals in organizations, organizational culture can contribute to fill this gap. To test if organizational culture influences the effectiveness of leadership style, we conducted two experimental studies using Amazon’s Mechanical Turk, comparing effects of paternalistic and transformational leadership on followers’ outcomes. Using video clips and vignettes, we found that PL is better related to followers´ outcomes in cultures oriented to people than outcome, and that TL has a better relationship in cultures oriented to innovation than stability. The results suggest that organizational culture helps in explaining PL endorsement, and that further analysis of the influence of this variable to PL can provide a better understanding of the expression of this leadership style in organizations.

Interações de relacionamentos interorganizacionais: projetos complexos na indústria petrolífera brasileira

Este trabalho buscou investigar a interação entre os mecanismos de governança contratual e relacional na relação comprador-fornecedor e seus impactos sobre os resultados de projetos complexos. A governança dos relacionamentos interorganizacionais e sua importância estratégica para o desempenho das firmas e para a obtenção de vantagens competitivas têm sido tema de muitas pesquisas recentes na área de estratégia, bem como em áreas correlatas. Mais especificamente, é crescente a importância de tais relacionamentos na literatura de gestão, especialmente em contextos envolvendo economias emergentes. A literatura apresenta uma convergência acerca de dois tipos principais de governança nos relacionamentos interorganizacionais: a governança contratual, que se refere aos contratos e regras formalmente estabelecidas entre as firmas para geralmente coibir comportamentos oportunistas, e a governança relacional, que se baseia principalmente na confiança e em normas relacionais para coordenar tais relacionamentos. Embora diversos estudos tenham investigado a interação entre essas governanças, não há um consenso na literatura sobre a natureza dessa interação. Este estudo teve por objetivo investigar a interação dos mecanismos de governança contratual e relacional por meio de um estudo de caso sobre a implantação de um megaprojeto na indústria brasileira do petróleo offshore, envolvendo tecnologia inovadora. Os resultados indicam que os mecanismos de governança contratual e relacional desempenham importantes funções no relacionamento comprador-fornecedor e que a interação entre eles impacta os resultados do projeto em termos de prazo, custo e qualidade. Tais mecanismos atuam de forma simultânea e influenciam uns aos outros em grande medida. Percebe-se ainda que o nível de influência de cada um desses mecanismos varia ao longo do tempo, a depender do contexto. Por fim, conclui-se que os resultados do projeto, no contexto estudado, não podem ser plenamente explicados apenas pela interação entre esses mecanismos. Tais resultados precisam ser contextualizados, uma vez que diversos fatores do ambiente institucional atuam como moderadores da interação entre governanças.

On paternalistic leadership fit: exploring cross-cultural endorsement, leader-follower fit, and the boundary role of organizational culture

Although cross-cultural leadership research has thrived in international business literature, little attention has been devoted to understanding the effectiveness of non-western theories beyond their original contexts. The purpose of this study is to examine the cross-cultural endorsement of paternalistic leadership, an emerging non-western leadership theory, using data from GLOBE project. Using multigroup confirmatory factor analyses we found measurement equivalence of a scale derived from GLOBE’s data, which enabled us to compare the endorsement of paternalistic leadership dimensions across 10 cultural clusters and 55 societies. Our study revealed that there are significant differences in the importance societies give to each dimension, suggesting that paternalism as leadership style is not universally nor homogeneously endorsed. Furthermore, results suggest that different patterns of endorsement of each of these dimensions give rise to idiosyncratic shades of paternalistic leadership across societies. Implications for theory and future research on international business are discussed.

The art of being together: a social constructionist perspective on dialogic methods in the organizational context

The purpose of this project is to understand, under a social constructionist approach, what are the meanings that external facilitators and organizational members (sponsors) working with dialogic methods place on themselves and their work. Dialogic methods, with the objective of engaging groups in flows of conversations to envisage and co-create their own future, are growing fast within organizations as a means to achieve collective change. Sharing constructionist ideas about the possibility of multiple realities and language as constitutive of such realities, dialogue has turned into a promising way for transformation, especially in a macro context of constant change and increasing complexity, where traditional structures, relationships and forms of work are questioned. Research on the topic has mostly focused on specific methods or applications, with few attempts to study it in a broader sense. Also, despite the fact that dialogic methods work on the assumption that realities are socially constructed, few studies approach the topic from a social constructionist perspective, as a research methodology per se. Thus, while most existing research aims at explaining whether or how particular methods meet particular results, my intention is to explore the meanings sustaining these new forms of organizational practice. Data was collected through semi-structured interviews with 25 people working with dialogic methods: 11 facilitators and 14 sponsors, from 8 different organizations in Brazil. Firstly, the research findings indicate several contextual elements that seem to sustain the choices for dialogic methods. Within this context, there does not seem to be a clear or specific demand for dialogic methods, but a set of different motivations, objectives and focuses, bringing about several contrasts in the way participants name, describe and explain their experiences with such methods, including tensions on power relations, knowledge creation, identity and communication. Secondly, some central ideas or images were identified within such contrasts, pointing at both directions: dialogic methods as opportunities for the creation of new organizational realities (with images of a ‘door’ or a ‘flow’, for instance, which suggest that dialogic methods may open up the access to other perspectives and the creation of new realities); and dialogic methods as new instrumental mechanisms that seem to reproduce the traditional and non-dialogical forms of work and relationship. The individualistic tradition and its tendency for rational schematism - pointed out by social constructionist scholars as strong traditions in our Western Culture - could be observed in some participants’ accounts with the image of dialogic methods as a ‘gym’, for instance, in which dialogical – and idealized –‘abilities’ could be taught and trained, turning dialogue into a tool, rather than a means for transformation. As a conclusion, I discuss what the implications of such taken-for-granted assumptions may be, and offer some insights into dialogue (and dialogic methods) as ‘the art of being together’.