Knowledge that Transforms

The adoption of telecommuting raises concerns for both managers and employees: Remote supervision presents monitoring challenges, while physical isolation may impede the employee's opportunity for, and involvement in, determining valued organizational outcomes (organizational justice). This study of 191 employees examined the relationships among telecommuting, organizational monitoring strategies, and organizational justice perceptions. Results suggest that monitoring strategies were more strongly associated with organizational justice perceptions than with telecommuting, and procedural and interactional justice perceptions related significantly to telecommuting. We provide implications, limitations, and ideas for future research.

We define the complex system underlying organizational culture by incorporating the social-psychological principles of balance and information (B-I) into models of influence (changes in attitudes as a function of interaction) and selection (changes in interaction). We identify information based influence as a potential anchor for actors' sentiments so that they are not overwhelmed by normative influence. In the model of selection, we identify the pursuit of information as an important counterbalance to the effect of homophily (interacting with others like oneself). Using the tools of dynamic systems we show how our models generate the full range of equilibria of complex systems. Through simulations we also explore how our system responds to exogenous effects.

In this paper, we set out to investigate whether strategic leadership matters at a moment in the life cycle of the firm when a change is made in the top leadership. By far, most of the conceptual and empirical literature on the consequences of CEO succession involves United States companies. Therefore, in this paper, we set out to investigate the impact of CEO succession on strategic and organizational changes in Japanese companies. The empirical study consisted of a matched control group design involving 81 Japanese companies experiencing a CEO succession event and 81 companies with continuity of their CEO leadership. The results of the study can be summarized as follows. Overall CEO succession was not associated with radical strategic and organization changes. Japanese companies did engage in evolutionary organization and strategic adaptations during the five year period of the study but independent of CEO succession. The governance structure moderates organization changes (independent of CEO succession) in particular when the firm was affiliated with a main bank and the firm was experiencing severe financial pressure.

One view holds that organizations are virtual to the extent that they outsource key components of their production processes, and that electronic networks make it easier to do this. The goal of the present paper is to examine explicitly the effects that use of electronic networks for transactions with suppliers has on firms' degree of virtualization. In so doing, we also highlight factors that influence the use of networks for coordination with suppliers, and the impact such use has on coordination success. Contrary to much recent speculation, the use of electronic networks for transactions was not associated with increased outsourcing, but rather with greater dependence on internal production. Moreover, the use of interpersonal relationships for coordination, which many think of as an alternative to electronic network use, was positively associated with greater network use. Surprisingly, use of electronic networks was negatively associated with such outcomes as order quality and efficiency, and satisfaction with suppliers, while more reliance on personal linkages was associated with better outcomes and mitigated the negative consequences of using electronic networks.

Although downsizing has become an integral part of organizational life in the U.S., there is little serious theoretical or empirical work on this issue. Nearly all of the completed work addresses the effects of downsizing, which usually are negative. Therefore, an important yet unanswered question is: Why do organizations downsize in the first place? In addressing this question, I offer some systematic thoughts on the causes of downsizing. Specifically, I develop a conceptual framework for studying organizational innovation that draws on two overlooked dimensions associated with this phenomenon, the basis of social action (rational versus arational) and social context (organizational versus extraorganizational). I then characterize downsizing as an organizational innovation and develop propositions that explain why organizations downsize. Finally, I emphasize that empirical evaluation of these propositions will help us to understand a pivotal organizational development of recent decades.

Many scholars have described organization form as a management tool in the alignment of organization and environment. As the environment of many companies becomes more chaotic, the exploration of organization forms characterized by flexibility and adaptability has been intensifying. When reviewing existing literature on new organization forms, several gaps become apparent. These gaps can be traced back to the artificial separation between the macrolevel and the firm level of analysis and the prevalence of a static notion of form. To contribute to a more encompassing theory of new organization forms, a coevolutionary perspective is suggested. In this perspective, contextual variation of macrolevel management logics is proposed as a key mediator in the coevolution of organization and environment. At the firm level, the contextual variation of management logics is reflected in shared managerial schemas underlying strategic design actions. The resulting coevolutionary model shows how contextual applications of management logics may be a source of variation in new organization forms. On the basis of a literature review, three management logics, representing ideal types, are described: classical management logic, modern management logic, and postindustrial management logic. These logics are related to three levers of design actions which reflect fundamentally different interventions in form. Linking management logics to design levers results in a set of propositions to be tested in future empirical research.

What if rent from a competitive advantage is appropriated so it cannot be observed in performance measures? The resource-based view was not formulated to examine who will get the rent. Yet, this essay argues that the factors leading to a resource-based advantage also predict who will appropriate rent. Knowledge-based assets are promising because firm-specificity, social complexity, and causal ambiguity make them hard to imitate. However, the roles of internal stakeholders may grant them a great deal of bargaining power especially relative to investors. This essay integrates the resource-based view with the bargaining power literature by defining the firm as a nexus of contracts. This new lens can help to explain when rent will be generated and, simultaneously, who will appropriate it. In doing so, it provides a more robust theory of firm performance than the resource-based view alone. It is also suggested that this lens might be useful for examining other theories of firm performance.