scholarly journals A Neglected Role for Organizational Design: Supporting the Credibility of Delegation in Organizations

2015 ◽  
Vol 4 (3) ◽  
pp. 3 ◽  
Author(s):  
Diego Stea ◽  
Kirsten Foss ◽  
Nicolai J. Foss

Managers delegate the right to make decisions to employees because delegation economizes on scarce managerial attention, fosters the use of local knowledge, and positively impacts employee motivation. This is particularly important in knowledge-intensive organizations that operate in uncertain environments, where employees have specialized knowledge and need to be responsive to local changes. Managers, however, often renege on delegation, particularly in high-uncertainty contexts, because they are tempted to adjust past decisions based on new information. We argue that employees’ knowledge that management may renege on delegated decision rights has negative motivational consequences that are costly in knowledge-intensive organizations. As a consequence, making delegation credible is essential for sustaining the advantages that flow from delegation. Organizational design can play a key role in making delegation credible, supporting the value creation caused by delegated discretion. Our theoretical argument sheds new light on relationships among organizational design, credible delegation, and firm-level value creation.

Author(s):  
Raul M. Abril

This chapter is designed to serve as a comprehensive introduction to a few aspects of knowledge management (KM) practices of particular relevance for temporal knowledge-intensive organizations. The aspects considered are the contribution of KM pratices to value creation, the dissemination and adoption of KM practices and the enabling role of KM practices in the interpretation of states of affairs. The value creation aspect focuses on the impact of KM practices in temporal knowledge-intensive organizations creating value for their customers/users. The behavioral nature of KM practices is of critical relevance for temporal knowledge-intensive organizations as there are attitudes that will be very influential in individuals’ intention to adopt such KM practices. Finally, because the individuals in a temporal knowledge-intensive organization should share the same interpretation on a given state of affairs or about the data at hand, the interpretative aspect of KM practices focuses in the enabling role of KM practices in reaching common understanding.


2018 ◽  
pp. 1-34
Author(s):  
Andrew Jackson

One scenario put forward by researchers, political commentators and journalists for the collapse of North Korea has been a People’s Power (or popular) rebellion. This paper analyses why no popular rebellion has occurred in the DPRK under Kim Jong Un. It challenges the assumption that popular rebellion would happen because of widespread anger caused by a greater awareness of superior economic conditions outside the DPRK. Using Jack Goldstone’s theoretical expla-nations for the outbreak of popular rebellion, and comparisons with the 1989 Romanian and 2010–11 Tunisian transitions, this paper argues that marketi-zation has led to a loosening of state ideological control and to an influx of infor-mation about conditions in the outside world. However, unlike the Tunisian transitions—in which a new information context shaped by social media, the Al-Jazeera network and an experience of protest helped create a sense of pan-Arab solidarity amongst Tunisians resisting their government—there has been no similar ideology unifying North Koreans against their regime. There is evidence of discontent in market unrest in the DPRK, although protests between 2011 and the present have mostly been in defense of the right of people to support themselves through private trade. North Koreans believe this right has been guaranteed, or at least tacitly condoned, by the Kim Jong Un government. There has not been any large-scale explosion of popular anger because the state has not attempted to crush market activities outright under Kim Jong Un. There are other reasons why no popular rebellion has occurred in the North. Unlike Tunisia, the DPRK lacks a dissident political elite capable of leading an opposition movement, and unlike Romania, the DPRK authorities have shown some flexibility in their anti-dissent strategies, taking a more tolerant approach to protests against economic issues. Reduced levels of violence during periods of unrest and an effective system of information control may have helped restrict the expansion of unrest beyond rural areas.


Author(s):  
Peter G. Klein ◽  
Mark D. Packard ◽  
Karen Schnatterly

This chapter looks inside the firm at how organizational design affects collaboration in pursuit of corporate entrepreneurship or “intrapreneurship.” It shows how the intrafirm “marketplace” of ideas, employees, and resources can be strategically configured to encourage or inhibit collaborative innovation. The chapter focuses on the key structural dimensions of autonomy, sponsorship, and incentives. Complementarities between these dimensions create spillover effects that produce unique innovation outcomes by mitigating barriers to collaboration such as knowledge problems, resource constraints, and employee motivation. Illustrating configurations of these dimensions with company examples, the chapter shows how organizational design affects intrapreneurship and offers suggestions on how firms might strategically align their organizational structure with their intrapreneurial strategy.


Author(s):  
Kurt A. Hafner ◽  
Jörn Kleinert

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.


2012 ◽  
Vol 27 (1) ◽  
pp. 261-281 ◽  
Author(s):  
Kurt Schobel ◽  
James S. Denford

ABSTRACT Within the domain of Information Technology Governance (ITG), the study of Chief Information Officer (CIO) relationships has historically focused on the Chief Executive Officer (CEO) and the Top Management Team (TMT). Within knowledge-intensive, publicly funded, and not-for-profit organizations, the specific relationship between the CIO and the Chief Financial Officer (CFO) is a critical pairing, which impacts both individual effectiveness and strategic alignment. Findings from multiple case studies suggest that while the CIO and CFO pair are similar to other TMT relationships in many ways, their perceptions of the other's strategic role within the organization is a key differentiator that can lead to effective or adversarial relationships with individual and firm-level outcomes. The research model in this paper suggests that when the relationship is positive, both individual role effectiveness and strategic alignment improve.


1975 ◽  
Vol 5 (3) ◽  
pp. 44-47
Author(s):  
Willard R. Johnson

My statement is not an attempt to convey new information. Indeed, anyone reading simply the record of the Congressional hearings will have all the essential and relevant facts. Why is it that we have been ever searching for but never coming to the truth? Why do we listen but never hear, look but never see, manipulate but never truly feel? Perhaps we express the right facts but the wrong values?


2021 ◽  
pp. 001946622110360
Author(s):  
P. Vineeth ◽  
K. B. Nidheesh

The present study measures the role of firm-specific factors influencing the likelihood of establishing a subsidiary in tax haven countries. The panel data of Indian companies, which have business operations in foreign countries, are used for the study. The firm-level data for the period from 2007 to 2018 are analysed by using binary logistic regression model. The result shows that the intangible assets, long-term debt, number of subsidiaries and service sector dummy have significant and positive impact on tax haven operations of multinational companies, but the experience of the firm and return on equity are insignificant, and a firm’s size deters the likelihood of setting a tax haven subsidiary. The results also show that firms from high-technology manufacturing and knowledge-intensive sector have more influence on the likelihood of owning a tax haven subsidiary by Indian multinationals. JEL Codes: F21, F23, H25, H26


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