Abstract
Structural complexity has been previously studied in cases where it has been created by specialization, technology or regulation. Complexity is typically considered as a source of causal ambiguity that creates an information problem for top management. We focus on a case where an organization has accumulated structural complexity due to its decentralization and idiosyncratic historical conditions which has led to political decision making, with zero-sum games, gatekeeping power groups with conflicting interests. Our longitudinal extreme case is S-group (1983-1988), a co-operative retailer, which faced two problems: information- and implementation problems. The former was caused by structural complexity whereas the latter by organizational politics. S-group has a dual authority structure where independent co-operatives appoint CEO but also collectively has power of management dismissal. S-group was in crisis due to an internal monopoly which created an intra-group welfare loss and an automatic funding mechanism for crisis co-operatives that favored status quo. Our study highlights that change in such circumstances requires support from the board, a sense of urgency in decision making and partial middle-management participation.
Original language | English |
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Title of host publication | Academy of Management Proceedings |
Publisher | Academy of Management |
DOIs | |
Publication status | Published - 2017 |
MoE publication type | A4 Conference publication |
Event | Academy of Management Annual Meeting: At the Interface - Atlanta, United States Duration: 4 Aug 2017 → 8 Aug 2017 Conference number: 77 |
Publication series
Name | Academy of management Proceedings |
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ISSN (Electronic) | 2151-6561 |
Other
Other | Academy of Management Annual Meeting |
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Abbreviated title | AOM |
Country/Territory | United States |
City | Atlanta |
Period | 04/08/2017 → 08/08/2017 |