Organizational Flexibility in Emerging Economies
Chapter 10: Determinants of Organizational Flexibility
10. Determinants of organizational ﬂexibility INTRODUCTION In the last two chapters, we described the ﬁndings of our case studies of the transformation process in four ﬁrms: two of which were considered to be ﬂexible and two less ﬂexible companies. A number of themes were apparent in our data which highlighted a range of managerial, organizational and contextual factors related to the ability of the ﬁrms to adapt quickly under environmental pressure. These themes included the eﬀect of new managers coming in from outside the industry, the ﬁrms’ relationship with its industry peers, the nature of the decision-making process and the early adoption of strategies and organizational changes in the ﬂexible ﬁrms. Our review of the literature (see Chapter 2) indicated that research on the determinants of organizational ﬂexibility and innovativeness and institutional embeddedness oﬀer an insight into the explanation of patterns or mechanisms of adaptation. While the literature describes diﬀerent organizational capabilities as enablers of transformation and adaptation, there is no mention of how the nature of the ﬁrm can aﬀect the creation of those capabilities. Moreover, themes such as adaptation and ﬂexibility have not even been the focal point of the literature of family businesses. The critical role of succession process in a family ﬁrm has eclipsed the study of other aspects of change and development in a family ﬁrm. Zahra and Sharma (2004) also raised the concern that the same issues have dominated the discourse in the ﬁeld of family business research. In this...
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