Adaptive Organization
Inhoudsopgave
Week 1: Foundations of Adaptation............................................................................................................................................ 3
§1.1 Lecture ............................................................................................................................................................................. 3
§1.1.1 Morgan G,. (2006) – Images of Organization ................................................................................................................ 3
§1.1.2 Abatecola (2014) – Research in organizational evolution – what comes next? ............................................................. 5
§1.1.3 Feldman & Pentland – Reconceptualizing Organizational Routines as a Source of Flexibility & Change .................... 7
§1.1.4 Burgelman (1991) Intraorganizational Ecology of Strategy making and organizational Adaptation ............................. 8
§1.2 Workgroup ..................................................................................................................................................................... 10
§1.3 Learning questions......................................................................................................................................................... 11
Week 2: Drivers of Adaptation .................................................................................................................................................. 12
§2.1 Lecture ........................................................................................................................................................................... 12
§2.1.1 Argot & Epple (199) – Learning Curves in Manufacturing ......................................................................................... 12
§2.1.2 Greeve (2003)L A Behavioal theory of R&D expenditures and innovations ............................................................... 13
§2.1.3 Levinthal & March, 1993 Myopia of Learning ............................................................................................................ 16
§2.1.4 Leonard-Barton, 1992 - Core Capabiltities and Core Regidities: A paradox in managing new product development 19
§2.2 Workgroup ..................................................................................................................................................................... 21
§2.3 Study questions .............................................................................................................................................................. 21
Week 3: Capabilities for adaptation.......................................................................................................................................... 22
§3.1 Lecture ........................................................................................................................................................................... 22
§3.1.1 Argawal Helfat, 2009 Strategic Renewal of Organizations .......................................................................................... 25
§3.1.2 Teece - Organizational agility: how firms renew themselves by redirecting resources ................................................ 26
§3.1.3 Eisenhardt, Dynamic capabilities, What are they? ....................................................................................................... 28
§3.2 Study questions .............................................................................................................................................................. 34
§3.3 Workgroup ..................................................................................................................................................................... 34
Week 4: Organizing Adaptation ................................................................................................................................................ 35
§4.1 Lecture ........................................................................................................................................................................... 35
§4.1.1 Lawrence & Losh, 1967 - Differentiation and integration in complex systems .......................................................... 38
§4.1.2 Stan & Puranam, 2017- Orhanizational Adaptation to Interdepence shifts .................................................................. 39
§4.1.3 Jansen et al., Gibson & birkinshaw - Structural differentiation and ambidexterity ..................................................... 40
§4.1.4 Gibson, C.B., Birkinshaw J,. (2004) - The antecedents, consequences and mediating role of organizational
ambidexterity ........................................................................................................................................................................... 42
§4.2 Study questions .............................................................................................................................................................. 45
§4.2 Workgroup ..................................................................................................................................................................... 45
Week 5: Managing adaptation 1 ................................................................................................................................................ 47
§5.1 Lecture ........................................................................................................................................................................... 47
§5.1.1 Walcott & Lippitz, 2007 – Four models of Corporate Entrepreneurship ..................................................................... 48
§5.1.2 Schildt, Maula & Keil, 2005 - Learning from external Corporate Ventures ................................................................ 52
§5.1.3 Shakar & Shepherd, 2019 - Corporate accelerators ...................................................................................................... 55
§5.1.4 Zahra, Nielsen & Bogner - Corporate Entrepreneurship, knowledge & Competence Development............................ 57
§5.2 Study questions .............................................................................................................................................................. 59
§5.3 Workgroup ..................................................................................................................................................................... 59
Week 6: Managing adaptation 2 ................................................................................................................................................ 61
§6.1 Lecture ........................................................................................................................................................................... 61
§6.1.1 Kotter (2001) - How do People matter for adaptation: Leaders vs managers ............................................................... 64
§6.1.2 Ling et al., 2008 - How do people matter for adaptation: transformationl leadership .......................................... 66
, §6.1.3 Nadkami, Chen & Chen; Clock is ticking - How do executives (TMT) within a firm influence adaptation? ...... 69
§6.1.4 Ren & Guo (2011) - Middle Managers and attention-based effects ..................................................................... 71
§6.2 Study questions .............................................................................................................................................................. 76
§6.3 Workgroup ........................................................................................................................ Error! Bookmark not defined.
,Week 1: Foundations of Adaptation
§1.1 Lecture
§1.1.1 Morgan G,. (2006) – Images of Organization
§1.1The evolutionary Theory of Organization
What is an evolutionary theory of organization?
- Organizations change
- Adapt
- To meet the requirements of their environment
Environment: markets, stakeholders, empolyees
What value does an evolutionary theory add?
Old perspective: Mechanistic/closed system
Organizations decided when they would change – that’s what
a closed system means. That means that Netflix changes
occurred because Netflix decided that they would occur.
What does this mean for firm performance? First, it
places a lot of emphasis on resources especially human
capital. Second, chance – or luck – plays a relatively minor
role in determining performance.
Data does not support this perspective →
No organization voluntarily chooses to decline...or organizations that make it to maturity do not voluntarily
decide to decline. There is usually an environmental effect.
New perspective: Organic/ Open system
Main idea: think as organization as open,
you have input and output (things come in
and come out). This means depends on
everything else. The whole depends on
anythings, synenergies. If you put more in,
the output can be more valuable.
Your actually system matters.
Organizational change is important.
What value come from here, that adaption
matters to performance, and what it means
we have to focus on synergies,
interconnectedness and how to produce it.
The more turbulent the environment, the more ‘adhocratic’ or ‘organic’ the organization should be (Burns
and Stalker, 1961; Morgan, 2006)
So: when the environment changes, the organization changes...it adapts
Increasing competitive pressure in nearly all industries
- Industry life-cycles have become compressed
- Growth patterns may differ each time
- Boundaries between industries are less pronounced
- Technological change forces firms towards innovation
, The Trend
Increasing competitive pressure means market leadership is more volatile*
Result: increasing dynamics in nearly all industries
Annual % of companies failing out of Annual correlation market Average tenure of companies at the top
the top three of their industry share and profitability of the stock markets
2% (1960-1969) 0.34 (1960-1969) 33(1964)
14% (2000-2008) 0.07 (2000-2008 24 (2016)
12 (2027)
Adapt and succeed?
- Not every organization can adapt
- Not every adaptation is successful
Why do organizations fail to adapt? Inertia/ path dependence/ unwilling/ unable
Why do adaptations fail? Change, in and of itself, is not enough.
Contingency theory
the match between the adaptation and the situation influences performance
Failed adaptation – Polaroid
- Heavily invested in digital imaging in the 80s
- Polaroid lacked the ability to refine their conceptions of how to market their products.
- They held on to a razor/blade businessmodel: cheap hardware/expensive extra’s (e.g. camera/film;
field printing)
- As a result, they ‘missed the boat’ in the digital imaging market which fostered expensive hardware,
and one-off purchases (Tripsas and Gavetti, 2000).
Polaroid missed the boat. It’s imperative to always be prepared for change, and not to assume you know
what’s what
The overall model for this couse
What lead to adaptation to be successful?
Inhoudsopgave
Week 1: Foundations of Adaptation............................................................................................................................................ 3
§1.1 Lecture ............................................................................................................................................................................. 3
§1.1.1 Morgan G,. (2006) – Images of Organization ................................................................................................................ 3
§1.1.2 Abatecola (2014) – Research in organizational evolution – what comes next? ............................................................. 5
§1.1.3 Feldman & Pentland – Reconceptualizing Organizational Routines as a Source of Flexibility & Change .................... 7
§1.1.4 Burgelman (1991) Intraorganizational Ecology of Strategy making and organizational Adaptation ............................. 8
§1.2 Workgroup ..................................................................................................................................................................... 10
§1.3 Learning questions......................................................................................................................................................... 11
Week 2: Drivers of Adaptation .................................................................................................................................................. 12
§2.1 Lecture ........................................................................................................................................................................... 12
§2.1.1 Argot & Epple (199) – Learning Curves in Manufacturing ......................................................................................... 12
§2.1.2 Greeve (2003)L A Behavioal theory of R&D expenditures and innovations ............................................................... 13
§2.1.3 Levinthal & March, 1993 Myopia of Learning ............................................................................................................ 16
§2.1.4 Leonard-Barton, 1992 - Core Capabiltities and Core Regidities: A paradox in managing new product development 19
§2.2 Workgroup ..................................................................................................................................................................... 21
§2.3 Study questions .............................................................................................................................................................. 21
Week 3: Capabilities for adaptation.......................................................................................................................................... 22
§3.1 Lecture ........................................................................................................................................................................... 22
§3.1.1 Argawal Helfat, 2009 Strategic Renewal of Organizations .......................................................................................... 25
§3.1.2 Teece - Organizational agility: how firms renew themselves by redirecting resources ................................................ 26
§3.1.3 Eisenhardt, Dynamic capabilities, What are they? ....................................................................................................... 28
§3.2 Study questions .............................................................................................................................................................. 34
§3.3 Workgroup ..................................................................................................................................................................... 34
Week 4: Organizing Adaptation ................................................................................................................................................ 35
§4.1 Lecture ........................................................................................................................................................................... 35
§4.1.1 Lawrence & Losh, 1967 - Differentiation and integration in complex systems .......................................................... 38
§4.1.2 Stan & Puranam, 2017- Orhanizational Adaptation to Interdepence shifts .................................................................. 39
§4.1.3 Jansen et al., Gibson & birkinshaw - Structural differentiation and ambidexterity ..................................................... 40
§4.1.4 Gibson, C.B., Birkinshaw J,. (2004) - The antecedents, consequences and mediating role of organizational
ambidexterity ........................................................................................................................................................................... 42
§4.2 Study questions .............................................................................................................................................................. 45
§4.2 Workgroup ..................................................................................................................................................................... 45
Week 5: Managing adaptation 1 ................................................................................................................................................ 47
§5.1 Lecture ........................................................................................................................................................................... 47
§5.1.1 Walcott & Lippitz, 2007 – Four models of Corporate Entrepreneurship ..................................................................... 48
§5.1.2 Schildt, Maula & Keil, 2005 - Learning from external Corporate Ventures ................................................................ 52
§5.1.3 Shakar & Shepherd, 2019 - Corporate accelerators ...................................................................................................... 55
§5.1.4 Zahra, Nielsen & Bogner - Corporate Entrepreneurship, knowledge & Competence Development............................ 57
§5.2 Study questions .............................................................................................................................................................. 59
§5.3 Workgroup ..................................................................................................................................................................... 59
Week 6: Managing adaptation 2 ................................................................................................................................................ 61
§6.1 Lecture ........................................................................................................................................................................... 61
§6.1.1 Kotter (2001) - How do People matter for adaptation: Leaders vs managers ............................................................... 64
§6.1.2 Ling et al., 2008 - How do people matter for adaptation: transformationl leadership .......................................... 66
, §6.1.3 Nadkami, Chen & Chen; Clock is ticking - How do executives (TMT) within a firm influence adaptation? ...... 69
§6.1.4 Ren & Guo (2011) - Middle Managers and attention-based effects ..................................................................... 71
§6.2 Study questions .............................................................................................................................................................. 76
§6.3 Workgroup ........................................................................................................................ Error! Bookmark not defined.
,Week 1: Foundations of Adaptation
§1.1 Lecture
§1.1.1 Morgan G,. (2006) – Images of Organization
§1.1The evolutionary Theory of Organization
What is an evolutionary theory of organization?
- Organizations change
- Adapt
- To meet the requirements of their environment
Environment: markets, stakeholders, empolyees
What value does an evolutionary theory add?
Old perspective: Mechanistic/closed system
Organizations decided when they would change – that’s what
a closed system means. That means that Netflix changes
occurred because Netflix decided that they would occur.
What does this mean for firm performance? First, it
places a lot of emphasis on resources especially human
capital. Second, chance – or luck – plays a relatively minor
role in determining performance.
Data does not support this perspective →
No organization voluntarily chooses to decline...or organizations that make it to maturity do not voluntarily
decide to decline. There is usually an environmental effect.
New perspective: Organic/ Open system
Main idea: think as organization as open,
you have input and output (things come in
and come out). This means depends on
everything else. The whole depends on
anythings, synenergies. If you put more in,
the output can be more valuable.
Your actually system matters.
Organizational change is important.
What value come from here, that adaption
matters to performance, and what it means
we have to focus on synergies,
interconnectedness and how to produce it.
The more turbulent the environment, the more ‘adhocratic’ or ‘organic’ the organization should be (Burns
and Stalker, 1961; Morgan, 2006)
So: when the environment changes, the organization changes...it adapts
Increasing competitive pressure in nearly all industries
- Industry life-cycles have become compressed
- Growth patterns may differ each time
- Boundaries between industries are less pronounced
- Technological change forces firms towards innovation
, The Trend
Increasing competitive pressure means market leadership is more volatile*
Result: increasing dynamics in nearly all industries
Annual % of companies failing out of Annual correlation market Average tenure of companies at the top
the top three of their industry share and profitability of the stock markets
2% (1960-1969) 0.34 (1960-1969) 33(1964)
14% (2000-2008) 0.07 (2000-2008 24 (2016)
12 (2027)
Adapt and succeed?
- Not every organization can adapt
- Not every adaptation is successful
Why do organizations fail to adapt? Inertia/ path dependence/ unwilling/ unable
Why do adaptations fail? Change, in and of itself, is not enough.
Contingency theory
the match between the adaptation and the situation influences performance
Failed adaptation – Polaroid
- Heavily invested in digital imaging in the 80s
- Polaroid lacked the ability to refine their conceptions of how to market their products.
- They held on to a razor/blade businessmodel: cheap hardware/expensive extra’s (e.g. camera/film;
field printing)
- As a result, they ‘missed the boat’ in the digital imaging market which fostered expensive hardware,
and one-off purchases (Tripsas and Gavetti, 2000).
Polaroid missed the boat. It’s imperative to always be prepared for change, and not to assume you know
what’s what
The overall model for this couse
What lead to adaptation to be successful?
