Dimensions of Organizational Task Environments.
About: This article is published in Administrative Science Quarterly.The article was published on 1984-03-01. It has received 3530 citations till now. The article focuses on the topics: Organizational learning & Task analysis.
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TL;DR: In this article, the authors investigate the patterns of technological evolution and their impact on environmental conditions and find that technological change within a product class will be characterized by long periods of incremental change punctuated by discontinuities, and the locus of innovation will differ for competence destroying and competence-enhancing technological changes.
Abstract: Investigates the patterns of technological evolution and their impact on environmental conditions. Seven hypotheses are offered in order to demonstrate that technology is a central force in shaping the environments within which organizations operate. These hypotheses are: (1) technological change within a product class will be characterized by long periods of incremental change punctuated by discontinuities; (1a) technological discontinuities are either competence enhancing (build on existing skills and know-how) or competence destroying (require fundamentally new skills and competences); (2) the locus of innovation will differ for competence destroying and competence-enhancing technological changes. Competence-destroying discontinuities will be initiated by new entrants, while competence-enhancing discontinuities will be initiated by existing firms; (3) competitive uncertainty will be higher after a technological discontinuity than before discontinuity; (4) environmental munificence (i.e., resource availability and support for growth) will be higher after a technological discontinuity than before the discontinuity; (5) competence-enhancing discontinuities will be associated with decreased entry-to-exit ratios and decreased interfirm sales variability (thus strengthening product leaders and increasing barriers to entry). These patterns will be reversed for competence-destroying discontinuities; (6) successive competence-enhancing discontinuities will be associated with smaller increases in uncertainty and munificence; and (7) those organizations that initiate major technological innovations will have higher growth rates than other firms in the product class. Data were collected from U.S. firms in three product classes, domestic scheduled passenger airline transport, Portland cement manufacture, and minicomputer manufacture, from the year of the niche market's inception through 1980. Results indicate that after the three niche openings, there were six competence-enhancing technological discontinuities and two competence-destroying discontinuities in total. Each of these discontinuities had a far greater impact on a key measure of cost or performance than more incremental technological events. In addition, except for the period following the introduction of semiconductor memory in minicomputers, the ability of experienced industry observers to predict demand following technological disruptions was far worse than prior to the disruption. Demand growth following the discontinuity was significantly higher than it was immediately prior to the discontinuity, which had an enormous impact on product-class demand. Also, the ratio of entries to exits was higher in each of the five years before a competence-enhancing discontinuity than during the five subsequent years, though none of the differences is statistically significant. Though market variability in sales growth was expected, it was found that some firms' sales grew explosively while other firms experienced sales declines. It is also suggested that as technology matures, successive competence-enhancing discontinuities increase both uncertainty and munificence, but not as much as those discontinuities that preceded them in establishing the product class. Finally, early adopters of technology were found to experience more growth than other firms. Using three different product types, with a wide range of years from inception, it is shown that technology does evolve through long periods of incremental change punctuated by relatively rare innovations that radically improve the state of the art. Although these incidences of change are rare, they stand out clearly and have significantly altered competitive environments. (SFL)
5,839 citations
Cites background from "Dimensions of Organizational Task E..."
...Uncertainty is typically measured as a function of variance measures (Dess and Beard, 1984)....
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TL;DR: This research suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or "preconditions" for effective knowledge management.
Abstract: A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or preconditions for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.
4,646 citations
Cites background from "Dimensions of Organizational Task E..."
...The general organizational culture should be supportive and encouraging of knowledge-related activities [31, 34, 35]....
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TL;DR: In this paper, the authors investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance, and they find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main effects-only model.
2,800 citations
TL;DR: In this article, the authors argue that an institution-based view of international business strategy has emerged and is positioned as one leg that helps sustain the "strategy tripod" (the other two legs consisting of the industry- and resource-based views).
Abstract: Leveraging the recent research interest in emerging economies, this Perspective paper argues that an institution-based view of international business (IB) strategy has emerged. It is positioned as one leg that helps sustain the “strategy tripod” (the other two legs consisting of the industry- and resource-based views). We then review four diverse areas of substantive research: (1) antidumping as entry barriers; (2) competing in and out of India; (3) growing the firm in China; and (4) governing the corporation in emerging economies. Overall, we argue that an institution-based view of IB strategy, in combination with industry- and resource-based views, will not only help sustain a strategy tripod, but also shed significant light on the most fundamental questions confronting IB, such as “What drives firm strategy and performance in IB?”
2,675 citations
Cites background from "Dimensions of Organizational Task E..."
...Following Leung et al. (2005: 358), ‘‘it is not our purpose to be comprehensive; our goal is to spotlight a few highly promising areas’’ that Journal of International Business Studies represent a reasonably diverse yet focused set to illustrate the institution-based view....
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...However, what has dominated the research is a ‘‘task environment’’ view, which focuses primarily on economic variables such as market demand and technological change (Dess & Beard, 1984)....
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References
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TL;DR: This transmutability of the validation matrix argues for the comparisons within the heteromethod block as the most generally relevant validation data, and illustrates the potential interchangeability of trait and method components.
Abstract: Content Memory (Learning Ability) As Comprehension 82 Vocabulary Cs .30 ( ) .23 .31 ( ) .31 .31 .35 ( ) .29 .48 .35 .38 ( ) .30 .40 .47 .58 .48 ( ) As judged against these latter values, comprehension (.48) and vocabulary (.47), but not memory (.31), show some specific validity. This transmutability of the validation matrix argues for the comparisons within the heteromethod block as the most generally relevant validation data, and illustrates the potential interchangeability of trait and method components. Some of the correlations in Chi's (1937) prodigious study of halo effect in ratings are appropriate to a multitrait-multimethod matrix in which each rater might be regarded as representing a different method. While the published report does not make these available in detail because it employs averaged values, it is apparent from a comparison of his Tables IV and VIII that the ratings generally failed to meet the requirement that ratings of the same trait by different raters should correlate higher than ratings of different traits by the same rater. Validity is shown to the extent that of the correlations in the heteromethod block, those in the validity diagonal are higher than the average heteromethod-heterotrait values. A conspicuously unsuccessful multitrait-multimethod matrix is provided by Campbell (1953, 1956) for rating of the leadership behavior of officers by themselves and by their subordinates. Only one of 11 variables (Recognition Behavior) met the requirement of providing a validity diagonal value higher than any of the heterotrait-heteromethod values, that validity being .29. For none of the variables were the validities higher than heterotrait-monomethod values. A study of attitudes toward authority and nonauthority figures by Burwen and Campbell (1957) contains a complex multitrait-multimethod matrix, one symmetrical excerpt from which is shown in Table 6. Method variance was strong for most of the procedures in this study. Where validity was found, it was primarily at the level of validity diagonal values higher than heterotrait-heteromethod values. As illustrated in Table 6, attitude toward father showed this kind of validity, as did attitude toward peers to a lesser degree. Attitude toward boss showed no validity. There was no evidence of a generalized attitude toward authority which would include father and boss, although such values as the VALIDATION BY THE MULTITRAIT-MULTIMETHOD MATRIX
15,795 citations
Book•
01 Jan 1978
TL;DR: The External Control of Organizations as discussed by the authors explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints, and it is the fact of the organization's dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable.
Abstract: Among the most widely cited books in the social sciences, The External Control of Organizations has long been required reading for any student of organization studies. The book, reissued on its 25th anniversary as part of the Stanford Business Classics series, includes a new preface written by Jeffrey Pfeffer, which examines the legacy of this influential work in current research and its relationship to other theories.The External Control of Organizations explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints. All organizations are dependent on the environment for their survival. As the authors contend, "it is the fact of the organization's dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable." Organizations can either try to change their environments through political means or form interorganizational relationships to control or absorb uncertainty. This seminal book established the resource dependence approach that has informed so many other important organization theories.
13,195 citations
Posted Content•
TL;DR: Porter as mentioned in this paper presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position.
Abstract: Michael Porter presents a comprehensive structural framework and analytical techniques to help a firm to analyze its industry and evolution, understand its competitors and its own position, and translate this understanding into a competitive strategy to allow the firm to compete more effectively to strengthen its market position. The introduction reviews a classic approach to strategy formulation, one that comprises a combination of ends and means (policies), factors that limit what a company can accomplish, tests of consistency, and an approach for developing competitive strategy. A competitive strategy articulates a firm's goals, how it will compete, and its policies for achieving those goals. Competitive advantage is defined in terms of cost and differentiation while linking it to profitability. Part I, "General Analytical Techniques," provides a general framework for analyzing the structure of an industry and understanding the underlying forces of competition (and hence profitability). Five competitive forces act on an industry: (1) threat of new entrants, (2) intensity of rivalry among existing firms, (3) threat of substitute products or services, (4) bargaining power of buyers, and (5) bargaining power of suppliers. Looking at industry structure provides a way to consider how value is created and divided among existing and potential industry participants. One competitive force always captures essential issues in the division of value.There are three generic competitive strategies for coping with the five competitive forces: (1) overall cost leadership, (2) differentiation, and (3) focus. There are risks with each strategy. A firm without a strategy is "stuck in the middle." This framework for examining competition transcends particular industry, technology, or management theories. Building on this framework, techniques are presented for industry forecasting, analysis of competitors, predicting their behavior, and building a response profile. Essential for a competitive strategy are techniques for recognizing and accurately reading market signals. Implications of structural analysis for buyer selection and purchasing strategy are presented. Game theory provides concepts for responding to competitive moves. Using the concept of strategic groups, structural analysis can also explain differences in firm performance (profitability), provide a guide for competitive strategy, and predict industry evolution. Part II, "Generic Industry Environments," shows how firms can use the analytical framework to develop a competitive strategy in industry environments, which reflect differences in industry concentration, state of industry maturity, and exposure to international competition. These environments determine a business's competitive strategic context, available alternatives, and common strategic errors. Five generic industry environments are examined: fragmented industries (where level of industrial concentration is low), emerging industries, transition to industry maturity, declining industries, and global industries. In each, the crucial aspects of industry structure, key strategic issues, characteristic strategic alternatives (including divestment), and strategic pitfalls are identified. Part III, "Strategic Decisions," draws on the analytical framework to examine important types of strategic decisions confronting firms that compete in a single industry: vertical integration, major capacity expansion, and new business entry. Additional use of economic theory and administrative consideration of management and motivation helps a company to make key decisions, and gives insight into how competitors, customers, suppliers, and potential entrants might make them. Appendix A discusses use of techniques for portfolio analysis applied to competitor analysis. Appendix B provides approaches to conducting an industry study, including sources of field and published dat
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12,500 citations