Showing papers on "Contingency theory published in 1998"

Organizational Decline and Innovation: A Contingency Framework

Abstract: An examination of the diverse literature on organizational decline shows that there is disagreement regarding the effects of decline on innovation. Some research streams suggest that organizational decline interferes with an organization's capacity to innovate, whereas other research implies just the opposite: organizational decline stimulates innovation. In this article we integrate the inconsistent perspectives and findings in these research streams by developing a contingency model. The model identifies variables at the environmental, organizational, and individual levels of analysis that determine whether organizational decline inhibits or stimulates innovation. We summarize the moderating effects of these variables with empirically testable propositions and discuss implications of the framework for future research and management practice.

The Effect of Centralization and Formalization on Entrepreneurship in Export Firms

Abstract: The growing liberalization of economies and the creation of free trade zones are resulting in the radical transformation of the global business environment. Export firms in particular must face turbulent operating environments characterized by changing technologies and fragmented markets that represent both problems and opportunities. Such "contingencies" demand an adaptable, responsive, and entrepreneurially-oriented business organization. Entrepreneurship can be defined as the process of creating value by bringing together a unique package of resources to exploit an opportunity. As a process, it is applicable to organizations of differing sizes and types. The process can be divided into specific stages, including: the identification of opportunities; the development of new business concepts; the evaluation and acquisition of the necessary set of resources; the implementation of the concept; and finally, the exploitation and harvesting of the resultant business venture (Morris, Avila, and Allen 1993; Rosenberg and Servo 1990; Stevenson, Roberts, and Grousbeck 1989). The human resource is increasingly being seen as the ultimate source of corporate adaptability and competitive power. It has replaced property and capital as the premier source of power and profit (Itami 1987; Phillips 1993), but must be organized effectively if it is to achieve a best-fit arrangement with external circumstances (Galbraith 1977). Two key aspects of organization design concern the levels of centralization and formalization that need to be built into the organizational system. The constructs of centralization, formalization, and entrepreneurship would intuitively appear to be related. It is difficult to imagine a firm that is either highly centralized or completely lacking in formalization as being entrepreneurial. However, to investigate the relationships among these constructs, a number of factors need to be present. First, a macro theory that relates the variables needs to be specified. Second, the literature pertaining to each construct needs to be reviewed, and last, the micro relationships need to be specified. Such is the intent of this article. Contingency theory offers a theoretical justification for the relationships among these constructs. The contingency approach (Galbraith 1977; Ruekert, Walker, and Roering 1985; Zeithaml, Varadarajan, and Zeithaml 1988) holds that there are no universal principles that apply to all organizations and that not all available approaches are equally effective. Contingency theory argues that for an organization to survive and perform in a given context, it must exhibit congruence between its internal elements and its external environment (Galbraith 1977). Burrell and Morgan (1979) argue that there are two major types of congruence. They first postulate that the effectiveness of the organization depends on the congruence between elements of the organizational subsystem and the demands of the environment (macro congruence); and they further postulate that effectiveness requires that the subsystem elements be congruent with one another (micro congruence). These two aspects of congruence are reflected in the assumptions that the constructs of centralization, formalization, and entrepreneurship would intuitively appear to be related. However, congruence is a necessary but not sufficient condition for contingency. It is possible to speak of a contingency theory only if, in addition to congruence, the fundamental laws of relationship are specified before discussion of multiple system states (Fry and Smith 1987). The purpose of this research is to determine the degree to which centralization and formalization are factors in explaining entrepreneurial behavior in export firms. A model is developed and hypotheses are proposed regarding relationships between each of these constructs and entrepreneurial behavior. In addition, the relationship between the amount of a manager's experience and entrepreneurial behavior is also considered. …

Control of international joint ventures

Abstract: Prior research has found that many international joint ventures (IJVs) fail. Some authors have suggested that control problems are one of the primary causes of IJV failures. However, little IJV-related research has focused on control issues. This paper reports the results of a largely exploratory study of the control practices employed by partners involved in three arguably successful IJVs. The study found some control-system similarities among the three IJVs, but it also found significant differences related to the use of dispute-settling mechanisms, control focus (broad vs. narrow), and control tightness. The paper describes some of the factors that seem to cause the differences and, thus, provides a start for a contingency theory of IJV control systems.

Image theory: Theoretical and empirical foundations.

Abstract: Contents: A.P. Brief, J.P. Walsh, Series Foreword. Preface. Part I:An Introduction to Image Theory. L.R. Beach, T.R. Mitchell, The Basics of Image Theory. Part II:The Compatibility Test: Screening and Progress Decisions. L.R. Beach, E. Strom, A Toadstool Among the Mushrooms: Screening Decisions and Image Theory's Compatibility Test. L.R. Beach, C.P. Puto, S.E. Heckler, G. Naylor, T.A. Marble, Differential Versus Unit Weighting of Violations, Framing, and the Role of Probability in Image Theory's Compatibility Test. L. Benson, III, L.R. Beach, The Effects of Time Constraints on the Pre-Choice Screening of Decision Options. E.H. van Zee, T.F. Paluchowski, L.R. Beach, The Effects of Screening and Task Partitioning Upon Evaluations of Decision Options. R.E. Potter, L.R. Beach, Imperfect Information in Pre-Choice Screening of Options. R.E. Potter, L.R. Beach, Decision Making When the Acceptable Options Become Unavailable. K.J. Dunegan, Image Theory: Testing the Role of Image Compatibility in Progress Decisions. K.J. Dunegan, D. Duchon, D. Ashmos, Image Compatibility and the Use of Problem Space Information in Resource Allocation Decisions: Testing a Moderating Effects Model. D.H. Schepers, L.R. Beach, An Image Theory View of Worker Motivation. Part III:The Profitability Test: Choice. Introduction. L.R. Beach, T.R. Mitchell, A Contingency Model of the Selection of Decision Strategies. J.J.J. Christensen-Szalanski, Problem Solving Strategies: A Selection Mechanism, Some Implications, and Some Data. D.W. McAllister, T.R. Mitchell, L.R. Beach, The Contingency Model for the Selection of Decision Strategies: An Empirical Test of the Effects of Significance, Accountability, and Reversibility. Part IV:New Developments and New Directions. Introduction. K.A. Nelson, C.P. Puto, Using Image Theory to Examine Value-Laden Decisions: The Case of the Socially Responsible Consumer. K.A. Weatherly, L.R. Beach, Organizational Culture and Decision Making. C.K. Stevens, Image Theory and Career-Related Decisions: Finding and Selecting Occupations and Jobs. S.W. Gilliland, L. Benson, III, Differentiating Between Judgment and Choice: Using Image Theory's Compatibility Test. L.R. Beach, H. Jungermann, Image Theory and the Nature of Plans. T. Connolly, L.R. Beach, The Theory of Image Theory: An Examination of the Central Conceptual Structure. Part V:Conclusion. L.R. Beach, Looking to the Future. Author Index. Subject Index.

A customer‐oriented framework for empowering service employees

Abstract: While a great deal has been written on the subject of empowerment of employees in the manufacturing industries, its application in the services area is relatively under‐developed. In fact, the special nature of services, and in particular the simultaneity of production and consumption is one of the major reasons for arguing that contact employees should be allowed a degree of discretion when dealing with customers. However, some authors have argued that service employees should have little or no discretion. This suggests that the approach to participation is a contingent one. That is, empowerment is not suitable for all occasions or all types of employees. Outlines a contingency framework for the empowerment of contact service employees. Argues that the appropriate levels and the types of empowerment given to employees depends on a combination of the complexity or variability of customer needs, and the degree of task complexity or variability involved in delivering the customer needs. It is also argued that, in any empowerment framework it is essential that the degree and the type of empowerment is also included.

Toward a Contingency Theory of Decision Making.

Abstract: Although there are many models of decision making, there are few attempts to match the appropriate decision strategy with different situations. After reviewing and comparing six contemporary decision‐making models, a framework and propositions are developed that match strategies with circumstances. The article concludes with a discussion of theoretical and practical application of the proposed contingency model decision making.

Strategic approaches, organizational design and quality management: Integration in a fit and contingency model

Abstract: The main contribution of this paper is to integrate into one model management and organizational fields that are normally analyzed separately: contingency factors, organizational design variables, strategic approaches and quality management approaches. The essential core of the model is constituted by three basic variables of organizational design: level of centralization, level of formalization‐standardization, and level of shared vision and common values. Through analysis using this conceptual tool, we can: assess the position of tasks and organizational units in relation to these organizational variables; evaluate the congruence between organizational variables and contingency factors; identify relationships between strategic management approaches and quality approaches; and establish a fit between strategic management approaches, organizational variables, contingency factors and quality approaches.

Organizational structure and the delivery of primary care to older Americans.

Abstract: OBJECTIVE: To explore how internal factors, such as organizational size, mission, ownership, and managerial communication and control structures, affect the delivery of primary care to older Americans across a wide variety of practice settings: ambulatory practices, hospitals, nursing homes, and home healthcare agencies. DESIGN: Use of the structure/process/outcome paradigm and contingency theory to examine the empirical research linking structural factors to outcomes. CONCLUSION: Using these studies as a background, we consider the implications for the provision of primary care to older Americans including the impact of evolving intraorganizational structure in healthcare organization.

The Contingency Model of Governmental Accounting Innovations: a discussion

Abstract: Comparative International Governmental Accounting Research (CIGAR) has been carried out for some twelve years. CIGAR research is, however, generally unfamiliar to researchers not belonging to the CIGAR network. Therefore, the paper aims at presenting and discussing critically CIGAR research with its Contingency Model of Governmental Accounting Innovations and suggests how CIGAR research and its Contingency Model could be developed.

A Social Dilemma Perspective on Cooperative Behavior in Organizations The Efects of Scarcity, Communication, and Unequal Access on the Use of a Shared Resource

Abstract: This study investigates groups' ability to manage resources under high and low scarcity. We offer a contingency model to reconcile competing predictions in the literature: Cooperative group behavior is moderated by group communication and the distribution of resources. A sample of 208 undergraduate students role-played I of 4 "division managers" in a fictional organization. They made independent organizational resource withdrawal decisions. Three independent variables were manipulated: (a) level of resource replenishment, (b) group communication prior to decision making, and (c) access to the resource. Our findings indicated strong support for the hypothesized effect of communication and moderate support for the effect of resource distribution. Results suggest that a decline in scarcity increases cooperation only when groups are allowed to communicate and when there is equal access to resources. Theoretical and practical implications of these findings for group behavior in organizations are discussed, and...

Tough calls to make: Contingency theory and the Centennial Olympic Games

Abstract: This paper offers a quick overview of Cameron's contingency theory of conflict management in public relations. It then applies the theory to three cases that occurred during the 1996 Summer Olympic Games that were taken from the policy position papers, notes, diaries and tape recordings of C. Richard Yarbrough, Managing Director‐Communications of the Atlanta Committee for the Olympic Games (ACOG). The areas analysed include: the moving of preliminary volleyball matches from one venue to another which was forced by conflict between gay activists and local politicians who passed an anti‐gay resolution — a sustained effort at accommodation that shifted to advocacy; conflict between the ACOG board of directors and the media resulting from the disclosure of ACOG executive salaries — a strong advocacy stance that led to compromise; and conflict threatened between ACOG and a minority minister who was disgruntled about an Olympic sponsor — a case of marginality too insignificant to bother with. The cases not only illustrate and support factors in the contingency theory, but highlight the impracticality and inflexibility of two‐way symmetrical or mixed‐motive public relations as models of choice.

A contingency model for empowering customer‐contact services employees

Abstract: A great deal has been written on the subject of empowerment of employees in the manufacturing industries, yet its application in the services area is relatively under‐developed Any rigorous examination of the literature shows that empowerment is not suitable for all occasions or all types of employees as it can have both positive and negative consequences for employees and the organization This paper outlines a contingency framework for the empowerment of contact service employees It is argued that the appropriate levels and the types of empowerment given to employees depends on a combination of the complexity or variability of customer needs, and the degree of task complexity or variability involved in delivering the customer needs It is also argued that in any empowerment framework it is essential for the degree and the type of empowerment to be included The paper also outlines the implications of empowerment for the type and style of managerial control exercised by managers and the implications for recruitment of customer contact service employees

Implementing TQM: a contingency approach to intervention and change

Abstract: Traditional approaches to the implementation of TQM in an organization do not address the social aspects of intervention and change. This paper describes two action research cases of TQM implementation in higher education in the context of contingency theory and associated factors that emerged during the intervention and attempted transformation. The analysis suggested that factors such as goal alignment, motivation, role uncertainty, leadership and others are variables that can affect the success of the intervention. It is proposed that a contingency approach is appropriate in the development of a TQM implementation strategy.

Identification and Development of Strategy at Subsidiary Level

Abstract: The general strategic management literature is far from unanimous on whether the strategy-making process is (or should be) rational, partly rational, or unable to be anything but non-rational (Hofer and Schendel, 1978; Porter, 1980; Quinn, 1980; Johnson, 1988). Conceptual and practical considerations suggest that the middle course is not only that of least resistance, but also the one that gives practitioners the best chance of evolving a practical strategy using some form of incremental-ism coupled with a rational analysis that identifies major sources of internal and environmental risk. This is particularly important when a firm moves from one strategy to another, whether to move away from poor positioning within its industry or to avoid the lifecycle risk by moving on from a successful strategy before it hits the decline stage. Evidence suggests that there is a dynamic involved in the strategy process that gravitates towards the evolutionary rather than the incremental, whether it be at functional (Ronstadt, 1978), subsidiary (White and Poynter, 1984; Taggart, 1996c) or corporate level (Morrison, 1990). Thus, whether the study is based on organisational design (Mintz-berg, 1980), control mechanisms (Doz and Prahalad, 1981), contingency theory (Ginsberg and Venkatraman, 1985), the strategy-structure interface (Amburgey and Dacin, 1994), or biology modelling (Taggart, 1995), sensitivity to the firm’s operating environment is the central issue in strategy change.

The art of Chinese management

Abstract: An empirical study was undertaken (a) to examine the characteristics, influencing factors, and effectiveness of a distinctive Chinese management model adopted by the newly founded private enterprises in mainland China, as well as (b) to test the "fit" notion in contingency theory. The study was based on a random sample of 124 standardized personal interviews with CEOs of Chinese industrial and service companies in Beijing and Shanghai. The standardized questionnaire mainly contained the Aston structure scales (Pugh and Hickson 1976) and Khandwalla's (1977) management schedules. Besides, three case examples were studied including one state-owned bank and two private enterprises. Using AMOS structural equation modeling, size, masstechnology and uncertainty, as well as CEO need for achievement, environmental constraints and selected Chinese characteristics, were specified as influencing factors of "bureaucracy" and managerial practices, which included strategic orientation, leadership style, decision-making, communication and subcontracting. Another model analyzed the influence of various key success factors on organizational effectiveness. The findings provided support for the re-adoption of a distinctive Chinese management model in private companies, characterized by autocratic leadership, low formalization, "Chinese entrepreneurship" and network-based "webs". Private enterprises also tended to readopt and emphasize traditional Chinese family-related values. The distinctiveness of this model was, ceteris paribus, due to this emphasis on familism, which had a direct impact on organizational design and an indirect influence through its negative association with company size, which in turn significantly covaried with organizational design. This family-based ownership model was positively associated with organizational effectiveness. As regards contingency theory, the "traditional" fit hypotheses could not be rejected. In addition, less effective companies were not necessarily in "misfit". "Appropriate" structure, together with an optimizing planning style and firm age, were positively associated with performance. Managerial recommendations were codified in a CHINA strategy framework for high effectiveness.

Management Control in Services. A Contingency Study of Responsibility Accounting in Highly Interactive Services

Abstract: Management Control in ServicesThis report examines the use of management control in services, with particular reference to the role of formal control systems in attributing and devolving responsibi ...

Lobbying for conflict accommodation — a contingency model

Abstract: Presents a modern definition of lobbying suitable for the use of organizational lobbyists and a theory of lobbying as conflict accommodation which arouses ethical considerations. A contingency model of effective lobbying strategies and dynamics of lobbying is developed and tested in a multiple‐case study. Finnish interest group representatives are interviewed to construct cases based on their lobbying efforts on political issues at the national and the EU‐level of political decision making. It is concluded that the definition of lobbying corresponds well to the activities of the interviewees' associations and that it is fruitful to apply the theory of conflict resolution in the study of lobbying. The new model of lobbying reflects the reality excellently. It can be used as a tool for planning and evaluating lobbying in different political issues and at different levels of political decision making.

An empirical validation of a contingency model for information require-ments determination

Abstract: A contingency model for system development was subjected to several conceptual and operational adjustments and empirical tests. According to the model, there should be a degree of fit between development project uncertainty and the strategy for determining information requirements, ranging from accepting initial requirements statements to experimenting with prototypes to discover requirements. This study introduced a new IRD strategy construct that focused on the extent of interaction between users and developers. The study also differentiated between perceptual and evidential outcomes, between process and product outcomes, and between users' and developers' points of view. The hypotheses predicted that the degree of fit between project uncertainty and the IRD strategy would account for perceptual and evidential project outcomes from both the user's and developer's points of view. Results indicated that only by relying on the new extent of interaction construct, was support found. From the developers' standpoint, the degree of fit appeared to be related to perceptual assessments of the process and product. From the user's standpoint, the degree of fit was only related to perceptual assessments of the process. There was no support for the hypothesized impact of fit on evidential outcomes.

Contingency Theory and The Characteristics of Knowledge.

Abstract: We test competing hypotheses about the impact of environmental, strategic and knowledge-based factors on R&D organization structure. We find that the relationship of the R&D unit to its environment...

Performance Management and Welfare Reform: The Three-Contingency Model of Performance Management Applied to Welfare Reform

Abstract: The three-contingency model of performance management suggests contingencies that could provide an effective basis for welfare reform. This model also suggests an analysis of the performance management contingencies of traditional efforts at welfare reform; and, in turn, that analysis suggests such traditional reform will not effectively increase functional behavior such as job finding nor decrease dysfunctional behavior such as drug abuse. This article is inspired by Nevin’ s (1998) analysis of welfare reform.

Strategy diversity in Australian family owned businesses: impact of environment induced constraints

Abstract: The central propositions of contingency theory assert that organisational effectiveness is a product of an appropriate matching between internal organisational characteristics and the demands created by elements of context such as technology and external environments. This literature has identified a number of variables systematically associated with management functions and their underlying systems. But the explanatory power of models based on these variables is still relatively low. However the use of clusters of variables as archetypes has been suggested as an approach that offers promise. One such archetype is based on the stage of development of the firm or the position in its life cycle. This paper explores how these uncertainties and consequential strategies vary at different stages of the firm's life cycle.

Contingencies influencing the effectiveness of acquisition‐based corporate growth and development strategies: the case of ITT, 1920‐1997

Abstract: Contingency models have enabled researchers to develop system‐based decision‐making approaches to organizational studies. Two contingency decision‐making models ‐ rational and political choice ‐ have been applied to identify those organizational characteristics and strategic leadership qualities associated with acquisitive growth through “absorption” and “diversification”. A study of the International Telephone and Telegraph Company (ITT) organizational growth strategies from 1920 to 1997 reveals that senior managers adopt the rational decision‐making model when organizational growth through acquisition involves absorption, and the political model when organizational growth calls for diversification. A contingency historical study of ITT demonstrates two important periods in ITT’s organizational life cycles ‐ one of growth (1920‐early 1970s) and one of consolidation/stability (from mid‐1970 to the present time). Contingency models indicate that differences in organizational growth strategies arise due to differences in environmental factors characterizing each period as organizations pass through several stages of growth in their life cycles.

The Aston study and its developments

Abstract: Volume 1 The Aston study and its developments: a conceptual scheme for organizational analysis the first Aston study an approach to the study of bureaucracy dimensions of organization structure the context of organization structures an empirical taxonomy of structures of work organizations operations technology and organization structure - an empirical reappraisal organization structure and strategies of control - a replication of the Aston study organization structure, environment and performance - the role of strategic choice technology size and organization structure predicting and understanding organization structure Parkinson's progress - accounting for the number of specialists in organizations managerial and organizational factors associated with company performance - 1 managerial and organizational factors associated with company performance - 2 organization context and structure - an abbreviated replication dimensions of organizational structure and their context - a replication on the dimensions of bureaucratic structure - an empirical reappraisal dimensions of organization technology and structure - an exploratory study a longitudinal analysis of context and structure of a large British financial institution organization structure and technology in manufacturing firms - system versus work flow level perspectives structural implications of organizational dependencies dimensions of organizational structure - a critical replication research note -organization size and specialization towards an organizational study of trade unions bureaucratic and electoral control in occupational interest associations structure of organization in occupational interest associations the organization structure of churches - a preliminary model size and the administrative component of churches churches as organizations - structure and context dimensions of organizations in complex societies - the educational sector contingency theories and public bureaucracies. Volume 2 International comparisons: the culture-free context of organization structure is there a universal model of organization structure a comparison of organization structure and managerial roles - Ohio, USA and the Midlands, England the structure of work organizations across societies the cultural context of organizational control - an international comparison grounds for comparative organization theory - quicksand or hardcore organization and managerial roles in British and West German companies - an examination of the culture-free thesis centrally planned development - a comparison of Polish factories with equivalents in Britain, Japan and Sweden technology, size and organization structure in a developing country - Jordan organization structure and context - a replication of the Aston study in India strategies of administrative control and contextual constraints in a less developed country - the case of Egyptian public enterprise. (Part contents).

Teaching And Organising: The Case Of Problem-Based Learning

Abstract: As far as its teaching method is concerned, an educational institute can choose from several options, e.g., case studies, plenary lectures, distance learning, correspondence courses, work-shops or problem-based learning. The selection of a teaching method can be considered as the choice of the teaching institute’s production technology, and has therefore implications at both the strategic and operational level. The strategic implications include features of the product and structure of the organisation, while the operational implications pertain to the implementation of the teaching process and the quality control of the end product. According to the standard contingency theory in organisation sciences (Daft, 1992), there should be a fit between all the strategic and operational decisions in order to achieve good performance. This paper adopts contingency theory to develop a framework in order to answer the following question: How should an educational institute be organised — at the different levels — in order to facilitate the effectiveness of problem-based learning? So, although the issue of strategy formulation is discussed in passing to set the scene, the focus of the current paper is on the issue of strategy implementation, particularly through a number of elements of organisational design.

GERENCIA DE SISTEMASCONDUCTUALES y CAMBIO ORGANIZACIONALl

Abstract: Behavioral sysiems management is a technology based on a scientific approach of the analysis 01' behavioral systerns. This technology helps organizations to'define, and achieve their goals.lt consists ofthe analysis, specification, design, application, evaluation and recycling of human motivational systems that optimize the performance and developrnent at the individual, department and system levels ofthe organization. It uses three models: the «Goal-Directed System Design», the «Three Contingency Model of Performance Managernent», and the «Performance-Management Model of Cultural Change». This paper describes the theoretical and methodological frarnework ofbehavioral systems managernent and its applications to productionand services organizations.