What Makes Agility Fragile? A Dynamic Theory of Organizational Rigidity

Li, J; Mukherjee, A; Vasconcelos, L

What Makes Agility Fragile? A Dynamic Theory of Organizational Rigidity

Li, J Mukherjee, A Vasconcelos, L

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Publisher:: INFORMS
Publication Type:: Journal Article
Citation:: MANAGEMENT SCIENCE, 2022
Issue Date:: 2022-09-22

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Field	Value	Language
dc.contributor.author	Li, J
dc.contributor.author	Mukherjee, A
dc.contributor.author	Vasconcelos, L
dc.date.accessioned	2023-01-21T02:31:34Z
dc.date.available	2023-01-21T02:31:34Z
dc.date.issued	2022-09-22
dc.identifier.citation	MANAGEMENT SCIENCE, 2022
dc.identifier.issn	0025-1909
dc.identifier.issn	1526-5501
dc.identifier.uri	http://hdl.handle.net/10453/165317
dc.description.abstract	<jats:p> We present a novel explanation of why organizations tend to lose their agility over time despite their efforts to foster worker initiative in adapting to local information. Worker initiative ensures efficiency but requires strong incentives. When incentives are relational and the firm faces shocks to its credibility, it may adopt standardized work processes that ignore local information but yield satisfactory (though suboptimal) performance. The adoption of such standardized processes helps the firm survive the current shock but inflicts inefficiencies in the future. Although the firm may recover, it becomes more vulnerable to future shocks, and consequently, more reliant on the standardized work procedures. </jats:p><jats:p> This paper was accepted by Joshua Gans, business strategy. </jats:p>
dc.language	English
dc.publisher	INFORMS
dc.relation.ispartof	MANAGEMENT SCIENCE
dc.relation.isbasedon	10.1287/mnsc.2022.4512
dc.rights	info:eu-repo/semantics/openAccess
dc.rights	The final published version can be found at https://doi.org/10.1287/mnsc.2022.4512
dc.subject	08 Information and Computing Sciences, 15 Commerce, Management, Tourism and Services
dc.subject.classification	Operations Research
dc.title	What Makes Agility Fragile? A Dynamic Theory of Organizational Rigidity
dc.type	Journal Article
utslib.for	08 Information and Computing Sciences
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	open_access	*
dc.date.updated	2023-01-21T02:31:32Z
pubs.publication-status	Published

Abstract:

We present a novel explanation of why organizations tend to lose their agility over time despite their efforts to foster worker initiative in adapting to local information. Worker initiative ensures efficiency but requires strong incentives. When incentives are relational and the firm faces shocks to its credibility, it may adopt standardized work processes that ignore local information but yield satisfactory (though suboptimal) performance. The adoption of such standardized processes helps the firm survive the current shock but inflicts inefficiencies in the future. Although the firm may recover, it becomes more vulnerable to future shocks, and consequently, more reliant on the standardized work procedures. This paper was accepted by Joshua Gans, business strategy.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/165317