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Abstract

A study involving over 200 senior managers demonstrates that overall firm performance is strongly influenced by how well a firm''s business strategy is matched to its organizational structure and the behavioral norms of its employees. Identifies a taxonomy comprised of four different combinations of structure/behavior types: (1) Management Dominant; (2) Customer-Centric Innovators; (3) Customer-Centric Cost Controllers; and (4) Middle Ground. These alternative structure/behavior types are then matched with specific business strategies (ie, Prospectors, Analyzers, Low-Cost Defenders, Differentiated Defenders) to identify which combination(s) of structures and behaviors best serve to facilitate the process of implementing a specific strategy.

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Abstract

A study involving over 200 senior managers demonstrates that overall firm performance is strongly influenced by how well a firm''s business strategy is matched to its organizational structure and the behavioral norms of its employees. Identifies a taxonomy comprised of four different combinations of structure/behavior types: (1) Management Dominant; (2) Customer-Centric Innovators; (3) Customer-Centric Cost Controllers; and (4) Middle Ground. These alternative structure/behavior types are then matched with specific business strategies (ie, Prospectors, Analyzers, Low-Cost Defenders, Differentiated Defenders) to identify which combination(s) of structures and behaviors best serve to facilitate the process of implementing a specific strategy.

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