Now showing 1 - 8 of 8
  • Publication
    Formal and Informal Control as Complements or Substitutes? The Role of the Task Environment
    (Academy of Management, 2014-08-04) ;
    Cardinal, Laura
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    Walter, Jorge
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    This study extends both traditional contingency approaches to organizational control as well as the fledgling, and largely conceptual, literature on more holistic control approaches by examining whether and to what extent formal and informal controls interact with each other in their influence on performance outcomes. In particular, we examine whether formal and informal controls act as complements or substitutes for each other, as well as whether such an interaction will be more or less pronounced in the context of higher degrees of exploration. Our empirical findings from an analysis of 184 strategic initiatives conducted by firms across a variety of industries provide support for the benefits of a complementary use of formal and informal controls, but also suggests that the degree of exploration at least partially moderates this effect, and thereby contribute to a more com-prehensive understanding of organizational control.
  • Publication
    Organizational Complexity Attributes and Performance during Economic Shocks: An Activity System View
    (Academy of Management, 2014-08-04)
    Oh, Lyndon
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    ;
    This study extends both complexity literature and research on exogenous shocks by examining how firms' ex-ante complexity attributes influence immediate and long-term performance in the presence of specific environmental stimuli and whether this effect varies according to type of stimulus. Taking a sample of publicly-traded U.S. bank hold-ing companies, and drawing on the activity systems view of the firm, we propose that three system-wide complexity attributes- (1) concentration, (2) task complexity, and (3) opacity of activities-influence performance outcomes after exogenous shocks. We propose that those effects differ by type of shock, i.e. whether the shock relaxes (deregulation) or tightens environmental constraints (market shock) and study the Gramm-Leach-Bliley-Act in 1999 and the financial crisis with the bankruptcy of Lehman Brothers in 2008 respectively. We find partial support for our hypotheses.
  • Publication
    Interdependencies of Activity Systems and Strategic Renewal
    (SMS Strategic Management Society, 2011-11-07) ; ;
    There are two opposing perspectives on the relationship between interdependency in activity systems and the likelihood of radical strategic renewal. Some scholars argue that interdependency increases inertia and thus inhibits radical deviation from the current state. Other scholars argue that rich levels of interdependency are necessary to undergo radical strategic renewal at all. In this paper, we claim that both strands of research have looked at different sub-dimensions of interdependency and therefore derive at different conclusions. Hence, by introducing multiple dimensions of interdependency, we show that the likelihood of radical strategic renewal is influenced by the value of three structural and two rule-based dimensions of interdependency.
  • Publication
    Strategic Renewal of Activity Systems : A Model for Interdependence Characteristics
    (SMS Strategic Management Society, 2010-09-15) ; ;
    In recent years, the phenomenon of activity systems has come to the forefront of strategy research. Previous scholars have identified interdependencies between activities as crucial to understand the strategic renewal of such complex systems. However, extant literature provides surprisingly few distinct dimensions of interdependence that characterize activity systems and influence strategic renewal success. Hence, drawing on strategic renewal literature and complexity science, we propose distinct interdependence dimensions to describe activity systems more holistically and derive a theoretical model on their role in times of strategic renewal.
  • Publication
    Organizational Control and Strategic Growth Initiatives - A Contingency Perspective
    ( 2009-10-13) ; ;
    Cardinal, Laura
    This study focuses on formal and informal control modes used by organizations to manage their growth initiatives. Drawing on the literature on growth, organizational control, and contingency theory, we develop and empirically test a set of hypotheses aimed at explaining how different types of growth initiatives are controlled to achieve superior performance. Survey data collected from 201 corporations in six industries serve to test the hypotheses. Results of moderated regression analysis highlight the importance of adopting the control mode to the specific type of initiative. An initiative's degree of internal and external risk as well as exploration are found to moderate the relationships between formal and informal control and initiative performance.
  • Publication
    Strategic Initiatives and Control
    (Academy of Management (AOM), 2008-08-10) ; ;
    Cardinal, Laura
    Based on survey data of 201 firms in six industries, this paper examines the relationship between control mechanisms and the performance of strategic growth initiatives. We differentiate control along two dimensions: formality (formal, informal) and target of control (input, behavior, and output) to examine six control mechanisms. We formulate several hypotheses stating their relationship with initiative performance. The paper makes two major contributions. First, it contributes to a clearer conceptualization and operationalization of control mechanisms. The factor analysis results support distinct control mechanisms but suggest a more complex picture for our informal control mechanisms than initially proposed. Second, the findings from the regression analysis suggest distinct relationships between these control mechanisms and performance. These findings shed new light on the execution of strategic initiatives relevant to managers driving growth in their companies and points the way for future research in the area of corporate entrepreneurship and control research.
  • Publication
    Formal Control and Strategic Growth Initiatives: An Entrepreneurial Perspective
    Growth initiatives have been recognized as important means for corporate entrepreneurship. In this paper, we apply a control perspective on such initiatives and examine the impact of various types of formal controls, their antecedents as well as mediating factors on their performance. In order to examine these complex relationships, we employ structural equation modeling and use a unique data-set comprised of survey data of 201 corporations in six countries. Our findings suggest that the three control mechanisms of input, behavior and output control differ in their impact on growth initiatives. This impact is mediated by factors such as learning and micro-political activities. These results enrich our understanding about the relationships between control and corporate entrepreneurship.