Organizational Complexity Attributes and Performance during Economic Shocks: An Activity System View
ISSN
0065-0668
Type
conference paper
Date Issued
2014-08-04
Author(s)
Abstract
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.
Language
English
Keywords
exogenous shocks
complexity
adaptation
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Responsible Corporate Competitiveness (RoCC)
Refereed
Yes
Book title
Academy of Management Annual Meeting Proceedings. 2014
Publisher
Academy of Management
Start page
40
Event Title
74th Academy of Management Annual Meeting (AOM) 2014 "The Power of Words"
Event Location
Philadelphia, PA
Event Date
01-05.08.2014
Subject(s)
Division(s)
Eprints ID
231213