Abstract
Our goal is to relate the organizational structure of a firm to the structure of the problem environment in which it operates. To this end a formal model of a prototypical organization adapting to changes in its problem environment is presented. Based upon distributed computer system concepts, the organization is modelled as a hierarchically co-ordinated modular system. The model firm's environment is time critical, i.e., it generates a sequence of problems which must be solved within a limited time after arrival. Interpreted for technologically-based firms, problems represent technology related product development opportunities, and the problem deadlines bound response windows within which opportunities must be capitalized upon. We study the ability of the organization to adjust its structure to accomodate changes in the parameters of its problem environment. In this context, organizational flexibility is characterized and shown to be in a trade-off relation to speed of response. Implications are suggested for the controversy surrounding the relative innovation potential of small firms versus large corporations.
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© 1985 Springer-Verlag
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Zeigler, B.P., Reynolds, R.G. (1985). Modelling alternative structures for time critical corporate adaptation. In: Schmidt, G., Singh, M., Titli, A., Tzafestas, S. (eds) Real Time Control of Large Scale Systems. Lecture Notes in Control and Information Sciences, vol 67. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0008289
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DOI: https://doi.org/10.1007/BFb0008289
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