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Author:Karim, S.
Title:Modularity in organizational structure: the reconfiguration of internally developed and acquired business units
Journal:Strategic Management Journal
2006 : SEP, VOL. 27:9, p.
Index terms:organizational structure
Freeterms:business units
reconfiguration
Language:eng
Abstract:This article investigates changes in organizational structure and distinguishes between units' origins. Unit reconfiguration is the addition of units to, deletion of units from, and recombination of units within the firm. This study compares the reconfiguration of internally developed vs. acquired units, explores what forms of unit recombination are common, and observes whether firms pursue recombination before divestiture. Theoretical support is drawn from the dynamic capabilities perspective, research on modular organizational systems, and strategy-structure literature. It is shown that acquired and internally developed units serve different roles in the process of change, and that firms perceive reconfiguration to be beneficial.
SCIMA record nr: 263402
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