Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Entire DC Network
Delaying Change: Examining How Industry And Managerial Turbulence Impact Structural Realignment, Samina Karim, Tim N. Carroll, Chris P. Long
Delaying Change: Examining How Industry And Managerial Turbulence Impact Structural Realignment, Samina Karim, Tim N. Carroll, Chris P. Long
Eberhardt School of Business Faculty Articles
This paper examines when firms pursue structural realignment through business unit reconfiguration, specifically by recombining business units. Our results refine and extend contingency theory and studies of organization design by drawing on theories of decision avoidance and delay to describe environmental conditions when firms pursue or postpone structural realignment. Our empirical analysis of 46 firms from 1978 to 1997, operating within the U.S. medical device and pharmaceutical sectors, demonstrates that while decision makers initiate structural recombination during periods of industry growth (i.e., munificence), they reduce their recombination efforts during periods of industry turbulence (i.e., dynamism), and managerial turbulence (i.e., growth …