Scaling a Multi-dimensional Organization Horizontally
DOI:
https://doi.org/10.14738/abr.85.8272Keywords:
global markets; global leadership; enterprise resource planning; capacity management; standardization; synergy; relatednessAbstract
Customers of multinational enterprises (MNEs) exist almost everywhere. Cross border B2C e-commerce is expected to double by 2022 according to Forrester Research. How do MNE’s efficiently leverage their product portfolios across geographic markets? This is called horizontalization. Synergies exist in terms of resources needed in these products due to relatedness between them. Economies of scale can be exploited to reduce costs of needed resources. In this case study an MNE utilized a multidimensional organization design to reach customers in many parts of the world. The author presents findings from this case and ultimately extracts nineteen propositions to guide support function synergies. Absent these measures, risk of revenue loss is enhanced significantly.
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Armstrong, D. J., & Cole, P. (2002). Managing distances and differences in geographically distributed work groups. Distributed Work, 167-186.
Bartlett, C. A. & Ghoshal, S. (1993). Beyond the M-form: Toward a managerial theory of the firm. Strategic Management Journal, 14(1993, Special Winter Issue), 23-46.
Berggren, C. (1996). Building a truly global organization? ABB and the problems of integrating a multi-domestic enterprise. Scandinavian Journal of Management, 12(2), 123-137.
Burns, T. & Stalker, G. M. (1992). Mechanistic and organic systems. In J. M. Shafritz & J. S. Ott (Eds.), Classics of organizational theory (3rd ed., pp. 207-211). Pacific Grove, CA: Brooks/Cole Publishing.
Coggin, W. C. (1974). How the multinational structure works at Dow Corning. Harvard Business Review, 52(1), 54-65.
Davis, R. & Thomas, L. G. (1993). Direct estimation of synergy, a new approach to the diversity-performance debate. Management Science, 39(11), 1334-1346.
Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14: 532-550.
Eisenhardt, K. M. & Bharia, M. M. (2002). Organization computation and complexity. In J. A. C. Baum (Ed.), Companion to Organizations. Malden, MA: Blackwell.
Festinger, L., Riecken, H. W., & Schachter, S. (2008). When prophecy fails. London, UK: Printer & Martin.
Freeman, W. J. (2000). How brains make up their minds. New York, NY: Columbia University Press.
Galbraith, J. R. (2005). Designing the customer-centric organization: A guide to strategy, structure, and process. New York, NY: Wiley & Sons.
Galbraith, J. R. (2009). Designing matrix organizations that actually work. San Francisco, CA: Jossey-Bass.
Grant, R. M. (1996). Toward a knowledge‐based theory of the firm. Strategic Management Journal, 17(S2), 109-122.
Luo, J., Van de Ven, A. H., Jing, R., & Jiang, Y. (2018). Transitioning from a hierarchical product organization to an open platform organization: a Chinese case study. Journal of Organization Design, 7(1), 1.
Markides, C. C. & Williamson, P. J. (1994). Related diversification, core competencies and corporate performance. Strategic Management Journal, 15, 149-165.
Moustakas, C. (1994). Phenomenological research methods. Thousand Oaks, CA: Sage.
Prahalad, C. K. (1980). The concept and potential of multidimensional organizations. In F. Stevens (Ed.). Managing Managers. (pp. 159-176). Eindhoven: NV Philips’ Gloeilampenfabrieken.
Prahalad, C. K. & Doz, Y. L. (1979). Strategic reorientation in the multidimensional organization. (Working Paper No. 195). Retrieved from: http://deepblue.lib.umich.edu/ bitstream/handle/2027.42/35980/b1375490.0001.001.pdf?sequence=2&isAllowed=y.
Ruigok, W., Achtenhagen, L., Wagner, M., & Ruegg-Sturm, J. (2000). ABB: Beyond the global matrix towards the network multidivisional organization. In A. Pettigrew & E. Fenton (Eds.), Process and practices of new forms of organizing. London and Thousand Oaks, CA: Sage.
Strikwerda, J., & Stoelhorst, J. W. (2009). The emergence and evolution of the multidimensional organization. California Management Review, 51(4), 11-31.Sutton, R. T. & Straw, B. M. (1995). What theory is not. Administrative Studies Quarterly, 40, 371-384.
Van Wart, M. & Kapucu, N. (2011). Crisis management competencies: The case of emergency managers in the USA. Public Management Review, 13(4), 489-511.
Wiessmeier, G.F. L., Axel, T. & Christoph, S. (2012). Leveraging synergies between R&D and key account management to drive value creation. Research Technology Management, 55(3), 15-22.
Williamson, O.E. (1975). Markets and hierarchies. New York, NY: The Free Press.
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Published
2020-06-07
How to Cite
Bigley, J. (2020). Scaling a Multi-dimensional Organization Horizontally. Archives of Business Research, 8(5), 316–334. https://doi.org/10.14738/abr.85.8272
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