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Informal control and managerial flexibility in network organizations

Author: Gargiulo, Martin ; Benassi, M.INSEAD Area: Organisational Behaviour Series: Working Paper ; 93/73/OB Publisher: Fontainebleau : INSEAD, 1993.Language: EnglishDescription: 24 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: This paper discusses the effect of the structure of a manager's contact network on his or her flexibility in a network-type of organization. While some contact networks can be turn into efficient managerial tools, other networks may become a serious constraint on the manager's flexibility, hindering his or her ability to develop, maintain, and leverage the adequate relationships to coordinate interdependence. A network built on a set of coordinated contacts, or a network dominated by one or a few contacts, curtails the manager's ability to successfully develop those relationships and negatively affects his or her capacity to coordinate critical interdependencies. Data from the Italian subsidiary of a multinational computer manufacturer furnish evidence supporting our hypotheses. The analysis also shows how informal structures, often embedded in the organizational history, may create bonds of interpersonal subordination that hinder the firm's ability to enact a network-type of organization
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This paper discusses the effect of the structure of a manager's contact network on his or her flexibility in a network-type of organization. While some contact networks can be turn into efficient managerial tools, other networks may become a serious constraint on the manager's flexibility, hindering his or her ability to develop, maintain, and leverage the adequate relationships to coordinate interdependence. A network built on a set of coordinated contacts, or a network dominated by one or a few contacts, curtails the manager's ability to successfully develop those relationships and negatively affects his or her capacity to coordinate critical interdependencies. Data from the Italian subsidiary of a multinational computer manufacturer furnish evidence supporting our hypotheses. The analysis also shows how informal structures, often embedded in the organizational history, may create bonds of interpersonal subordination that hinder the firm's ability to enact a network-type of organization

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