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Organizing for hyper competition: the legitimation of corporate leadership

Author: Chakravarthy, Balaji S ; Gargiulo, MartinINSEAD Area: Organisational Behaviour ; Strategy Series: Working Paper ; 94/16/OB/SM Publisher: Fontainebleau : INSEAD 1994.Language: EnglishDescription: 22 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Competing in a hyper competitive environment requires a flat entrepreneurial organization, with its attendant administrative processes. The two key attributes of such an organization are its ability to generate trust and to empower its employees. This paper argues that top management's concern for stakeholder participation during the process of transformation to the new organization creates new senses of legitimacy for its leadership. These in turn help build trust in the organization. Trust is the platform on which empowerment can take place in an organization. The current wisdom of a two stage tarnsformation process, where restructuring (sour) precedes revitalization (sweet), is thus challenged. The trust lost in the first stage takes a long time to rebuild. The paper is based on intensive field work in a large European telecommunications equipment manufacturer, called Temco in this paper
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Competing in a hyper competitive environment requires a flat entrepreneurial organization, with its attendant administrative processes. The two key attributes of such an organization are its ability to generate trust and to empower its employees. This paper argues that top management's concern for stakeholder participation during the process of transformation to the new organization creates new senses of legitimacy for its leadership. These in turn help build trust in the organization. Trust is the platform on which empowerment can take place in an organization. The current wisdom of a two stage tarnsformation process, where restructuring (sour) precedes revitalization (sweet), is thus challenged. The trust lost in the first stage takes a long time to rebuild. The paper is based on intensive field work in a large European telecommunications equipment manufacturer, called Temco in this paper

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