Premium
A network perspective on organizational architecture: performance effects of the interplay of formal and informal organization
Author(s) -
Soda Giuseppe,
Zaheer Akbar
Publication year - 2012
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.1966
Subject(s) - consistency (knowledge bases) , perspective (graphical) , knowledge management , test (biology) , key (lock) , informal organization , organizational network analysis , formal organization , architecture , organizational architecture , computer science , business , management , organizational learning , economics , artificial intelligence , computer security , art , paleontology , visual arts , biology
We take a network perspective to organizational architecture, conceptualizing it as multiple networks of both formal and informal interactions and argue that their interplay is key to better understanding individual organizational member performance. We develop and test the concept of network consistency as the overlap between the informal network of advice and information with formal structures and processes, expressed as networks. We theorize that consistency between formal and informal networks exerts differing effects on performance. We test our theory in a financial services firm, using secondary data to create formal networks and annual performance evaluations for our dependent variable, along with primary survey data from organizational members to obtain the informal advice and information network. Results support our network approach to organizational architecture. Copyright © 2012 John Wiley & Sons, Ltd.