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Modularity in organizational structure: the reconfiguration of internally developed and acquired business units
Author(s) -
Karim Samina
Publication year - 2006
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.547
Subject(s) - control reconfiguration , modularity (biology) , organizational unit , divestment , organizational structure , modular design , dynamic capabilities , unit (ring theory) , perspective (graphical) , business , strategic business unit , process (computing) , industrial organization , organizational architecture , computer science , process management , knowledge management , marketing , management , economics , mathematics , artificial intelligence , operating system , genetics , mathematics education , finance , biology , embedded system
This paper explores changes in organizational structure and distinguishes between units' origins. Unit reconfiguration is the addition of units to, deletion of units from, and recombination of units within the firm. This study compares the reconfiguration of internally developed vs. acquired units, explores what forms of unit recombination are common, and observes whether firms pursue recombination before divestiture. Theoretical support is drawn from the dynamic capabilities perspective, research on modular organizational systems, and strategy–structure literature. The findings are that acquired and internally developed units serve different roles in the process of change, and that firms perceive reconfiguration to be beneficial. Copyright © 2006 John Wiley & Sons, Ltd.