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Markets, Bureaucracies, and Clans
Abstract
Evaluating organizations according to an efficiency criterion would make it possible to predict the form organizations will take under certain conditions. Organization theory has not developed such a criterion because it has lacked a conceptual scheme capable of describing organizational efficiency in sufficiently microsopic terms. The transactions cost approach provides such a framework because it allows us to identify the conditions which give rise to the costs of mediating exchanges between individuals: goal incongruence and performance ambiguity. Different combinations of these causes distinguish three basic mechanisms of mediation or control: markets, which are efficient when performance ambiguity is low and goal incongruence is high; bureaucracies, which are efficient when both goal incongruence and performance ambiguity are moderately high; and clans, which are efficient when goal incongruence is low and performance ambiguity is high.
... These concepts are regarded as methodological-theoretical and serve as a framework for a detailed analysis of control practices (Callon 1998a;Kastberg 2014;Mouritsen et al. 2022). For those of us interested in how the control of digitalization occurs, the framework offers an opportunity to look beyond archetypes (such as market and hierarchy (Freidson 2001)) and principles (such as outcome and rule-based governance (Hofstede 1981;Ouchi 1980)). However these concepts are useful to sort and categorize (Kastberg and Siverbo 2013), they say little about how, why, and when they are used (Mouritsen et al. 2022). ...
The study aims to contribute knowledge about how we can understand control of digitalization and why digitalization becomes a dispersed practice. The study offers two main contributions. First, we introduce the metaphor chasing digitalization to describe the observed mode of control of digitalization. Control involved chasing after digital solutions—getting hold of things—and chasing in, which entails facilitating activities to ensure organizational adoption. The second contribution deepens our understanding of why digitalization frequently results in a dispersed practice. Chasing in often triggers chasing after and vice versa. For example, when many actors are chasing after, a need arises to coordinate more. Against the backdrop of recurring reports of failed digitalization projects in the public sector, the study contributes by conceptualizing control challenges. The contribution is the result of an empirically grounded analysis based on the actor‐network concepts of framing and overflowing. The empirical case focuses on the Swedish school sector.
... Leading companies could control outsourced relationships with GVC partners using classic coordination and control mechanisms, similar to parent-subsidiary relationships. This intervention may increase through coordination mechanisms like formalization and output control (Ponte & Sturgeon, 2014), and through socialization, which promotes trust and dependence between partners (Kano, 2018;Kano, Tsang, & Yeung, 2020), and the implementation of common values and culture throughout the network (Ouchi, 1980). These mechanisms reduce uncertainty in behavior and ensure compatibility of objectives between leading companies and suppliers. ...
In recent years we have experienced several counter-pressures to reverse globalization and reduce the interdependence that has characterized the economic environment for decades. Geopolitical tensions, climate change, and digitalization are some of the megatrends driving this shift from global to more localized and regional business activities. Given the vulnerability of manufacturing global value chains (GVCs) to external shocks, this chapter explores the fundamental aspects of value chain management and the restructuring necessary to adopt a more regional footprint while addressing the new challenges of globalization.
... Likewise, the notion of collaborative relationships between the actors in in-between spaces is critical. The use of control through legitimate authority (Ouchi, 1980) to manage the situation is limited to non-existent in in-between spaces. As the participants remain relatively autonomous and need to be convinced to act, they instead negotiate roles and responsibilities. ...
... The rapid expansion of shared bikes in Shenzhen, depicted in Figure 4, has caused a series of urban issues. Although the governance approach adopted by the Shenzhen government in managing shared bicycles has shown some effectiveness in addressing certain challenges, it heavily relies on authoritative regulations and strict control strategies, which may not always align with the interests of companies or users (Ouchi 1980). Therefore, for Shenzhen, seeking a win-win situation in the governance of the shared bicycle market could bring greater benefits to all parties involved, including businesses, users, and the government. ...
In recent years, free‐floating bike‐sharing systems have rapidly expanded worldwide, emerging as an essential component of the “last kilometre” of public transportation. While these bikes promote eco‐friendly travel and daily convenience, they also introduce a series of social management challenges. Despite the efforts of numerous cities in China, substantial opportunities remain to better balance supply and demand across temporal and spatial dimensions, as well as to optimize the bike dispatching process, especially in large‐scale scenarios. This research proposed a spatial optimization model of free‐floating bike sharing that considers regionalization and routing simultaneously, coupled with an enhanced Non‐dominated Sorting Genetic Algorithm‐II (Regionalization‐Routing‐NSGA‐II, R ² ‐NSGA‐II). The model adopted a multi‐stakeholder perspective, focusing on three key factors closely related to real‐world scenarios: supply–demand satisfaction, dispatching time, and workload, which could enhance the feasibility of dispatching strategies. Furthermore, the effectiveness of the R ² ‐NSGA‐II model was validated through a successful case study in Shenzhen, demonstrating its capability and value in providing actionable solutions for the challenges faced by free‐floating bike‐sharing systems. Finally, the study also acknowledged its limitations, suggesting potential avenues for future research.
This work examines existing inter-organizational configurations with the goal to identify and evaluate the key elements boosting Circular Bioeconomy (CBE) in the bio-based plastics industry. Indeed, while it is clear that multi-stakeholder engagement, together with cooperation, coordination and collaboration mechanisms, play a pivotal role in accelerating value creation and preservation for bio-based plastics, there is still the need to understand how these dynamics affect product development processes, end-user experiences and ultimately, the full circularity of the solutions proposed. Based on a conceptual framework, this study provides a structured lens to scrutinize the varying degrees of engagement and synergy among diverse entities operating in the bio-based plastics industry. Specifically, Alliances, Associations, Collaborative Research and Development, Consortia, Joint Ventures, Networks and Strategic Partnerships have been investigated. For each engagement mode, we delineate the scope, type and number of stakeholders involved, their specific roles, the motives addressed and funding involved, the operational timeframe, and the degree of innovation that resulted. Furthermore, the framework addresses factors that critically influence the strength of cooperation, coordination and collaboration mechanisms, such as trust, information, resources, and power. Drawing on real-world cases, we then present a non-exhaustive list of inter-organizational configurations already in place in the field of CBE. The work aims to help researchers, practitioners, and decision-makers to dissect and interpret the nature of inter-organizational dynamics among multiple stakeholders, in order to facilitate the understanding of the elements that drive successful synergies across organizational boundaries and boost a more effective CBE in the overall bio-based plastics industry.
As threats to democracy endanger the rights and freedoms of people around the world, scholars are increasingly interrogating the role that organizations play in shaping democratic and authoritarian societies. Just as societies can be more or less democratic, so, too, can organizations. This essay, in honor of ASQ ’s 70th volume, argues for a deeper focus in organizational research on the extent to which organizations themselves are democratic and the outcomes associated with these varied models of organizing. First, we provide a framework for considering the extent to which organizations are democratically organized, accounting for the varied ways in which workers can participate in their organizations. Second, we call for research on the outcomes associated with democratic organizing at both the organizational and societal levels. We build from research arguing that the extent to which workers participate in organizational decision making can spill over to impact their expectations of and participation in civic life. Moving forward, we argue it is critical to recognize that questions of democracy and authoritarianism concern not only the political contexts in which organizations are embedded but also how organizations themselves are structured and contribute to society.
Purpose
This study aims to investigate the pivotal role of accountability in shaping control mechanisms within non-governmental organizations (NGOs) engaged in disaster relief, examining how it influences control practices and operational capacity in resource management.
Design/methodology/approach
We conducted a comparative case study based on 65 interviews with NGO experts in emergency crises and more than 300 documents.
Findings
Our findings highlight accountability as a driving factor that shapes the formality and coerciveness of control mechanisms, often in response to donor demands. Emergency NGOs apply various forms of formal and informal control, with financial transparency being crucial. While intrinsic NGO characteristics alone could not explain differing control configurations, we found that accountability affects operational capacity within each NGO type through its influence on control formalization and coerciveness.
Originality/value
Our findings challenge the belief that NGOs' intrinsic characteristics determine organizational control. Instead, accountability shapes control formalization. Our study offers practical insights for NGOs on how control choices affect operational capacity, examining multiple emergency NGOs in similar contexts rather than focusing on individual organizations.
No organization can accomplish its goals without proper control. The imperative of organizational control is heightened when firms cross national borders and expand into unfamiliar foreign markets. This chapter is all about how international operations and foreign subsidiaries are controlled. We first look at various control mechanisms and discuss, in detail, three approaches to control. The cultural aspects of MNC control, which is effective in dealing with the uncertainty and complexity of the international market, are elaborated. Finally, within the context of the historical evolution of the international environment, the corresponding MNC coordination and control mechanisms are summarized. There are differences between the control of an MNC and that of a domestic firm. These differences are due to the complexity of and uncertainties surrounding the MNC environment, with a resulting potential for difficulty. The relationship with the host government creates additional problems. Following a discussion of the control problems of the MNCs, the influence of host government actions on MNC control is analyzed.