The Underexplored Role of Managing Interdependencies Fit in Organization Design and Performance
Keywords:Interdependencies fit, modularization, architecture of complexity
AbstractWe argue that research on interdependencies fit is an underexplored variable in strategy and organization research and is the missing variable that differentiates the performance of “built to last” organizations from the rest. Interdependencies fit relates to how well activities and processes within the organization or between the organization and its environment mutually reinforce one another. We suggest that the major reason underlying variation in firm performance may be rooted in differences of whether and how firms manage interdependencies within and across an organization’s strategic activities. Progress on researching interdependencies fit could be realized by focusing on strategically important activities, and the research challenge is to identify the unobservable processes and routines that underlie interdependencies fit.
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