Contingencies influencing the effectiveness of acquisition‐based corporate growth and development strategies: the case of ITT, 1920‐1997

Abstract

Contingency models have enabled researchers to develop system‐based decision‐making approaches to organizational studies. Two contingency decision‐making models ‐ rational and political choice ‐ have been applied to identify those organizational characteristics and strategic leadership qualities associated with acquisitive growth through “absorption” and “diversification”. A study of the International Telephone and Telegraph Company (ITT) organizational growth strategies from 1920 to 1997 reveals that senior managers adopt the rational decision‐making model when organizational growth through acquisition involves absorption, and the political model when organizational growth calls for diversification. A contingency historical study of ITT demonstrates two important periods in ITT’s organizational life cycles ‐ one of growth (1920‐early 1970s) and one of consolidation/stability (from mid‐1970 to the present time). Contingency models indicate that differences in organizational growth strategies arise due to differences in environmental factors characterizing each period as organizations pass through several stages of growth in their life cycles.

The Mediating Impact of Psychological Capital and Job Relevant Information on the Influence of Budget Participation against Job Performance

“…In each organization there is a difference in the control system based on organizational and situational factors. Sisaye (1998) states that contingency theory is a contingent control system design on the situation of the organization where the control system will operate. The approach used in this study is intended to evaluate the participatory relationship between budget preparation and the performance of local government officials.…”