Inside Out: Organizations as Service Systems Equipped with Relational Boundaries

Abstract

Currently, literature on organizational boundaries is at the center of a heated debate, characterized by a shift from a transactional approach to a broader immaterial perspective centered on the concept of boundless organizations. However, the overestimation of the effects of contemporary dematerialization on business processes can lead to the progressive neglect of the existence of corporate borders. In light of this consideration, the present work aims at proposing a new type of criterion for defining organizational boundaries, halfway between the conception of the firm's total openness and total closure. To this end, the authors envisage the use of a new interpretive logic defined as "relational", resulting from the specification of the systemic view (and as the sum of the logic underlying the viable systems approach (VSA)). This approach views the definition of boundaries. Therefore, in the large and intricate scenery of the studies dedicated to organizational boundaries, this work contributes to a better understanding of border selection as an interactive and changeable process capable of pushing organizations towards a greater awareness of their strategic dimension. This paper also offers some insights for future research, suggesting that both scholars and professionals investigate, firstly, new frontiers for the identification of organizational boundaries and, secondly, the possible positive repercussions that new organizational redesign modes could determine for a greater competitive success.