Organisational adaptation processes to external complexity

Abstract

Purpose -Based on a conceptual framework of the linkages between strategic manufacturing goals and complexity, the purpose of this paper is to investigate adaptation processes in manufacturing firms to increasing external complexity. Design/methodology/approach -Hypotheses are tested with statistical analyses (group comparisons and structural equation models) that are conducted with data from the third round of the International Manufacturing Strategy Survey. Findings -The study shows that manufacturing firms face different degrees of complexity. Firms in a more complex environment tend to possess a more complex internal structure, as indicated by process configuration, than firms in a less complex environment. Also depending on the degree of complexity, different processes of adaptation to increases in external complexity are initiated by organisations.Research limitations/implications -Research studies taking into account the dynamics of adaptation processes would be helpful in order to draw further conclusions, for instance, based on longitudinal analyses or simulation studies. Practical implications -Depending on the level of complexity a firm has been confronted with in the past, different adaptation processes to further growing complexity can be initiated. Firms in high complexity environments have to re-configure their strategic goals; firms in low complexity environments have to build-up internal complexity to cope with demands from the outside. Originality/value -The paper distinguishes between adaptation processes in low and high complexity environments and provides explanations for the differences.

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