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.

Citation

Größler, A., Grübner, A. and Milling, P.M. (2006), "Organisational adaptation processes to external complexity", International Journal of Operations & Production Management, Vol. 26 No. 3, pp. 254-281. https://doi.org/10.1108/01443570610646193