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Maintaining Leadership Legitimacy in the Transition to New Organizational Forms

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  • Bala Chakravarthy
  • Martin Gargiulo

Abstract

Numerous new organizational forms have been proposed for ensuring the continuous strategic renewal of a firm. In essence, these forms are distinguished by: (1) their emphasis on bottom‐up entrepreneurship, and (2) their reliance on a co‐operative network that allows these entrepreneurial units to share their competencies with one another. One of the key behaviours required for the success of such an organization is employee empowerment. We argue in this paper that the legitimacy of corporate leadership during the restructuring of a traditional bureaucratic organization is crucial to its eventual transformation to one of the new organizational forms. The current wisdom of a two‐stage transformation process, where an authoritarian restructuring precedes the more participative revitalization, is thus challenged. The transformation may get stalled after the restructuring stage because of top management’s inability to empower the firm’s employees at will, having lost their trust during restructuring

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  • Bala Chakravarthy & Martin Gargiulo, 1998. "Maintaining Leadership Legitimacy in the Transition to New Organizational Forms," Journal of Management Studies, Wiley Blackwell, vol. 35(4), pages 437-456, July.
    • Handle: RePEc:bla:jomstd:v:35:y:1998:i:4:p:437-456
    DOI: 10.1111/1467-6486.00104
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    Cited by:

    1. Adrian Klammer & Stefan Gueldenberg & Sascha Kraus & Michele O’Dwyer, 0. "To change or not to change–antecedents and outcomes of strategic renewal in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-18.
    2. Michael Stull & John D. Aram, 2010. "Exploring Trust As An Influencing Mechanism Of Intrapreneurship," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 17-38.
    3. Régis Dumoulin & Valérie François, 2002. "Développement et performance d'une structure relationnelle: l'exemple de la logistique d'un groupe de distribution," Revue Finance Contrôle Stratégie, revues.org, vol. 5(2), pages 33-60, June.
    4. Paul Bate & Raza Khan & Annie Pye, 2000. "Towards A Culturally Sensitive Approach To Organization Structuring: Where Organization Design Meets Organization Development," Organization Science, INFORMS, vol. 11(2), pages 197-211, April.
    5. Régis Dumoulin, 1999. "La difficile instauration du partenariat dans le secteur du bâtiment et des travaux publics: une analyse par les mécanismes de contrôle," Revue Finance Contrôle Stratégie, revues.org, vol. 2(4), pages 31-51, December.
    6. Jill A. Brown & Peter T. Gianiodis & Michael D. Santoro, 2015. "Following Doctors’ Orders: Organizational Change as a Response to Human Capital Bargaining Power," Organization Science, INFORMS, vol. 26(5), pages 1284-1300, October.
    7. Adrian Klammer & Stefan Gueldenberg & Sascha Kraus & Michele O’Dwyer, 2017. "To change or not to change–antecedents and outcomes of strategic renewal in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 739-756, September.
    8. Caliz, Cristina & Quintanilla, Javier & Pin, Jose R., 2001. "Influencia de la nueva economía en la dirección de personas," IESE Research Papers D/440, IESE Business School.

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