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Cascading Organizational Change

Author

Listed:
  • Michael T. Hannan

    (Stanford University, Stanford, California 94305)

  • László Pólos

    (Erasmus University, Rotterdam, and Loránd Eötvös University, Budapest, Hungary)

  • Glenn R. Carroll

    (Stanford University, Stanford, California 94305)

Abstract

This article develops a formal theory of the structural aspects of organizational change. It concentrates on changes in an organization's architecture, depicted as a code system. It models the common process whereby an initial architectural change prompts other changes in the organization, generating a cascade of changes that represents the full reorganization. The main argument ties centrality of the organizational unit initiating a change to the total time that the organization spends reorganizing and to the associated opportunity costs. The central theorem holds that the expected deleterious effect of a change in architecture on the mortality hazard increases with viscosity and the intricacy of the organizational design.

Suggested Citation

  • Michael T. Hannan & László Pólos & Glenn R. Carroll, 2003. "Cascading Organizational Change," Organization Science, INFORMS, vol. 14(5), pages 463-482, October.
    • Handle: RePEc:inm:ororsc:v:14:y:2003:i:5:p:463-482
    DOI: 10.1287/orsc.14.5.463.16763
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    References listed on IDEAS

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    Cited by:

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    6. Alexandra Montoya Restrepo & Paula Viviana Robayo Acuña & Oscar Castellanos Domínguez, 2011. "Aportes desde las ciencias biológicas a la teoría de la gestión," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    7. Negro, Giacomo & Hannan, Michael T. & Rao, Hayagreeva & Leung, Ming D., 2007. "No Barrique, No Berlusconi: Collective Identity, Contention, and Authenticity in the Making of Barolo and Barbaresco Wines," Research Papers 1972, Stanford University, Graduate School of Business.
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    9. Barnett, William P. & Pontikes, Elizabeth G., 2006. "The Red Queen, Success Bias, and Organizational Inertia," Research Papers 1936, Stanford University, Graduate School of Business.
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    12. Abhirup Chakrabarti & Will Mitchell, 2016. "The role of geographic distance in completing related acquisitions: Evidence from U.S. chemical manufacturers," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 673-694, April.
    13. Federica Ceci & Francesca Masciarelli & Andrea Prencipe, 2016. "Changes in Organizational Architecture: Aspiration Levels, Performance Gaps and Organizational Change," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(01), pages 1-21, February.
    14. Hedström, Peter & Wennberg, Karl, 2016. "Causal Mechanisms in Organization and Innovation Studies," Ratio Working Papers 284, The Ratio Institute.
    15. Kim, Huong Trang & Papanastassiou, Marina & Nguyen, Quang, 2017. "Multinationals and the impact of corruption on financial derivatives use and firm value: Evidence from East Asia," Journal of Multinational Financial Management, Elsevier, vol. 39(C), pages 39-59.
    16. Michael T. Hannan, 2005. "Ecologies of Organizations: Diversity and Identity," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 51-70, Winter.
    17. Marlo Raveendran, 2020. "Seeds of change: How current structure shapes the type and timing of reorganizations," Strategic Management Journal, Wiley Blackwell, vol. 41(1), pages 27-54, January.
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