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Transitioning from a hierarchical product organization to an open platform organization: a Chinese case study

Author

Listed:
  • Jiao Luo

    (University of Minnesota)

  • Andrew H. Van de Ven

    (University of Minnesota)

  • Runtian Jing

    (Shanghai Jiao Tong University)

  • Yuan Jiang

    (Shanghai Jiao Tong University)

Abstract

Organizations around the world are designing new forms of organizing in order to deal with the challenges of advances in information technology and digitization that promote increases in customization and innovation in the face of global competition. This paper presents a case study examining the challenges experienced by a large multinational firm as it transforms from a hierarchical product organization to an open platform network organization. We show that (a) role confusion, (b) control imbalance, and (c) staffing mismatches are key challenges associated with organizational redesign. The main lessons drawn from this case are discussed.

Suggested Citation

  • Jiao Luo & Andrew H. Van de Ven & Runtian Jing & Yuan Jiang, 2018. "Transitioning from a hierarchical product organization to an open platform organization: a Chinese case study," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-14, December.
    • Handle: RePEc:spr:jorgde:v:7:y:2018:i:1:d:10.1186_s41469-017-0026-x
    DOI: 10.1186/s41469-017-0026-x
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    References listed on IDEAS

    as
    1. Jing, Runtian & Van de Ven, Andrew H., 2014. "A Yin-Yang Model of Organizational Change: The Case of Chengdu Bus Group," Management and Organization Review, Cambridge University Press, vol. 10(1), pages 29-54, March.
    2. Elizabeth J. Altman & Mary Tripsas, 2013. "Product to Platform Transitions: Organizational Identity Implications," Harvard Business School Working Papers 14-045, Harvard Business School, revised Sep 2014.
    3. Jesper B. Sørensen & Magali A. Fassiotto, 2011. "Organizations as Fonts of Entrepreneurship," Organization Science, INFORMS, vol. 22(5), pages 1322-1331, October.
    4. Douglas, Evan J., 2013. "Reconstructing entrepreneurial intentions to identify predisposition for growth," Journal of Business Venturing, Elsevier, vol. 28(5), pages 633-651.
    5. Runtian Jing & Andrew H. Van de Ven, 2014. "A Yin-Yang Model of Organizational Change: The Case of Chengdu Bus Group. 中国阴阳文化视角的组织变革模型: 基于CBG的案例研究," Management and Organization Review, The International Association for Chinese Management Research, vol. 10(1), pages 29-54, March.
    6. Claudia U. Ciborra, 1996. "The Platform Organization: Recombining Strategies, Structures, and Surprises," Organization Science, INFORMS, vol. 7(2), pages 103-118, April.
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    Cited by:

    1. A. Georges L. Romme, 2019. "Climbing up and down the hierarchy of accountability: implications for organization design," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-14, December.
    2. Richard M. Burton, 2020. "Fit, misfit, and design: JOD studies that touch reality," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-7, December.
    3. Nangobi Racheal & Mshenga Patience Mlongo & Mugonola Basil, 2023. "Determinants of farmers’ organizational structural choices in Uganda," SN Business & Economics, Springer, vol. 3(8), pages 1-22, August.
    4. Rainer Alt, 2022. "Electronic Markets on platform transformation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 401-409, June.
    5. Paul C. Fenema & A. Georges L. Romme, 2020. "Latent organizing for responding to emergencies: foundations for research," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-16, December.

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