tailieunhanh - Strategic Cultures of Transformative Organization_11

Tham khảo tài liệu 'strategic cultures of transformative organization_11', khoa học xã hội, kinh tế chính trị phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 432 TRANSFORMATIVE ORGANIZATIONS Hitt and Ireland 1985 . The alternative argument on the same issue is that firms are more responsive when they are small and become more rigid as they grow larger Hannan and Freeman 1984 . Since large firms adopt diversification strategy to achieve growth in the regulated era Chaudhuri et al. 1982 they seek to reduce the business and product portfolio concentrate on increasing the scale of operation in selected business. Large-sized firms increase geographical scope for growth in the liberalized environment. To offset the handicap of bureaucracy associated with larger organizations larger firms endowed with greater slack resources share resources across divisions more than others. As such the following relationships of size with corporate strategy and performance variables are proposed Proposition 5 A Initial size has a direct negative relation with business scope. Proposition 5B Initial size has direct positive relations with geographical scope and sharing of resources. Proposition 5C Initial size has direct negative relations with both profitability and market performance. The effect of age on organization has been extensively researched by organizational ecologists to explain and predict survival and failure primarily from three contrasting perspectives liability of newness and the liability of adolescence and liability of obsolescence Henderson 1999 . However there is a general agreement that inertia is more for older firms than younger ones. Due to longer existence aged firms have higher reputation in the market. Older firms tend to be more diversified as growth through diversification was a more preferred route in the pre-liberalized period. In the post-liberalization period older firms consolidate their businesses and reduce their business scope. They reorganize business portfolio around the core which reduces the diversity in operation. On the contrary younger firms make aggressive strategic changes Hannan and Freeman 1984 .