Analogical foundation of the scope of organizational change

Analogical foundation of the scope of organizational change Purpose – The purpose of this study is to attempt to analyze how the distance of analogies used during the strategy formulation process is a critical driver used to explain the different scopes of implemented changes. Design/methodology/approach – This study was based on field research using primary data gathered from 70 firms by means of an 83‐item survey. The questions were carefully constructed and answered by top managers according to a four‐point scale. The three hypotheses were analyzed using multiple linear and quadratic regression analysis. Findings – The study defines a new concept of analogy's distance. Firms implement incremental changes when top managers use either short‐ or long‐distance analogies within the strategic formulation process, whereas radical changes are implemented when top managers apply medium‐distance analogies. Research limitations/implications – Even though the response rate was higher than recommended by specialists (21.5 percent), the sample was small, and also, more valid and reliable measures of different analogical distances and scopes of change are needed. The findings of this study allow us to make theoretical extensions to the cognitive theory of the strategy formulation process, strategic renewal theory, knowledge‐based view of the firm, storytelling theory of organizations, and the upper echelon theory. Practical implications – Scholars from various disciplines and practitioners agree that analogies are a useful tool for many organizational matters (i.e. design strategy, renewal strategy, conflict management, understanding complex environments, facilitating communications, creating the need for change, and so on). If the firm's upper managers are familiar with external business models, they may use those as analogies in order to obtain strategic recommendations and advice which can be used to design an effective strategy, understand complex management issues, create the need for change, exploit new opportunities to achieve competitive advantages, and so on. Thus, managers have an advantage when they have accumulated a wealth of knowledge about other business models along with life experiences that may come from their past job experiences, participation in development programs with case‐oriented methodology, and being part of business workshops and congress. This information could be used as analogies for undertaking organizational changes to meet daily challenges faced by the firm. Originality/value – The current literature does not address the different distances of analogies and how they are related to the magnitude of organizational changes. This study emphasizes the importance of the type of analogy being used as a tool to build the firm's business model. The concept of analogical distance has not been discussed in management literature. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Organizational Change Management Emerald Publishing

Analogical foundation of the scope of organizational change

Loading next page...
 
/lp/emerald-publishing/analogical-foundation-of-the-scope-of-organizational-change-9LKpRwG0jj
Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
0953-4814
DOI
10.1108/09534811211199646
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this study is to attempt to analyze how the distance of analogies used during the strategy formulation process is a critical driver used to explain the different scopes of implemented changes. Design/methodology/approach – This study was based on field research using primary data gathered from 70 firms by means of an 83‐item survey. The questions were carefully constructed and answered by top managers according to a four‐point scale. The three hypotheses were analyzed using multiple linear and quadratic regression analysis. Findings – The study defines a new concept of analogy's distance. Firms implement incremental changes when top managers use either short‐ or long‐distance analogies within the strategic formulation process, whereas radical changes are implemented when top managers apply medium‐distance analogies. Research limitations/implications – Even though the response rate was higher than recommended by specialists (21.5 percent), the sample was small, and also, more valid and reliable measures of different analogical distances and scopes of change are needed. The findings of this study allow us to make theoretical extensions to the cognitive theory of the strategy formulation process, strategic renewal theory, knowledge‐based view of the firm, storytelling theory of organizations, and the upper echelon theory. Practical implications – Scholars from various disciplines and practitioners agree that analogies are a useful tool for many organizational matters (i.e. design strategy, renewal strategy, conflict management, understanding complex environments, facilitating communications, creating the need for change, and so on). If the firm's upper managers are familiar with external business models, they may use those as analogies in order to obtain strategic recommendations and advice which can be used to design an effective strategy, understand complex management issues, create the need for change, exploit new opportunities to achieve competitive advantages, and so on. Thus, managers have an advantage when they have accumulated a wealth of knowledge about other business models along with life experiences that may come from their past job experiences, participation in development programs with case‐oriented methodology, and being part of business workshops and congress. This information could be used as analogies for undertaking organizational changes to meet daily challenges faced by the firm. Originality/value – The current literature does not address the different distances of analogies and how they are related to the magnitude of organizational changes. This study emphasizes the importance of the type of analogy being used as a tool to build the firm's business model. The concept of analogical distance has not been discussed in management literature.

Journal

Journal of Organizational Change ManagementEmerald Publishing

Published: Feb 10, 2012

Keywords: Analogy; Distance; Strategy formulation process; Organizational change; Renewal strategy; Managers

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off