Organizational Dynamics - Does Perception Influence Action?

Proceedings of 8th International Conference «Economic Integration, Competition and Cooperation», 6-9 April, Opatija, University of Rijeka – Faculty of Economics, CD with Full papers

13 Pages Posted: 19 Mar 2013 Last revised: 21 May 2013

See all articles by Marija Kastelan Mrak

Marija Kastelan Mrak

University of Rijeka - Faculty of Economics

Danijela Sokolic

University of Rijeka - Faculty of Economics

Nenad Vretenar

University of Rijeka - Faculty of Economics

Date Written: March 13, 2013

Abstract

This research aims at gaining a better understanding of the interconnectedness between organizational structuring and the contemporary (changing) business environments. In the paper we address the notion of "strategic fit" and try to observe to what extent this perception affects organizational adjustment.

Organizational structuring and organizational change are complex phenomena, difficult to observe and subject to a variety of theoretical explanations. We base our research on the well established assumption that "structure follows strategy" (Chandler, 1962) and evolutionary explanations of organizational structure and performance. Theories and models (S-C-P, population-ecology, resource dependency and the similar) gained popularity during the seventies and led to the contemporary, complex, understanding of the relationship between behavioral elements and economic considerations, as well as to the concept of organizations as open system.

With the expectation that dynamic adjustment is precondition of successful business performance, organizational change would be a reaction to a firm’s capacity to observe, interpret and react to chances and treats in its relevant environment. Therefore, we propose to examine how a difference in perception of factors affecting a company’s competitive position impacts on its actions. To do so we used a questionnaire addressed to companies listed on the Croatian Stock Exchange inquiring on the factors affecting business performance. The questionnaire was run in the spring of 2009 and repeated in the spring 2010 as part of a broader project that looks at Croatian business entities organizational adjustment to competition in the European market.

Keywords: strategic fit, tracking organizational change, environmental awareness, competitiveness, performance

JEL Classification: L10

Suggested Citation

Mrak, Marija Kastelan and Sokolic, Danijela and Vretenar, Nenad, Organizational Dynamics - Does Perception Influence Action? (March 13, 2013). Proceedings of 8th International Conference «Economic Integration, Competition and Cooperation», 6-9 April, Opatija, University of Rijeka – Faculty of Economics, CD with Full papers. Available at SSRN: https://ssrn.com/abstract=2232636 or http://dx.doi.org/10.2139/ssrn.2232636

Marija Kastelan Mrak (Contact Author)

University of Rijeka - Faculty of Economics ( email )

Ivana Filipovića 4
Rijeka, 51000
Croatia

Danijela Sokolic

University of Rijeka - Faculty of Economics ( email )

Ivana Filipovića 4
Rijeka, 51000
Croatia

Nenad Vretenar

University of Rijeka - Faculty of Economics ( email )

Ivana Filipovića 4
Rijeka, 51000
Croatia

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