Designing the Way Out: The Structural Resolution of Organizational Paradoxes

Abstract

We challenge the prevailing notion that paradoxes are inherently persistent and unresolvable. Borrowing the lens of axiomatic design (AD) from engineering, we argue that paradox theory’s focus on individual coping mechanisms overlooks the potential for organizational design to address the root causes of paradoxes. Through the analysis of a historical case (the development of the first aircraft) and a contemporary example (a firm adopting a dual business model) we demonstrate how underlying structural causes contribute to the emergence of paradoxes and offer alternative, structural solutions as a means to resolve the tensions. We thus critique paradox theory’s assumption of persistence, its neglect of structural aspects, and its lack of coherence regarding the nature and origins of competing demands. Overall, our application of AD principles serves to clarify the interplay between organizational reality and actors’ sensemaking, and thereby casts a broader light on the sources, ontology, and resolution of paradox.

Keywords: paradox theory, organizing paradoxes, organization design, axiomatic design, competing demands