Navigating through institutional complexity: adoption of a process view in functional organizations

Abstract

Purpose The purpose of this paper is to contribute to the ongoing debate on the appropriate organizational design for the process management implementation. Using the lens of institutional theory, the paper discusses how organizations adapt to a required implementation of a process view alongside their organizational structures. Design/methodology/approach The study is designed as a single case study of a Norwegian shipping company. On the one hand, shipping companies are traditionally managed by functions due to the specifics of maritime operations and high safety-related risks of the work. On the other hand, the rising demands of regulatory bodies and customers within the offshore logistics are calling for implementation of a process view within the organizations, which implies management by processes. Findings The study analyses conflicting requirements of the institutional environment influencing organizational structure and how these conflicts are addressed by the company. Besides, it describes the decoupling mechanism the company uses to balance between such requirements and adapt to the changes of the institutional pressures. Originality/value The study introduces a situational-based organizational structure as an alternative for both process and vertical views implementation within the companies operating in the highly demanding institutional environments.