Using old theories to find novel solutions in organizational design of large established firms

Abstract

PurposeThis study aims to describe how large corporations, facing digitalization and sustainability, can use established models and theories to find appropriate organizations design for these “new” challenges.Design/methodology/approachThe information processing perspective presented by Jay Galbraith (Galbraith, 1974) can be an appropriate platform to analyze organizational requirements, also in new complex and uncertain situation. The authors use the Miles and Snow (1978) typology to explain how traditional design can be appropriate in the new world of sustainability and digitalization.FindingsWith the new types of business models, the design should have a holistic view. The design should be split into three levels: the corporation as a whole, the large business units and the operating units. Each of these units can follow traditional organizational forms with an internal market-based coordination combined with digital platform systems.Originality/valueBoth large and small corporations now face big challenges related to adapting their business models, managerial processes and organizational structures for digitalization and sustainability. Digitalization and sustainability combine the various pieces of the corporation into a tightly coupled network with a real time coordination of activities making it difficult to obtain local adjustments without disturbing the whole. At the same time, there is a strong need for both being locally agile with a focus on effectiveness and at the same time being very efficient. The literature calls for new organizational forms to handle this situation. The authors show that “old” designs properly coordinated can be an appropriate design as well.