Understanding Dynamic Capabilities at the Subunit Level: Operational Flexibility and the Crucial Role of Organization Design and Information Sharing

Organizations are currently facing increasingly dynamic environments that require fast action in high-velocity settings. Recent research on dynamic capabilities purports that organizations need to build these capabilities to successfully confront increasing uncertainty. Among these capabilities, authors suggest that flexibility may be a key ingredient needed to adapt to uncertainty and change. Yet, a review of the literature reveals that there is a gap that neglects subunit level activities at the lower levels of the firm, and thus it is difficult to determine how to build flexibility at this level. In this study, I examined key factors related to operational flexibility, defined as the ability of subunits to change day-to-day or within a day with the operational problems and changes….

Author: Gardner, Sharyn

Source: University of Maryland

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