The overall study of strategic development in terms of organizational adaption are associated with the growth as well as execution of the explanatory and descriptive theories of varied strategic based options along with the overall degree of the potential level companies’ mobilization as an outcome to external as well as internal components which are influential and also based on strategic decision making. The main aim of the research was to evaluate the personal as well as combined explanatory power of the organizational strategic adaptation based theories. It is also based on the transformation in the strategic level content of a huge organization for so many years in the past. Methodically, the process is qualitative as well as descriptive and also analytical based study by nature (Lander and Heugens, 2017). There are many secondary data as well which is collected in the books associated with the current corporate history and also related with the data present in the official based media associated with the company. Then there is secondary data which is collected in the studies based on the corporate history as well as data present in the official documents associated with the company. The outcomes also show the complementary features that exist between the theories used to demonstrate the organizational strategic adaption based phenomenon. Among the important findings and studies, it also seems that the clarity of the organization strategic adaption based process is longitudinal approach is an element based requirements which are evaluated through multiple theoretical lenses. In addition, it also results from the communication between the external as well as internal elements of the company (Malatesta and Smith, 2014).
Following is the detailed discussion of the theories: -
Resource dependency theory: this theory mainly aims on the power as well as the dependency and the relationship that exists within the inter-organizational terms. As per the RDT assumptions, company must reduce the dependence on environmental resources specifically those that are scarce as well as critical by nature to the organizational level operations. There are number of strategies like partnership, vertical integration, multiple level of supply based association and alliances with the competitions are some of the instances of actions that favour organizational level survival which is also adverse environmental situation based on resources (Kenworthy and Verbeke, 2015).
Population ecology of the organization: the theory mainly assumes that an admittedly positioning which is deterministic by nature basically aims on the patterns of the success as well as failure of the companies that are competing for the similar set of resources. The theory also assumes that the concepts of variation, retaining the workforces and recruitment or selection from evolution level theory. As per the theory, for instance, adaptation is an operation of environmental based selection. The companies that survive thus are only those that best adapted to the requirement of environment under specific environmental situations.
Institutional level of theory is a theory which is much deeper and based on more resilient kind of features based on the social structure (Scott and Davis, 2015). It further considers the procedure by which the structure consisting the schemes or rules or norms and even the daily routines become settled as authoritative supervision based norms for the social behaviour. There are different and distinct elements of institutional based theory which can explain how every element can be developed, diffused, adapted over time and space. This also covers how it fall into disuse as well as decline.
The theories discussed above are based on many assumptions associated with the different dimensions based on relationship that exist between organization strategy environment. It can further be inferred, thus, the usefulness to the clarity of complementary level of environmental, individual components with potential level of intervention on the strategic adaptation part. For instance, theories like population ecology theory also takes a deterministic based position associated with the option of survival and organizational level success. Institutional theory points out the possibility of the strategic level choices as a method to adapt the company to perceived level environment. It is also obvious that any kind of attempt can be classified the theories within the determinism and voluntarism level continuum that can be criticized from time to time (Fumasoli and Huisman, 2013). But, the discussed theories also serve as the motive of the work to the level that it can seek to clear the explanatory conjunct potential of the theories when implemented to the study of strategic level organizational adjustment in longitudinal approach. The strategic management also studies and focus on the four key doubts about varied business activities. It asks all the relevant questions like what, who, why and how. The initial two primarily related to the strategic level content, while other are based on the strategic process. Strategic content is associated therefore with the overall scope of the company regarding the market where the company can compete and its mode of competition in individual markets. Generally, the strategies level content can be classified as corporate, competitive or operational or functional. There are number of corporate strategies that mainly comes from organization level scope along with constituting based decision that can be taken by the senior level management. There are number of corporate strategies that consist of so many answers to some key and important questions like what will be the market or what product or service will be offered or kind of structure of organization which is more rightly make sure the main motive. It is also important to understand that the methods in which people can relate with the stakeholders along with the outcomes that people want to or looking to accomplish. There are many examples of corporate strategies consisting diversification, internalization, acquisition and mergers and many more (Scott and Davis, 2015). The competitive level strategies are aimed on particular business and are aiming to decide the best kind of competitive level position in the market. Business based strategies consist of many answer to questions like how it competes in the market and kind of competitive positioning and what can be accomplished with the desired competitive advantages. For instances there are competitive level strategies focussing on the combination of various elements like cost leadership, differentiation and the aim. In the end, functional level strategies are further deployed from competitive based strategies to corporate one. They can also be constituted by the operational level functions conducted at functional areas required to accomplish the higher level strategic objectives. There are number of functional strategies that can answer many questions like the functional sectors aligned with competitive and corporate level strategies. Kind of distinct skills which are required to grow certain kind of capabilities. It also covers face based competitor level capabilities (Adegbite et al., 2018). There can be many examples of functional level strategies consisting functions like marketing, finance, operations and many more.
The discussion below describes various strategies taken up by the organizations in the light of organizational strategic adaption based theories. The discussed strategies are further presented in a chronological manner based on the order in which events actually occurs.
Local labour: the concept of training the local staff comes up as a main requirement in the operations of the organization. The theory of resource dependency theory can also be explained here as the movement which took place at the time since there is a shortage of trained level labour and the critical resources to organization based operations and intended level outcomes. With the help of performing training level initiative, first intrinsically and further externally, company further decreases its dependency on the overall resources and further become part to the economic and social level changes of the regional environment (Müller and Kunisch, 2017).
Capitalization: the theory of contingency is also there which helps in the gaining the clarity on the movement of the capitalization process made by the organizations and it also explains the pursuit of organizational level adaption in the face of environmental complexities causing as a result of most evolving productive level technical standards that impacts the competitive industry level dynamics. Then there is resource based dependency theory which can be explained as the capitalization of the organization in that served to reduce or sometimes overcome the organizational dependency on both scarce as well as critical finance or technological level resources, required to survive in the initial stage of organizational development and throughout the history (Pfeffer and SALANCIK, 2015).
Vertical integration: the process of vertical integration based events like opening of the commercial level subsidiaries and the getting hold of the trading partners abroad were mainly engaged in the market based coverage and the strengthening of the association of the organization with its consumers. theories like contingency theory can serve as a base of explanation for these kinds of events since it aims on the association that exist between the organizational structure and the environment. Organization structure based adaptation was primarily performed to accomplish product standards needed by its served as well as potential market. There is other vertical integration based events as well like casting, wire drawing, tooling and acquiring of the suppliers that have taken to decrease or control level cost that make sure that quality standards are met and attend to the technical level specification of the products or meet the much-needed operational deadline (Biermann and Harsch, 2017). There are other aspects as well like legislation based agility and the compliance that are also present in some kind verticalization based events. These events are usually associated with the questions of scarce and critically of resources as discussed by the resource dependency theory. It is important to understand that resources alone were not very rare by nature in the market. But they are highly critical associated with the cost, deadline achievement and the quality. From another perspective, transactional level cost based theory also assist in explaining such events of verticalization which is also based on the requirement to reduce the dependency of the company associated with its supplies primarily due the intention of the organization in keeping much needed control on operational level matters (Biermann and Harsch, 2017).
In the end, longitudinal level of analysis of strategic organization based adaptation is important as a process which need support from so many theoretical lenses. The overall analysis of the organizational history is based on the main and crucial events that allow comparative level observation of some theories which are explanatory based capacity individual and when considered at one place. With the help of population ecology based exception, these theories had high as well as moderate explanatory level of power based on studied elements (Bamberger et al., 2014). The theory like contingency theory also assist in explaining strategies of different levels along with highlighting the components structure and opinion as crucial element to be considered in the study of organizational based strategies in the face of varied environmental context. Institutional theory helps in explaining the strategies of many level which can highlight the rise in the amount as well as intensity of environmental pressure which is faced by the organizations because of the development. The resource dependency theory explains many strategies of different level by focussing on the centrality of many resources in the history of the organization.
Adegbite, O.E., Simintiras, A.C., Dwivedi, Y.K. and Ifie, K., 2018. Organisational Concepts and Theories of Adaptation. In Organisational Adaptations (pp. 27-48). Springer, Cham.
Bamberger, P.A., Biron, M. and Meshoulam, I., 2014. Human resource strategy: Formulation, implementation, and impact. Routledge.
Biermann, R. and Harsch, M., 2017. Resource Dependence Theory. In Palgrave Handbook of Inter-Organizational Relations in World Politics (pp. 135-155). Palgrave Macmillan UK.
Fumasoli, T. and Huisman, J., 2013. Strategic agency and system diversity: Conceptualizing institutional positioning in higher education. Minerva, 51(2), pp.155-169.
Kenworthy, T.P. and Verbeke, A., 2015. The future of strategic management research: Assessing the quality of theory borrowing. European Management Journal, 33(3), pp.179-190.
Lander, M.W. and Heugens, P.P., 2017. Better Together: Using Meta-Analysis to Explore Complementarities between Ecological and Institutional Theories of Organization. Organization Studies, p.0170840616677629.
Malatesta, D. and Smith, C.R., 2014. Lessons from resource dependence theory for contemporary public and nonprofit management. Public Administration Review, 74(1), pp.14-25.
Müller, J. and Kunisch, S., 2017. Central perspectives and debates in strategic change research. International Journal of Management Reviews.
Pfeffer, J. and SALANCIK, G., 2015. EXTERNAL CONTROL OF ORGANIZATIONS—RESOURCE DEPENDENCE PERSPECTIVE. Organizational Behavior 2: Essential Theories of Process and Structure, 2, p.355.
Scott, W.R. and Davis, G.F., 2015. Organizations and organizing: Rational, natural and open systems perspectives. Routledge.
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