Contingency theory. SoS Liu Spring 2014 Per Åman. The price – performance trade-off. Fit and adaptation – structure and process. “It is not the strongest o f the species that survive, nor the most intelligent, but the one that is most responsive to change” Charles Darwin.
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“It is not the strongest of the species that survive, nor the most intelligent, but the one that is most responsive to change”
Two qualities: Structural fit – ability to adapt
Success is dependent upon
1. formulation of purpose (objective)
2. and delivery of the purpose (implementation)
Strategies are contingent/ dependent upon their context
Contingent upon what?
What determines strategy and structure?
Stable (little change) – unstable (dynamic, fast changing)
‘Turbulence levels’ (Ansoff 1967), Burns and Stalker (1961)
Moderately dynamic – highly dynamic (Eisenhart, 1995, 2000)
2. Technology - Diversity of task environments
Environment – Strategy - Structure
Analysis – Formulation - Implementation
Contingency – congruency – consistency (external and internal fit)
Efficiency and effectiveness
A teleological perspective
A machine metaphor
A utilitarian perspective – Darwin/2
A structural perspective – Darwin/2