Strategy Implementation and Organizational Change: How Formal Reorganization Affects Professional Networks

Susan E. Lynch, Louise Mors

Research output: Contribution to journal › Journal article › Research › peer-review

Abstract

Strategy implementation is difficult, particularly as it often requires changes in formal organization structures. Prior research has shown that change in the formal structure may affect employee networks. Yet, we know relatively little about how such changes affect different network ties. This paper considers how formal structural change affects senior managers’ ability to maintain their intraorganizational networks. The hypotheses are tested on sample of 884 work-related relationships of 96 partners in a global professional services firm. This firm had recently implemented a new strategy, which led to a change in the product-market focus and the resulting formal structure. Our findings reveal that the characteristics of a specific network tie determine whether it is affected by formal structural change. In particular, we find that network ties that are highly embedded in the social structure are more likely to be affected by change in the formal structure. In contrast, ties that are relationally embedded are less likely to be affected by change in the formal structure. We discuss the theoretical and practical implications of these results. In particular, the findings may have consequences for the success of strategy implementation and strategic transformation efforts.
Strategy implementation is difficult, particularly as it often requires changes in formal organization structures. Prior research has shown that change in the formal structure may affect employee networks. Yet, we know relatively little about how such changes affect different network ties. This paper considers how formal structural change affects senior managers’ ability to maintain their intraorganizational networks. The hypotheses are tested on sample of 884 work-related relationships of 96 partners in a global professional services firm. This firm had recently implemented a new strategy, which led to a change in the product-market focus and the resulting formal structure. Our findings reveal that the characteristics of a specific network tie determine whether it is affected by formal structural change. In particular, we find that network ties that are highly embedded in the social structure are more likely to be affected by change in the formal structure. In contrast, ties that are relationally embedded are less likely to be affected by change in the formal structure. We discuss the theoretical and practical implications of these results. In particular, the findings may have consequences for the success of strategy implementation and strategic transformation efforts.
LanguageEnglish
JournalLong Range Planning
Volume52
Issue number2
Pages255-270
Number of pages16
ISSN0024-6301
DOIs
StatePublished - Apr 2019

Bibliographical note

Published online: 19. February 2018

Keywords

  • Organizational change
  • Strategy implementation
  • Strategic transformation
  • Intraorganizational relationships
  • Formal structure
  • Professional networks

Cite this

Lynch, Susan E. ; Mors, Louise. / Strategy Implementation and Organizational Change : How Formal Reorganization Affects Professional Networks. In: Long Range Planning. 2019 ; Vol. 52, No. 2. pp. 255-270
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Lynch, SE & Mors, L 2019, 'Strategy Implementation and Organizational Change: How Formal Reorganization Affects Professional Networks' Long Range Planning, vol. 52, no. 2, pp. 255-270. DOI: 10.1016/j.lrp.2018.02.003

Strategy Implementation and Organizational Change : How Formal Reorganization Affects Professional Networks. / Lynch, Susan E.; Mors, Louise.

In: Long Range Planning, Vol. 52, No. 2, 04.2019, p. 255-270.

Research output: Contribution to journal › Journal article › Research › peer-review

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Lynch SE, Mors L. Strategy Implementation and Organizational Change: How Formal Reorganization Affects Professional Networks. Long Range Planning. 2019 Apr;52(2):255-270. Available from, DOI: 10.1016/j.lrp.2018.02.003

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