By Anabella Davila, Marta Elvira, Jacobo Ramirez, Laura Zapata-Cantu
Explores the concept that of complexity and analyses how organizational governance can give a contribution to environmental sustainability. a typical subject matter in those chapters is that enterprises actively interact with their environments. hence, organizational responses are partially the results of iterative methods with the surroundings.
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Additional resources for Understanding Organizations in Complex, Emergent and Uncertain Environments
Example text
Child, Rodrigues and Frynas, 2009). The table postulates that the likelihood of organizational actors employing any one of these modes depends largely on the power that they have vis-à-vis other actors 24 How Organizations Engage with External Complexity within their organization’s environment. Although this analysis may well apply to all environments, the illustrations we shall provide refer to environments with relatively high cognitive and relational complexity, which is the case of both Brazil and China.
This means that organizations adopting this mode of engagement also rely on the judgement of external parties. In complex, institutionally immature environments like Brazil and China, such judgement is to a significant extent likely be intuitive, drawing on experience and even ‘gut feeling’ (Khatri and Ng, 2000). In achieving a reduction in cognitive complexity through an increased reliance on the judgement of external parties, a policy of complexity penetration is likely to combine elements of rationality with those of intuition in organizations’ strategic decision-making.
These procedures typically employ analytical techniques dependent on codification and abstraction. It has frequently been argued that environmental conditions are relevant in this way to the degree of rationality characterizing strategic decision-making in organizations (Elbanna, 2006). Relational complexity The ability to pursue a complexity reduction policy depends on an organization having or mobilizing the power to induce external organizations to accept that policy. This could involve the organization enacting the environment to reduce its complexity through using its financial and technological strengths as levers to introduce its own norms and preferences.