Purpose The paper identifies the factors that shape the intensity and perceived effectiveness of communications between heads of manufacturing units of multinational corporations (MNCs).
Design/methodology/approach The paper is based on a survey of heads of MNCs’ manufacturing subsidiaries in Russia.
Findings We found that the intensity of most inter-unit communication channels depends on the speed and magnitude of the changes experienced by manufacturing subsidiaries in products and production technologies. The assessment of the efficiency of a communication channel with high media richness strongly correlates to the intensity of its use.
Practical implications Subsidiary managers are quickly mastering most easy-to-use channels (i.e., e-mail exchange, talking on the phone, reading corporate magazines) by themselves, but are minimizing their participation in time-consuming activities (i.e., corporate-wide and special conferences, arranging informal meetings with foreign peers) unless they have to manage rapid changes in products and production technologies. Thus, to intensify the voluntary use of inter-unit channels with high media richness, headquarters should instill in subsidiary managers the value of cooperation between manufacturing units. Moreover, the effectiveness of inter-unit channels with high media richness should be properly demonstrated to subsidiary managers to assuage their initial reluctance.
Originality/value This paper presents communications between manufacturing units of multinational corporations not as the transfer of abstract knowledge but as routine processes of exchange of detailed information on valuable improvements of the existing practices and solutions to technical and organizational problems common in facility development and mastering new products.
Purpose – The purpose of this paper is to address issues related to organizational design and strategy fit by examining the “strategic stretch” that occurs when there exists a mismatch between an organization’s structure and firm-level strategy. Design/methodology/approach – The paper contains a discussion of relevant issues and a presentation of research that considers the relationship between organizational design, strategy selection, and the competitive environment within which a firm operates. This research includes an analysis of a survey of top managers and an evaluation of organizational design and firm strategy to determine the existence of strategic misfit. Findings – Misfits in strategy and structure exist because of Russian managerial proclivity to maintain direct control through centralization of all strategic formulations and because of high risk-taking behaviors of Russian managers. While organizational inertia is a clear driver of organizational structure, cultural inertia also exists and, in the case of Russian organizational design, societal organizational culture drives strategy misfits. Practical implications – An understanding of strategic misfits is crucial for managers so that they may recognize these disconnects early and make improvements as market or firm conditions changes. The results of the analysis of Russian firms suggest that in designing efficient organizations, greater attention should be placed on the specific impact of societal organizational culture. In addition, practitioners in organizational design consulting positions should make clear, whenever they attempt to eliminate misfits between existing structures and current strategies, the need to develop effective stretch for implementation of intended strategies. Originality/value – The paper provides a unique application of the connection of strategy and organizational design under conditions of extreme uncertainty. This paper also extends the analysis of organizational design and strategy to firms operating in emerging markets. Rapid changes in dynamic, emerging markets provide fertile testing grounds for management theory and practices; this paper examines a unique set of empirical evidence.
The purpose of this paper is to address issues related to better identification of strategic orientation of the firm and the impact of strategic orientation on sustainable development of the firm. The paper presents an overview of the existing literature on strategic orientation of the firm, reexamines the major findings and fills the discovered gaps in theoretical constructs and models by new models. In this paper a new model of strategic orientation is proposed based on the type of relationship of a firm with its stakeholders who are considered as suppliers of key strategic resources. Relationship between the firm and its particular stakeholder is presented on an input-output like scheme and the variants of the position of the firm towards all its stakeholders serve as foundation for determining strategic orientation types. Next we present orientation of firms of different strategic types towards sustainability. The paper outlines several novels problems for strategic management and organizational design theory. The paper provides a novel treatment of strategic orientation and particular strategic types.
Purpose - This paper aims to address issues related to informal relationships in modern Russian organisations, namely the extent of these relationships, the conditions of their existence and their connection with formal relations. Design/methodology/approach - The paper contains a discussion of the relevant theoretical issues and a presentation of empirical research conducted by the authors through a survey of the staff of a number of businesses based in major cities of the Russian Federation. The study also includes an analysis of an expert survey of top managers and an assessment of the role of the informal component in the social and labour cooperation of workers and employers in modern Russian organisations. Findings – It is concluded that, with the further advancement of Russia towards establishing an effective market economy, there is a general trend towards a reduction in the role of personal relationships in social and labour relations, although a complete rejection of protectionism in this area is not possible because of certain peculiarities of the Russian mentality. Practical implications - Knowledge and understanding of the Russian national identity and its influence on the informal component of workplace labour issues will enable managers to be more effective in building and developing modern international business relations. Originality/value – The paper studies a unique set of empirical data obtained by using authoring tools carefully tailored to the specific conditions of Russia. The results of the study will enable more effective management of informal relations in modern organisations.
Abstract Purpose This paper explores the phenomenon of ribbon-cutting ceremonies for new overseas subsidiaries and demonstrates the possibility of modifying such ceremonies to place greater emphasis on intra-organizational communications. Design/methodology/approach A careful study of 200 videos on 73 ribbon-cutting ceremonies in Russia between 2012 and 2018. Findings Under the current prevalent design, ribbon-cutting ceremonies mostly entail interorganizational communication, i.e., communication between foreign investors and representatives of the authorities of the host country. Meanwhile, in addition to the standard ribbon-cutting ceremonies, we observe several videos on intra-organizational communication, i.e., pseudoformal meetings between the team from the corporate headquarters and employees of a newly built factory. During such meetings, top corporate executives express the importance of the factory vis-à-vis the future of the whole corporation, state their expectations for the further development of the factory’s production facilities, postulate the desired working atmosphere in the factory, and appeal for the commitment and assistance of the employees in safeguarding the future of the investment. Originality/value The findings provide a basis for a broader discussion on the role of ribboncutting ceremonies as staged large-scale events organized by firms to articulate, highlight, disseminate, rationalize, as well as mobilize internal and external support for their strategy.
Purpose – To establish what demographic characteristics (gender, generations, and organisational tenure) play a role in employee perceptions of organisational culture, commitment, and identification in Russian public organisations.
Design/methodology/approach – The data were collected electronically from 248 employees of two public organisations. Three questionnaires were used.
Findings – Organisational tenure plays a central role in the way how employees perceive organisational culture; tenure also shapes the levels of both commitment and identification. The specific finding of Russian settings is that the longer employees work for a company, the lower the levels of psychological attachments they demonstrate, while it is not the case for some existing international results.
The other findings correspond with those in international studies, in which females were more psychologically attached to the organisation and showed a higher level of identification and lower rates of negative forms of this concept than males did. The older the employees are, the higher the level of identification they express.
Practical implications – Managers working in Russian settings can struggle with engaging and retaining employees. Understanding the demographic effects can help alleviate these challenges.
Originality/value – Based on empirical findings, this paper contributes to the literature on organisational socialisation by providing evidence of the damaging effects of the length of organisational tenure on psychological attachment to the company (in the form of commitment and identification). Additionally, tenure is the shaping factor of employee perception of organisational culture.