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S P R I N G E R B R I E F S I N B U S I N E S S

Oluwaseun E. AdegbiteAntonis C. SimintirasYogesh K. DwivediKemefasu I� e

Organisational Adaptations A Pluralistic Perspective

SpringerBriefs in Business

More information about this series: http://www.springer.com/series/8860

Oluwaseun E. Adegbite • Antonis C. Simintiras Yogesh K. Dwivedi • Kemefasu Ifie

Organisational AdaptationsA Pluralistic Perspective

A comprehensive review and analysis of concepts and underlying paradigms that underpin success and failure in adaptation processes.

ISSN 2191-5482 ISSN 2191-5490 (electronic)SpringerBriefs in BusinessISBN 978-3-319-63509-5 ISBN 978-3-319-63510-1 (eBook)DOI 10.1007/978-3-319-63510-1

Library of Congress Control Number: 2017946314

© The Author(s) 2018This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed.The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

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This Springer imprint is published by Springer NatureThe registered company is Springer International Publishing AGThe registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Oluwaseun E. AdegbiteSchool of ManagementSwansea University Swansea, United Kingdom

Yogesh K. DwivediEmerging Markets Research

Centre (EMaRC), School of Management

Swansea UniversitySwansea, United Kingdom

Antonis C. SimintirasCollege of Business AdministrationGulf University for Science and TechnologyHawally Kuwait

School of Management, Swansea University Swansea, United Kingdom

Kemefasu IfieSchool of Business and EconomicsLoughborough University, Loughborough

Leicestershire United Kingdom

To my parents from whom I have learnt and seen resilience and tenacity of purpose.

–Oluwaseun E. Adegbite

To Mary and Constantine.

–Antonis C. Simintiras

To Anju, Shagun and Saanvi.

–Yogesh K. Dwivedi

To Pereye.

–Kemefasu Ifie

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Preface

It all started with a thought (just like a seed!) during summer 2014. After careful thinking of how individuals and businesses cope and soar amidst everyday chal-lenges, we decided to undertake a study in this respect. To some extent, the thought of how enterprises adapt to challenges in their business environments reflects how we individuals cope with challenges that life throws at us. Organisations are ‘indi-vidual’ – entities in their own rights. Businesses have devised ways of surviving their environments. They do this by downsizing, merger and acquisition, business ecosystems, and through other forms of collaborations and strategic alliances. While this is true, current research works into generic predictors and/or concepts that enhance the transformation process are short in supply. Research in this respect is vital for both theory development and practice. This is particularly important so as to align the theories and concepts of organisational adaptations with realities in the business environment. Thus, there is need to explore this gap through a painstaking study. With this in mind, a thorough review of literature into adaptations in organ-isations will be a good starting point. These considerations led to writing this impor-tant monograph. We hope readers find it insightful, enriching and resourceful. Not only in knowledge about adaptations in organisations but more importantly how the enumerated suggestions help business executives adapt and thrive in their dynamic business environments.

The monograph purposefully takes a generic approach with the hope that it will be applicable to many areas in the field of business management. A case study of how Kodak and Fujifilm responded to digitalisation of photographic film industry was deliberately selected for this study. This was borne out of the global application and relevance of digital technology to contemporary businesses. It was also selected because it was an example of a major adaptation challenge. This is an important case of technology discontinuity and change in customers’ tastes and preferences. We argue that many global brands are often contending with such similar issues and real-life challenges. Simply put, today’s business environment demands a new way of doing business that challenges brands’ existing core business philosophy.

It is an indisputable fact that contemporary business organisations operate in very challenging business environments regardless of the industry. The advent of

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globalisation, advancement in technology, fierce competition, unstable (fragile) global economic outlook, cloudy world political trends (e.g. BREXIT and EU face- - off and implications for global trade, US presidency, Russia and China influence in world political arena), government regulations and of course the persistent demand for increase in value for products/services/expertise offerings at both B2B and B2C levels call for rethink in the way of doing business. This necessitates that firms must continuously strive to remain competitive in their products offerings. Of all the identified influences, we argue that fragile global economic outlook, technological advancement and increasing customers’ knowledge that influence their tastes and preferences are the most pressing for business organisations. These factors call for rethink/modification(s) in how businesses are conducted.

In many industries, the era of being long-term market leader has since passed. The focus has shifted to continuously adapting business resources (in most instances, coupled with customers’ resources) to gain either temporary advantage over com-petitors or developing competitive advantage which may either be outdated by pre-vailing market exigencies or need continuous reviewing. The story is not different in every aspect of business management—sales and marketing, operational man-agement, e-business, human resource management and supply chain management. No industry is spared although the need for organisational modification varies from industry to industry. It is visibly noticed in sectors that are highly dependent on information communication technology. Of note are the entertainment industry (football business, music, movies and other affiliated sectors), automobile industry and most especially the unabated competition in smartphones, computer games and other associated information technology industries. So then what is the way forward to survive the onslaught of the highly dynamic business environment? We argue the answer is continuously adapting organisational resources to achieve corporate goals and objectives.

Organisational adaptations do come with their attendant challenges while it may be relatively possible for small size or young firms to adapt its resources to the caprices of its business environment; the story in most cases cannot be assumed for matured, large size multinational firms. The process of adaptations in small and moderate size firms is complex, intriguing and demanding. The process is even more daunting in large firms particularly those operating in high volatile markets; yet it is an unavoidable reality every executive must face in order to remain competi-tive and ensure superior firm performance.

So then how can firm confront various strategic managerial challenges confront-ing them? How can they effectively manoeuvre and navigate highly fluid corporate business environment using executive radar without compromising value or supe-rior performance for firm survival? We offer some suggestions and insights into this organisational phenomenon. While it is construed that the concept of organisational adaptations exists in many management literatures, what is evidently lacking is a pluralistic approach that underpins the fundamental concepts and processes in which adaptations take place. A pluralistic approach provides an insight into the complex nature of this important organisational concept.

Preface

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The continued scholarly work on this subject will raise the possibility of enhanc-ing firm survival. This monograph is placed as an important leap in this regard. It suggests the critical elements within the organisations that every executive must address in order to remain competitive. It takes a pluralist approach in trying to broaden our knowledge on organisational adaptations. An exploratory delve into existing literature in organisational study was employed with biased for content, context and process framework and processual analytic case study approach in an attempt to identify, determine and understand the intricacies of adaptations going on in various business organisations.

Preface

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Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Organisational Adaptations: A Pluralistic Perspective . . . . . . . . . . . 1 1.2 Why a Pluralistic Perspective? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.3 Differences Between Change and Adaptation . . . . . . . . . . . . . . . . . 6 1.4 Aim and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.5 Content, Context and Process (CCP) Framework,

Processual and Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . 8 1.6 Structure of Monograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2 The Organisation Business Environment . . . . . . . . . . . . . . . . . . . . . . . 11 2.1 The Dimensions of Business Environment . . . . . . . . . . . . . . . . . . . . 11 2.2 Environmental Uncertainty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2.3 Environmental Complexity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.4 Environmental Munificence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2.4.1 Environmental Munificence Levels . . . . . . . . . . . . . . . . . . . 17 2.4.2 Environmental Munificence Types. . . . . . . . . . . . . . . . . . . . 20

2.5 Discussion and Concluding Points on Business Environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3 Organisational Concepts and Theories of Adaptation . . . . . . . . . . . . 27 3.1 Resource-Based View (RBV). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.2 Contingency [or Environmental Contingency] Theory . . . . . . . . . . 29

3.2.1 Organisational Performance . . . . . . . . . . . . . . . . . . . . . . . . . 30 3.2.2 Power Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 3.2.3 Causal Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 3.2.4 Independent Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.2.5 Multiple Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.2.6 Planned Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.2.7 Scheduling of Organisational Change . . . . . . . . . . . . . . . . . 31

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3.3 Strategic Choice Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.3.1 The Human Agency and Choice . . . . . . . . . . . . . . . . . . . . . 32 3.3.2 The Nature of Environment . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.3.3 The Quality of Relationship Between the Organisational

Agent and the Environment . . . . . . . . . . . . . . . . . . . . . . . . . 33 3.4 Resource Dependence Theory (RDT) . . . . . . . . . . . . . . . . . . . . . . . 34 3.5 Organisational Ecology (OE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.6 Organisational Behaviour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 3.7 Institutional Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.8 Organisation Ambidexterity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3.9 Interpretative Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.10 Transaction Cost Economics (TCE) . . . . . . . . . . . . . . . . . . . . . . . . 39 3.11 Complexity Theory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3.12 The Law of Requisite Variety (LRV) . . . . . . . . . . . . . . . . . . . . . . . . 42 3.13 Management Studies and Theoretical Perspectives . . . . . . . . . . . . . 43 3.14 Discussion and Conclusion of Organisational Concepts

and Theories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4 Adaptive Behaviour Paradigms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4.1 Adaptive Behaviour Paradigm Explained . . . . . . . . . . . . . . . . . . . . 49 4.2 Market Orientation (MO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

4.2.1 Information (Intelligence) Gathering . . . . . . . . . . . . . . . . . . 53 4.2.2 Information Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . 54 4.2.3 Responsiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

4.3 Entrepreneurial Orientation (EO) . . . . . . . . . . . . . . . . . . . . . . . . . . 55 4.3.1 Autonomy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.3.2 Innovativeness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.3.3 Risk Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 4.3.4 Proactiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 4.3.5 Competitive Aggressiveness . . . . . . . . . . . . . . . . . . . . . . . . 59

4.4 Time Orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 4.5 Learning Orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 4.6 Managerial Orientation (MNO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 4.7 Firm Resources and Reconfiguration Orientation (FRRO) . . . . . . . 66 4.8 Strategic Orientation (SO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

4.8.1 Linear Strategy Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 4.8.2 Adaptive Strategy Model . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 4.8.3 Interpretive Strategy Model . . . . . . . . . . . . . . . . . . . . . . . . . 70

4.9 Stakeholder Orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 4.10 Firm’s Structure and Production Architecture (FSPA) . . . . . . . . . . 75 4.11 Discussion and Conclusion on Adaptive

Behaviour Paradigms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Contents

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5 Dynamic Capabilities: Drivers of Organisational Adaptations . . . . . 81 5.1 Dynamic Capabilities in Organisational Adaptation . . . . . . . . . . . . 82 5.2 Dynamic Capabilities as Drivers of Organisational Adaptations . . . 82 5.3 The Challenges of Dynamic Capabilities in Adaptation

Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 5.3.1 The Challenge of Recursiveness in Dynamic

Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 5.3.2 The Challenge of Solving Organisational Problems

with Dynamic Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 89 5.4 Modes of Organisational Adaptations . . . . . . . . . . . . . . . . . . . . . . . 90

5.4.1 Unstable Mode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 5.4.2 Stable Mode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 5.4.3 Neutral Mode . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

5.5 Discussion and Conclusion on Dynamic Capabilities . . . . . . . . . . . 92

6 Adaptations in Management Studies and Methodological Approaches in Adaptations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 6.1 General Overview of Adaptations in Management Studies . . . . . . . 95 6.2 Adaptations in Business Relationships . . . . . . . . . . . . . . . . . . . . . . 97 6.3 Types of Adaptations in Business Relationships . . . . . . . . . . . . . . . 99 6.4 Towards a Synthesised Methodology in Organisational

Adaptations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 6.4.1 Overview of CCP Framework . . . . . . . . . . . . . . . . . . . . . . . 100 6.4.2 Process and Processual Analysis . . . . . . . . . . . . . . . . . . . . . 101

6.5 Processual Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 6.6 Case Study Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 6.7 Research Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 6.8 Discussion and Summary on CCP, Processual

Analysis and Case Study Method . . . . . . . . . . . . . . . . . . . . . . . . . . 106 6.9 CCP and Case Study Analysis in Digitalisation

of Photographic Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 6.10 Investigating Photographic Industry: A Synthesised

Research Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 6.11 Photographic Industry 1960–1999 . . . . . . . . . . . . . . . . . . . . . . . . . . 108 6.12 Kodak: Its Beginning, Landmarks and Market Supremacy . . . . . . . 108 6.13 Kodak’s Winning (Adaptive) Strategies . . . . . . . . . . . . . . . . . . . . . . 109 6.14 Kodak’s Waning Strategies and Market Dominance . . . . . . . . . . . . 110 6.15 Fujifilm’s Route to Market Survival and Superior

Firm Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 6.16 Photographic Industry 2000–2016 . . . . . . . . . . . . . . . . . . . . . . . . . . 112 6.17 Kodak’s Adaptive Dilemma . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 6.18 The Adaptive Behaviour Paradigms Analytical Framework . . . . . . 117 6.19 Discussion and Conclusion on Adaptations in Management

Studies and Methodological Approaches in Organisational Adaptations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

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7 Summing Up Organisational Adaptations . . . . . . . . . . . . . . . . . . . . . . 127 7.1 Further Insights from the Case Study . . . . . . . . . . . . . . . . . . . . . . . 127 7.2 The Other Side of Organisational Adaptations . . . . . . . . . . . . . . . . 130 7.3 Organisational Inertia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 7.4 Excessive Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 7.5 Presumptive Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 7.6 Liability of Recursiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 7.7 Organisational Amnesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 7.8 Discussions and Conclusion on the Other Side

of Organisational Adaptations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 7.9 Concluding Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 7.10 Limitation of Study and Suggestions for Further Research . . . . . . . 137 7.11 In Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Contents

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Acronyms

ABP Adaptive behaviour paradigmBREXIT ‘Britain’ and ‘exit’ (Britain exits EU)CAS Complex adaptive systemsCCP framework Content, context and process frameworkDC Dynamic capabilitiesEO Entrepreneurial orientationEU European UnionFirm’s DNA Refers to the core unique characteristic of the firmFRRO Firm resources reconfiguration orientationFSPA Firm structure and production architectureLO Learning orientationLRV The law of requisite varietyMNO Managerial orientationMO Market orientationOE Organisational ecologyOLC Organisational life cycleRBV Resource-based viewRDT Resource dependence theorySBU Strategic business unitSO Stakeholder orientationSON Strategic orientation

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Oluwaseun  E.  Adegbite is a Ph.D. candidate at the School of Management, Swansea University, UK. He obtained a BTech in Animal Production and Health from Ladoke Akintola University, Ogbomosho, Nigeria, and MBA from Swansea University, Swansea, Wales, UK. He has attended and presented some of his research works in local, national and international workshops, doctoral colloquial and confer-ences. Some of these are British Academy Management 2016 Doctoral Colloquium and IFIP WG 6.11 I3E2016 Conference. Prior to venturing into postgraduate research, he has worked in various public and private firms both in Nigeria and in the UK. He is versatile and enjoys critically examination of complex issues in management. His current doctoral research is on sales process adaptation in dyadic relationships.

Yogesh K. Dwivedi is a Professor of Digital Marketing and Innovation, Director of the Emerging Markets Research Centre (EMaRC) and Director of Research in the School of Management at Swansea University, Wales, UK. His research interests are in the area of information systems (IS) including the adoption and diffusion of emerging ICTs and digital and social media marketing particularly in the context of emerging markets. He has published more than 250 articles in a range of leading academic journals and conferences. He has co-edited/co-authored more than 20 books on technology adoption, e-government, IS theory, eWOM and social media and had them published by international publishers such as Chandos Publishing (an imprint of Elsevier), Springer, Chapman and Hall/CRC Press, Routledge and Emerald. He is the founding series editor of the recently established Springer book series Advances in Theory and Practice of Emerging Markets. He acted as co-editor of 15 journal special issues; organised tracks, mini-tracks and panels in leading conferences; and served as programme co-chair of 2013 IFIP WG 8.6 Conference on Grand Successes and Failures in IT: Public and Private Sectors and Conference Chair of IFIP WG 6.11 I3E2016 Conference on Social Media: The Good, the Bad, and the Ugly. He is an Associate Editor of European Journal of Marketing and Government Information Quarterly and Senior Editor of Journal of Electronic Commerce Research. More information about me can be obtained from http://www.swansea.ac.uk/staff/som/academic-staff/y.k.dwivedi/.

About the Authors

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Kemefasu  Ifie Before joining Loughborough University, Dr. Ifie worked as a Lecturer in Marketing at the School of Management, Swansea University. Prior to embarking on postgraduate studies and an academic career, he worked with Citibank. His research interests are in services and sales management, and he has published in the Journal of Marketing Management, Service Industries Journal, Journal of Retail and Consumer Services and Journal of Services Marketing.

Antonis  C.  Simintiras is currently the Dean at the College of Business Administration, Gulf University for Science and Technology in Kuwait, and P-T Research Professor of Marketing at the School of Management—Swansea University, UK. Over the years he held visiting professorial appointments in France, Spain, Austria, Greece, Finland, the USA and China. His main research interests are in the areas of personal selling and sales management, consumer behaviour and cross-cultural research methodology. Part of his work has appeared in the Journal of International Business Studies, Journal of Business Research, European Journal of Marketing, Industrial Marketing Management, Psychology and Marketing, Journal of Managerial Psychology and Journal of Small Business Management. He has also co-authored a book Global Sales Management and a monograph Success and Failure of IS/IT Projects.

About the Authors

1© The Author(s) 2018 O.E. Adegbite et al., Organisational Adaptations, SpringerBriefs in Business, DOI 10.1007/978-3-319-63510-1_1

Chapter 1Introduction

This chapter presents an organisation as a business entity containing various com-ponents and perspectives that continuously interact with one another and the envi-ronment. By nature, organisations are complex systems as they consist of individuals, teams and business units that interact with one another through feedback mecha-nisms. This implies holding a single view of the organisation is tantamount to hav-ing a myopic view of the firm. This will be detrimental to understanding the intricacies and important factors that help constitute and influence not only organ-isational performance but also its survival. In instances, where the key components/factors are not considered or known to influence the survival of the organisation or the firm, the management risks the chance of being outperformed and become extinct particularly in a dynamic business environment.

In this chapter, we explain the importance of organisational adaptations, we highlight the aims and objectives of the monograph, and an argument for a pluralis-tic perspective view of this important concept is put forward. Also explanation into the adopted methodological approach is discussed, and, lastly, the structure of the monograph chapters is explained.

1.1 Organisational Adaptations: A Pluralistic Perspective

“Organisations are now routinely viewed as dynamic systems of adaptation and evolution that contain multiple parts which interact with one another and the environment”. (Morel & Ramanujam, 1999:278)

Dynamism is “change that is hard to predict and that heightens uncertainty for key organisational members” (Dess & Beard, 1984:56). Generally, it is held that proactive firms are most likely to outperform inert firms (Meeus & Oerlemans, 2000). In today’s business environment where business rivalry increases in com-plexity and change is fast and unpredictable, new paradigms, concepts and perspec-tives into evolving cases and scenarios in dynamic market are germane to investigate

2

the continuously evolving proactive firms. This is because the traditional and/or individually existing paradigms are insufficient in explaining the observed changes in the business environment. Our intention is to develop a holistic way of under-standing organisational adaptations. We aim to achieve this through investigation into relevant concepts and theories of adaptations. This is particularly appropriate considering that adaptation is viewed as a continuing organisational process that occurs through the integration and interactions of various theoretical perspectives.

In this monograph, we construe organisational adaptations as multifaceted body of knowledge (diverse disciplines) ranging from business management, psychology, economics, information systems and others. This body of knowledge reflects differ-ent, interrelated and sometimes competing theories and explanations of causes and effects of events in organisations.

Principally, it reflects organisation as an adaptive complex system that is influ-enced by both endogenous and exogenous complexities that reveal themselves through various actions and consequences occurring within the firm. These actions and consequences occur in diverse contexts and involve various wide-ranging inter-related organisational concepts. These concepts include and not limited to organisa-tional culture, strategic decision-making process and organisational resources. All these interrelate in the process of (mal)adaptations in the organisation. For instance, the case of Barclays UK described below reveals the impact of marketplace dynam-ics on Barclays Bank including its competitors:

“Barclays Banks sacks its Chief Executive … The Bank said a ‘new set of skills’ was required at the top… (BBC News, 8 July, 2015).

The bank needed to become more efficient…what we need is profit improvement. Barclays is not efficient. We are cumbersome…. there is no question that cultural change was urgently required…

…the board had decided the firm needed to change its strategy in order to boost revenue growth

….Barclays needs to be ‘leaner and more agile’ to improve the firm’s capital performance”.

—Chairman John McFarlane

‘Investors welcomed the news of the change, sending Barclays shares up more than 2% in London…With the sacking of Barclays CEO, it means four of Europe’s biggest banks have changed their leaders this year. The rest are Deutsche Bank, Credit Suisse and Standard Chartered. This may be reflecting the immense regulatory pressure and strategic shifts con-fronting the industry’. (Financial Times, July 8, 2015)

Excerpts from: BBC News, July 8, 2015 and Financial Times, July 8, 2015From the above scenario, we can deduce some key information: (1) Barclays

need to improve on its profitability. (2) The company’s plan to achieve this (i.e. by adapting to its competitive business environment) was not working as initially set out. (3) To actualise Barclays’s objective “…a ‘new set of skills’ was required at the top…” (BBC News, July 8, 2015).

The related concepts relevant to adaptation in the above excerpts are contingency theory, organisational culture, organisational competitiveness, organisational

1 Introduction

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resources, organisational structure, corporate strategy and organisational leadership. All these concepts interplayed that resulted in maladaptation of Barclay’s Bank. But the Bank seeks and hopes to improve its firm’s capital performance through ‘leaner and more agile’ operation. The above excerpts connote a sample of activities that are happening in contemporary global brands that are responsive to their business environments. The above-narrated events underscore the importance of organisa-tional adaptations in businesses from a multi-concept perspective. Failure to attune to the demands of business environment may impact negatively on business bottom line (Grant & Cravens, 1996; Zoltners, Sinha, & Lorimer, 2008). For businesses to remain efficient and effective, adaptation may be inevitable irrespective of the industry or sector that a firm operates (Miller, 1982); although, the challenges may be more pronounce in some industries relative to others (Miles & Snow, 1978). Despite the challenges associated with achieving optimal organisational adaptation, the task of successful organisational adaptations is achievable (Canning & Hanmer-Loyd, 2001; Rant, 2007). The narration below captures the success story of firm (i.e. top manager(s)/management) that adapts its strategy to changes in its operating environment.

“Ferguson has demonstrated a tremendous capacity to adapt as the game has changed”. —David Gill former Chief Executive Manchester United Club

“Our analysis of a decade’s worth of players transfer data revealed Ferguson to be a uniquely effective ‘portfolio manager’ of talents. He is strategic, rational, and system-atic”.—Anita Elberse

“He’s [Ferguson] never really looking at this moment, he’s always looking into the future… Knowing what needs strengthening and what needs refreshing—he’s got that knack”.—Ryan Giggs former ex-player

“Observation is critical to management. The ability to see things is key—or, more specifi-cally, the ability to see things you don’t expect to see…

Responding to change is never easy, and it is perhaps even harder when one is on top for so long…being positive and adventurous and taking risks—that was our style…Never stop adapting. One of the things I’ve done well over the years is to manage change. I believe that you control change by accepting it. Most people with my kind of track record don’t look to change. But I always felt I couldn’t afford not to change.—Alex Ferguson ex-manager Manchester United Club

Excerpts from Elberse and Ferguson (2013): ‘Ferguson’s Formula’, Harvard Business Review Magazine, October 2013

The above excerpts summarised the key to surviving and thriving in a dynamic business environment. The key is adaptation. It is either organisation survives or succumbs; adapting to dynamics of the business environment has to do with surviv-ing and thriving of proactive firms. Adapting comes with its attendant prerequi-sites—ability to observe, rational, systematic and always forward thinking. These are some of the key capabilities that encapsulate the success story of the former

1.1 Organisational Adaptations: A Pluralistic Perspective