Adaptation or Expiration in Family Firms Organizational Flexibility in Emerging Economies

The management literature has claimed that the complexity of business contexts has forced firms to confront hypercompetitive or high-velocity environments. Behind such claims lies a new interest in the dynamics of adaptation, and in particular a firm's flexibility as a way of adjusting under conditions of uncertainty. The businesses studied here have had to contend with the environmental volatility that characterized Argentina for some years. The author identifies five determinants of flexibility as a set of organizational and managerial capabilities that enabled some firms to adapt quickly in a highly competitive environment: heterogeneity of the dominant coalition, centralization and formalization of decision-making, low macroculture embeddedness, environmental scanning, and a strong organizational identity. These findings were analyzed and interpreted by developing theoretical ideas from three areas between which historically there has been no interface: organizational flexibility, organizational innovativeness and institutional embeddedness.
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