Induced variation in administrative systems: Experimenting with contexts for innovation

CALDART, A.; VASSOLO, R. S.; SILVESTRI, L.

Management Research: The Journal of the Iberoamerican Academy of Management

Emerald

Año: 2014 p. 123 - 151

1536-5433

Work on intra-organizational evolution has determined that intra-organizational variation results from the autonomous strategic behavior of the firm. Conversely, induced strategic behavior is considered to operate as a force that reduces variation. We review this idea by examining a case in which intra-organizational variation has actually resulted from decisions made within the induced strategic process of the firm. We do so by analyzing the decision by Walt Disney International (WDI) to organize its international operations under three different and coexisting region-specific organizational forms: Asia, EMEA (Europe, Middle East and Africa), and Latin America. The focal point of the story is the evolution of the administrative system of Walt Disney Latin America (WDLA), as it was the source of management innovation that WDI eventually rolled out across the bulk of its operations. This experience helps explain the conditions under which intra-organizational variation can arise out of the intended strategy process of the firm.