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- Title
Organizational dynamics: culture, design, and performance.
- Authors
Besley, Timothy; Persson, Torsten
- Abstract
We examine the two-way interplay between organizational cultures and organizational design, where culture is modeled as the prevailing social identities among workplace groups that can affect project choices. In a setting where cultural dynamics depend on the expected relative payoffs of holding different identities, we investigate how tribalism and charismatic leadership shape organizational dynamics and steady-state cultures. We show how a strong culture can be a virtue when it permits greater delegated authority, but a vice when the culture is poorly aligned with organizational objectives. We apply our analysis to concrete debates about the interaction of design, performance, and culture (JEL L23, M14).
- Subjects
CORPORATE culture; GROUP identity; LEADERSHIP; ORGANIZATIONAL performance; DESIGN
- Publication
Journal of Law, Economics & Organization, 2024, Vol 40, Issue 2, p394
- ISSN
8756-6222
- Publication type
Article
- DOI
10.1093/jleo/ewac020