Decision Sciences Journal
Volume 28, Number 1
Winter 1997
Designing Lateral Organizations: An Analysis of the Benefits, Costs, and Enablers of Nonhierarchical Organizational Forms
William F. Joyce and Victor E. McGee
Amos Tuck School, Dartmouth College, Hanover, NH 03755
John W. Slocum, Jr.
Cox School of Business, Southern Methodist University, P.O. Box 75033, Dallas, TX 75275-0333
ABSTRACT
Twenty-first century organizations will require designs that enable them to cope with turbulent environments. Organizations have experimented with lateral organizational designs for this purpose, but research evidence concerning these forms is sparse. We analyzed data obtained from 512 employees within eight diverse organizations implementing flexible lateral organizations. Using a sequence comparison methodology, we were able to identify and categorize the major costs, benefits, and enablers associated with implementing these forms of complex organizations. Propositions for effectively managing lateral relations were tested and managerial implications were explored.
Subject Areas: Lateral Organization Designs, Organizational Theory, and Sequence Comparison Methodology.
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