Organizational dynamics: culture, design, and performance

Besley, Timothy ORCID: 0000-0002-8923-6372 and Persson, Torsten (2024) Organizational dynamics: culture, design, and performance. Journal of Law, Economics, and Organization, 40 (2). 394 – 415. ISSN 8756-6222

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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.

Item Type:	Article
Official URL:	https://academic.oup.com/jleo
Additional Information:	© 2022 The Authors
Divisions:	Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HM Sociology H Social Sciences > HB Economic Theory
JEL classification:	L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M14 - Corporate Culture; Social Responsibility
Date Deposited:	22 Sep 2022 09:24
Last Modified:	15 Nov 2024 19:09
URI:	http://eprints.lse.ac.uk/id/eprint/116651

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