A network perspective on organizational architecture: Performance effects of the interplay of formal and informal organization

Giuseppe Soda, Akbar Zaheer

Research output: Contribution to journalReview articlepeer-review

120 Scopus citations

Abstract

We take a network perspective to organizational architecture, conceptualizing it as multiple networks of both formal and informal interactions and argue that their interplay is key to better understanding individual organizational member performance. We develop and test the concept of network consistency as the overlap between the informal network of advice and information with formal structures and processes, expressed as networks. We theorize that consistency between formal and informal networks exerts differing effects on performance. We test our theory in a financial services firm, using secondary data to create formal networks and annual performance evaluations for our dependent variable, along with primary survey data from organizational members to obtain the informal advice and information network. Results support our network approach to organizational architecture.

Original languageEnglish (US)
Pages (from-to)751-771
Number of pages21
JournalStrategic Management Journal
Volume33
Issue number6
DOIs
StatePublished - Jun 1 2012

Keywords

  • formal and informal organization
  • network architecture
  • network consistency
  • networks
  • organizational architecture
  • organizational consistency and inconsistency

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