Journal Information

Article Information

Abstract

Previous research suggests that organizations may apply two opposite complexity mechanisms to cope with environmental uncertainty: absorption and reduction. However, except for some anecdotal evidence, there is no theoretical skeleton established to integrate these two opposite mechanisms in one framework and to prescribe the contingent conditions for employing them. This paper deconstructs organizational complexity at the organizational elemental level and establishes framework that incorporates three dimensions—organizational complexity, organizational dynamism, and organizational variability. This paper also discusses the environmental conditions for applying absorption and reduction mechanisms as well as the benefits and costs of applying these mechanisms. This dimensionality perspective provides a new avenue for researchers and practitioners to understand and handle organizational structuration issues.