Organizational energy as the mediator between organizational structure and absorptive capacity

Alexiou, Andreas and Khanagha, Saeed (2014) Organizational energy as the mediator between organizational structure and absorptive capacity. Academy of Management Proceedings. (doi:10.5465/ambpp.2014.15842abstract).

Abstract

The ability of an organization to prosper in highly volatile and often disruptive environment is mainly dependent on its ability to profitably manage its internal and external sources of knowledge. Two key structural factors such as centralization and formalization have been suggested in the literature to play an important role in this process. Organizations however, are socially constructed entities and knowledge related capabilities, remain socially founded primarily in the emotions and cognition of individual members. By adopting a behavioral strategy lens, we explore the underlying mechanism connecting structure to AC by investigating the mediating role of organizational energy (i.e. the mobilization of the emotional, cognitive and behavioral resources of an organization). A survey was conducted among firms that are challenged by the disruptive effect of cloud computing. The results suggest that energy mediates the impact of decentralization on absorptive capacity, while the equivalent effect of formalization was not fully supported. The findings carry theoretical implications for the literature of absorptive capacity and dynamic capabilities as they connect cognitive and micro-psychological phenomena to strategic outcomes.

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Contributors

Author: Andreas Alexiou

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