This document discusses the design of management control systems in hybrid organizations. It examines examples from large construction projects and joint ventures in the oil and gas industry. The purpose is to analyze how path creation, which deviates from standard institutional practices, can enable improved project performance. Institutional theory is discussed as explaining how organizations seek legitimacy through conforming structures. However, the document argues that morphogenesis, or the evolution of new forms, provides an additional consideration for management control system design in hybrid contexts.
2.
Path-creating change in organizational form is
proposed as an important element in achieving
management control in hybrid organizations. Using
case examples from large-scale projects in the
architectural, engineering, and construction
industry, as well as from joint ventures in the oil and
gas industry. On the other hand, path-creating
deviations from institutionalized practices, resulted in
improved project and venture performance. It has
been argued that the design of inter-organizational
management control systems seeks to enable
organizations to compete for resources and
efficiency, and also to obtain institutional legitimacy.
Institutional theory proposes that isomorphism
permits organizations to obtain that legitimacy and
explains their design.
3.
PURPOSE
Path creation and morphogenesis, which
deviates from isomorphism, is an additional
consideration in explaining management
control system design.
4.
This article uses a qualitative approach
because the research is descriptive and tend
to use inductive analysis approach.
5.
How is the design of management control
systems for hybrid forms of organization?
What is the institutional theory?
What is path creation?
6.
The types of hybrid firms that we will consider here
include joint ventures in the oil and gas industry
and the construction projects are those of the
architect Frank O. Gehry
Institutional theory has been used to explain the
structures of such hybrid forms and their interorganizational management control systems.
7.
In a complex, long-term construction
project, architects, engineers, construction
managers, contractors, fabricators, and
multiple specialist consultants form a hybrid
organization in which each member firm
performs unique functions as an autonomous
entity within the project structure.
The problem of management control is to
bring these autonomous actors together in a
way that enables each firm to succeed, as well
as the project as a whole, even though these
two needs are often at odds with each other.
8.
Institutional economics is concerned with
explaining the evolution of social systems and
the social processes that emerge during this
evolution. habits and routines are important
components of institutions.
Institutional theory is based on the following
main concepts: institution, institutional and
technical
environments, interconnectedness, conformity,
and institutional isomorphism.
11.
Morphogenesis in hybrid organizational
forms
The writer identified anomalies of risk
reduction in the hybrid organization of the
construction industry. In the construction
industry, including both formal and informal
aspects, are supposedly intended to balance
the tensions and reduce overall risk of a
hybrid project organization. But in the
environment of changing technologies and
practices that the researchers observed in
study of Gehry Partners’ (oil and gas)
projects, they repeatedly saw path creation,
12.
Journal by :
Boland, R. J., Sharma, A. K., & Afonso, P. E.
(2008). Designing management control in
hybrid organizations: The role of path
creation and morphogenesis.
Accounting, Organization and Society.