Dissertation: The patterns of company: firm and organization

The industrial economy showed that economic agents, companies, are different from one another. Based on that, differences among companies under real constraints came into the spotlight: why do some companies succeed while others fail? Any existing company is both a firm, i.e., the economic agent developing and transacting goods and services, and an organization, i.e., the structure to efficiently coordinate the production of these goods. If firms are different, then there are different patterns of organizing the firm. In that sense, for each one of those different knowledge and organizational abilities and routines, there will be different capabilities. Thus, firms are organized according to their capabilities. The main objective of the present research is then to identify different patterns of company, considering firm-organization combinations. The objective is achieved through the analysis of secondary data from a survey conducted in 1331 manufacturing companies from 2010 to 2015. Data were analyzed through factor analysis, cluster analysis, Pearson correlation, multiple regression analysis and descriptive analysis. Results show four different patterns of company: nearly balanced companies, firm-based companies, advanced organization-based companies and basic organization-based companies. The four identified patterns suggest that companies may act towards efficacy, stability or fulfilling their innovative potential over time. In that sense, disorganization appears whenever firm and organization are unbalanced. However, that may be momentary, as a natural consequence of innovation, or permanent, as a consequence of internal inefficiency. Thus, there is no single best firm-organization combination, but there are different combinations for different positionings and, thus, different performances. In that sense, the disorganized firm is the firm that does not have the adequate organization that guarantees its best outcomes at a given moment. Based on its results, this study may help managers understand that being an organization-based company is risky if firm does not present an adequate and aligned level of development. The study elucidates directions to be followed by companies that aim at advancing their firm complexity towards a more balanced company, and future directions to those companies that already present satisfactory outcomes, according to each positioning. The study also sheds light on the importance of alignment between regulatory agencies and the direction of a nation’s competitiveness. By doing so, the study can help make policy makers aware that innovation policies should focus on innovations primarily focused on the firm sphere, to, later, organization be structured – and not vice versa.

Author: Pufal, Nathália Amarante

Advisor: Zawislak, Paulo Antonio

Level: Master’s Degree

Published Study: http://hdl.handle.net/10183/163810