In an environment where both institutionalized rules and market mechanisms operate, an organization faces two types of survival imperatives: efficiency and legitimacy. The former requires the organization to design its structures to fit specific trans...
In an environment where both institutionalized rules and market mechanisms operate, an organization faces two types of survival imperatives: efficiency and legitimacy. The former requires the organization to design its structures to fit specific transaction and task environment such that operational efficiency can be enhanced. The latter requires the organization to design its structures that abide by legitimized rules that are less relevant to, and even inhibit operational efficiency. These two imperatives oftentimes cause conflicts within an organization. To meet the two conflicting requirements for survival, the organization under highly technical and institutional environment will develop dual structures internally, and inter-organizational linkage externally.