The underexplored role of managing interdependencies fit in organization design and performance

Abstract

We argue that research on interdependence fit is an underexplored variable in strategy and organization research and is the missing variable that differentiates the performance of “built to last” organizations from the rest. Interdependence fit relates to how well activities and processes within the organization or between the organization and its environment mutually reinforce one another. We suggest that the major reason underlying variation in firm performance may be rooted in differences of whether and how firms manage interdependencies within and across an organization’s strategic activities. Progress on researching interdependence fit could be realized by focusing on strategically important activities, and the research challenge is to identify the unobservable processes and routines that underlie interdependence fit.