
“It is the theory that decides what we can observe” - Albert Einstein -
A configurational approach to organisational analysis identifies patterns and relationships within the complexity of organisational elements, such as strategy, structure, and processes. The dominant mode of inquiry of configuration theory is an integrated synthesis based on systems thinking, explaining that the parts of an entity cannot be understood in isolation, but that their meaning is derived from the whole. A configurational approach therefore needs to develop an understanding into the interdependency of the numerous complex dimensions of organisations, in order to derive sets of configurations or clusters. This post takes a look at configurational approaches to organisational analysis as described in “Configurations Revisited” by Miller, D. 1996.
Configurations are typically represented as typologies which are derived conceptually, or taxonomies which are derived empirically. One of the most well-known typologies in strategic research is the Miles and Snow typology of strategic types in organisations, distinguishing between defenders, analyzers, prospectors and reactors. Although no formal methodology exists for generating a typology, Miller (1996) identifies some features which are characteristic of good typologies:
- They should be based on a solid theoretical foundation;
- Distinctions and relationships should be of conceptual importance;
- Resulting types should facilitate empirical progress by invoking contrasts;
- Variables used to describe each type should be shown to cohere thematically;
- Implications should be important conceptually or in an evolutionary way.
Taxonomies are typically derived from more quantitative data, using multivariate analysis of multiple dimensions such as strategies, processes and structures. Miller (1996) however cites a lack of theoretical significance as a major criticism against taxonomies.
Ultimately any classification scheme should generate insight or support prediction (Miller, 1996). One way to gauge the value of a set of configurations is to see whether any theoretical or practical distinctions emerge, and whether the findings are valid and reliable.
Miller (1996) also suggests a third approach, with the focus not on typologies or taxonomies, but on configuration as a quality or property that varies among organisations. In this approach configuration is the “degree to which an organisation’s elements are orchestrated and connected by a single theme” (Miller, 1996). The number of elements in an organisation driven by one theme can be an important indicator of the degree of configuration, with more comprehensive configurations comprising of a greater range of elements.
Indicators of a high level of configuration are centered around focussing on a common theme through goals, actions, concensus, structure, processes, culture, leadership, incentives and information systems. Miller (1996) explains that competitive advantage may reside in the coordinating theme and “integrative mechanisms that ensure complementarity among the various aspects of a firm”.
“Configurations revisited” provides good insight into a theoretical approach that seems to have stalled during the past decade. I have identified a number of opportunities for applying this approach in my research, and will definitely be exploring it more rigorously in future.
References:
Doty, Glick and Huber, 1993.
Meyer, Tsui and Hinings, 1993.
Miles and Snow, 1978.
Miller, D. 1996.