ABSTRACT
Even a brieftour oforganizational Web sites reveals a common theme, namely that many organizations regard themselves as "dynamic." Apparently, it is good for an organization to be dynamic, but what does that term mean, and why is it so positive? Several articles and books have been written about dynamic organizations (e.g., Brown & Eisenhardt, 1997; Chaharbaghi & Nugent, 1994; Mohrman, Galbraith, & Lawler, 1998; Rindova & Kotha, 2001), and that work shows some consensus about the key aspects of such organizations. One important aspect of dynamic organizations, for example, is flexibility. An organization must be capable of changing to meet new
demands, take advantage of opportunities, and so on. Flexibility is often achieved through a decentralized organizational structure that features local autonomy. A second aspect of dynamic organizations is speed. Whatever changes an organization makes must be made quickly because delays can often be costly. Finally, learning is another key aspect of dynamic organizations. Acquiring and sharing knowledge related to an organization's mission are valued activities, not only because they can improve the organization's current performance, but also because they foster creativity and thus can improve the future performance of the organization (Argote, 1999). The need for organizations to become dynamic has been attributed to several factors, including globalization, the speed with which business conditions can change, the growing importance of technology, and the need for leaner staffing levels. Given these factors, an organization that is not dynamic will have trouble succeeding and may not even survive.
