Giuseppe Soda

Introduction to the Special Issue: The Genesis and Dynamics of Organizational Networks

An extensive body of knowledge exists on network outcomes and on how network structures may contribute to the creation of outcomes at different levels of analysis, but less attention has been paid to understanding how and why organizational networks emerge, evolve, and change. Improved understanding of network dynamics is important for several reasons, perhaps the most critical being that the understanding of network outcomes is only partial without an appreciation of the genesis of the network structures that resulted in such outcomes. To provide a context for the papers in this special issue, and with the broader goal of furthering network dynamics research, we present a framework that begins by discussing the meaning and role of network dynamics and goes on to identify the drivers and key dimensions of network change as well as the role of time in this process. We conclude with theoretical and methodological issues that researchers need to address in this domain.

Network Evolution: The Origins of Structural Holes

We develop and test a theory of the origins of network structures, specifically of structural holes, building and testing a theoretical framework proposing that network structures emerge from the interplay of two complementary forces: structural constraints and network opportunities. We analyze data on a co-membership network among 501 production teams in the Italian TV production industry tracked over a period of 12 years, explicitly accounting for endogeneity. We find that structural holes spanned by teams originate from the prior status and centrality of teams that members were part of in the past, in addition to structural holes spanned in the past. But a focal team spans fewer structural holes if its members were part of cohesive teams earlier and if the past teams they were connected to produced similar artistic content. We also demonstrate that spanning structural holes is associated with superior team performance in terms of greater viewership. The results support both opportunity exploitation and structural constraint explanations, although we find that homogeneity rather than diversity influences performance across structural holes.

Exploring the topology of the plausible: Fs/QCA counterfactual analysis and the plausible fit of unobserved organizational configurations

Few ideas have been more persistently central in both strategy and organization research than the concept of fit (Child, 1974; Miller, 1992; Parker and Van Witteloostuijn, 2010; Sinha and Van de Ven, 2005). Beyond its theoretical appeal, the prominence of the idea of fit in the management literature is also due to its powerful practical applications. In fact, the conceptual frameworks developed around this idea have offered a systematic approach that can be applied to any organization to uncover areas of misalignment that may affect performance goals (Tushman and O’Reilly, 2002). Since early contingency approaches, research has focused on a two-dimensional notion of fit, investigating, for example, the internal fit between strategy and structure (e.g. Chandler, 1962; Miller, 1992) or the external fit between structure and contextual factors (e.g. Lawrence and Lorsch, 1967) as bivariate relationships. Drawing on these fundamental intuitions, in the last two decades scholars have developed the notion of configurational fit, defined here as ‘the systemic relationship among multiple sets of elements, either internal or external to an organization’ (cf. Drazin and Van de Ven, 1985; Meyer et al., 1993; Siggelkow, 2002; Snow et al., 2005). More precisely, configurational fit captures the multidimensionality and complexity of the relationships linking organizational elements (such as organizational structures, integration mechanisms and people); the attributes of a firm’s strategy (such as degree of diversification, vertical integration, customer orientation); and environmental dimensions (such as market volatility, technological dynamism, regulation and environmental munificence). An emergent and promising stream of literature has also recently expanded the set of factors that can systemically interact in a configuration, including informal organizational elements (Gulati and Puranam, 2009; Soda and Zaheer, 2012), showing how the multidimensional interaction among these factors can generate positive or detrimental effects on performance. 10310.1177/1476127012452826Soda and FurnariStrategic Organization 2012

National Monopoly to Successful Multinational: the case of Enel

List of Tables List of Charts Acknowledgements Introduction A Snapshot at the Start of 2011 The Case Study, Methodology, Key Players PART I: THE EVOLUTION OF ENEL From the Origins to the Regulatory Shake-up (1962-1996) Cultural Change, Reorganization and Diversification (1996-2002): The Search for a New Identity Strategic Refocusing and International Expansion: Building the Future Enel (2002-2010) 2008-2010: Enel Today Enel, Ten Years of Extraordinary Financial Performance Conclusions PART II: WHEN MANAGEMENT MAKES THE DIFFERENCE A Balance between Dynamism and Preserving Excellence and Operational Reliability Leadership in a Combination of Continuity and Strategic Change: Building a New Identity Institutional Legitimation and Reputation Conclusions PART III: THE BEST ENERGY COMPANY IN THE WORLD Global Energy Scenarios Technological Foundations for a Sustainable Competitive Edge Strategic Challenges and Building One Company Conclusions Afterword - Five Rather Difficult Issues by Gianni Lorenzoni Bibliography

Network Structure, Collaborative Context, and Individual Creativity:

The debate on whether bonding or bridging ties are more beneficial for acquiring knowledge that is conducive to individual creativity has mostly overlooked the context in which such ties are formed. We challenge the widespread assumption that closed, heavily bonded networks imply a collaborative attitude on the part of the embedded actors and propose that the level of collaboration in a network can be independent from that network’s structural characteristics, such that it moderates the effects of closed and brokering network positions on the acquisition of knowledge that supports creativity. Individuals embedded in closed networks acquire more knowledge and become more creative when the level of collaboration in their network is high. Brokers who arbitrage information across disconnected contacts acquire more knowledge and become more creative when collaboration is low. An analysis of employee-level, single-firm data supports these ideas.

Fit for the Task: Complementarity, Asymmetry, and Partner Selection in Alliances

Most existing theories of relationship formation imply that organizations establish ties to procure complementary resources, and that doing so adroitly generates relational rents. Although this entails a responsibility for organizations to recognize and harness complementarity, most theories struggle with ambiguity around the concept of resource complementarity, neglect its power implications, and rely on rules of thumb that assign no role to managers’ intentions. To explain the formation of ties that successfully combine critical resources, we propose that a positive interplay among resources exists only insofar as organizations use task requirements to guide their combination. As such, a well-matched tie is one that manages task resource interdependence while offsetting imbalances in task-related resources. We test our theory on project-based, interorganizational partnerships for public construction in Italy. We find that (1) the probability of tie formation increases with the quality of the match betwe...

Strategic Refocusing and International Expansion: Building the Future Enel (2002–2010)

With the sale of Interpower in November 2002 Enel completed divestment of its production capacity as prescribed by the Bersani decree and this essentially marked the end of Enel’s downsizing imposed by law as part of liberalization of Italy’s power market. Of the three GenCos sold (Interpower, Elettrogen and Eurogen), Eurogen was purchased in May 2002 by a group of investors who assigned its production capacity to Edipower SpA. In September 2001 Elettrogen went to a consortium that included Spanish company Endesa, ASM Brescia, the city of Brescia’s municipal operator, and other minority shareholders. Interpower was purchased by a company owned by Italy’s Acea, Belgian company Electrabel Suez SA and other Italian investors that had minority interests, such as Sorgenia.

Institutional Legitimation and Reputation

We have always held our business contacts in great esteem, whoever they were. From those in institutional roles to partners and operators in financial markets. In general, those who acquire companies that control strategic resources abroad are seen as conquerors who buy and then strip the centre of power. We have proposed a different concept, a different image, a different credibility, of course, with clear-cut technical markers.

Cultural Change, Reorganization and Diversification (1996–2002): The Search for a New Identity

Transformation to a joint-stock company and changes in previous years saw Enel in limbo between past and future, a monopoly and the free market, a State bureaucracy and a company rising to the challenge of change.

Strategic Challenges and Building One Company

To become the world’s best energy group is a very ambitious vision. Energy market scenarios are heavily conditioned by geopolitical trends that certainly offer many opportunities, but also involve many constraints and threats. Because of this a great deal of emphasis needs to be placed on technological variables and the ability to gain some advantage by means of decisions. However, the consequences of these decisions will take quite some time — from five to ten years — to become clear and, therefore, be evaluated.