Purpose: This paper develops the notion of building a brand-new theory of organisational structure using internal capabilities and emphasizes the process of how those capabilities (synergies) are recognized, built, and prioritized. Exchangeable payoffs generated by synergies or stand-alone values are recapitulated by a firm matrix that applies to firms in both the public and private sectors. Evolving ideas from cooperative games, activity analysis, and conditions for a cost-effective framework are set out. This research adopts a mathematical form that can be transformed into a decision support system vector. Design/ Methodology / Approach : This study employs an epistemological metrics-driven analysis to investigate the co-evolution between firms and payoffs. Three key dimensions were considered in capturing this dynamic relationship. First, we advocate for a metrics-driven approach to co-evolution, emphasizing its crucial role in anticipating and realizing payoffs. Second, we demonstrate that a single-lens perspective offers only a partial explanation of co-evolutions, particularly regarding synergy and payoff dynamics. Third, we integrate a metrics-driven approach with the moderating effects of game theory practices and activity analysis. This synthesis allows for the application of quantitative research methods to explore, recognize, and classify the nature of co-evolutions. Findings: The findings indicate that organizations have unique preferences in terms of amalgamating synergies for re-engineering payoffs. This process is achieved by exploiting organizational strategic-renewal action such as managerial actions/intentionality of the organizations seems to describe unique internal behavioural patterns, the firm’s timing, and the frequency of those synergised but renewed critical actions. Practical Implications: This research can positively impact an organization’s efficiency, innovation, employee satisfaction, competitive positioning, adaptability, and overall organizational performance. Research Limitations: The limitations of this research are: 1) limited perspective as relying solely on internal capabilities, considering external factors can provide a more holistic understanding and prevent potential blind spots, and 2) increased complexity especially as it involves cross-functional teams and matrix arrangements. Complexity can create coordination challenges, communication gaps, and decision-making bottlenecks. Originality: This research innovatively introduces a new organizational structure theory focusing on internal capabilities. The integration of cooperative games, activity analysis, and a cost-effective framework offers a unique perspective.
KeywordsStrategyCooperative Games
Adamou, M., Kyriakidou, N. & Connolly, J. (2021). Evolution of Public-Private Partnership: The UK Perspective through a Case Study Approach. International Journal of Organ iz a tional Analysis , 29, 1455-1466. https://doi.org/10.1108/IJOA-08-2020-2397
Alford, C. (2017). Two Approaches for Combining Theories of Change and System Maps. In Too Deep. https://blog.kumu.io/two-approaches-for-combining-theories-of-change-and-system-maps-5b556091c880
Amit, D. J., Daniel J., Gutfreund H., & Sompolinsky H. (1985). Storing Infinite Numbers of Patterns in a Spin-Glass Model of Neural Networks. Physical Review Letters , 55, 1530-1533. https://doi.org/10.1103/PhysRevLett.55.1530
Anjali, S., Weng, M. L., Sumi, J., Satish, K., & Ciasullo, M. V. (2023). The State of the Art of Strategic Leadership. Journal of Business Research , 158, Article ID: 113676. https://doi.org/10.1016/j.jbusres.2023.113676
Arstila, V. (2018). Temporal Experiences without the Specious Present. Australasian Jou r nal of Phil osophy , 96, 287-302. https://doi.org/10.1080/00048402.2017.1337211
Bak, P. (1997). How Nature Works: The Science of Self Organized Criticality . Oxford University Press. https://doi.org/10.1007/978-1-4757-5426-1_2
Barbrook, J. P. (2019). Negotiating Complexity in Evaluation Planning: A Participatory Sy s tems Map of the Energy Trilemma. CECAN EPPN. https://www.cecan.ac.uk/resources
Chalmers, D. (1996). The C onscious Mind . Oxford University Press.
Collander, D. (2000). Comp lexity and the History of Economic Thought . Routledge.
Flier, B., Bosch, F., & Volberda, H. W. (2003). Co-Evolution in Strategic Renewal Behaviour of British, Dutch and French Financial Incumbents: Interaction of Environmental Selection, Institutional Effects and Managerial Intentionality. Journal of Management Studies , 40, 2163-2187. https://doi.org/10.1046/j.1467-6486.2003.00416.x
Georgescu-Roegen, N. (1970). The Entropy Law and the Economic Process . Harvard University Press. https://doi.org/10.4159/harvard.9780674281653
Hamel, G., & Prahalad, C. K. (1990). The Core Competence of the Corporation. Harvard Business School Press.
Hannah, D. P., Tidhar, R., & Eisenhardt, K. M. (2021). Analytic Models in Strategy, Organizations, and Management Research: A Guide for Consumers. Strategic Manage ment Journal , 42, 329-360. https://doi.org/10.1002/smj.3223
Organization Matrix
Evolution
Activity Analysis
Holland, J. H., Holyoak, K. J., Nisbett, R. E., & Thagard, P. R. (1986). Induction: Processes of Inferen ce, Learning and Discovery . MIT Press. https://doi.org/10.2307/2183914
Hota, P. K. (2023). Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions. Journal of Business Ethics , 182, 637-659. https://doi.org/10.1007/s10551-021-04962-6
Hyunmin, L. (2023). Strategic Similarity in the Co-Evolution of Technological and Business Diversification for Firm Growth: Evidence from Smart-Manufacturing Related Firms. Technologi cal Forecasting and Social Change, 189, Article ID: 122356. https://doi.org/10.1016/j.techfore.2023.122356
Joshua, S., Bendickson, T. D., Chandler, B. E. J., & Erik, C. T. (2023). Sourcing Human Capital for Organizational Effectiveness: Sourcing Strategy, Determinants, and Alignment. International Journal of Human Resource Management , 34, 987-1014. https://doi.org/10.1080/09585192.2021.2016888
Kauffman, S. A. (1993). The Origins of Order, Self-Organisation and Selection in Evolu tion . Oxford University Press. https://doi.org/10.1093/oso/9780195079517.001.0001
Kumar, V., & Srivastava, A. (2023). Mapping the Evolution of Research Themes in Business Ethics: A Co-Word Network Analysis. VINE Journal of Information and Knowl edge Management Systems , 53, 491-522. https://doi.org/10.1108/VJIKMS-10-2020-0199
Lang, X. L., Di, Z., Chen, J., Shi, J., & Yang, C. (2021). Evolutionary Game Analysis on Behavior Strategies of Multiple Stakeholders in Maritime Shore Power System. Ocean & Coastal Management , 202, Article ID: 105508. https://doi.org/10.1016/j.ocecoaman.2020.105508
Liu, H., Wu, K., & Huang, K. (2023). Optimization of Large-Scale UAV Cluster Confrontation Game Based on Integrated Evolution Strategy. Cluster Computing , 27, 515-529. https://doi.org/10.1007/s10586-022-03961-0
Mohamed Hashim, M. A., Tlemsani, I., & Duncan Matthews, R. (2022a). A Sustainable University: Digital Transformation and Beyond. Education and Information Tech nol o gies , 27, 8961-8996. https://doi.org/10.1007/s10639-022-10968-y
Mohamed Hashim, M. A., Tlemsani, I., & Matthews, R. (2021). Higher Education Strategy in Digital Transformation. Education and Information Technologies , 27, 3171-3195. https://doi.org/10.1007/s10639-021-10739-1
Mohamed Hashim, M. A., Tlemsani, I., Matthews, R., Mason-Jones, R., & Ndrecaj, V. (2022b). Emergent Strategy in Higher Education: Postmodern Digital and the Future? Administrative Sciences, 12, Article 196. https://doi.org/10.3390/admsci12040196
Mohamed Hashim, M. A., Tlemsani, I., Matthews, R., Mason-Jones, R., & Ndrecaj, V. (2024). Higher Education via the Lens of Industry 5.0: Strategy and Perspective. Social Sciences & Humanities Open, 9 , Article ID: 100828. https://doi.org/10.1016/j.ssaho.2024.100828
Morgan, T., Clifton, C. S., & Yoto, V. Y. (2023). Economic Sanctions: Evolution, Consequences, and Challenges. Journal of Economic Perspectives , 37 , 3-30. https://doi.org/10.1257/jep.37.1.3
Newman, M. (2008). The Physics of Networks. Physics Today, 61, 33-38. https://doi.org/10.1063/1.3027989
Nooteboom, B. (2014). In What Sense Do Firms Evolve? Jahrbücher für Nationalökon o mie und Stat istik, 234 , 185-209. https://doi.org/10.1515/jbnst-2014-2-306
Prigorgine, I. (1980). From Being to Becoming . Freeman.
Searle, J. R. (1997). The Mystery of Consciousness . Granta Books.
Shaymardanov, M., Heikkinen, S., & Lämsä, A. M. (2023). Social Networks of Women in Organizations: Evolution of Research and Future Research Agenda. South Asian Jou r nal of Business and Management Cases , 12, 97-112. https://doi.org/10.1177/22779779231154647
Tanushree, S. C. K., & Chaubey, A. (2023). Evolution of Organizational Agility Research: A Retrospective View. Benchmarking: An International Journal , 31, 1181-1224. https://doi.org/10.1108/BIJ-02-2023-0086
Tlemsani, I. (2010). Co-Evolution and Reconcilability of Islam and the West: The Context of Global Banking. Journal of Education, Business and Society: Contemporary Middle Eastern Issues, 3, 262-276. https://doi.org/10.1108/17537981011089569
Tlemsani, I. (2019). Comparative Study of the Islamic Interbank Benchmark Verses Conventional Rates. Journal of Islamic Marketing, 11, 1351-1365, https://doi.org/10.1108/JIMA-03-2019-0053
Tlemsani, I. (2020). Stock Returns Indicator: Case of Tadawul. International Journal of Monetary Eco nomics and Finance, 13, 1-15. https://doi.org/10.1504/IJMEF.2020.10024445
Tlemsani, I. (2022). Conventional vs Islamic Debt-Equity Portfolio Swaps. International Journal of Ma nagerial and Financial Accounting, 14, 20-34. https://doi.org/10.1504/IJMFA.2022.120938
Tlemsani, I., & Al Suwaidi, H. (2016). Comparative Analysis of Islamic and Conventional Banks in the UAE during the Financial Crisis. Asian Economic and Financial Review, 6, 298-309. https://doi.org/10.18488/journal.aefr/2016.6.6/102.6.298.309
Tlemsani, I., & Matthews, R. (2010). The Financial Tower of Babel: Roots of Crisis. In tern a tional Jour nal of Islamic and Middle Eastern Finance & Management, 3, 334-350. https://doi.org/10.1108/17538391011093270
Tlemsani, I., & Matthews, R. (2021). Games Theory and Strategic Alliances: Applications to British Russian Partnership. Higher Education, Skills and Work- B ased Learning , 12, 689-704. https://doi.org/10.1108/HESWBL-02-2021-0036
Tlemsani, I., Matthews, R., & Mohamed Hashim, M. A. (2023a). Revisiting Zakat with a Distribution of Weighted Shapley Value. International Journal of Islamic and Middle Eastern Finance & Management , 16, 1141-1158. https://doi.org/10.1108/IMEFM-11-2022-0430
Tlemsani, I., Mohamed Hashim, M. A., & Matthews, R. (2023b). Portfolio Replication: Islamic vs Conventional. Journal of Islamic Accounting and Business Research, 14, 1-20. https://doi.org/10.1108/JIABR-09-2021-0261
Tlemsani, I., Mohamed Hashim, M. A., & Matthews, R. (2023c). The Impact of IFRS Adoption on Saudi Arabia. Journal of Islamic Accounting and Business Research, 14, 519-533. https://doi.org/10.1108/JIABR-11-2022-0304
Vancleef, K., Demeyere, N., & Sun, L. (2021). Shortening the Leuven Perceptual Organ i sation Scre ening Test with Item Response Theory and Confirmatory Factor Analysis. https://doi.org/10.31234/osf.io/8vsm3
Wang, Y., Liu, Z., & Wang, G.-G. (2023a). Improved Differential Evolution Using Two-Stage Mutation Strategy for Multimodal Multi-Objective Optimization. Swarm and Evolu tio n ary Computation , 78, Article ID: 101232. https://doi.org/10.1016/j.swevo.2023.101232
Wang, Z., Lan, H., & Zhang, M. (2023b). Organizational Evolution of Project Management Teams over the Whole Lifecycle of Megaprojects: Case Study of the Hong Kong Zhuhai Macao Bridge. Frontiers of Engineering Management , 10, 439-454. https://doi.org/10.1007/s42524-022-0211-7
Wilkinson, H., Hills, D., Penn, A., & Barbook, P. (2021). Building a System-Based Theory of Change Using Participatory Systems Mapping. Evaluation , 27, 80-101. https://doi.org/10.1177/1356389020980493
Xiao, H., Wang, Y., & Fang, O. (2021). On the Convexity of Independent Set Games. Di s crete Ap plied Mathematics, 291, 271-276. https://doi.org/10.1016/j.dam.2020.09.025
Xiao, X., Yin, J., Chen, L. et al. (2023). Evolutionary Game-Theoretic Modeling of Massive Distributed Renewable Energy Deployment towards Low-Carbon Distribution Networks. Journal of Modern Power Systems and Clean Energy , 11, 1519-1528. https://doi.org/10.35833/MPCE.2022.000434
Yang, W., Si, Y., Zhang, J., Liu, S., & Appolloni, A. (2021). Coordination Mechanism of Dual-Channel Supply Chains Considering Retailer Innovation Inputs. Sustainability , 13, Article 813. https://doi.org/10.3390/su13020813