Extension of the strategic renewal journey framework: The changing role of middle management

• Published in: Technology in society 2021-05, Vol.65, p.101540, Article 101540
• Main Authors: Hortovanyi, Lilla, Szabo, Roland Zs, Fuzes, Peter
• Format: Article
• Language: English
• Subjects: Ambidexterity; Communication strategies; Communications systems; Control systems; Decision support systems; Emerging technology; Handedness; Hypercompetitive environment; Information management; Intelligence; Intelligence (information); Management; Management control system; Middle management; Middle managers; New technology; Organisational attention; Organizational aspects; Renewal; Substitutes; Support networks; Tactics; Teams; Technology; Top management; Top management team (TMT)
• ISSN: 0160-791X; 1879-3274
• DOI: 10.1016/j.techsoc.2021.101540

This paper presents the findings of a longitudinal study of a large corporation's journey towards becoming an ambidextrous organisation in the face of emerging technology. By investigating the interplay between the top and middle management, the results show that business intelligence systems allowed the firm to pursue a controlled renewal journey that was data-driven, automated, and supported fast organisational learning. This substituted for active frontline and middle managers. The change in organisational direction was driven by a small and powerful strategic top management group, even though this was a multi-unit firm with more than 100,000 employees. The main advantage of this type of journey is that the organisation can fully realize the advantage of highly centralised formal planning and control while becoming resilient and ambidextrous. A well-functioning decision support system, organisational policies and communication strategy can substitute for collective sense-making and shared strategic schemas. The results also suggest that management control systems can have a profound impact on developing organisational ambidexterity. The article also provides further details on the nature and implications of the rhetorical tactics used by the top management team to focus on organisational attention and action. •This longitudinal study shows that the firm became ambidextrous in a top-down, closely controlled renewal journey.•The study suggests that management control systems can have a profound impact on becoming an ambidextrous organisation.•The data-driven feedback system enabled the top management to learn fast and exclude middle managers from strategy-making.•The structural separation allows the firm to ‘unlearn’ old routines and exploit opportunities.•The external threat was used by the top managers to reduce participation and increase centralized decision-making.