Building Blocks of Organizational Design

One of the building blocks the description of any organizational design has to take into account is the strategy of the system. In the literature of strategic management, many different facets of strategy are highlighted: the strategy has to formulate the purpose of the organization — its raison d’être. The strategy has to formulate which resources the organization uses to create value and to generate an economic rent, and in which markets the organization must be embedded to offer its outputs and appropriate this economic rent. These formulations of strategy under investigation in this section are closely and complementarily intertwined with the implementations of strategy through the boundaries, the internal structure and the governance of the organization that are the subjects of the following sections.