Mind the Gap: Adapting and Reorenting firms’ organizational architecture

This paper investigates the evolutionary nature of the organizational change in terms of adaptation, flexibility, evolution and decomposability. The central claim in this paper is that the presence of a performance gap plays a key role in defining the scale and the scope of organizational change. We conjecture that the extension of the performance gap affects the magnitude of organizational change. Exploiting a representative sample of Italian firms, we find support for our arguments.