DESIGNING LATERAL ORGANIZATIONS - AN ANALYSIS OF THE BENEFITS, COSTS,AND ENABLERS OF NONHIERARCHICAL ORGANIZATIONAL FORMS

Twenty-first century organizations will require designs that enable th em to cope with turbulent environments, Organizations have experimente d with lateral organizational designs for this purpose, but research e vidence concerning these forms is sparse. We analyzed data obtained fr om 512 employees within eight diverse organizations implementing flexi ble lateral organizations. Using a sequence comparison methodology, we were able to identify and categorize the major costs, benefits, and e nablers associated with implementing these forms of complex organizati ons. Propositions for effectively managing lateral relations were test ed and managerial implications were explored.