Exploring Paradigm Wars in the Organizational Theory

This essay explores the paradigm wars in organizational theory, specifically the resource dependency theory and institutional theory. It discusses the importance of PESTEL and SWOT analysis in managing organizational effectiveness. The essay concludes that strategic choice is essential for organizations to thrive in the market.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

1
MANAGEMENT
Introduction
The essay helps in analyzing along with exploring the paradigm wars in the organization
theories. The entire field of the organizational theory is being characterized as the fragmented
body of the knowledge with the different kinds of competing theories in order to analyze the
organizational action. An organization is defined as the world wherein there is a particular view
that colors and is seen by the different members and then let in from the outside world.
Exploring Paradigm Wars in the Organizational Theory
The resource dependency theory is one of the major concerns for the non-profit sector in
which this can be seen that these companies are becoming commercialized and is affecting the
overall effectiveness of the organization in a positive manner (Whittington 2014). Both the
internal and external environmental analysis is essential and mandatory to be performed by the
different organizations as this assists in performing the different activities effortlessly. On the
other hand, the institutional theory is mainly concerned with the different kinds of resilient
structure of the firm along with the social structure of the firm in an efficient manner.
The theory of agency is the theory that helps in dealing with the different capability of the
human beings who are capable of analyzing the different ideas which are original in nature along
with they are capable in acting in particular kind of fashion as well. On the other hand, the
determinist theory is being opposed to the agency theory as this theory mainly focuses on the
external environmental aspects and this manages the overall efficiency of the firm on the basis of
the different external environmental factors (Prajogo 2016).
In the viewpoint of the different authors, there are different opinions of the various
authors which is inclusive of the following aspects which is being shown below:

2
MANAGEMENT
Alvarez and Barney (2017), has commented that in the late 20th century, the different
organizational researchers faced variety of paradigms which helped in theorizing the subject
matter. On the other hand, Wheelen et al. (2017), has commented that the respective theory helps
in recognizing that the human beings are either adopting or acting in order to turn down the
different effects of the external environment to the own advantages.
On the other hand, Alvarez and Barney (2017), has argued that the deterministic theory
in opposition to the agency theory have proposed that the human beings or the managers in the
organization have no power to innovate or control. Wheelen et al. (2017), has opined that the
respective theory suggests that the external environment helps in controlling the different actions
of the human beings and this has been analyzed that the individuals do not have any kind of
control over the environment which affects the overall efficiency of the individuals. Furthermore,
Prajogo (2016), has commented that when the two theories of paradigm wars are being applied in
the different corporate organizations, these two play a major role in a huge manner.
Prajogo (2016), has commented and opined that the agency related theory helps in stating
that the different individuals has the ability to control their actions which helps in corresponding
to the internal environment of the organizations. On the contrary, this has been noticed that
deterministic theory speaks on the different kinds of uncontrollable actions along with
formidable external environment that can be treated as the macroeconomic kind of environment.
Bryman and Bell (2015), has hypothesized that the macroeconomic kind of environmental
environment can affect the different organizations and this is required by the different
organizations in order to form the different strategies in order to adopt to the respective strategies
which will be helpful in managing the overall effectiveness of the organization.

3
MANAGEMENT
Prajogo (2016), has commented that the different companies form their internal kind of
policies or the microeconomic kind of environment that can be controlled in order to adopt to
and take the entire advantage of the overall external kind of environment. Therefore, from the
entire analysis and the different viewpoints of the different authors, this can be analyzed that it is
possible for all the different organizations that this is helpful in reconciling the respective two
theories namely agency and the determinist theories as all the different organizations is always
beyond the effects of the external environment. Furthermore, Ethiraj, Gambardella and Helfat
(2018), has commented and opined that the different organizations try to make their internal
environment in order to utilize the external environment as this will increase their profit
effectively.
Therefore, from the different opinions of the different authors regarding the two theories,
this can be analyzed that these two major theories help in forming the universal kind of
organizational theories which helps in creating proper balance between the two theories in an
effective manner. Lei et al. (2014), has opined that the contingency theory is one of the possible
kind of paradigm which helps in studying the organization theory in an effective manner.
Moreover, Ethiraj, Gambardella and Helfat (2018), has opined that this is clearly and coherently
organized wherein this is seen that the organizational theory helps in managing the different
aspects in managing the overall effectiveness. The reconciliation of the two theories is essential
in managing the different activities of the organization which will help in providing and
managing the issues in an efficient manner and approach.
The PESTEL along with SWOT analysis are required to be performed which will assist
in managing the overall effectiveness of the organization. For instance- Sutter (2018), has opined
and hypothesized that there are different kinds of organizations which are under the huge impact

4
MANAGEMENT
of the external world of environment that helps in deciding the different aspects along with
operations of the organization.
As per the Determinist theory, I have tried in observing that there are different
organizations in the entire competitive environment which will help in managing their
effectiveness in such kind of environment and this will be helpful in analyzing the overall
effectiveness and reducing the different complexities in the entire world. For instance- As
commented by Robson (2015), has opined and hypothesized that both the external and internal
environment plays a major role in managing the different aspects of the activities of the
organization efficiently without much complexities.
In order to start with, Lei et al. (2014), has commented and hypothesized that the
different organizations are totally dependent on external kind of environment which is totally
corresponding to the deterministic theory. The external environment is consisting of the different
kinds of aspects which is inclusive of the political, social, economical, technological, legal and
environmental aspects which are required to be analyzed in understanding the overall impact of
these on the firm’s effectiveness. The PESTEL analysis is essential in nature for the
organizations as this will improve the different kinds of legal and other social consequences
which are essential and plays a crucial role in the management of the organization.
I feel from the different viewpoints of the various authors that there are different kinds of
political factors which comprises of laws along with different legislations which are the
determining factors of the corporate world. This respective factor is essential and prominent for
the different kinds of international companies in comparison to the different small scale and
national alternatives. On the other hand, I have tried in analyzing and identifying that the
different kinds of laws which are being formed by the different international bodies such as the

5
MANAGEMENT
European Union along with national government help in determining the various kinds of
strategies which will be beneficial for the success of the different firms in the competitive
business environment.
Ethiraj, Gambardella and Helfat (2018), has commented that there are different kinds of
instances which are required to be taken into account in order to analyze the various types of
laws which are required to be framed which will be essential for managing the different activities
in an appropriate manner which is inclusive of taxation, labor law related policies and other
essentials. For instance- In such cases, the company needs to frame the different export related
laws and the companies need to abide to such laws in order to become more effective in their
operations. The different multinational corporations such as Unilever or ThyssenKrupp have the
overall ability to abide with the different legislations related to labor in order to become more
efficient in their operations and successfully implement different policies in gaining competitive
advantage.
Sutter (2018), has hypothesized that the Unilever is one of the multinational companies
which are required to abide by the different laws relating to export along with which is pertaining
to the free trade along with the different subsidies which are being set in European Union while
setting up and trading with the European Union and countries. On the other hand, Lei et al.
(2014), has commented and argued that there are different European airline companies which can
take the overall competitive advantage in the overall competitive environment.
The different airline companies can take complete advantage of the agreement of the EU-
India which helps in operating the flights in an efficient manner. Prajogo (2016), has commented
that there are different organizations which tries to operate in different nations and the external
environment analysis plays a major role in managing the different political, legal along with

6
MANAGEMENT
environmental condition effectively. Lasserre (2017), has opined that the Air France Airlines
tries to operate their operations in India which is being based on the agreement of the Europe and
India and this helps them in managing the different business operations effectively.
Lasserre (2017), has commented that the respective airline named Air France cannot
spread their presence in the other parts of the world as this is under the agreement of the
European-India. From the above instance, this can be analyzed that thus the different
organizations create the different internal policies in order to take advantage of the different laws
which will be helpful in establishing their business in the competitive business environment
(Hitt, Xu and Carnes 2016). Prajogo (2016), has opined that the resource dependency theory is
the appropriate study of the how the different external resources of the organizations affect the
behavior of the organization.
The procurement of the different external resources is one of the major aspects which are
required to be considered effectively and this helped in managing the overall effectiveness of the
organizational operations which play a major role in managing the different operations
successfully. On the other hand, Armstrong and Taylor (2014), has commented that the different
organizations depend on the different resources and this generally originate from the resources of
the organization itself. Kozlenkova, Samaha and Palmatier (2014), has opined that the power is
relational, potentially mutual and situational in nature which assists in analyzing and managing
the different kinds of labor, capital along with other raw materials wwhich is required in order to
become effective in the operations.
Furthermore, Andriof et al. (2017), has hypothesized that there are different kinds
of rules along with regulations which is established as authoritative in nature for the different
kinds of social behavior. On the contrary, Elmes and Barry (2017), has hypothesized and

7
MANAGEMENT
commented that both institutional and resource dependency theories is inclusive of the external
policies and legislations which are essential to be adopted by the different organizations in
managing the overall structure of the firm. Hill (2017), has opined that with the assistance of the
PESTLE analysis, this will be beneficial for the overall success of the firm.
From the overall analysis, I feel and hypothesize that both external and internal analysis
is essential and mandatory in nature to be performed by the different organizations which will be
helpful in managing the overall efficiency of the firm and dealing with the internal strengths and
weaknesses along with the external aspects which is inclusive of opportunities and threats which
are related to the organization in an inefficient manner. The essay statement which was being
provided that Paradigm Wars in the Organization Theory is true as the different organizations in
various sectors is different and the implementation of the theories are being done effectively as
well. Furthermore, I feel that there are few organizations wherein they prefer to conduct PESTEL
analysis as this provides them a proper view on the external environment as this was seen in case
of Air France Airlines.
Conclusion
Therefore, this can be concluded that the different organizations in the overall
competitive environment create the different internal and external policies which will be
beneficial for the overall success of the firm. On the other hand, the different kinds of internal
policies are being made in gaining competitive advantage over the different laws. Therefore,
from the above this can be opined and concluded that different kinds of organizations such as
from Unilever to the airline companies such as Air France apply the strategic choice strategy
which will help in dealing with the different deterministic theories.

8
MANAGEMENT
With the help of the strategic choice, this will help in making the different innovative
products along with services in order to expand into the different countries by confirming the
different laws. Therefore, from the above this can be concluded that from both the theories, the
paradigm wars between the respective two theories will help in making the organization in order
to form the different strategies to thrive in the entire market.

9
MANAGEMENT
References
Alvarez, S.A. and Barney, J.B., 2017. Resource‐based theory and the entrepreneurial
firm. Strategic entrepreneurship: Creating a new mindset, pp.87-105.
Andriof, J., Waddock, S., Husted, B. and Rahman, S.S., 2017. Unfolding stakeholder
engagement. In Unfolding stakeholder thinking (pp. 19-42). Routledge.
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bettis, R.A., Ethiraj, S., Gambardella, A., Helfat, C. and Mitchell, W., 2016. Creating repeatable
cumulative knowledge in strategic management: A call for a broad and deep conversation among
authors, referees, and editors. Strategic Management Journal, 37(2), pp.257-261.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Elmes, M. and Barry, D., 2017. Strategy retold: Toward a narrative view of strategic discourse.
In The Aesthetic Turn in Management (pp. 39-62). Routledge.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic management. Strategic
Management Journal, 39(6), pp.1529-1529.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.

10
MANAGEMENT
Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management
research. Journal of Operations Management, 41, pp.77-94.
Kozlenkova, I.V., Samaha, S.A. and Palmatier, R.W., 2014. Resource-based theory in
marketing. Journal of the Academy of Marketing Science, 42(1), pp.1-21.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lei, G., Wang, T., Guo, Y., Zhu, J. and Wang, S., 2014. System-Level Design Optimization
Methods for Electrical Drive Systems: Deterministic Approach. IEEE Trans. Industrial
Electronics, 61(12), pp.6591-6602.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171, pp.241-
249.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Sutter, E.E., 2018. A deterministic approach to nonlinear systems analysis. In Nonlinear vision:
determination of neural receptive fields, function, and networks (pp. 171-220). CRC press.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
Whittington, R., 2014. Corporate Strategies in Recession and Recovery (Routledge Revivals):
Social Structure and Strategic Choice. Routledge.