Global Trends http://2012books.lardbucket.org/books/management-principles-v1.1/s07-04-global-trends.html Uncertainty Avoidance http://sk.sagepub.com.ezproxy.umuc.edu/reference/businesstoday/n939.xml Virtual Organizations http://sk.sagepub.com/reference/organizationalpsychology/n363.xml The Importance of a Global Mind-set http://2012books.lardbucket.org/books/global-strategy/s12-02-the-importance-of-a-globalmin.html Global Strategy and Risk http://2012books.lardbucket.org/books/global-strategy/s03-06-global-strategy-and-risk.html Organization as Strategy http://2012books.lardbucket.org/books/global-strategy/s12-04-organization-as-strategy.html Module 11: Global Forces for Change What's the benefit of studying this topic? Operating on a global scale requires new approaches to the way that organizations are designed. Large organizations impact the world's people. And, the decisions of those people and host countries shape the way that organizations operate. Understanding the forces of globalization today, the issues, and how it can affect your structure and management approach is important for all managers. Even if your organization is not global, your suppliers, other organizational partners, or customers are likely to be. Module 11 Global Forces Introduction: Identifying the 21st Century Computer technology and globalization are the two key elements that separate management in the 21st century from management in the previous century. Globalization affects management in ways that we may not think about: the availability of skilled labor, access to financing, recognition of branding, etc. It's not just about new markets, new competition and the role of e-commerce. Certainly the events since September 11, 2001, especially the recent almost global financial "melt-down," have shown people that you neither live nor work in isolation from the rest of the world. GLOBAL FORCES FOR CHANGE Demographic trends and pressures Communication advances Environmental concerns Biotechnology and food distribution Robotics and automation Nation-states' role in the future At-A-Glance Definitions: Multi-national Organization: An enterprise that spans more than one (often many) national border and culture. Globalization: The decrease of distance for trade and development of goods, services, as well as human interests. Some Facts that Add Meaning to Globalization: More people are migrating today than in the past. 232 million migrated in recent years. The most common destinations are the U.S., the Russian Federation, Germany, Saudi Arabia, and the United Arab Emirates (Back to the Big Picture, n.d.). The overall global fertility rate is declining, along with child mortality rates. At the same time, life expectancy may reach age 75 in another 25-35 years (from your reading, Diverging Global Population Trends). The largest ever group between the ages of 10-24 years old exists today, approximately 1.8 billion (Back to the Big Picture, n.d.). At the same time, declining fertility coupled with life expectancy gains is increasing the median age overall (from your reading, Diverging Global Population Trends). Approximately 40% of the global population is projected to be African by the end of the 21 st century (Back to the Big Picture, n.d.). As discussed in your reading, Diverging Global Population Trends, these and other demographic trends may lead to competition for scarce resources. For example, it notes that areas of high growth in parts of Asia and sub-Saharan Africa may cause significant ecological damage. At the same time, the growth of an affluent middle class in regions that are developing may increase unsustainable actions and exacerbate pollution, undermining economic and social advancements. On the other hand, the trend of migration of younger working age people will boost the economies of their native countries. At the same time, as discussed in Module 10, modern computer and information technology continues to advance at a rapid pace. The use of robotics and automated manufacturing processes are on the rise. Similarly, biotechnology is an emerging sector of the economy that also is growing. Biotech applies biological processes to develop products useful to humans, such as in health care, energy, and agriculture applications. Why the current interest in globalization? Countries have been trading with each other at least since the ancient Greeks and Romans traded with the countries of northern Africa. Transoceanic commerce has been a reality since shortly after Columbus stumbled upon North America. So how is globalization in the 21st century so different from the transnational commerce of all the preceding centuries? What makes "globalization" different from "international commerce" is the result of events in the final two decades of the 20th century. These events include: The collapse of communism as an alternate economic system and the emergence of the nations of the former Soviet Union and the nations of Eastern Europe as new markets. The rise of industrialization in the countries of Asia (especially India and China), Africa and South and Central America leading to their emerging role as both consumers and providers of goods. The maturing of markets in North America and in Europe and the need, therefore, to find new markets to continue to expand. The development of regional transnational structures, from military alliances (e.g., NATO) to economic alliances (e.g., OPEC, NAFTA, and the European Union). The growth in wages and prices in the more industrialized countries resulting in the search for pools of cheaper labor and cheaper raw materials. Combined with improvements in transportation and the technology of the Internet, the events have led to the expansion from simply trading among countries to a view of trade as being virtually borderless. However, there is the question as to whether this is really "globalization" or the "Americanization" of the global economy -- or, perhaps the "northernization" of the global economy, since countries such as Germany, France, the United Kingdom, etc., are also parties to this effort. WHY "GO GLOBAL"? Why do companies expand beyond being a primarily domestic operation? As noted in your reading, Definition and Challenges of a Global Corporation, going multinational expands an organization's potential market share and revenue, and thus likely profits (if for-profit). Thus, key reasons include these: Economies of scope-- because it can maintain a certain level of uniformity of operations but also can expand into untapped markets by making relatively minor and inexpensive modifications, an organization can greatly increase its client or customer base. Economies of scale-- as an organization increases its ability to produce its product (supply), usually at an ever-lowering cost per unit, it may find that its domestic markets are reaching the level of saturation (demand). In order to continue to grow and to maintain or increase profitability, it looks beyond its current markets to markets in new locations to sell more units. New opportunities-- consistent with population trends, high growth markets such as India and China, represent opportunities to gain the above economies. STAGES IN THE DEVELOPMENT OF A GLOBAL ORGANIZATION Strategy Developmental Stage Structural Focus Potential to Market/Grow Domestic-within one country Plans and activities are within country Manager priorities are Accommodates local local, but ware of markets larger trends influencing the market Dependent on local consumers Expanding to more Marketing grows to than one country be export focused Managers attend to trends of competition and standardization Structure adds international division Increase in goals for growth of market share Multi-national Strategic priorities emphasize multiple markets Managers experience explosion of strategy options Structural units address world-wide use of products/services Marketing strategy shaped by multinational factors Global Global macro trends Managers must form of finance and alliances and partner demographics to provide strategic leadership Matrix Whole world is considered to be the market (Daft, 2013) Generally, organizations don't just "go global" -- they go through several stages before "becoming global". STRATEGIES AND STRUCTURE FOR GLOBALIZATION As discussed in your reading, Chapter 10, Globalizing the Management Model, there are four common organizational structures used to pursue a global strategy. These are: 1. International- These organizations are heavily reliant on their domestic operations and sales and export from there. This model tends to evolve into one of the other models over time. 2. Multidomestic - These organizations maintain a portfolio of autonomous subsidiaries operating in diverse locations. Given the decentralization, the subsidiaries operate country or region-specific strategies and are not integrated with one another. 3. Global - These highly centralized organizations, in contrast, have fully integrated global operations to capitalize on economies of scope and scale and reduce costs. 4. Transnational - These companies try to \"do it all\" by focusing on integration among regions/subunits yet being responsive to local needs with some degree of decentralization. As the reading notes, the essence of this model is a matrix style organization. As discussed further in your reading, Chapter 10, Globalizing the Management Model, structure for competitive advantage in a global environment also entails a clear commitment from top management, formalized decisionmaking procedures and a clearly communicated vision statement, ensuring that the right performance metrics are in place to achieve goals across subunits, and the development and ongoing coordination of strong networks both inside and outside the organization. The reading states, \"Decentralized, siloed local business processes simply are ineffective and unsustainable in today's intense, competitive global environment.\" ISSUES IN GLOBALIZATION Globalization is not without challenges -- one does not simply develop a web site and begin to trade across borders! As discussed in your reading, Definition and Challenges of a Global Corporation, some of the challenges of globalization include these: Relations with the public - As a foreign entity, the organization must create goodwill and become known to native consumers. Ethical differences - Since different countries hold diverse ethical standards, it can be important to maintain high ethical standards. For example, bribes are common in many countries but are not acceptable in the U.S. Structure of the organization - The organization itself must be designed for its purpose. Will there be a country-specific division or division by products/services? What degree of decentralization is best? Structure issues are discussed further below. Management knowledge - Both cultural and diverse economic knowledge is critical so finding the right managers is important. Still more challenges include these: Tariffs and trade barriers - Historically, countries have protected their domestic industries by applying high import taxes to foreign competitors trying to enter their markets. Some countries even provide subsidies to their own corporations to give them the competitive advantage. However, with markets now being virtually anywhere the organization chooses to operate, the more recent thrust has been to reduce or eliminate those barriers by mutual agreements (e.g., NAFTA and the European Union). However, such barriers still exist and there are still domestic pressures (from both the corporate sector and from unions) to maintain or increase the remaining protective barriers and domestic supports, as the on-going controversy regarding U.S. trade agreements, tariffs and import quotas show. As the world economy moves from the substantial growth of the 1990s and early 21st century to the current economic cycles of "ups" and "downs," it will be interesting see how governments respond to those pressures. Currency exchange rates - Most countries still have their own currency and how those currencies relate to each other is a matter of minute to minute speculation. This has a profound impact on strategic and financial planning as well as day-to-day decisions such as currency for wages. The development of the Euro as a common currency among the nations of the European Union is an effort to address that problem in a manner favorable to the participating countries. It remains to be seen if there will be any effort to emulate that approach. Patents, copyrights and laws - While most countries are signatories to an international compact protecting intellectual property, legal claims of ownership must still be filed in each country in which the organization operates. Furthermore, not every country is equal in its enforcement of rights of ownership of intellectual property and certain countries (China being the most cited example) are not a party to such compacts and freely steal such property, including software codes. Furthermore, countries are applying their own laws and regulations to such issues as mergers. It was the European Union that managed to kill General Electric's expansion even after it had been approved by the U.S. Justice Department and has treated Microsoft in a far less gentle manner than has the U.S. on the issue of whether its practices constitute a monopoly. Financial standards - Strange as it may appear (or not), how we account for the financial activities of organizations has also become an issue in globalization. Standards regarding nomenclature, depreciation of property and other accounting activities (what we refer to here in the United States as GAAP -- Generally Accepted Accounting Practices) vary widely from country to country, making accounting in a global environment particularly hazardous. Efforts to develop uniform standards have met with American opposition on the grounds that such standards are less demanding than those we employ in our own country. Revision of the FASB accounting standards as a consequence of Enron/Arthur Andersen's mismanagement debacle, have widened the gap of practices between American standards of the FASB and the International Standards of the IASB. Cybersecurity - An estimated 1 trillion in US dollars was lost in just one recent year due to cyber security breaches (World Economic Forum, 2011). Hyper-connectivity does not respect country or national borders. With increased connectivity access, authorization and trust relationships are now very complicated. Management strategies need to be more than just planning for firewalls and anti-viral activities. Increasingly, you as a manager will have major responsibilities for assuring that your work unit and its products and services are within a safe and trusted environment. What will you as a manager need to know to meet the goals of cyber security in the future? Transparency - Due to global economic predictions, many larger and mid-sized corporations are searching for development in previously unexplored locations, what is now labeled as rapid-growth markets. Approximately 2.4 trillion was dedicated to these development practices last year. This trend will continue (World Economic Forum). IMF's 2013 growth forecast is 5.9% for emerging markets, against 1.9% for developed economies. But the risks within these developing economies are not always apparent. There is the limited availability of reliable information in areas such as potential supply chain partners and joint ventures. Local contracting organizations often are inexperience and issues of prevailing culture and business decisions can be overlooked but critical forces. The governments of these emerging markets can be seen as having a weak rule of law. Countries like Russia, Brazil and South Africa are actively legislating against corruption. However, legislation itself is not enough; business managers need must also be aware of what's happening locally, and need to have information-gathering plans, skills and overall intelligence for increasing transparency as decisions are made, strategy is formed. Module 12: Contemporary Issues & Future Challenges for Organizations What's the benefit of studying this topic? As a professional manager, you must look ahead and be strategic. Understanding history and current issues provide a foundation to better confront what lies ahead. Examining topics tied to future development and management offer you informed advantages - a head start. Module 12 Contemporary Issues and Future Challenges Introduction: Most people like to consider options for their futures. You do, too! In considering the future for management of organizations, here's a list of trends: Managing a diverse workforce more effectively The human side of technological change Role of uncertain times The knowledge worker Re-engineering and the virtual organization Continued influence of the global marketplace for innovation. Understanding Aspects of the Future by Looking to the Past Following the end of World War II, the U.S. dominated the global marketplace, primarily because not only the industries of its primary enemies in that war lay in ruins but also because the industries of its primary allies were also destroyed. The means of production had effectively been demolished in not only Germany and Japan but also in England, France and the rest of Europe. Because of their political and economic systems, the two other potential commercial competitors, the Soviet Union and China, would not/could not compete. Hence, the U.S. enjoyed virtually unbridled control of international markets. This situation continued on through the 1960s and, one could argue, into the 1970s. Note that this represents only a 15-25 year period following World War II -- fewer years passed in that period than between that period and the present. However, the period of U.S. market dominance did end, even if some don't want to acknowledge it. U.S. dominance ended because: The European countries and Japan (primarily with the help of the United States) redeveloped their industrial bases and/or developed new industries. China, after modifying its ruling political and economic philosophies, also began to develop as an industrialized nation. Since their base had been demolished or was nonexistent, these businesses were not faced with the issue of "reengineering" -- there was nothing to reengineer! They were able to develop new approaches to production, in contrast with the U.S., which had factories, distribution systems, etc., that were unscathed but could not be easily redesigned to take advantage of new developments in technology, in management systems, and information systems. This need to re-develop was a major factor in enabling the Japanese automakers to ultimately compete with Detroit. Given their virtual monopoly of world markets in the decades after WWII, American business had little or no incentive to be competitive -- there was no competition. So, if big cars sold in the U.S. (where the price of a gallon of gas was then 20 cents, and there were now interstate highways), then the rest of the world had to buy big cars -- even if they had narrow streets and no parking spaces. It wasn't until the 1970s that competition became strong enough to warrant concern by American corporations. By that time, American companies discovered that they not only faced the expensive proposition of having to retool production processes, they had to face the even more daunting task of having to retool management thinking or business culture, moving from vertical communication to more lateral team collaboration. Neither came easy to corporations that had become accustomed to dominating their markets. As a consequence, American companies lost increasing market share to companies headquartered in other countries. Remember American Motors? Think Nissan or BMW's popular Mini-Cooper. Current Trends At present, the United States is no longer the center of manufacturing that it once was but this may be changing. In many cases, American companies still do produce tangible goods, including trucks and cars -- but what they "produce" is more likely than not manufactured in whole or in part somewhere else. American automobiles "manufactured" in the U.S. are more an assembling of parts made in Canada, Mexico, South America, Japan, South Korea and Germany. At each level of the three steps in production (inputs, conversion, and outputs), American companies incorporate products and services originating elsewhere. However, after the Great Recession, there has been a resurgence in U.S. manufacturing. The majority of these companies have fewer than 500 employees with many of these quite small - 20 or fewer workers (National Association of Manufacturers, n.d.). But in 2014 there was an increase of 10,000 jobs in manufacturing, the first in two decades (Cheng, 2015). This is attributed to a number of factors in the global economy. Wages in typically lower cost nations, e.g., China, have begun to rise. At the same time, issues such as poor product quality, ethical lapses, and horrific events such as the garment factory collapse in Bangladesh in 2013 have spurred domestic production, along with government incentives and the high skill level of U.S. workers. In demographic trends, U.S. consumers themselves are interested in U.S. products; Gallup reports that in 2013 almost two-thirds (64%) indicated a willingness to pay more for comparable products made domestically (Cheng, 2015). Increasingly, the U.S. economy is based on services, especially in the "knowledge industry." It's said that management guru Peter Drucker invented the term \"knowledge worker\" twenty or more years ago. Thomas Davenport, an expert on the field, defines it simply as anyone who thinks for a living. More precisely, he says that they: \"...have high degrees of expertise, education, or experience, and the primary purpose of their jobs involves the creation, distribution, or application of knowledge\" (2005, p. 11). He estimates that between one quarter and a half of all U.S. workers alone fall into this category. Even in manufacturing, Davenport points out that many employees never deal directly with the production process, e.g., 90% are knowledge workers in the semiconductor industry. Understanding the trend toward an expanding knowledge industry and more knowledge workers in all sectors of the economy - from government to for-profit -- has implications for organization design. As a rule, these specialist workers cannot do their work well in a highly mechanistic, formalized and centralized structure. They are located throughout the organization and the world and need to collaborate with peers with whom their work is interdependent. Recall the concept of reciprocal task interdependence from Module 4? In order to innovate and be productive, these workers must have autonomy to collaborate without having to go up the hierarchy for every decision. Their knowledge cannot afford to remain stagnant; they must be allowed to access information quickly and efficiently. How might this alter your role as a professional manager? THE FUTURE AND ITS IMPACT ON MANAGEMENT Two issues will greatly influence American management in the future for all sectors of the American economy: public or government, commercial/for-profit, and nonprofit. The increased use of information technology throughout the globe. Rapid development of new management approaches which span boundaries beyond nations. You have already looked at the impact of information technology (IT) on management, from the view of a generally positive viewpoint in Module 10. However, there are issues that need to be identified as to the limits of the positive impact of IT on management: 1. Some of the most critical data (such as employee morale or organization culture) are soft data; it is highly significant but it cannot be easily coded for entry into electronic information systems. 2. Speed of data transmission does not necessarily translate into speed of production. 3. Availability of data does not automatically result in it being shared or used effectively. Because of the rise of technology and its interconnectivity and the increase in globalization, management thinking and management theory (no, they are not necessarily the same thing) are undergoing repeated and rapid change. Here, the admonition is beware of those "selling you a magic elixir." In other words, watch out for anyone offering you the ultimate solution to your management problems -- no such thing exists. What is needed in the face of the accelerating rate of change is an organizational structure that is sufficiently flexible to allow for a rapid response to changing developments and an organizational culture that encourages the acquisition, dissemination, processing and-very important-accountability when you as a manager apply that new information. Let's take a look at the accountability phenomena from a real world setting-what do you assume when you receive a dashboard or summary report generated as a summary and in a very timely way? Do you assume that this report information is correct-after all the data are presented clearly and increasingly you not only get one report emailed to you, but you get repeated reports? What is the impact of succinct charts or tables sent to you multiple times? And, what are the assumptions behind the summaries, or how exactly is the data gathered? Does the dashboard answer the questions you must ask to develop or re-set performance goals? How do you really know? As discussed in your reading, The Human Side of Technology, you can never ignore how computerized technological innovations interface with the humans in your workplace. Just as the structure must be flexible and the culture open to information and accountable (as noted above), the culture itself is interdependent with the technology and must change along with it. The consultants in the article use the example of modifying day-to-day work practices such as changing sheets in the hospital in order to get the most from the technological innovation. This requires helping staff see the big picture of how the technology works to improve outcomes and rewarding workers in a way that may lead to a culture that is more desirable in which to work, along with the technology. Issues Continuing into the Future that Require Excellent Management Skills 1. Diversity-- The workforce is becoming ever more culturally diverse with concomitant affect on organizational culture. This diversity is not limited to ethnic and cultural diversity; it encompasses diversity of lifestyles and family unit structures (less than half of the American people now live in a two-parent family structure) as well as diversity of intellectual interests (geeks and philosophers together, or entrepreneurs and save-the-world 2. 3. 4. 5. types? Oh, my!) But wait there's also diversity of experiences that needs attention; software designers can talk to each other - but they need to hold an awareness about the need to learn a common "language". Your reading, Managing Diversity, by Glenda Barrett covers ways that organizations can promote good diversity practices and policies. GlobalizationIntertwined with diversity is the growth in globalization, discussed in Module 9 and in your reading this week, The Challenge of Globalization. Diversity management is inseparable from globalization. As noted in the reading, almost half the world's population is employed by a multinational company -- 3 billion workers. From both an internal management viewpoint and in terms of how global consumers are approached, this brings an understanding of diversity front and center for all managers. Not only are ethical and ecological sustainability considerations inherent in globalization, but it is also critical to respect the local cultures of people in diverse international locations. Virtual Organizations, Firm v. industry: Competencies Needed -- Since the industrial revolution brought production out of the home and into the factory, the focus of management must include the study the organizational relationships for competencies needed. The future will be focused less on the traditional organization and more on its relationship with the "industry" (or more likely, "industries") in which the organization operates and people get paid for what they contribute. Core competencies (as well as what competencies can be added or dropped and when) will be a more crucial issue than products and services. Said differently, "What we make" will be less important than "what we do" and -- based on that -"what else we could do" for innovation. Organizations are likely to become more deeply involved in virtual networks, changing the form of organization as it was conceived before the 21st century. "Outside the box" -- Organizations, which have historically looked at what their rivals were doing, will look more and more to other industries for ideas and standards as a way to improve whatever it is that they do -boundary spanning activities, which then are organized by a systems approach. A city-planning story from history helps in seeing this quality. Charles Pierre L'Enfant almost single-handedly planned Washington, DC. L'Enfant did not look to New York, Boston or Philadelphia for inspiration; he looked, instead, at his hometown of Paris -- which is why Washington has all those circles, squares and radiating avenues named after states that drive motorists bonkers! Information technology and broad-based data sets will enable management to gain access to more information about approaches in other industries, other countries and other cultures, especially as cooperative, interconnected arrangements expand, cutting across industry and national borders. "Point of service" will become a greater determinant of success-- When everyone has the same access to technology, there is no advantage to anyone. However, technology cannot produce everything. The goods and services that satisfy consumers (or donors or taxpayers) most easily and quickly will lead their field. Think about the growth of Amazon and its continued innovation to not only send books, both print and e-book, but also deliver consumer goods quickly. The ability of vendors to get their product to the consumer - whether Barbie dolls or computer-designed jet aircraft engines - attention to customer service demands within the time wanted, will have a profound effect on success. This same dynamic applies to nonprofits and government as well as to business. Future of the United States In the current world economy, the U.S. has certain strengths and weaknesses: Strengths: 1. 2. 3. 4. 5. A stable form of government A stable banking system that is neither tightly regulated nor completely laissez-faire A highly educated population A strong corporate "base" Relatively low taxes, both individual and corporate, especially in contrast to most European and some Asian countries. However, even these points do not guarantee financial stability in a global economy; there is another side to this equation. Weaknesses: 1. High labor costs, which affect every step in the value chain 2. Relatively high land costs 3. Aging factories, public infra-structure such as bridges and highways, which do not support the expansion of production. In the setting of more and more competition, managers must be skilled in helping their organizations develop and grow, if growth is an explicit goal. This, in itself, works against the formal more bureaucratic structures and designs, because rigidly defined departments and divisions repeatedly are shown not to be sufficiently responsive to change. Understanding the need for adaptation and flexibility means the tools of a very formal structure (reporting relationships, job descriptions, departmental identification, etc.) lose efficiencies. Analyzing the General Environment for Trends and Future Challenges As you may recall from Module 3, aspects of an organization's external environment that may have an indirect but still profound influence on operations are called sectors of the \"general\" or \"macro\" environment. They include some of the issues that we have been discussing the past few weeks with respect to changing technology, globalization, diversity, ecological sustainability, and so on. Your reading this week, PESTEL, A Framework for Considering Challenges, summarizes these factors and presents a diagram to help think about them. This analysis will fit into the SWOT analysis that you learned about in Module 9. Understanding these factors and systematically gathering data and information about trends from various experts inside your organization as well as externally is a critical role for you as a manager. Political and Legal: Sometimes these are grouped together since laws and regulations emerge from the political process. Global politics are important for their influence on all economies as well as on multi-national operations. For example, terrorism of all origins is a threat to stability. Today we see more and more cyberattacks alongside violence. In another example, the impact of Great Britain's exit from the European Union is still to be determined but it may affect the U.S. Economic: The economic is tied to the political, as in the examples above. But it also includes other factors such as energy production, responses to Global Warming (also political/legal!), recessions, inflation, etc. Keeping track of trends is important for all sectors of the economy, including government because tax revenues rise and fall along with other economic conditions. Social: Demographic trends drive demand for products and services, as well as for what both internal and external stakeholders expect from your organization. For example, Millennials are said to expect more meaning from their work rather than to remain loyal to one employer for long. The Population Reference Bureau is a good source for understanding and tracking these. Technological: Understanding new technologies and how technologies can be threats to your operations (such as cyberattacks or disruptive innovations) is important. By keeping track, you can respond proactively. Environmental: The largest issue today is how to respond to the uncertainty of global warming. Rising sea levels are only one aspect of this. Another critical aspect is weather volatility which results in more floods, hurricanes, ice storms, and other extreme weather events. Water shortages are predicted in many parts of the globe. World bankers already are recognizing the risks that these trends pose for all businesses. They will affect all sectors just as will the other trends discussed above. Research Trends With approximately 10,000+ articles published 2005-2012, research documenting ideas relevant to appropriate business structural and organizational design for the future are numerous. But key themes point to the following The need to understand the "right" relationships, now made visible in social network applications, especially for start-up projects and small businesses. Organizational methods tested to maximize performance as well as diffusion of product/service. Adoption of coordination (horizontal) mechanisms to assist organizational structures, especially factors that set up coordinating structures (Business Data Premier Data Base, 2012)