Boundaryless enterprise
This concept of boundaryless enterprise involves recognition of an organization that is growing, but within existing boundaries that can fluctuate. An example would be the reduction of the number of levels between the leadership of senior management, and executive positions, the lowest in the hierarchy of the organizational structure. The other example is combining individual functions to take advantage of the varied skills of employees. Such an approach is reflected in the assignment of groups of people representing different functions for the implementation of the various processes in the enterprise.
It should be noted that the boundaryless enterprise concept involves also activities of the enterprise which adjust in response to changes in the market conditions. This applies in particular to the strengthening of cooperation with other entities, which can interfere with the current activities of the organization. The ranges of the tasks performed by such entities can also significantly change. As an example, starting cooperation with specialist in outsourcing service provider, may be associated with periodic expansion or limitation of action ranges outsourced to such entity.
Features of boundaryless organization
Conditions that should be met to effectively manage knowledge in boundaryless enterprise:
- permeability of the internal and external organizations boundaries,
- ensuring the flow of information between cooperating individuals, but also between cooperating organizations
- free shaping of the informal relationship between the employees, between the cooperating entities, as well as between partner organizations.
It should be added that, in the case of the cooperation of several organizations transfer of knowledge requires the fulfilment of the above conditions by all companies.
See also:
Advantages of Boundaryless enterprise
A boundaryless enterprise offers a variety of advantages for the organization. These include:
- Increased efficiency and productivity, as the organization is better able to leverage the skills of its employees and utilize the most efficient processes.
- Improved communication and collaboration between employees, as they are all able to work together on projects, and discuss ideas more effectively.
- A greater sense of ownership among employees, as they all feel responsible for the success of the organization.
- Increased flexibility in decision making, as the organization is able to respond quickly to changes in the market or customer demands.
- Enhanced innovation, as employees are able to work together to develop new ideas and solutions.
- Reduced costs, as the organization is able to streamline processes and eliminate redundancies.
Limitations of Boundaryless enterprise
The concept of boundaryless enterprise has its limits and the following are some of the key limitations:
- One limit is that it can be difficult to implement and sustain in larger organizations, as there must be a cohesive framework to ensure that the changes are appropriate and that there are adequate resources to support them.
- Another limit is that there can be a lack of clarity regarding roles and responsibilities, leading to confusion and potential inefficiencies.
- Additionally, it can be difficult to maintain a boundaryless structure if there is not an effective system of communication in place to ensure that all employees are on the same page and understand their roles and responsibilities.
- Lastly, boundaryless enterprises can be costly, as there can be a need for additional resources to support the changes and ensure that the organization is functioning optimally.
| Boundaryless enterprise — recommended articles |
| Virtual organization — Virtual structure — Functional structure — Service delivery architecture — Network structure — Global project management — Extended enterprise — Business process outsourcing — Staff structure |
References
- Ashkenas R., Ulrich D., Jick T., Kerr S. (1998), Boundaryless Organization. Behind the Chains of Organizational Structure, Jossey - Bass Inc. Publishers, San Francisco
- Philpott E., Hamblin D. J., Baines T., Kay G. (2004), The use of models and methods of strategic planning: Towards a holistic view of strategy, International Transactions in Operational Research, vol. 11, International Federation of Operational Research Societes, Blackwell Publishing Ltd.
- Rajan, R. G., & Zingales, L. (2000). The governance of the new enterprise (No. w7958). National Bureau of Economic Research.
- Stace, D., & Dunphy, D. C. (2001). Beyond the boundaries: Leading and re-creating the successful enterprise. McGraw-Hill.
