Abstract

In response to global competition and a rapidly changing business environment, corporate strategies and structures are becoming more flexible and integrated. This article develops a model of the flexible, integrated firm, a model that focuses on corporate strategy and organizational structure. The flexible-integrated (FI) firm's mode of operation represents tendencies present in high performance, global companies, particularly as these companies have been understood by leading managerial thinkers. The FI-Firm's operations are contrasted with the hierarchical (H) firm. The H-Firm incorporates strategy and structure in a very different way, which reflects the dominant operating mode of the large Western corporation during much of the second half of the twentieth century. Given the nature of today's competition, there are many reasons for believing that the FI-Firm is not only more flexible but also more efficient than the H-Firm.

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