Images of organizational evolution

Purpose: This paper develops the notion of building a brand-new theory of organisational structure using internal capabilities and emphasizes the process of how those capabilities (synergies) are recognized, built, and prioritized. Exchangeable payoffs generated by synergies or stand-alone values are recapitulated by a firm matrix that applies to firms in both the public and private sectors. Evolving ideas from cooperative games, activity analysis, and conditions for a cost-effective framework are set out. This research adopts a mathematical form that can be transformed into a decision support system vector. Design/Methodology/Approach: This study employs an epistemological metrics-driven analysis to investigate the co-evolution between firms and payoffs. Three key dimensions were considered in capturing this dynamic relationship. First, we advocate for a metrics-driven approach to co-evolution, emphasizing its crucial role in anticipating and realizing payoffs. Second, we demonstrate that a single-lens perspective offers only a partial explanation of co-evolutions, particularly regarding synergy and payoff dynamics. Third, we integrate a metrics-driven approach with the moderating effects of game theory practices and activity analysis. This synthesis allows for the application of quantitative research methods to explore, recognize, and classify the nature of co-evolutions. Findings: The findings indicate that organizations have unique preferences in terms of amalgamating synergies for re-engineering payoffs. This process is achieved by exploiting organizational strategic-renewal action such as managerial actions/intentionality of the organizations seems to describe unique internal behavioural patterns, the firm’s timing, and the frequency of those synergised but renewed critical actions. Practical Implications: This research can positively impact an organization’s efficiency, innovation, employee satisfaction, competitive positioning, adaptability, and overall organizational performance. Research Limitations: The limitations of this research are: 1) limited perspective as relying solely on internal capabilities, considering external factors can provide a more holistic understanding and prevent potential blind spots, and 2) increased complexity especially as it involves cross-functional teams and matrix arrangements. Complexity can create coordination challenges, communication gaps, and decision-making bottlenecks. Originality: This research innovatively introduces a new organizational structure theory focusing on internal capabilities. The integration of cooperative games, activity analysis, and a cost-effective framework offers a unique perspective.