The Paradox of Agility: Reduce Formalization? Introduce Formalization!

Miriam Bachmann, Anne Kurzmann, Barbara Castrellon Gutierrez and Anne-Katrin Neyer

Die Unternehmung - Swiss Journal of Business Research and Practice, 2020, vol. 74, issue 2, 122-135

Abstract: Agile concepts become increasingly popular, given their ability to adapt to a turbulent environment. Hence, they are implemented in various organizations and industries. In this context, complete flexibility and the abolition of formalization in terms of rules, procedures, and instructions are often seen as the Holy Grail for success. Having said this, the following article identifies a paradoxical aspect of agility: The decrease of formalization of some aspects goes along with an increase of formalization of other aspects. Furthermore, we differentiate between two forms of formalization: a coercive, agility hindering and an enabling, agility supporting formalization. We state that in the case of agile adoption, the reduction of coercive formalization leads to an increase in enabling formalization. Building on insights from four case studies, we derive five propositions regarding formalized aspects in the context of agility. Then, we develop a model that links the type and level of formalization to four different types of organizations.

Date: 2020
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DOI: 10.5771/0042-059X-2020-2-122

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Die Unternehmung - Swiss Journal of Business Research and Practice is currently edited by Prof. Dr. Artur Baldauf, Universität Bern, Prof. Dr. Manfred Bruhn, Universität Basel, Prof. Dr. Pascal Gantenbein, Universität Basel (geschäftsführend), Prof. Dr. Markus Gmür, Universität Fribourg, Prof. Dr. Klaus Möller, Universität St. Gallen, Prof. Dr. Günter Müller-Stewens, Universität St. Gallen, Prof. Dr. Dr. h.c. Margit Osterloh, Universität Zürich, Prof. Dr. Dieter Pfaff, Universität Zürich and Prof. Dr. Martin Wallmeier, Universität Fribourg

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