Cross-unit competition for a market charter: The enduring influence of structure

Marketing strategists who operate in turbulent markets face a competitive landscape marked by volatility and evolving market structures. As customer requirements change, an organization that stays in alignment with its markets will form new business units or alter the market charters of existing business units. In a longitudinal study, the authors traced the structural realignments that accompanied a Fortune-500 firm's entry into the Internet market. As the charter moved from a freshly created unit to an established business unit, the authors found support for the prediction that the former organizational structure will continue to shape the identity, beliefs, and social ties of managers. The study highlights the structural, social, and cognitive factors that must be managed as corporate decision makers search for the best strategy-structure fit for an emerging market opportunity.