pp.97-109

p.97 Strategic agility has become a key competency as businesses face increasingly competitive markets

p.98 The underlying thesis of this chapter [JLJ - this article appears as Chapter 8 in a book by DeSouza] is that in the context of everincreasing competitive environments, firms require higher levels of stratgic agility (Hitt, Keats, and DeMarie, 1998). This in turn demands more agile organization and business processes, which is prompting a move... toward "loosely coupled" arrangements (Sanchez, 1997).

p.99 Loose coupling can be traced back to the concept of coordination among parts, as described in 1952 in Ashby's Design for a Brain (Ashby, 1952).

p.99 Mitchell and Zmud (1999) suggest that one of the primary features of a loosely coupled system is its ability to enact change, while limiting or delaying the effect on the interdependent parts. Loose coupling describes a particular state of connection between disparate elements. Orton and Weick (1990) assert that loose coupling "combine[s] the contradictory concepts of connection and autonomy." They further emphasize that the relevant dimensions of a loosely coupled system are distinctiveness and responsiveness. They extend earlier work (Weick, 1982; Perrow, 1984; Weick, 1985) to define a system with high lethargy and incrementalism (low responsiveness) and high indeterminacy (low distinctiveness) as loosely coupled. Beekun and Glick (2001) redefine loose coupling in terms of strength, directness, consistency, and dependence. Thus, it is clear that a loosely coupled system is interdependent to some degree, but that the components do not act responsively to each other. Loose coupling describes the functionality of loose linkages, which may be tightened to improve control but loosened to enhance cushioning from external jolts (Beekun and Ginn, 1993).

p.100 Sanchez (1997) explains how, in the design of organizational processes, a modular approach with loosely coupled components helps to create the ability to reconfigure the system readily by enabling new functional process variations without excess disruption to the functions themselves.

p.100 Many theorists have asserted that a primary benefit of a loosely coupled system is to stabilize the system in the face of environmental uncertainty, and to prevent the spread of problems across subcomponents. This is derived from the condition of system modularity, which is directly enabled by loose coupling (Weick, 1985). This does not mean that the system doesn't change, rather that the system is more likely to adapt to change smoothly and at a measured pace. It is for this reason that Perrow (1984) suggested that loosely coupled systems are more desirable in high-risk systems such as nuclear power plants. Even in less critical environments, the ability to easily manage relationships between elements in a system, possible through loose coupling, can be a valuable strategic capability. In organizations facing uncertain environmental conditions, such as a competitive and rapidly changing market environment, the ability to either decouple or loosen their linkages with external elements to moderate the impact of negative events can be highly desirable (Weick, 1982; Perrow, 1984; Orton and Weick, 1990)

p.100 Perrow (1984) strongly advocates the adaptability of a loosely coupled system as a great advantage, especially in situations in which the system should be able to adjust to environmental changes... Weick (1976; 1982) also asserts the diversity of responses that are enabled by loose coupling.

p.100 By enabling the linkages between elements to be broken or reconfigured easily, loose coupling can promote optimal efficiency of a system.

p.101 not only does loose coupling promote the ability to create new ideas, it allows the system to adapt to implement new ideas.

p.101 Orton and Weick (1990) state very simply that "looseness produces flexibility." Their logic follows from the observation that task uncertainty can be mitigated through loose structures and incremental adaptation paths, which is the argument that supports the advantages of persistence and buffering. Further, Weick (1988) points out that "loose coupling enables local knowledge to be applied when responding in a timely manner to local conditions. Small deviations can be sensed quickly and corrective actions quickly applied." Thus, loose coupling promotes flexibility by allowing a "diversity of response to unanticipated events" (Mitchell and Zmud, 1999).

p.101 Loose coupling enables substitutes for a resource in the relationship to be viable options for switching. Therefore, increasing the independence of the elements in a relationship increases the strategic flexibility (Sanchez, 1997; Beekun and Glick, 2001).

p.102 Sanchez (1997)... asserts that resource flexibility is greater when there is "a larger range of alternative uses for each resource; when the costs and difficulties of switching from one use of a resource to an alternative are lower; and when the time required to switch to an alternative is lower." ...He states that the modularity that results from loose coupling "greatly facilitates the creation and realization of strategic flexibility by an organization" (Sanchez, 1997).