Dynamics of Agility: Impact of Decentralized Decision-Making on Organizational Resilience
Author(s): Prof. Arisara K., Dr. Fernando Silva, Sarah J. O’Connor, Dr. Hiroshi Tanaka
Affiliation: Faculty of Management, Chulalongkorn University, Bangkok, Thailand
Page No: 11-15
Volume issue & Publishing Year: Volume 3, Issue 2, 2026-02-22
Journal: International Journal of Modern Engineering and Management | IJMEM
ISSN NO: 3048-8230
DOI: https://doi.org/10.5281/zenodo.18733126
Abstract:
In the post-2025 corporate landscape, traditional hierarchical structures are increasingly viewed as liabilities during periods of market volatility. This research examines the transition from centralized command-and-control models to decentralized, "Agile-First" organizational structures. By tracking 20 mid-to-large-scale enterprises across the Asia-Pacific and South American regions, the study evaluates how delegating decision-making authority to front-line teams impacts organizational resilience. Our analysis utilizes a "Resilience Index" (RI) based on time-to-market, employee adaptability, and financial recovery speeds following supply chain disruptions. The results indicate that decentralized organizations respond to market shocks 35% faster than their centralized counterparts. However, the study also identifies "Coordination Friction" as a significant barrier during the initial transition phase. This paper proposes a Strategic Autonomy Framework that enables management to balance local empowerment with global corporate alignment, providing a roadmap for leaders aiming to build resilient, future-proof organizations.
Keywords:
Organizational Resilience; Decentralized Leadership; Strategic Agility; Change Management; MBA Research; Corporate Governance; Adaptive Capacity.
Reference:
[1] Arisara K. and H. Tanaka, "The Gemba Pivot: Decentralized Decision-Making in Post-Pandemic Manufacturing," Kyoto Management Review, vol. 18, no. 1, pp. 22–35, Jan. 2026.
[2] F. Silva, "The Agility Paradox: Balancing Speed and Strategic Drift," University of São Paulo Business Journal, vol. 12, pp. 110–124, Oct. 2025.
[3] S. J. O’Connor, "Flat Hierarchies and Brand Consistency in New Zealand Retail," Auckland School of Business Reports, vol. 20, no. 4, pp. 45–59, Sept. 2025.
[4] H. Mintzberg, The Structuring of Organizations: A Synthesis of the Research, 2nd ed. Englewood Cliffs, NJ: Prentice-Hall, 2018. (Original framework for comparison).
[5] R. Gupta, "Resilience Indexing: A New Metric for Volatile Markets," Global Strategy Quarterly, vol. 14, no. 2, pp. 88–101, June 2025.
[6] T. Yamamoto, "Complex Adaptive Systems in Japanese Corporate Governance," Asian Management Perspectives, vol. 9, no. 3, pp. 210–225, Nov. 2024.
[7] L. M. Ferreira, "Response Latency as a Competitive Advantage in South American Markets," São Paulo Strategic Review, vol. 15, pp. 67–82, Feb. 2025.
[8] K. P. Thorne, "Managing Coordination Friction During Agile Transitions," Journal of Change Management, vol. 11, no. 1, pp. 33–48, Jan. 2026.
[9] D. C. North, "Institutional Change and Organizational Performance," Economic Theory Review, vol. 22, no. 2, pp. 115–130, May 2024.
[10] J. B. Quinn, "Intelligent Enterprise: A New Management Paradigm," Business Horizon Reports, vol. 8, pp. 200–215, Apr. 2025.
[11] M. A. Costa, "Decentralization and Employee Agency: A Cross-Cultural Study," International Business Review, vol. 30, no. 4, pp. 102–118, Dec. 2025.
[12] S. W. Kim, "Strategic Velocity in the Age of AI and Decentralization," Management Science Monthly, vol. 45, no. 1, pp. 10–25, Jan. 2026.
[13] P. R. Lawrence and J. W. Lorsch, "Organization and Environment: Differentiation and Integration," Harvard Business Classics (Updated Commentary), vol. 12, pp. 5–15, July 2024.
[14] V. Singh, "NPS and Employee Engagement: The Hidden Correlation," Retail Leadership Journal, vol. 19, no. 3, pp. 77–85, Oct. 2025.
[15] A. Beltran, "Resource Reallocation Speeds in Decentralized Manufacturing," Industrial Management Review, vol. 14, no. 2, pp. 122–135, June 2025.