M-Form Response in Times of Disorder : The Case of a Mexican Conglomerate (1974-1994)

This case study contributes to the M-form research by examining the enacted organizational response of an emerging-economy based conglomerate to a major economic environmental crisis. This article draws from a study on the transformation process of Alfa, a Mexican multi-business group that was on the verge of collapse after that country's foreign debt crisis in 1982, but today is one of the largest and successful privately owned corporations in Mexico. The case addresses two central themes: a) the evolution from 1974 to 1994 of one of the most important Mexican industrial groups; and b) the organizational response that a multi-business group used to confront the oscillating stages of the Mexican economy.The findings described here identify an innovative type of response enacted, as well as its performance effects. Thus, we propose a new construct that characterizes an M-form response in times of environmental economic crisis that is supported by this case study and includes: a) a reconfiguration process and the adoptation of an organizational structure to strengthen and protect the core business- centralized decision-making; and b) the decision to divest non-productive or less important resources