This research explores how organizational behavior influencing packaging decision-makers (PDMs) and how their packaging decisions subsequently mitigate or create corporate risks. Case research included durable goods producers' PDMs for assembly components, finished goods, and serviceable repair parts. The research found that despite the need for fact-driven decisions, PDMs are influenced by organizational behaviors that are structure-based and relationship-based. Structure-based behaviors include a PDM's organizational accountability and responsibilities. For example, a PDM that is accountable to an organization's primary function, such as inbound logistics, is likely to design packaging that emphasizes transportation efficiencies over other organizational packaging needs. Similarly, a PDM that has a broad range of organizational responsibilities, such as inbound logistics and purchasing, is likely to design packaging that is better for the organization. Although independent, the organizational accountability and responsibilities variables are correlated in that they are often manipulated simultaneously. Organizational behaviors that are structure-based and relationship-based include PDMs' reporting levels and structures. For example, a PDM that does not have a management reporting level is less likely to have the authority to design packaging that satisfy the organization's diverse packaging needs. Similarly, a PDM structured as a department is more likely to have the resources and authority to design packaging that is better for the organization. Although independent, the organizational reporting level and structure variables are correlated in that they are often manipulated simultaneously. Relationship-based organizational behaviors include PDMs' organizational frames and corporate change. For example, packaging decisions made in a politically-framed organization are likely to be based on personal power rather than the organization's diverse requirements. Regarding corporate change, PDMs are influenced by strategic changes to organizational accountability, responsibilities, reporting levels, and structures. Corporate change often inadvertently alters PDMs' organizational frames.Organizational changes reflect corporations' perceived value of packaging with respect to new and emerging corporate strategies. For this reason PDMs' organizational environments are not always static, as firms seek out the best approach to managing packaging decisions. Several strategies for managing PDMs were found including centralization, consolidation, and the use of PDMs external to their organizations. The research explored how positive and negative influences of organizational behaviors mitigate or create packaging-related corporate risks, respectively. Positive influences enable packaging to protect brand reputation, improve consumer loyalty, avoid costs, and maximize profits. Negative influences result in suboptimal or dysfunctional designs that create risks.The most significant finding is that corporations do not always have PDMs for assembly components, finished goods, and service parts. In some cases this is a strategic decision. This is important to understand because recurring product innovation, evolving packaging science, and emerging corporate strategies require packaging to not only be effectively managed but also be strategically managed.
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