2006
DOI: 10.1142/s0219877006000788
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Does Organization Structure Matter? On the Relationship Between the Structure, Functioning and Effectiveness

Abstract: Managers often see new organizational design as the solution to many problems. This paper explores the relationship between organization structure (design), functioning of organizations, and effectiveness. A study of 320 companies showed that the structural variable, decentralization, marginally affected the way in which organizations function. Functional variables had a minor impact on profitability. No direct relationship between structure and effectiveness was found. When functioning is conceptualized as a … Show more

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Cited by 17 publications
(15 citation statements)
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“…I derived and adapted all items from several prior studies on decentralization (Andersen and Jonsson, 2006;Bloom, Sadun, and Van Reenen, 2009a;Burton et al, 2002;Colombo, Delmastro, and Rabbiosi, 2007;Hanks et al, 1993;Lee and Grover, 2000;Nahm, Vonderembse, and Koufteros, 2003;Pugh, 1973). For each decision right, the respondents were asked to indicate the hierarchical level that is responsible for the decision.…”
Section: Individual Ambidexteritymentioning
confidence: 99%
See 1 more Smart Citation
“…I derived and adapted all items from several prior studies on decentralization (Andersen and Jonsson, 2006;Bloom, Sadun, and Van Reenen, 2009a;Burton et al, 2002;Colombo, Delmastro, and Rabbiosi, 2007;Hanks et al, 1993;Lee and Grover, 2000;Nahm, Vonderembse, and Koufteros, 2003;Pugh, 1973). For each decision right, the respondents were asked to indicate the hierarchical level that is responsible for the decision.…”
Section: Individual Ambidexteritymentioning
confidence: 99%
“…Standardization is measured as the average of two five-point Likert scale items that are derived and adapted from prior studies (α=.56) (Andersen and Jonsson, 2006;Burton et al, 2002;Hanks et al, 1993;Nahm et al, 2003). Respondents were asked to indicate how many written or oral rules and procedures are in place in their firm.…”
Section: Individual Ambidexteritymentioning
confidence: 99%
“…"Organization" deals with three issues related to the form and function of planning organizations (e.g. Andersen andJonsson, 2006, Pinjala et al, 2006). The internal consistency, or degree of correlation among the three items for the same construct, within this new variable was tested using Cronbach's alpha.…”
Section: The Survey Instrumentmentioning
confidence: 99%
“…Irrespective of the nature of business, an organizational structure provides a foundation within which organizations function (Andersen & Jonsson, ; Cummings & Berger, ; Jacob, ). Jackson and Morgan () viewed organization structure as durable arrangements within an organization, because it shows the allocation of work roles and administrative mechanisms that creates a pattern of interrelated work activities and allows the organization to conduct, coordinate, and control its work activities.…”
mentioning
confidence: 99%