Technology-Structure Fit and Performance in Small Businesses: An Examination of the Moderating Effects of Organizational States

W. Alan Randolph, Harry J. Sapienza and Mary Anne Watson

Entrepreneurship Theory and Practice, 1991, vol. 16, issue 1, 27-42

Abstract: This study explores the effects of the fit between technological innovation and organization structure on small business financial performance. Support was found for technology-structure fit as a predictor of financial performance in small businesses. The study also explores the moderating effects of firm age and of sales growth on the relationship between fit and financial performance. Regression analyses indicate that the relationship between fit and financial performance is not significantly affected by the age of small businesses, but it is significantly influenced by the rate of growth of small businesses. Fit has a significant positive relationship with financial performance for low sales growth companies, but it is unrelated to performance in high sales growth companies.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:16:y:1991:i:1:p:27-42

DOI: 10.1177/104225879101600103

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