An economic analysis of matrix structure, using multinational corporations as an illustration

Tailan Chi and Paul Nystrom
Additional contact information
Tailan Chi: School of Business Administration, University of Wisconsin-Milwaukee, Milwaukee, WI, USA, Postal: School of Business Administration, University of Wisconsin-Milwaukee, Milwaukee, WI, USA
Paul Nystrom: School of Business Administration, University of Wisconsin-Milwaukee, Milwaukee, WI, USA, Postal: School of Business Administration, University of Wisconsin-Milwaukee, Milwaukee, WI, USA

Managerial and Decision Economics, 1998, vol. 19, issue 3, 141-156

Abstract: This paper applies a comparative institutional perspective to the organizational design called matrix structure. After discussing the motivations for a multidimensional form of organization, the paper compares the transaction cost characteristics of the matrix (MX-form) structure with those of the well-known multidivisional (M-form) structure. This analysis reveals three advantages and three disadvantages of the matrix structure as well as two conditions affecting the efficacy of a matrix. Examples from multinational corporations are used throughout the paper to illustrate the analysis. © 1998 John Wiley & Sons, Ltd.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (13)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:19:y:1998:i:3:p:141-156

DOI: 10.1002/(SICI)1099-1468(199805)19:3<141::AID-MDE877>3.0.CO;2-D

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().