DOES ORGANIZATION STRUCTURE MATTER? ON THE RELATIONSHIP BETWEEN THE STRUCTURE, FUNCTIONING AND EFFECTIVENESS

Jon Aarum Andersen () and Patrik Jonsson ()
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Jon Aarum Andersen: School of Management and Economics, Växjö University, S-351 95 Växjö, Sweden
Patrik Jonsson: Division of Logistics and Transportation, Chalmers University of Technology, S-412 96 Gothenburg, Sweden

International Journal of Innovation and Technology Management (IJITM), 2006, vol. 03, issue 03, 237-263

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 mediating factor no direct causality between structure and effectiveness is implied, but a relationship between structure, function and effectiveness. To improve effectiveness, reorganizing is probably not the first option to consider.

Keywords: Organization structure; function; organizational effectiveness (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S0219877006000788

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