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The Adoption Of The Multidivisional Form Of Organization: A Contingency Model

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  • Joseph T. Mahoney

Abstract

This article examines the proposition that the multidivisional structure is determined by both power and efficiency imperatives. It is theorized that combining the coalitional power and information‐processing perspectives of organizational choice enables us to explain and predict organizational form. The theory is tested on 291 Fortune 500 firms. The results largely confirm theoretical expectations. It is submitted that the multidivisional paradigm illustrates the central premises of the article: (1) a synthesis of efficiency and power perspectives is a viable research programme; and (2) theoretical pluralism increases empirical content and should be valued by those concerned with progress in the emerging field of strategic management.

Suggested Citation

  • Joseph T. Mahoney, 1992. "The Adoption Of The Multidivisional Form Of Organization: A Contingency Model," Journal of Management Studies, Wiley Blackwell, vol. 29(1), pages 49-72, January.
    • Handle: RePEc:bla:jomstd:v:29:y:1992:i:1:p:49-72
    DOI: 10.1111/j.1467-6486.1992.tb00652.x
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    Cited by:

    1. Camille Cornand & Rodolphe dos Santos Ferreira, 2017. "The social value of information and the competition motive: Price vs. quantity games," Working Papers halshs-01614815, HAL.
    2. Vachani, Sushil, 1999. "Global diversification's effect on multinational subsidiaries' autonomy," International Business Review, Elsevier, vol. 8(5-6), pages 535-560, October.
    3. Elitsa R. Banalieva & Gary Gregg & Ravi Sarathy, 2010. "The Impact of Regional Trade Agreements on the Global Orientation of Emerging Market Multinationals," Management International Review, Springer, vol. 50(6), pages 797-826, December.
    4. Thomas Hutzschenreuter & Julian Horstkotte, 2013. "Performance effects of top management team demographic faultlines in the process of product diversification," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 704-726, June.
    5. Michael, Steven C., 2003. "First mover advantage through franchising," Journal of Business Venturing, Elsevier, vol. 18(1), pages 61-80, January.
    6. Chi-Lin Yang & Tsai-Yin Lin & Chien-Wei Chen & Min-Hsien Chiang, 2018. "Information and timing of new product preannouncement and firm value," Australian Journal of Management, Australian School of Business, vol. 43(1), pages 111-131, February.
    7. Camille Cornand & Rodolphe Dos Santos Ferreira, 2020. "The social value of information and the competition motive: price versus quantity games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(4), pages 1101-1137, November.
    8. repec:bla:jomstd:v:47:y:2010:i:s1:p:859-883 is not listed on IDEAS
    9. Bucheli, Marcelo & Mahoney, Joseph T. & Vaaler, Paul M., 2007. "Chandler's Living History: The Visible Hand of Vertical Integration in 19th Century America Viewed under a 21st Century Transaction Costs Economics Lens," Working Papers 07-0111, University of Illinois at Urbana-Champaign, College of Business.
    10. Danchi Tan & Joseph T. Mahoney, 2005. "Examining the Penrose effect in an international business context: the dynamics of Japanese firm growth in US industries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 113-127.
    11. Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, vol. 33(2), pages 91-101, June.
    12. Steven Michael, 2014. "Can franchising be an economic development strategy? An empirical investigation," Small Business Economics, Springer, vol. 42(3), pages 611-620, March.
    13. Elitsa R. Banalieva & Ravi Sarathy, 2011. "A Contingency Theory of Internationalization," Management International Review, Springer, vol. 51(5), pages 593-634, October.

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