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The continuing validity of the strategy‐structure nexus: new findings, 1993–2003

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  • Jose I. Galan
  • Maria J. Sanchez‐Bueno

Abstract

This study analyzes whether a diversification strategy facilitates subsequent divisionalization (and hence that ‘structure follows strategy’), and/or whether the multidivisional structure leads to a diversification strategy (and hence that ‘strategy follows structure’). In theoretical terms, this study is original in that it institutes a debate between the Chandler thesis and other perspectives that challenge the generalizability of the strategy‐structure nexus. Interestingly, this new study with contemporaneous data for the period 1993–2003 sheds light on this contested issue and postulates that despite the criticism of Chandler's contribution, it still works. Our results show that strategic diversification affects structural divisionalization, and in turn, structural divisionalization affects strategic diversification. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Jose I. Galan & Maria J. Sanchez‐Bueno, 2009. "The continuing validity of the strategy‐structure nexus: new findings, 1993–2003," Strategic Management Journal, Wiley Blackwell, vol. 30(11), pages 1234-1243, November.
    • Handle: RePEc:bla:stratm:v:30:y:2009:i:11:p:1234-1243
    DOI: 10.1002/smj.782
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    Cited by:

    1. Jacques Bughin & Tobias Kretschmer & Nicolas van Zeebroeck, 2019. "From Experimentation to Strategy: The Role of Digital Technologies in Strategy Renewal," Working Papers TIMES² 2019-031, ULB -- Universite Libre de Bruxelles.
    2. Deirdre Canavan & Pamela Sharkey Scott & Vincent Mangematin, 2012. "Aligning Strategies for Growth and Talent Management in Creative Professional Service Firms," Post-Print halshs-00794891, HAL.
    3. Leyland Pitt & Sarah Lord Ferguson & Pierre Berthon, 2018. "The transition from products to connected health: observations and avenues for future research," AMS Review, Springer;Academy of Marketing Science, vol. 8(3), pages 233-239, December.
    4. Deligianni, Ioanna, 2023. "Revisiting the relationship between product and international diversification in new ventures: The moderating effect of effectuation processes," International Business Review, Elsevier, vol. 32(1).
    5. Radojevic, Predrag & Sudarevic, Tomislav & Dosenovic, Dragana & Boskovic, Aleksandra, 2022. "Organizational design in export framed by product strategy and firm characteristics: a descriptive, predictive, and prescriptive analysis," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 27(3), pages 382-403.
    6. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).

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