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Divisionalisation and Size: A Reply to Grinyer

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  • Lex Donaldson

    (The Australian Graduate School of Management, University of New South Wales.)

Abstract

Adoption of the divisional for M of organisation structure has been explained with reference to size. The present author (Donaldson 1982a) has argued against this view and asserted that strategy is a more compelling explanation theoretically and empirically. Grinyer (1982) has defended the argument from size. The present paper replies to Grinyer. It points to continuing theoretical weaknesses with size. Aspects of the defence by Grinyer are challenged. And his criticisms of the empirical research of Donaldson (1982a) are answered. Several causal models are explicated from Grinyer (1982). Fresh evidence is adduced against three out of four of them. The conclusion is that strategy is a more important cause of divisionalisation than size.

Suggested Citation

  • Lex Donaldson, 1986. "Divisionalisation and Size: A Reply to Grinyer," Australian Journal of Management, Australian School of Business, vol. 11(2), pages 173-189, December.
    • Handle: RePEc:sae:ausman:v:11:y:1986:i:2:p:173-189
    DOI: 10.1177/031289628601100204
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    References listed on IDEAS

    as
    1. Robert H. Chenhall, 1979. "Some Elements of Organisational Control in Australian Divisionalised Firms," Australian Journal of Management, Australian School of Business, vol. 4(1_suppl), pages 1-36, June.
    2. Lex Donaldson, 1987. "Strategy And Structural Adjustment To Regain Fit And Performance: In Defence Of Contingency Theory," Journal of Management Studies, Wiley Blackwell, vol. 24(1), pages 1-24, January.
    3. Y. Suzuki, 1980. "The Strategy and structure of top 100 Japanese industrial enterprises 1950–1970," Strategic Management Journal, Wiley Blackwell, vol. 1(3), pages 265-291, July.
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