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Does Organization Structure Matter? On The Relationship Between The Structure, Functioning And Effectiveness

Author

Listed:
  • 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)

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.

Suggested Citation

  • Jon Aarum Andersen & Patrik Jonsson, 2006. "Does Organization Structure Matter? On The Relationship Between The Structure, Functioning And Effectiveness," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 237-263.
    • Handle: RePEc:wsi:ijitmx:v:03:y:2006:i:03:n:s0219877006000788
    DOI: 10.1142/S0219877006000788
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    Cited by:

    1. Midtgård, Kenneth & Selart, Marcus, 2024. "The cognitive perspective in strategic choice," SocArXiv 4xpza, Center for Open Science.
    2. A.P. Barsukov & N.V. Bukhov, 2019. "Development of Company’s Management Framework on the Basis of Value Chain," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 101-114.
    3. Tobias Kretschmer & Christoph Dehne, 2020. "Organisationsstruktur und Führungsstil nach Akquisitionen – eine empirische Untersuchung [Organizational Structure and Leadership Style after Acquisitions – an Empirical Study]," Schmalenbach Journal of Business Research, Springer, vol. 72(4), pages 479-512, December.

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