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Organizational Structure and Firm Performance: An Intertemporal Perspective

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  • Hilary Ingham
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    Abstract

    Since the seminal contributions of Chandler and Williamson, a substantial body of research in industrial organization has examined the performance benefits of the organizational innovation of divisionalization. While existing empirical work has, for the most part, utilized a static framework to analyse the performance effects of divisionalization, adopts a dynamic approach, thereby allowing the intertemporal nature of any such performance benefits to be examined. Presents results from the UK manufacturing industry; the model estimated uses a spline function to incorporate differing organizational regimes over time. The results obtained are less supportive of the benefits of divisionalization than certain of the earlier empirical studies; thus the evidence presented lends no support to the view that organizational change provides unambiguous performance benefits for the firm.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

    Volume (Year): 19 (1992)
    Issue (Month): 5 (October)
    Pages: 19-35

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    Handle: RePEc:eme:jespps:v:19:y:1992:i:5:p:19-35

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    Related research

    Keywords: Divisionalized companies; Manufacturing; Models; Organizational structure; Performance; Re-organization; United Kingdom;

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