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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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    File URL: https://doi.org/10.1111/j.1467-6486.1992.tb00652.x
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    Cited by:

    1. 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.
    2. 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.

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