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

  • 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)

Registered author(s):

    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.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation and Technology Management.

    Volume (Year): 03 (2006)
    Issue (Month): 03 ()
    Pages: 237-263

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    Handle: RePEc:wsi:ijitmx:v:03:y:2006:i:03:p:237-263
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