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Organizational structure and performance in Dutch small firms

Author

Listed:
  • Marco Mosselman
  • Joris Meijaard
  • Maryse Brand

Abstract

The relationship between organizational structure and performance in small firms has received relatively limited attention over the last few decades. In understanding small firm performance this seems to be a serious omission. In this paper, we first present the rationale for including organizational structure in the analysis of small firm performance. Then, from the literature on organizational theory, we retrieve several dimensions that may be postulated to describe organizational structures of small firms. Based on the study of a stratified sample of 1411 Dutch small firms we show that nine structure stereotypes can be delineated. We further investigate the relevance of the empirical taxonomy by looking at the relationship with firm performance in terms of sales growth, profitability and innovativeness. Eventually, we conclude that organizational structure indeed matters and that it deserves to be taken into account in models and future analysis of small firm performance.

Suggested Citation

  • Marco Mosselman & Joris Meijaard & Maryse Brand, 2005. "Organizational structure and performance in Dutch small firms," Scales Research Reports N200420, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200420
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    Cited by:

    1. Mohammad Iranmanesh & Kavigtha Mohan Kumar & Behzad Foroughi & Reza Kian Mavi & Ng Hui Min, 2021. "The impacts of organizational structure on operational performance through innovation capability: innovative culture as moderator," Review of Managerial Science, Springer, vol. 15(7), pages 1885-1911, October.
    2. GuoXiang Tang & Kwangtae Park & Anurag Agarwal & Feng Liu, 2020. "Impact of Innovation Culture, Organization Size and Technological Capability on the Performance of SMEs: The Case of China," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    3. Gerrit de Wit & Haibo Zhou, 2009. "Determinants and dimensions of firm growth," Scales Research Reports H200903, EIM Business and Policy Research.
    4. Tristan Blick & Ine Paeleman & Eddy Laveren, 2024. "Financing constraints and SME growth: the suppression effect of cost-saving management innovations," Small Business Economics, Springer, vol. 62(3), pages 961-986, March.
    5. Ismail Elnihewi & Rapiah Mohamed, 2015. "Effect of Organisational Structure and Competition on Organisational Performance in Libyan Commercial Banks," Information Management and Business Review, AMH International, vol. 7(6), pages 50-55.
    6. Rok Črešnar & Marina Dabić & Nebojša Stojčić & Zlatko Nedelko, 2023. "It takes two to tango: technological and non-technological factors of Industry 4.0 implementation in manufacturing firms," Review of Managerial Science, Springer, vol. 17(3), pages 827-853, April.
    7. De Rooij, Mariska M.G. & Janowicz-Panjaitan, Martyna & Mannak, Remco S., 2019. "A configurational explanation for performance management systems' design in project-based organizations," Other publications TiSEM edcb4bed-2636-4985-97ab-8, Tilburg University, School of Economics and Management.
    8. Candon Johnson & Robert Schultz & Joshua C. Hall, 2020. "Specialization and Performance: Evidence from NCAA 4 × 400 m Relay Times," Economies, MDPI, vol. 8(4), pages 1-7, November.
    9. Der-Fang Hung, 2015. "Sustained Competitive Advantage and Organizational Inertia: The Cost Perspective of Knowledge Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 769-789, December.
    10. Tommy Krabberød, 2015. "Standing on the Shoulders of Giants? Exploring Consensus on the Validity Status of Mintzberg’s Configuration Theory After a Negative Test," SAGE Open, , vol. 5(4), pages 21582440156, October.
    11. Olga Lucía Anzola Morales & Diego Armando Marín Idárraga & Juan Carlos Cuartas Marín, 2017. "Fundamentación teórica de la cultura, la estructura y la estrategia de la organización. Referentes para el análisis y diseño organizacional," Books, Universidad Externado de Colombia, Facultad de Administración de Empresas, edition 1, number 45, spring.
    12. Vaz, Rolando, 2021. "Firm Growth: A review of the empirical literature," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 30(2), pages 1-20.
    13. Wendy L. Martin & Alexander McKelvie & G. T. Lumpkin, 2016. "Centralization and delegation practices in family versus non-family SMEs: a Rasch analysis," Small Business Economics, Springer, vol. 47(3), pages 755-769, October.
    14. Yassine Boussenna, 2021. "Knowledge management and academic performance moderating role of organizational structure: Abdelmalek essaadi university case [Gestion des connaissances et performance académique : rôle modérateur ," Post-Print hal-03274091, HAL.
    15. Marek Matejun, 2017. "Characteristic features of small business and large firms: An empirical comparative study," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(4), pages 192-203.
    16. Jonah Tyan & Shih-Ching Liu & Carol Yeh-Yun Lin & Tien-Yu Chang, 2025. "Unlocking the Connection between Corporate Social Responsibility Strategy and Firm Performance: Unveiling Mediating and Moderating Effects," Journal of Business Ethics, Springer, vol. 197(3), pages 597-611, March.
    17. Zélia Serrasqueiro & Paulo Maçãs Nunes, 2008. "Performance and size: empirical evidence from Portuguese SMEs," Small Business Economics, Springer, vol. 31(2), pages 195-217, August.
    18. Andy Cosh & Xiaolan Fu & Alan Hughes, 2012. "Organisation structure and innovation performance in different environments," Small Business Economics, Springer, vol. 39(2), pages 301-317, September.
    19. Petrit Gashi & Iraj Hashi & Geoff Pugh, 2014. "Export behaviour of SMEs in transition countries," Small Business Economics, Springer, vol. 42(2), pages 407-435, February.
    20. Simona Gentile-Lüdecke & Rui Torres de Oliveira & Justin Paul, 2020. "Does organizational structure facilitate inbound and outbound open innovation in SMEs?," Small Business Economics, Springer, vol. 55(4), pages 1091-1112, December.
    21. Di Song & Xuan Huang, 2025. "Political participation and new venture decentralization: an attention-based view," Small Business Economics, Springer, vol. 65(1), pages 509-533, June.

    More about this item

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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