This research investigates the moderating role of organizations’ structural context on the performance outcomes of the firm's alignment and adaptability pursuits. It focuses in particular on the role of decision autonomy and shared responsibility, and posits that these structural features exert opposing influences on the effect of alignment and adaptability on performance. Using a sample of more than 200 Canadian‐based firms, this study finds that at higher levels of decision autonomy, the positive relationship between alignment and performance becomes weaker, and the positive relationship between adaptability and performance becomes stronger. Furthermore, at higher levels of shared responsibility, the positive relationship between adaptability and performance strengthens. Thus, the study offers structure‐based explanations for the challenge that organizations face when they attempt to reap the benefits of alignment and adaptability simultaneously.
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