The continuing validity of the strategy‐structure nexus: new findings, 1993–2003

José Ignacio Galán Zazo · María José Sánchez-Bueno

62 citations0/0 files storedStrategic Management Journal

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Organizational Management and Leadership Management and Organizational Practices Management and Organizational Studies

Abstract

Abstract This study analyzes whether a diversification strategy facilitates subsequent divisionalization (and hence that ‘structure follows strategy’), and/or whether the multidivisional structure leads to a diversification strategy (and hence that ‘strategy follows structure’). In theoretical terms, this study is original in that it institutes a debate between the Chandler thesis and other perspectives that challenge the generalizability of the strategy‐structure nexus. Interestingly, this new study with contemporaneous data for the period 1993–2003 sheds light on this contested issue and postulates that despite the criticism of Chandler's contribution, it still works. Our results show that strategic diversification affects structural divisionalization, and in turn, structural divisionalization affects strategic diversification. Copyright © 2009 John Wiley & Sons, Ltd.

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References

1976Educational Organizations as Loosely Coupled Systems 1987The Concept of Corporate Strategy 1962Strategy and Structure: Chapters in the History of the American Industrial Enterprise 2001The Contingency Theory of Organizations 1975Strategy, structure, and economic performance 2007A model of knowledge management and the N-form corporation 1990The design school: Reconsidering the basic premises of strategic management 1971That's Interesting!

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