Structural Implications of Organizational Dependence upon Customers and Owners: Similarities and Differences

Abstract

The concept of organizational dependence is examined and its possible implications for different aspects of organizational structure are considered. It is argued that the implica tions of dependence in different environmental sectors will be different and a number of propositions are advanced concerning the effects of dependence upon customers and owners. Empirical evidence from a study of 78 companies in the United Kingdom is considered and most of the propositions are found to be supported. The study appears to confirm that greater predictive power can be obtained by disaggregating the concept of dependence and examining different environmental sectors separately.

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