The Continuing Validity of the Strategy-Structure Nexus: New findings, 1993-2003 Articles uri icon

publication date

  • November 2009

start page

  • 1234

end page

  • 1243

issue

  • 11

volume

  • 30

international standard serial number (ISSN)

  • 0143-2095

electronic international standard serial number (EISSN)

  • 1097-0266

abstract

  • Indexada en JCR Social Sciences Edition: Índice de impacto 2009: 4.464 Posición que ocupa la revista en la categoría Management: 4 de 11.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, thisstudy 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.