Strategy and Structure Re-examined

Abstract

This study attempts to extend current understanding of the relationship between an organization's structure and its strategy. A selective review of conceptual and empirical studies has been used to find out whether the strategy determines structure or structure determines strategy. It is assumed that, each affects the other simultaneously. To find a better solution for this phenomenon a conceptual framework and hypotheses related to the argument have been developed. Most of the studies suggest that the relationship between strategy and structure is highly complex. It is confirmed that changes in the structure depend on the strategy. However, some scholars argue that structure leads to change the strategy. Even though evidence does exist, however, to say with confidence that chosen strategies cannot be effectively implemented without developing a sound organizational structure.