The continuing validity of the strategy-structure nexus : new findings, 1993-2003
By: GALAN, Jose
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Contributor(s): SANCHEZ-BUENO, Maria J.
Material type: 
ArticlePublisher: Bognor Regis : Wiley-Blackwell, November 2009Strategic Management Journal 30, 11, p. 1234-1243Abstract: 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.
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.
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