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ANEMPIRICALEXAMINATIONOFINTERACTIONEFFECTSOF CONTINGENCYFACTORSUPONSTRUCTUREAND

ORGANIZATIONALPERFORMANCE:

AMULTIPLEHIERARCHICALLEVELSAPPROACH1

KENJIYOSHIDA

HoseiUniversity

Anumberofdeterminantsoforganizationalstructurehavebeenproposedby organizationalresearchers・However,interesthasgenerallyconcentratedonthree factors:size,technology,andenvironment(FordandSlocum,1979;Hall,1982;

Daft,1983;Pfeffer,1985).Also,moststudieshavefocusedontherelationship betweenasinglefactorandstructure・Forexample,Blauandhisassociates(e9.,

Blau,1968;BlauandSchoenherr,1971)andtheAstonGroup(e9.,Pugh,Hickson,

andTurner,1968;Hickson,Pugh,andPheysey,1969)havearguedfortheimportan-

ceofsize;Woodward(1965)andPerrow(1967)haveemphasizedtechnology;and

BurnsandStalker(1961)andLaWrenceandLorsch(1967)haveconsideredenviron- menttobethemostimportantfactordeterminingstructure・Fewresearchershave consideredmultiplefactorssimultaneously.(Exceptionsareseveralstudiesoftechn- ologyandsize[e9.,byDewarandHage,1978;DewarandSimet,1981;Marshand Mannari,1981;Carter,1984;andSingh,1986].)Andfewindeedhaveconsidered relationsbetweenstructureandallthreeoftheprincipalcontingencyfactorsat

once.Thisresearchhasdonesq

Howanorganizationdesingsitsstructurewhenitfacesmultiplecontingency factorswhichhaveconflictingimplicationsforstructure(Child,1977;Fordand

Slocum,1977;Mintzberg,1979;VandeVenandDrazin,1985)isanobviously interestingbutstillunansweredquestion.Forexample,whenanorganization

faceshighlyroutinetasksandperceivesahighlyuncertainenvironment,how

formaldoesitsstructurebecome?Contingencyfactorsmaybegenerallythought

tohaveconflictingimplicationsforstructureandperformance,butsofarthere havebeennosystematictheoreticalstatementsabouttheinteractioneffectsofthe

factorsAsastarttowarddescribingtheseinteractioneffects,[ofthecontingency factors(size,technology,andenvironment)onstructureandperformance,]this

studytookasapointofdepartureMintzber9,s(1979)argumentthateach contingencyfactoraffectsthevariouslevelsofstructuredifferentially・

Therehasbeenachronicproblemofhowbesttomeasurestructure,

technology,andenvironment,particularlywithrespecttotheappropriateunit ofanalysis・Thisstudyusedsubunitsrathertha、anorganizationasawholeas theunitofanalysis.Manyresearchershavefoundsubunitswithinlargeand complexOrganizationstovaryintermsoftheirstructure(Hall,1962;Dewarand Werbel,1979;FryandSlocum,1984),technology(GrimesandKlein,1973;Vande VenandDelbecq,1974;ComstockandScott,1977),andtheirenvironment

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(LawrenceandLorsch,1967;Duncan,1972;Tung,1979).Anotherreasonforusing subunitsastheunitofanalysisisthatseveralstudieshaveshownstronger relationshipsbetweentechnologyandstructUreatthesubunitlevelthanateither individualororganizationlevels(Hrebiniak,1974;VandeVen,Delbecq,and Koenig,1976;Fry,1982).Useofthesubunitlevelforanalysishasalso beensuggestedasameansofexaminingrelationshipsbetweentechnologyand structureandbetweenenvironmentandstructurebysuchwritersasVandeVen,

Delbecq,andKoening(1976),Aldrich,(1979),Schoonhoven(1981),FryandSlocum U984),andTosiandSlocum(1984).

Thepurposeofthisstudy,then,wastotesttheeffectofhierarchicallevelon therelativeimportanceofsize,technology,andenvironmentforstructureandto testspecificcontingencyhypothesesabouttheserelations,thatis,howsize,

technology,andenvironmentcombinewithstructuretoaffectperformanceatthe subunitleveLAreviewoftheliteratureonrelationshipsamongthethree contingencyfactors,structure,andperformancewillserveasabasisforderiving thespecificcontingencyhypotheses.

LITERATUREREVIEW

Size,Structure,andPerformance

Therehavebeenmanyempiricalstudiestoshowthatsizeisrelatedto structure(PughetaL,1969;Hickson,Pugh,andPheysey,1969;Blau,1970;Blau andSchoenherr,1971;ChildandMansfield,1972;Meyer’1972;Mileti,Gillespie,and Haas,1977;Mintzberg,1979;Hall,1982).Thesestudieshavefocusedprimarilyon therelationshipbetweensizeandstructurebuthaverarelymeasuredperformance directly、Consequentlytheyhavebeenunabletoshedlightonhowsizeand structureaffectorganizationalperformanceoutcomes・Atmost,therefore,they provideonlyindirecttestsofacontingencytheory、Thefewempiricalstudiesthat doincludeaperformancemeasure(CumminsandKing,1973;Child,1975;Evers,

Bohlen,andWarren,1976),however,seemtosuggestthatassubunitsizeincreases,

moreformalizedandspecializedbutlesscentralizedstructuresresultinmore effectiveperformance.

Technology,StrucCure,andPerformance

Therehavebeenmanyempiricalstudiestoshowthattechnologyisrelatedto structure(Bell,1967;HageandAiken,1969;GrimesandKlein,1973;Hrebiniak,

1974;VandeVenandDelbecq,1974;VandeVen,Delbecq,andKoenig,1976;

ComstockandScott,1977).However,theyhavelookedmostlyattherelationship betweentechnologyandstructureand,againfailedtomeasureperformance directlyandsohavebeengenerallypreventedfromexaminingtheeffectsofthe

“fit,,betweentechnologyandstructureonperformance.Hencelthesestudies,

too,provideonlyindirecttestsofacontingencytheory-

Lately,however,therehavebeenanincreasingnumberofstudiesthatinclude

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aperformancemeasuretotestacontingencytheory(DewarandWerbel,1979;

Schoonhovenl981;Argote,1982;FryandSlocum,1984;AlexanderandRandolph,

1985).Thesestudiesseemtoshowthatastechnologymovesfromroutinetononro- utine,subunitsemploylessformalizedandcentralizedbutmorespecializedstructu-

resinordertobeeffective.

Environment,Structure,andPerformance

Someempiricalstudieshaveexaminedtheeffectsofenvironmentandstructure

onperformance(BurnsandStalker,1961;LawrenceandLorsch,1967;Duncan,

1973;Khandwalla,1973;NegandhiandReimann,1973;Child,1975;Pennings,l975l Theresultsofthesestudiesindicatethatasperceivedenvironmentaluncertainty increases,subunitsemploylessformalizedandcentralizedbutmorespecialized

structurestobeeffective.

HYPOTHnSFlS

Therehasbeenmuchdisagreementabouthowtotestcontingencypropositions,

thatis,howrelationshipsbetweenstrucCureandthecontingencyfactorsofsize,

technology,andenvironmentarerelatedtoperformance(Pennings,1975;Miller,

1981;Schoonhoven,1981;TosiandSlocum,1984;VandeVenandDrazin,1985;

DrazinandVandeVen,1985;FryandSmith,1987).ThisstudyusedJoyce,

Slocum,andGlinow's(1982)generalcongruencymodeloffit・Thismodelargues thatperformancewillincreasewhenstructureismatchedwithsize,technology,

andenvironment、Emphasisinthemodelisonthesimilarityandmatchingof levelsofstructurewitheachcontingencyfactorasdeterminantsofperformance、

ThisdefinitionoffitisidenticalwiththeonemadebySchoonhoven(1981)and FryandSlocum(1984).

HierarchicallevelsandContingencyFactors

Mintzberg(1979)proposedthateachcontingencyfactoraffectedthevarious levelsofstructuredifferentially.Thatis,sincepresumablythetoplevelmust functioncontinuouslyatanOrganization'sboundaries,itismostaffectedby

environment.ThemiddleleveLontheotherhand,producesextensivestructural

elaborationbycreatingchangesinthefavoredmechanismofcoordination,and thereforeisprimarilyaffectedbysize・Finally,thelowerlevelisaffectedmainly

bytechnology.Mintzberg(1973),Katz(1974),andPaolillo(1981)seemto supporttheMintzber,s(1979)proposition,butAlexander(1979)andPavettand

Lau(1983)donotsupportit、Theseempiricalstudiesaretoofew,however,fora

conclusionontheeffectofhierarchicallevelontherelativeimportanceofsize,

technology,andenvironmentforstructure,Therefore,Mintzberg's(1979)proposition

wasfurthertestedinthisstudy・

Hypothesisl:Eachcontingencyfactorwillaffectthevariouslevelsof structuredifferentially.Environmentisthemostdominantfactoratthe

-1〆

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toplevel,sizeatthemiddlelevel,andtechnologyatthelowerlevel.

Size,Structure,andPerformance

Theempiricalstudieswehavenotedshowthatthelargerthesubunits,the moreformalizedandspecializedbutlesscentralizedstructuresarerelatedtoperfo- rmanceeffectivenessHence,

Hypothesis2: Sizewillinteractwithformalizationtoinfluence performance・Whensizeislarge,increasesinformalizationwillpositively influenceperformance・Whensizeissmall,increasesinformalizationwill negativelyinfluenceperformance・

Performance3: Sizewillinteractwithcentralizationtoinfluence

performance,Whensizeislarge,increasesincentralizationwillnegatively influenceperformance.Whensizeissmall,increasesincentralizationwnl positivelyinfluenceperformance・

Hypothesis4: Sizewillinteractwithspecializationtoinfluence performance.Whensizeislarge,increasesinspecializationwillpositively influenceperformance・Whensizeissmall,increasesinspecializationwill negativelyinfluenceperformance.

Technology,Structure,andPerformance

Giventheempiricalstudiesnotedearlier,itappearsthatastechnologymoves fromroutinetononroutine,subunitsemploylessformalizedandcentralizedbut morespecializedstructuretobeeffectivaHence,

Hypothesis5: Routinetechnologywillinteractwithformalizationto influenceperformance・ Whentechnologyisroutine,increasesin formalizationwillpositivelyinfluenceperformance・ Whentechnologyis nonroutine,increasesinformalizationwillnegativelyinfluenceperformance、

Hypothesis6: Routinetechnologywillinteractwithcentralizationto influenceperformance、Whentechnologyisroutine,increasesin centralizationwillpositivelyinfluenceperformance・Whentechnologyis nonroutine,increasesincentralizationwillnegativelyinfluenceperformance・

Hypothesis7: Routinetechnologywillinteractwithspecializationto influenceperformance Whentechnologyisroutine,increasesin specializationwillnegativelyinfluenceperformance・ Whentechnologyis nonroutine,increasesinspecializationwillpositivelyinfluenceperformance.

Environment,Structure,andPerformance

Theempiricalstudiesreviewedaboveseemtoshowthatasperceived environmentaluncertaintyincreases,subunitsemploylessformalizedand centralizedbutmorespecializedstructureinordertobeeffective・Hence,

Hypothesis8: Perceivedenvironmentaluncertaintywillinteractwith formalizationtoinfluenceperformance・ Whenperceivedenvironmental uncertaintyishigh,increasesinformalizationwillnegativelyinfluence

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performance・Whenperceivedenvironmentaluncertaintyislow,increasesin formalizationwillpositivelyinfluenceperformance・

Hypothesis9: Perceivedenvironmentaluncertaintywillinteractwith centralizationtoinfluenceperformance・ Whenperceivedenvironmental uncertaintyishigh,increasesincentralizationwillnegativelyinfluence performance.Whenperceivedenvironmentaluncertaintyislow,increases incentralizationwillpositivelyinfluenceperformance・

HypothesislO: Perceivedenvironmentaluncertaintywillinteractwith specializationtoinfluenceperformance・ Whenperceivedenvironmental uncertaintyishigh,increasesinspecializationwillpositivelyinfluence performance・Whenperceivedenvironmentaluncertaintyislow,increases inspecializationwillnegativelyinfluenceperformance.

ApplicationsoftheHypothesestoHierarchical Tablelsummarizesthehypothesized contingencyfactorsandstructure.

Levels

relationshipsbetweenthethree

TARmnl

HypothesizedRelationshipsBetweenContingency

FactorsandStructure

Forma1ization Centralization Specialization

Size

(numberofemployees)

(tas鰯lHIfl;f:Ls)

Environment

(perceivedenviron‐

mentaluncertainty)

Thistablepositsthatsizeandtechnologyaffectformalizationpositively;

however,environmentaffectsformalizationnegativelyTherefore,size/technology

andenvironmenthaveaconflictingimplicationforformalizationWhenasubunit islarge,faceshighlyroutinetasks,andperceivesahighlyuncertainenvironment,

howformaldoesitsstructurebecome?

Atthelowerlevelofhierarchy,technologyistakentobethemostdominant

factordeterminingformalization(Hypothesisl).Thepositiveeffectsoftechnology

andsizeonformalizationexceedthenegativeeffectofenvironment・Therefore,

Hypothesis5willapplyatthelower1eVeLAtthemiddlelevelofhierarchy,size isarguedtobethemostdominantfactordeterminingformalizatio、(Hypothesisl).

Thepositiveeffectsofsizeandtechnologyonformalizationexceedthenegative

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effectofenvironment、Therefore,Hypothesis5willapplyatthemiddleleveLAt thetoplevelofhierarchy,environmentisthemostdominantfactordetermining formalization(Hypothesisl).Thenegativeeffectofenvironmentonformalization exceedsthepositiveeffectsoftechnologyandsize.Therefore,Hypothesis5will notapplyatthetoplevelThesamelogicisfollowedinexaminingapplications ofHypotheses2and8toeachhierarchicalleveLHence,

HypothesislL Hypotheses2and5willapplyatthelowerand middlelevelsofhierarchybutwillnotapplyatthetopleveLHypothesis8 willapplyonlyatthetoplevelandwillnotapplyatthelowerand

middlelevels

Thefollowinghypothesesfollowthesamelogicastheabove

Hypothesisl2: Hypotheses3and9willapplyatthemiddleandtop levelsofhierarchybutwillnotapplyatthelowerleveLHypothesis6will applyonlyatthelowerlevelandwillnotapplyatthemiddleandtop

levels・

Hypothesisl3: Hypotheses4andlOwillapplyatthemiddleandtop levelsofhierarchybutwillnotapplyatthelowerleveLHypothesis7will applyonlyatthelowerlevelandwillnotapplyatthemiddleandtop

levels

Hypothesesll,12,andl3aresummarizedinTable2.

TABLE2

SummaryOfHypothesesll,12,andl3

TopLevelMiddleLevelLowerLevel

HHHHHHHHH v》v)v〉v〉yv〉v》v〉v》 D△p△p△D△D&Dこり△pCpC oCOOoCOCO ttt’しttttt Un⑪nnn1n1nnn⑪nコn1n eeeeeeeee sssssssss ’1・1●1●1・1・1・1・1・1sssSsssss 234567890 ****

** ***

*** **

a*showsthatthehypothesisappliesatthehierarchicalleveL

METHODS

SampleandProcedures

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Thestudyusedorganizationalsubunitsasitsunitofanalysis・ Survey respondentsmight,ofcourse,definesubunitsindifferentways.Therefore,the definitionofsubunitwasgiveninthecoverletterofthequestionnaire: “Your unitconsistsofyou(asthesupervisor)andallindividualswhoreportdirectlyto

,,

you・

Sixquestionnairesweresentto223manufacturingcompaniesthathave morethanlOOemployeesintheBuffalo,Jamestown,andNiagaraFalls,NewYork areasAdirectorofhumanresourceswhoreceivedthequestionnaireswasasked tochoosetwopeople(ifpossible,oneina“high-performing',unitandanotherin a‘`low-performing',unit,howeverhemightdefinehighandlowperformance)from eachofthreelevels(top,middle,andlower),atotalofsixpeople、Then,hewas instructedtoaskeachofthemtofilloutashortquestionnaireandreturnitto theUniversityinanenclosedpre-addressedpostage-paidenvelope.Thenumber ofusablequestinnairesreceivedwas56atthetoplevel,50atthemiddlelevel,and

56atthelowerlevel.

Measures

Formalization、 Mostresearchershavedefinedformalizationintermsof

writtendocuments(Hall,1982).Formalizationwasmeasuredherebylnkson,

Pugh,andHickson,s(1970)formalizationoftherole-definitionscale、Thishas beencommonlyusedintheliterature(e9.,Child,1973;Sathe,1974;Ford,1981;

MillerandDroge,1986;Singh,1986).Cronbach,salphaforthescalemthis studywas、471.

centralizationCentralizationisthedegreetowhichpowerisdistributed withinasubunit(Hall,1982).ThiswasmeasuredbyAikenandHage,s(1968)

scaleofthehierarchyofauthority,becauseofitshighlevelsofbothvalidityand reliability(Dewar,Whetten,andBoje,1980).Gronbach,salphaforthisscale

was、853.

SpecializationSpecializationisthenumberofjobtitles,whichisanindicator ofdivisionoflabor(BlauandSchoenherr,1971;DewarandHage,1978;Vande VenandFerry,1980).Weaskedsupervisorshowmanydifferentjobtitleswere representedamongthepeoplethevsupervised.Thenspecializationoftheunit wascalculatedbyaddingone(forthesupervisor)tothisnumber・

SizeAtotalnumberofemployeeswasusedtomeasuresizeinthisstudy・

Thisisthemostcommonlyusedmeasureintheliterature(Kimberly,1976),andis applicabletoallorganizations.Weaskedsupervisorshowmanypeoplethey superviseddirectly.Thensizeoftheunitwascalculatedbyaddingone(for thesupervisor)tothisnumber、

Technology.Thereareanumberofdefinitionsoftechnology(Gerwin,

1981;Fry,1982).Becauseofremarkablyconsistentfindingsforthe routine-nonroutinetechnology(Fry,1982),thisstudydefinedtechnologyinterms oftheroutinetononroutineconception(Perrow,1967,1970).Routinenesswas measuredbyHageandAiken,s(1969)scale、Itsquestionnaireitemspertainedto

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thenumberofexceptionsusingPerrow's(1967,1970)measureoftechnologyand showedhighreliabilityandvalidity(Dewar,Whetten,andBOje,1980;Whitney,

Daft,andCooper,1983).Cronbach,salphaforthisscalewas838・

EnvironmentpDuncan,s(1972)perceivedenvironmentaluncertaintyscale representsthemostadvancedoperationalizationoftheuncertaintyconstructto date(Sathe,1974)andhasreceivedwidespreadattention

However,this

instrumentrequirestherespondenttoidentifyfactorsassociatedwithagiven decision-makingsituation,whichisdifficultandtime-consumingSathe(1974)

modifiedDuncan's(1972)instrumenttoproduceasimpleroneforquestionnaire

administration、Internalreliability(Kuder-Richardson8)forthisscalewas804

for531subjectsfromtwenty-twodepartmentsofaninsurancecompanyand、834 for60subjectsfromsevenbranchesofacommercialbank(Sathe,1974).Therefore,

thisstudyusedSathe's(1974)perceiveduncertaintyscale、Cronbach,salphafor

thisscalewas、728.

Performance.AperceivedunitperformanceindexdevelopedbyVandeVen andFerry(1980)wasusedtomeasuretheperformanceofasubunitinthisstudy.

Itmeasuredthedegreetowhichtheunithasachieveditsperformancetargetsand alsotherelativestanding(rating)oftheunitincomparisontootherunits・The eightquestionnaireitemsusedforthismeasureseemedtobeapplicabletoall subunits・Thefirstquestionaskedsupervisorswhatpercentagesofperformance targetswereattainedoverallbytheirunitsduringthelastyear・Theyindicated theirresponseonascalethatvariedfrom“1”(notargetswereset)through

“2',(0-20%)to“8,,(morethan100%).Theremainingsevenquestionsasked supervisorstoratehowtheirunitdidoneachofthefactorsduringthepastyear inrelationtoothercomparableorganizationalunitswithinoroutsideoftheirorg-

anizationCronbach'salphaforthisscalewas、819.

Analyses

TotestHypothesisl,aseriesofmultipleregressionanalyseswasconducted forstructureonthethreecontingencyfactors(size,technology,andenvironment)

ateachhierarchicalleveL

Hypotheses2tol3assertedthatthethreecontingencyfactorswouldinteract

withstructuretoinfluenceperformance・Theysaythe“form'’oftherelationship betweenstructureandperformanceisconditionaluponthethreecontingency factors(Arnold,1982).Inordertodeterminewhethertheformofrelationship betweentheindependentvariable(X,inthisstudy,structure)andthedependent variable(Y,performance)isconditionaluponthemoderatorvariable(Z,size,

technology,orenvironment),wetestedthesignificanceofthesemipartial

coefficientassociatedwiththeXZproductterm(ie.,sr2y(x2.x,z))inhierarchical

multipleregressionanalysis(Arnold,1982).Theregressionequationanalyzedwas

-へ

Y=A+BiX+B2Z+B3XZ・

Thesignificanceofthepartialcoefficientassociatedwiththeproducttermwas

testedby

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B3 withn-4df,

t=

SEB3

whereSEB3=standarderrorofestimateB3

n=numberofcases

lfthesemipartialcoefficientB3issignificantfortheR2incrementassociated withXZinthehierarchicalmultipleregression,itisinterpretedassupportforthe hypothesis.

RESULTS

EffectsofHierarchicalLevelsonVariables

Table3presentsthemeansandstandarddeviationsofthecontingency factors,structure,andperformanceateachhierarchicalleveL

TABLE3

MeansandStandardDeviationsforContingencyFactors,Structure,

andPerformanceatEachHierarchicalLevel TopLevel

- ̄

Meanss...

MiddleLevel

 ̄ ̄

Meanss...

LowerLevel Meanss...

ContingencyFactors

Size

Technology

Environment Structure

Formalization Centralization

Specialization

Performance

Targetsachieveda

Relativeperformance

12.964 1.893 2.189

17.635 .583 .617

10.065 2.208 2.166

11.822 .630 .525

16.309 2.436 2.114

16.099 .623 .547

5.296 1.486 6.667

1.574 .494 2.819

5.000 1.718 5.130

1.400 .610 2.315

5.071 2.143 5.436

1.412 .676 3.196

6.184 3.756

1.131 .586

5.929 3.653

1.135 .567

6.040 3.500

1.124 .604

aA“Notargetswereset',responsewascodedas“missingvalue''・

Thenumberofthisresponsewas6atthetoplevel,5atthemiddlelevel,

and4atthelowerleveL

One-wayanalysesofvariancewereperformedtoexamineeffectsof hierarchicallevelsonthecontingencyfactors,structure,andperformance,Results oftheseanalysesindicatedthatthehierarchicallevelshadasingnificanteffecton

technology(F=11.11,p<001),centralization(F=17.39,p<,001),andspecial‐

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ization(F=413,P<05)butthattheydidnotaffectanyothervariablesat thesignificancelevelofO5、

T-testswereappliedtomakemorespecificcomparisonsonthethreevariables

betweenthethreehierarchicallevels・ Resultsindicatedthattherewere

significantdifferencesfortechnologybothbetweentopandmiddlelevels(p<01)

andbetweentopandlowerlevels(p<001).Thatis,asonemovedfromtop throughmiddletolowerlevels,subunitshadmoreroutinetechnology,although therewasnosignificantdifferenceoftechnologybetweenmiddleandlowerlevels Thisresultisthesameaswhatothers(Hall,1962;HageandAiken,1969)have

found

Resultsoft-testsalsoindicatedthatcentralizationincreasedsignificantlyfrom

toptomiddlelevels(p<、05)andfrommiddletolowerlevels(p<、01).As

onemoveddownthehierarchy,subunitsbecamemorecentralizedTherewere

significantdifferencesofspecializationbothbetweentopandmiddlelevels (p<01)andbetweentopandlowerlevels(p<、05)buttherewasnosignificant

differencebetweenmiddleandlowerlevelsThatis,asonemovedfromtopto middleorlowerlevels,subunitsbecamelessspecialized・

Thus,wecanrecognizeeffectsofhierarchicallevelsontechnology,

centralization,andspecialization,butthisseemslessapparentfortheothervaria-

bles.

andPerformanceCorrelations Pearsoncorrelationcoefficients

performanceattop,middle,

WithinContingencyFactors,Structure,

Tables4,5,and6presentthe contingencyfactors,structure,and hierarchicallevels,respectively-

amongthe

andlower

TARTJE4

P….、雛麓鰡翻諾鵠晋;侭競鄙F…

Variables

ContingencyFactors

lSize

2、Technology255簾

3.Environment、191、l77 Structure

4・Formalization-.112-.225-.204

5.Centralization、110、320*.、229*-.188

6.Specialization551….255*、207、201-.027

Performance

7.TargetsachievedIG、116、000-079.012-065052

8.Relativeperformance-O64-.105-.325鉢-.350..-.017、149、451…

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aCorrelationsexcludedcaseswithmissingvaluesonananalysis-by‐

analysisbasis

bBecauseofmissingdata,Nsrangedfrom45to56fortheanalysesln

thistable

cA“Notargetswereset',responsewascodedas“missingvalue".

*P<,05

**p<01

***p<,001

TARmF】5

P…。造脇謡iWh鶴H1:H1:h概鯛:iW,lFa…

Variables

ContingencyFactors

lSize

2・Technology、211

3.Environment-047 Structure

4・Formalization.010 5.Centralization.168 6.Specializationl70

Performance

7・Targetsachievedc-.100

8.Relativeperformance-.071

一.045

.051-.226 .495….217 .019-.064

-.053

-062-.018

-.076 -.226

-.393...219 -.362...319。

-.195 -.363..

-.112 .129.442*。

aCorrelationsexcludedcaseswithmissingvaluesonananalysis-by-

analysisbasis、

bBecauseofmissingdata,Nsrangedfrom39to50fortheanalyses

inthistable

cA“Notargetswereset',responsewascodedas“missingvalue''.

*P<05

**p<01

***p<001

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92

TABLE6

P.…1s:lUHflli:j珊嚇麓、鰹F:鶴iWJF…

Variables 67

ContingencyFactors

LSize

2・Technology、093

3.EnvironmentO31 Structure

4・Formalization、127 5.Centralization244.

6.Specialization、361..

Performance

7.Targetsachievedc

l65

8・Relativeperformance-.040

.168

-.201 .532…

、090

45調肥羽0←●00

-.099

-.012150

66 08 21 ●● 戸坑叩)〈.h〉凹釧一一 -.045

-.052

89 39 00 ●● |’ -.025

-.097.701…

aCorrelationsexcludedcaseswithmissingvaluesonananalysis-

by-analysisbasis

bBecauseofmissingdata,Nsrangedfrom49to56fortheanalyses

inthistable

cA“Notargetswereset,,responsewascodedas“missingvalue,'.

*p<05

**p<01

***p<001

Thesetablesshowthatcorrelationsamongsize,technology,andenvironment weregenerallylowandnotsignificantattheO51evel,withtheexceptionofa

significantpositiverelationshipbetweensizeandtechnologyatthetoplevel (r=、255,p<05).ThisfindingSuggeststhatthethreecontingencyfactors

weresubstantiallyindependentofoneanother・

Fromthesetables,itisseenthattherewerenosignificantintercorrelations amongformaliZation,cenCralization,andspecializationatanyofthethree hierarchicallevels.Thisiscontrarytothegeneralpatternofpreviousstudies

(Mintzberg,1979;Gerwin,1981;Fry,1982).2

Tables4,5,and6alsoshowthattwoperformancevariables,targets achievedandrelativeperformance,weresingnificantlyintercorrelatedataUthree hierarchicallevels、Assubunitsachievedhigherpercentagesoftheirperformance targets,theyratedhigheronthesevenfactorsofperformanCe.

ContingencyFactorsandStructureCorrelations

SizeandStructureCorrelationsTables4,5,and6showthattherewasno

気'

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relationshipbetweensizeandformalizationatanyhierarchicalleveLThe correlationbetweensizeandcentralizationwassignificantonlyatthelowerlevel (r=244,p<、05).Assizeofsubunitsbecamelarger,subunitsweremore centralizedatthelowerleveLThisiscontrarytowhatothers(PughetaL,1969;

Hickson,PughandPheysey,1969;ChildandMansfield,1972;Child,1975;Evers

etaL,1976)havefoundSizewasexpectedandfoundtobepositivelyrelated tospecializationatbothtop(r=、551,p<、001)andlowerlevels(r=861,

p<01).Assizeofsubunitsbecamelarger,subunitsweremorespecializedat

bothtopandlowerlevelsThisisthesameresultasothers(Pugheta1.,1969;

Hickson,Pugh,andPheysey,1969;Blau,1970;BlauandShoenherr,1971;Childand Mansfield,1972;Child,1975;Mileti,Gillespie,andHaas,1977)havefound

TechnologyandStructureCorrelations、FromTables4,5,and6,itisseen thattechnologywasnotsignificantlyrelatedtoformalizationatanyofthethree hierarchicallevels.However,technologywaspositivelyrelatedtocentralizationat

eachlevel(top:r=、320,p<01;middle:r=、495,p<001;lowerIr=、532, p<’001).Astechnologybecamemoreroutine,subunitsemployedmore

centralizedstructure.ThisisthesameresultasreportedbyHageandAiken (1969),Hrebiniak(1974),andDewarandWerbel(1979)Thecorrelationbetween technologyandspecializationwassignificantonlyatthetoplevel(r=.255,

p<05).Assubunitshadmoreroutinetechnology,theyweremorespecialized

atthetopleveLMostothers(ComstockandScott,1977;FryandSlocum,1984)

havefoundthetechnology-specializationcorrelationstrongeratlowerthanat higherlevels

EnvironmentandStructureCorrelationsTables4,5,and6showthat environment(perceiveduncertainty)didnotcorrelatewitheitherformalizationor specializationatanyhierarchicalleveLEnvironmentwassignificantlyrelatedto

centralizationatbothtop(r=、229,p<、05)andlowerlevels(r=、395,p<01).

Assubunitsperceivedmoreenvironmentaluncertainty,theybecamemore centralizedatbothtopandlowerlevelsThisisacontradictoryresulttowhat others(NegandhiandReimann,1973;Pennings,1975)havefound.

EffectsofContingencyFactorsonStructurebyLevel(HypothesisD

Aseriesofmultipleregressionanalyseswasconductedtoassesstherelative importanceofthecontingencyfactorsonstructure・ Table7presentsthe

full-equationbetaweights(standardizedregressioncoefficients),incrementsinR2,

andFvaluesforincrementsinR2forformalization,centralization,and specializationatthetoplevel.

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94

TART』F】7

ResultsofMultipleRegressionAnalysesofStructureatTopLevela

Centralization

Formalization Specialization

lncre-

ments Beta

inR2FWeights

Incre-

ments Beta

inR2FWeights

Incre ments inR2F Beta

VariablesWeights

Size

Technology

Environment R2

AdjustedR2

OverallF

125539 535504 011009 ●CO■●● 002

.016 .023

、123 ,846 1.207

503624 216830 021006 ●●●白●●

001 .041 .025

、032 2.283

1.409

、525***

、013 .117 .317 .273 7.270*.*

、220 .000 .013

15.133…

010

.908

aListwiSedeletionofmissingdatareducedtheNsto53for

formalization,55forcentralization,and51forspecialization.

***p<、001

Theseresultsshowthatsize,technology,andenvironmentcontributedlittleto explainingvarianceineitherformalizationorcentralization.Neithertechnology norenvironmentaddedasignificantincrementtothepredictionofspecialization;

sizewastheonlyvariabletoaccountforsignificantvarianceinpredictingspecializ- ation、Sizeexplained3q4(31.7-0.0-1.3)percentofthevarianceinspecialization・

Thus,theresultsdidnotsupportHypothesisL

Table8presentsbetaweights,incrementsinR2,andFvalueforincrements inR2forformalization,centralization,andspecializationatthemiddlelevel

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95

TABLE8

ResultsofMultipleRegressionAnalysesofStructureatMiddleLevela

Formalization Centralization Specialization

Incre ments

inR2

Incre-

ments inR2F

Incre‐

ments inR2F Beta

Variables Weights

Beta

FWeights

Beta

Weights

、000 .001 .039

002 .058 1.729

.080 .466..

.254 .294 .242 5.682.*

67筋Ⅱ別0

●■● Size

Technology

Environment R2

AdjustedR2

OverallF

-.008 .037 -.199 .042 -,027 .607

、352 12.019..

3.745

173 -.023 -.047

.031 -.039 .443

、028 .000 .002

1.177

.021

.093

aListwisedeletionofmissingdatareducedtheNsto46for

formalization,45forcentralization,and45forspecialization.

**p<01

Theresultsindicatethatneithersizenorenvironmentacountedforsignificant varianceinformalization,centralization,andspecialization Technologywasa significantpredictorofcentralization,butnotofformalizationorspecialization・

Technologyexplained223percentofthevarianceincentralization.Theseresults couldbeexpectedfromtheverylowcorrelationsbetweenthecontingencyfactors andstructurepresentedinTable5,withtheexcePtionoftherelationshipbetween technologyandcentralization Thus,theseresultsalsoofferednosupportfor Hypothesisl、

Table9presentsbetaweights,incrementsinR2,andFvalueforincrements inR2forformaliZation,centralization,andspecializationatthelowerlevel.

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96

TABIE9

ResultsofMultipleRegressionAnalysesofStructureatLowerLevela

Formaliz2tion Centralization Specialization

Incre ments inR2

lncre-

ments Beta

inR2FWeights

Incre-

ments inR2F Beta

VariablesWeights

Beta

FWeights

Size

Technology

Environment R2

AdjustedR2

OverallF

、143 -.223

.142 .076 .022 1.397

020 .048 .020

1.123 2.666 1.089

、191 .461…

、308..

.408 .373 11.716..。

036 .205 .092

3.123、357..

17.677….066 7.944..-.057

.137

.086 2.697

643 200 100 ●●● 7.456..

.249 .190

aListwisedeletionofmissingdataTeducedtheNsto55for

formalization,55forcentralization,and55forspecialization.

**p<01

***p<001

Theseresultsindicatethatsize,technology,andenvironmentdidnotcontribute toexplainingvarianceinformalization Butbothtechnologyandenvironment accountedforsignificantvarianceincentralization,althoughtheformerwasa muchbetterpredictorthanthelatter.Bothpredictorstakentogetherexplained 372percentofthevarianceincentralization、 Sizewastheonlyvariableto contributeasignificantincrementinpredictingspecialization・SizeexplainedlaO percentofthevarianceinspecializationThus,theseresultssupportedHypothesis lintermsofcentralization,butnotformalizationandspecialization.

ContingencyHypotheses(Hypotheses2tol3)

TotestHypotheses2tol3,moderatedregressionanalyseswereusedWe conducted54separateanalyses.Eachanalysisincludedastructurevariable,a contingencyfactor,andtheirinteractiontermasindependentvariables,anda performancevariableasadependentvariable・

EffectsofSizeontheRelationshipBetweenStructureandPerformance.The resultsshowthatalthoughformalizationexplainedasignificantportionof varianceinrelativeperformanceatbothtopandmiddlelevels,andcentralization addedasignificantincrementtothepredictionofrelativeperformanceatthe middlelevel,theinteractiontermsofsizeandstructuredidnotcontribute significantincrementsinpredictingperformanceatanyofthethreehierarchical levelsThatis,sizedidnotsignificantlymoderatetherelationshipbetween structureandperformanceThus,theseresultsofferednosupportforHypothesis

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97

'1concerninglowerandmiddlelevels,Hypothesisl2concerningmiddleandtop

levels,orHypothesisl3concerningmiddleandtoplevels.However,theydid supportHypothesisllconcerningthetoplevel,Hypothesisl2concerningthelower

level,andHypothesisl3alsoconcerningthelowerleveL

EffectsofTechnologyontheRelationshipBetweenStructureandPerformance Theresultsindicatethattheinteractiontermsoftechnologyandstructureadded

nosignificantincrementtothepredictionsofeithertargetsachievedorrelative performance,exceptintwocases・OnecasewasfoundatthemiddleleveLThe

interactionoftechnologyandformalizationwassignificantlyrelatedtotargets achieved・TheincrementinR2associatedwiththisinteractionwas、164,leading toafinalvalueforR2of202

Inordertohelpinterpretthissignificantinteractioneffect,usingthe

proceduresuggestedbyCohenandCohen(1983),threerepresentativeregression linesareplottedinFigurel;onefora“low”(nonroutine)technologyscore

(1standarddeviationbelowthemean),oneforan“average',technologyscore (atthemean),andonefora“high”(routine)technologyscore(1standard deviationabovethemean).Thethreeregressionequationswere:

897 305 543

’’一一一一

〈Ⅱ〈Ⅲ〈Ⅵ

for“low” (Technology=1.578)

for“average'’(Technology=2.208)

for“highj,(Technology=2.838)

Y=TargetsAchieved

X=Formalization X+7.910

X+5.505 X+3.100 where

FIGURE1

SignificantlnteractionEffectBetweenTechnologyand FormalizationonTargetsAchievedatMiddleLevel

87654321

Targets

Achieved

1234567 Formalization

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98

ThisfigureprovidessupportforHypothesisllwhenperformancewas measuredbytargetsachieved・Increasesinformalizationpositivelyinfluenced performancewhentechnologywasroutineandnegativelyinfluencedperformance

whentechnologywasnonroutineatthemiddlehierarchicalleveL

AnothersignificantinteractioneffectwasfoundatthelowerleveLThe interactionoftechnologyandcentralizationaddedasignificantincrementtothe

predictionofrelativeperformance TheincrementinR2associatedwiththis

interactionwasO74,leadingtoafinalvalueforR2of、107.Figure2illustrates thissignificantinteractioneffect,usingCohenandCohen's(1983)procedure.

FIGURE2

SignificantlnteractionEffectBetweenTechnologyand

CentralizationonRelativePerformanceatLowerLevel

5432

Relative Performamce

1234 Centralization

Thethreeregressionequationswere:

269 319 269 432 +++ XXX

487 981 201 一一一一一一一一

〈Ⅲ〈Ⅲ〈Ⅲ

for“low', (Technology=1.813)

for‘`average,,(Technology=2.436)

for“high',(Technology=3.059)

Y=RelativePerformance X=Centralization

where

ThisfigureprovidessupportforHypothesisl2whenperformancewas measuredbyrelativeperformacne、Whentechnologywasroutine,increasesin centralizationpositivelyinfluencedperformance.Whentechnologywasnonroutine,

increasesincentralizationnegativelyinfluencedperformance

Thus,theresultsdidnotsupportHypothesisllforeitherperformance

variableatthelowerlevelorrelativeperformanceatthemiddlelevel;nordidthey

supportHypothesisl2fortargetsachievedatthelowerleveLHypothesisl3was

notsupportedatthelowerleveLThedatadid,however,supportHypothesisll

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99

concerningthetoplevelonbothperformancevariablesand,atthemiddlelevel,on targetsachieved.TheyalsosupportedHypothesisl2concerningthemiddleand

thetoplevelsonbothperformancemeasuresandthelowerlevelonrelative

performanceiandHypothesisl3heldformiddleandtoplevels

EffectsofEnvironmentontheRelationshipBetweenStructureandPerformance・

Theresultsindicatethatnoneoftheinteractiontermsofenvironmentand

structureexplainedsignificantvarianceineitherofthetwoperformancevariables atanyofthethreehierarchicallevels、Environmentwasfoundtoaddsignificant

incrementstothepredictionsoftargetsachievedatthemiddlelevelandrelative

performanceatbothtopandlowerlevels.Formalizationexplainedasignificant portionofvariancemrelativeperformanceatbothtopandmiddlelevelsandso didcentralizationatthemiddleleveLTheseresultscould,ofcourse,beexpected fromthesignificantcorrelationspresentedinTables4,5,and6.

Thus,theresultsfailedtosupportHypothesisllconcerningthetoplevel,

Hypothesisl2concerningmiddleandtoplevels,andHypothesisl3concerning middleandtoplevels.However,theydidsupportHypothesisllconcerninglower andmiddlelevels,Hypothesisl2concerningthelowerlevel,andHypothesisl3

concerningthelowerleveL

AsummaryoftheresultsfromtestsofHypotheses2tol3isprovidedin

TablelO.

TABTE10

SummaryofResultsFromTestsofHypotheses2tol3

TopLevel TargetsRelative AchievedPerformance

MiddleLevel TargetsRelative AchievedPerformance

LowerLevel TargetsRelative AchievedPerformance HHHHHHHHH 23456789n

** **

*** *** **** ***

*** ***

*showsthattheresultsprovidedsupportforthehypothesis.

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100

DISCUSSIONANDCONCLUSIONS

SummaryandDiscussionofResults

Hypothesislassertedthatcontingencyfactorwouldaffectthevariouslevels oforganizationalstructuredifferentially,ie.,thatenvironmentwouldbethe

dominantfactoratthetoplevel,sizeatthemiddlelevel,andtechnologyatthe lowerleveLTheresultsofthestudyprovidednosupportforHypothesislexce-

ptinonecase(technology/centralizationatthelowerlevel).Asmentionedearlier,

therehasbeenmixedsupportforMintzberg's(1979)ideasabouttheeffectsof hierarchicallevelontherelativeimportanceofsize,technology,andenvironment forstructure;and,likethestudiesbyAlexander(1979)andbyPavettandLau (1983),thepresentstudyfailedtosupportMintzberg,sargumentsthatwerethe basisforHypothesisLHierarchicallevelseemstohavenosystematiceffecton

therelativeimportanceofthethreecontingencyfactorsforstructure(atleast

asmeasuredhere).Thus,Mintzberg,s(1979)propositionmayneedtobe

reconsidered

Hypotheses2tol3assertedthatthethreecontingencyfactorswouldinteract

withstructuretoinfluenceperformance.ResultsshowninTablelOexhibita

discerniblepatternofresults.Foreverycasewhereitwaspredictedthat contingencyfactorswouldnotinteractwithstructure,nosignificantinteractions

wereobserved(i、e、,24outof24).Inall8caseswheresimilarpredictionswere madeforenvironment,nosignificantinteractionswereobserved;andinalllO

caseswheretechnologywasexpectednottointeractwithstructure,nosignificant

interactionswereobserved

Meanwhile,inonly2of30casesinwhichcontingencyfactorswerepredicted tointeractwithstructure,weresignificantinteractionsobservedTwosignificant interactionsoutof30predictionsyieldsa“hitrate,’of6.7%,whichisslightly betterthanchance(5%).However,oneofthesignificantinteractionwasbetween

technologyandformalizationandtheformalizationmeasureusedherewasnota veryreliableone、Therefore,thetwosignificantinteractions,althoughpredicted,

shouldbeviewedskeptically.Hence,theresultsleavesomedoubtthat“fit,,

betweencontingencyfactorsandstructureisanimportantpredictorofperformance

(e9.,NadlerandTushman,1980;VandeVenandDrazin,1985).Suchafitmay simplynotbeenoughtoensurehighperformance,orviceversa.

lmplicationsforTheory

ThisstudyhastwoprincipaltheoreticalimplicationsFirst,althoughfew researchershaveconsideredallthreecontingencyfactorssimultaneously,this studydidso、 Someexpectedandsomeunexpectedeffectsofthecontingency

factorsuponstructurewerefound,butallinall,theresultssuggestthatthethree

contingencyfactorsaresubstantiallyindependentofoneanotherintheireffects atallhierarchicallevelSArguably,therefore,anytheoreticalframeworkforthe

studyofsubunitstructureinorganizationsmustbebroadenoughtoinclude

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101

systematicallyallthreecontingencyfactorsasdeterminantsofstructure・

Second,althoughsomeresearchers(Child,1977;FordandSlocum,1977;Mintz- berg,1979;VandeVenandDrazin,1985)havesuggestedthatthethreecontingency factorssometimeshaveconflictingeffectsuponstructure,therehavesofarbeen nosystematictheoreticalargumentsabouttheinteractioneffectsofthethree contingencyfactors.Thisstudyadducedonebasisforexploringthembyusing Mintzber9,s(1979)argumentthateachcontingencyfactorwouldaffectthelevels ofstructuredifferentially・Unfortunately,theresultsdidnotsupportMintzberg's

(1979)proposition,althoughtheydidprovidepartialsupportforthehypotheses

concerningthecontingencyfactors,structure,andperformance・Itisnecessary,

therefore,todevelopamoresatisfactorytheoryofthemteractioneffectsofthe contingencyfactorsuponstructureandperformance.

Practicallmplications

Theresultsofthisstudyhaveseveralimplicationsformanagers.First,

althoughmanyresearchers(e9.,NadlerandTushman,1980;VandeVenand Drazin,1985)havesuggestedthat“fit',betweencontingencyfactorsandstructure isanimportantpredictorofperformance,theresultsofthisstudydonotprovide supportforthisargument・Severalunexpecteddirecteffectsofcontingencyfacto- rsandstructureuponperformancewerefound,however・Perceivedenvironmental uncertaintyhadanegativeeffecton“relativeperformance”atallthreehierarchical levels,andon“targetsachieved”atthemiddleleveLFormalizationhadapositive effecton“relativeperformance,,atbothtopandmiddlelevels;andcentralization wasnegativelyrelatedto“relativeperformance',atthemiddleleveLThus,it wouldappearthat,regardlessofthehierarchicallevel,theperformanceoforganiz- ationsmaybeimprovedbyreducinguncertaintyfortheirworkingmembers・Sev- eralresearchers(Thompson,1967;OsbornandHunt,1974;DowneyandSlocum,

1982)havemadethesamesuggestion,i・a,thathighlevelsofperceiveduncertainty

aredetrimentaltoperformance

Thisstudyalsofoundthatasonemoveddowntheorganizationalhierarchy,

subunitshadmoreroutinetechnology,weremorecentralized,andwereless specializedHence,thestudyprovidessupportforargumentsthatsubunitswithin largeandcomplexorganizationsarelikelytovarybothinstructure(Hall,1962;

DewarandWerbel,1979;FryandSlocum,1984)andintechnology(Grimesand Klein,1973;VandeVenandDelbecq,1974;ComstockandScott,1977).Forboth practicalandmethodologicalpurposes,itisimportant,therefore,torecognizethe likelihoodofstructuralandtechnologicalvariationsamongthesubunitsatdifferent hierarchicallevelsoforganizations.Simplyput,organizationslikelycomprise subunitswithdifferentstructuresandtechnologies・

Finally,aswehavenoted,theresultsofthisstudysuggestthatthethree contingencyfactorsaresubstantiallyindependentofoneanotheratallthree

hierarchicallevels、 Therefore,againforbothpracticalandmethodological purposes,onemayfinditusefultoplanforseparateeffectsonstructurebyeach

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102

ofthecontingencyfactorsateachhierarchicalleveL LimitationsoftheStudy

Therearesomeimportantlimitationsthatshouldberecognizedbefore generalizingfromtheresultsofthisstudy.First,thestudyassumedthatthe responsesofanysinglepersoninaunitwererepresentativeoftheunit.This couldbequestioned(cfSeidler,1974;DewarandWerbel,1979).Alternative samplingstrategiesemployinganumberofpersonsfromeachunitarecommonly impracticable,however,becauseitisextremelydifficulttofindlargesamplesof organizationswillingtoparticipateinsuchresearch、Forthisresearch,priority wasgiventoaheterogeneoussampleoforganizationsandsubunitsratherthan ofindividualrespondents,sinceitwasorganizationsthatwereatissueinthestud-

y,Manyorganizationalresearchers(e9.,LawrenceandLorsh,1967;PughetaL,

1969;ChildandMansfield,1972)haveusedthesameprocedure・

Second,anoverallresponserateofquestionnaireswasl2.6%,whichisrather low.Thosewhorespondedtothequestionnairewereessentiallyself-selected Therefore,thestudymaysufferfromaserious(althoughunknown)biasassociated withnonresponse・

Anothermatterworthmentionisthatourmeasurementsofformalizationand ofenvironmentwerelessthanideaLThetwomeasureswerenotasreliableas

couldbewished(althoughCronbach'salphaforenvironmentwas728whichis aboveNunnally,s[1978]“satisfactory”level).Therefore,theresultsregarding thesemeasuresshouldbemterpretedcautiously・

AlsowecollecteddataonlyfrommanUfacturingfirms・Hence,thegeneraliza- bilityoftheresultsofthestudytoserviceorotherkindsoforganizationsis uncertai、.And,sincedatawerecollectedatonepointintime,thatis,cross- sectionally,causalinferencesofcoursecannotbedrawn.

lmplicationsforFutureResearch

Theresultsofthisstudysuggestseveralareasforfutureresearch.First,

whiletherewereseveralsignificanteffectsofthethreecontingencyfactorson structureateachhierarchicalleveLingeneral,thecontingencyfactorscouldnot explainalargeportionofthevarianceinstructure、Therearestudiestoindicate thatthepersonalityofanorganization'schiefexecutiveofficermaybean importantdeterminantofstructureatleastinsmallandyoungorganizations(e、g、,

MillerandDroge,1986).Althoughourdataweregatheredfromrelativelylarge organizationsthathavemorethanlOOemployeesandsomayhavebeenexpected toprecludeaninfluenceofCEOpersonalityuponstructure,weemployedno directmeasureofit.FutureresearchmightprofitablyincludemeasuresofCEO personalityasaprospectivedeterminantofstructureFurthermore,itmaybe usefultoexaminetheconditionsunderwhichtherelationshipsbetweenstructure andpersonalityorcontingencyfactorsholdForexample,MillerandDroge (1986)foundthattherelationshipsbetweenchiefexecutiveneedforachievement

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103

andstructurewereinfluentialmainlyinsmall(100emplyeesorless)andyoung (20yearsorless)firms.MillerandDroge(1986:554)alsosuggestedthatthe

impactofpersonalityonstructuremightbegreaterforfirmsinwhichtheCEO

ownsasignificantpercentageofthefirmandsmallerin“subsidiaryorganizations,

tradition-boundindustries,orfirmsbeholdentobanks,governmentalassistance,or

otherexternalconstituents.'’

Theresultsreportedheresupportedveryfewofthehypothesizedinteraction effectsofthecontingencyfactorsandstructureuponperformance.However,

severalunexpecteddirecteffectswerefoundTherefore,futureresearchshould examinemorecloselybothdirectandinteractioneffectsofcontingencyfactors

andstructureuponperformance・

Finally,wewereinterestedinexaminingwhetherthe“form''○ftherelationship betweenstructureandperformancewasconditionaluponthecontingencyfactors・

Therefore,thestudyusedhierarchicalmultipleregressionanalysistotestfor interactioneffectsAsArnold(1982)hassuggested,however,thereisanother aspectofamoderatedrelationship,namelythe“degree,,(orstrength)ofthe

relationshipThisisindicatedbythecorrelationcoefficientbetweenthetwo variables,andthecomparisonofthemagnitudeofthecorrelationcoefficientstest fordifferentdegreesofrelationship、 Itremainspossiblethatthethree

contingencyfactorswillmoderatethedegreeoftherelationshipbetweenstructure andperformance,eveniftheydonotmoderatetheform・Itwould,therefore,

beusefulinafuturestudytoexaminethedegreeoftherelationshipbetween structureandperformanceforsubgroupsdefined,forinstance,bydichotomizing

measuresofthecontingencyfactorsattheirmedians.

FOOTNOTES

1.IwouldliketothankRaymondHuntforhishelpfulcommentsonanearlier

draftofthisarticle、 ThisresearchwassupportedbytheGraduateStudent

AssociationDiamondResearchFundandDepartmentofOrganizationand

HumanResources,SchoolofManagement,SUNYatBuffalo.

2.Analysisof specialization nonsignificant

thecorrelations aggregatedover

values.

amongformalization,centralization,and allorganizationallevelsyieldedsmalland

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