81
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 relationsbetweenstructureandallthreeoftheprincipalcontingencyfactorsatonce.Thisresearchhasdonesq
Howanorganizationdesingsitsstructurewhenitfacesmultiplecontingency factorswhichhaveconflictingimplicationsforstructure(Child,1977;Fordand
Slocum,1977;Mintzberg,1979;VandeVenandDrazin,1985)isanobviously interestingbutstillunansweredquestion.Forexample,whenanorganization
faceshighlyroutinetasksandperceivesahighlyuncertainenvironment,howformaldoesitsstructurebecome?Contingencyfactorsmaybegenerallythought
tohaveconflictingimplicationsforstructureandperformance,butsofarthere havebeennosystematictheoreticalstatementsabouttheinteractioneffectsofthefactorsAsastarttowarddescribingtheseinteractioneffects,[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
=
82
(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
、
83
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,producesextensivestructuralelaborationbycreatingchangesinthefavoredmechanismofcoordination,and thereforeisprimarilyaffectedbysize・Finally,thelowerlevelisaffectedmainly
bytechnology.Mintzberg(1973),Katz(1974),andPaolillo(1981)seemto supporttheMintzber,s(1979)proposition,butAlexander(1979)andPavettandLau(1983)donotsupportit、Theseempiricalstudiesaretoofew,however,fora
conclusionontheeffectofhierarchicallevelontherelativeimportanceofsize,technology,andenvironmentforstructure,Therefore,Mintzberg's(1979)proposition
wasfurthertestedinthisstudy・Hypothesisl:Eachcontingencyfactorwillaffectthevariouslevelsof structuredifferentially.Environmentisthemostdominantfactoratthe
-1〆
84
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
85
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
86
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 1 234567890 **** a
*
** ***
*** **
a*showsthatthehypothesisappliesatthehierarchicalleveL
METHODS
SampleandProcedures
87
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
88
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,thisinstrumentrequirestherespondenttoidentifyfactorsassociatedwithagiven 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
89
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‐
90
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,subunitsbecamemorecentralizedThereweresignificantdifferencesofspecializationbothbetweentopandmiddlelevels (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…
6 7
5 4
3 2
Variables 1
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…
91
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 1 2 3 4 5 6 7
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
92
TABLE6
P.…1s:lUHflli:j珊嚇麓、鰹F:鶴iWJF…
Variables 1 2 3 4 5 67
ContingencyFactors
LSize
2・Technology、093
3.EnvironmentO31 Structure
4・Formalization、127 5.Centralization244.
6.Specialization、361..
Performance
7.Targetsachievedc
l658・Relativeperformance-.040
.168
-.201 .532…
、090
》45調肥羽0←●00
-.099
-.012150
66 08 21 ●● 亡巾戸坑叩)〈.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'
93
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.
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●●1
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
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.
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
97
'1concerninglowerandmiddlelevels,Hypothesisl2concerningmiddleandtop
levels,orHypothesisl3concerningmiddleandtoplevels.However,theydid supportHypothesisllconcerningthetoplevel,Hypothesisl2concerningthelower
level,andHypothesisl3alsoconcerningthelowerleveLEffectsofTechnologyontheRelationshipBetweenStructureandPerformance Theresultsindicatethattheinteractiontermsoftechnologyandstructureadded
nosignificantincrementtothepredictionsofeithertargetsachievedorrelative performance,exceptintwocases・OnecasewasfoundatthemiddleleveLThe
interactionoftechnologyandformalizationwassignificantlyrelatedtotargets achieved・TheincrementinR2associatedwiththisinteractionwas、164,leading toafinalvalueforR2of202Inordertohelpinterpretthissignificantinteractioneffect,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
98
ThisfigureprovidessupportforHypothesisllwhenperformancewas measuredbytargetsachieved・Increasesinformalizationpositivelyinfluenced performancewhentechnologywasroutineandnegativelyinfluencedperformance
whentechnologywasnonroutineatthemiddlehierarchicalleveL
AnothersignificantinteractioneffectwasfoundatthelowerleveLThe interactionoftechnologyandcentralizationaddedasignificantincrementtothe
predictionofrelativeperformance TheincrementinR2associatedwiththis
interactionwasO74,leadingtoafinalvalueforR2of、107.Figure2illustrates thissignificantinteractioneffect,usingCohenandCohen's(1983)procedure.
FIGURE2
SignificantlnteractionEffectBetweenTechnologyand
CentralizationonRelativePerformanceatLowerLevel5432
Relative Performamce
1
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
99
concerningthetoplevelonbothperformancevariablesand,atthemiddlelevel,on targetsachieved.TheyalsosupportedHypothesisl2concerningthemiddleand
thetoplevelsonbothperformancemeasuresandthelowerlevelonrelativeperformanceiandHypothesisl3heldformiddleandtoplevels
EffectsofEnvironmentontheRelationshipBetweenStructureandPerformance・
Theresultsindicatethatnoneoftheinteractiontermsofenvironmentand
structureexplainedsignificantvarianceineitherofthetwoperformancevariables atanyofthethreehierarchicallevels、Environmentwasfoundtoaddsignificant
incrementstothepredictionsoftargetsachievedatthemiddlelevelandrelativeperformanceatbothtopandlowerlevels.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 a
* *
** **
*** *** **** ***
*
*** ***
a
*showsthattheresultsprovidedsupportforthehypothesis.
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)propositionmayneedtobereconsidered
Hypotheses2tol3assertedthatthethreecontingencyfactorswouldinteract
withstructuretoinfluenceperformance.ResultsshowninTablelOexhibitadiscerniblepatternofresults.Foreverycasewhereitwaspredictedthat contingencyfactorswouldnotinteractwithstructure,nosignificantinteractions
wereobserved(i、e、,24outof24).Inall8caseswheresimilarpredictionswere madeforenvironment,nosignificantinteractionswereobserved;andinalllOcaseswheretechnologywasexpectednottointeractwithstructure,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,anytheoreticalframeworkforthestudyofsubunitstructureinorganizationsmustbebroadenoughtoinclude
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
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
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、 Itremainspossiblethatthethreecontingencyfactorswillmoderatethedegreeoftherelationshipbetweenstructure 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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