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Research Article
An economic analysis of matrix structure, using multinational corporations as an illustration
Article first published online: 21 DEC 1998
DOI: 10.1002/(SICI)1099-1468(199805)19:3<141::AID-MDE877>3.0.CO;2-D
Copyright © 1998 John Wiley & Sons, Ltd.
1099-1468/asset/cover.gif?v=1&s=083f303f2ef1fa3282ed72b86a56b91026b531c1 "Managerial and Decision Economics")
Additional Information
How to Cite
Chi, T. and Nystrom, P. (1998), An economic analysis of matrix structure, using multinational corporations as an illustration. Manage. Decis. Econ., 19: 141–156. doi: 10.1002/(SICI)1099-1468(199805)19:3<141::AID-MDE877>3.0.CO;2-D
Publication History
- Issue published online: 21 DEC 1998
- Article first published online: 21 DEC 1998
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Abstract
This paper applies a comparative institutional perspective to the organizational design called matrix structure. After discussing the motivations for a multidimensional form of organization, the paper compares the transaction cost characteristics of the matrix (MX-form) structure with those of the well-known multidivisional (M-form) structure. This analysis reveals three advantages and three disadvantages of the matrix structure as well as two conditions affecting the efficacy of a matrix. Examples from multinational corporations are used throughout the paper to illustrate the analysis. © 1998 John Wiley & Sons, Ltd.