Research Notes and Commentaries
The continuing validity of the strategy-structure nexus: new findings, 1993–2003
Article first published online: 22 MAY 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 30, Issue 11, pages 1234–1243, November 2009
How to Cite
Galan, J. I. and Sanchez-Bueno, M. J. (2009), The continuing validity of the strategy-structure nexus: new findings, 1993–2003. Strat. Mgmt. J., 30: 1234–1243. doi: 10.1002/smj.782
- Issue published online: 8 SEP 2009
- Article first published online: 22 MAY 2009
- Manuscript Revised: 14 APR 2009
- Manuscript Received: 23 JAN 2006
- corporate strategy;
- organizational structure;
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. Copyright © 2009 John Wiley & Sons, Ltd.