Masters Thesis

The contingent effects of structural complexity and organizational size on administrative reorganization under conditions of organizational growth and decline

The adaptive capabilities within structurally complex and large institutions have been the subject of interest to many organizational scholars. Previous researchers have considered administrative reorganization an important form of adaptation and an integral part of institutional change. In the present study I extended the structuralists' research program by examining the contingent effects of structural complexity and organizational size on reorganization under conditions of growth and decline. I proposed that during the periods of organizational growth, structural complexity will have a positive relationship with reorganization. In contrast, under declining conditions complexity will have a negative relationship with reorganization. Moreover, I proposed that the relationship between institutional size and reorganization will be positive under the growth conditions, and negative as institutions experience decline. The findings indicated that both structural complexity and organizational size yield significant influence on administrative reorganization. Moreover, under conditions of organizational growth, institutions with high structural complexity reorganized at moderate rates. Conditions of growth also stimulated moderate levels of reorganization within institutions with low structural complexity. The results also indicated that declining conditions became a driving force for implementing of high rates of reorganization within institutions with high structural complexity. In contrast, under declining conditions institutions with low levels of structural complexity implemented low rates of reorganization. In addition to contingent effects of structural complexity and organizational size, the present study also controlled for the influence that organizational age, environmental munificence and changes in the chief executive officer may exert on reorganization. The findings indicated that organizational age and environmental munificence did not have a significant impact on reorganization. Changes in the chief executive officers, however, had a positive and significant influence on the reorganization of administrative structure.

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