Organizational structure and performance in dutch small firms

J Meijaard*, MJ Brand, M Mosselman

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

56 Citations (Scopus)

Abstract

The relationship between organizational structure and performance in small. firms has received relatively limited attention over the last few decades. In understanding small. firm performance this seems to be a serious omission. In this paper, we first present the rationale for including organizational structure in the analysis of small. firm performance. Then, from the literature on organizational theory, we retrieve several dimensions that may be postulated to describe organizational structures of small. firms. Based on the study of a stratified sample of 1411 Dutch small firms we show that nine structure stereotypes can be delineated. We further investigate the relevance of the empirical taxonomy by looking at the relationship with. firm performance in terms of sales growth, profitability and innovativeness. Eventually, we conclude that organizational structure indeed matters and that it deserves to be taken into account in models and future analysis of small firm performance.

Original languageEnglish
Pages (from-to)83-96
Number of pages14
JournalSmall Business Economics
Volume25
Issue number1
DOIs
Publication statusPublished - Aug-2005

Keywords

  • innovativeness
  • organizational structure
  • small firm performance
  • STRATEGY
  • INFORMATION
  • DESIGN
  • SIZE
  • CENTRALIZATION
  • FORMALIZATION
  • HIERARCHIES
  • COMPETITION
  • TECHNOLOGY
  • KNOWLEDGE

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