Researchers have for some time been interested in the relationship between the strategy and
structure of an organization. In this article Ihe authors discuss the most widely-held view on the
nature of this relationship, and then suggest an alternative explanation. For them strategy,
structure, and environment are closely linked. Whereas men may build the structure of an
organization, in practice it is this very structure which later constrains the strategic choices they
may make
One of the difficulties of a theory of organizations is the richness of the reality h
attempts to describe. Nowhere is this seen moreclearly than when one tries to define the
links which exist between strategy and structure, the topic of ihis article.
Since the work of Chandler (1962) the relationship between strategy and structure
has been the subject ofa number ofconceptual and empirical studies. The intention has
been either to show ihe direct or indirect links from strategy to structure. Direct links
are where structure can be explained by the nature and diversity of the products and
markets of the organization (Chandler, 1962; Channon 1973; Rumell. 1974), Indirect
links are where structure is determined by the characteristics of the technology
employed (Woodward, 1958; Harvey. 1968; Perrow. 1967; Newman. 1971-72). by the
nature of and variations in ihe environment (Emery and Trist. 1965; Lawrence and
Lorsch. 1967), and by size (Pugh et al., 1969; Child and Mansfield. 1972).