The influence of organisational structure on entrepreneurial orientation and expansion performance

Abstract

This paper fills a gap in the research undertaken into the influence of organisational structure on entrepreneurial orientation and expansion performance. The expansion decision‐making process of an international hotel group was investigated. In‐depth interviews, observations and document analysis were used as the data collection techniques. Findings suggest that the concern about protecting and developing internationally recognised brands profitably caused the organisation to be remarkably centralised. A centralised decision‐making structure, however, not only slowed down the decision‐making process and limited international expansion, but also resulted in frustration and de‐motivation among the market‐based organisational members who were responsible for international expansion. The paper therefore concludes that organisations whose growth performance is highly dependent on having market‐based organisational members in diverse host country environments need to structure differently and bring about a new way of thinking to the management.