Testing and Enhancing a Pivotal Organizational Structure Decision-Making Model

Abstract

This paper presents and empirically tests a new point-system-based mathematical decision-making model for determining the most effective organizational structure for any firm type. The model proposes that companies can determine their most effective structure by assessing 11 literature-based characteristics that best describe the firm. Through a survey of 143 executive MBA students, this paper provides results, conclusions, and implications of the first empirical test of a math-based organizational structure decision-making model. The research presented suggests that 11 key variables, or organizational characteristics, should be included in any predictive structure model. Corporate executives need and seek theoretical and practical guidance regarding how to best organize, structure, or re-structure their firm to gain and sustain competitive advantage. The model tested herein provides real-world guidance to managers regarding how to decide which organizational structure is most effective for any given firm.