An Examination of the Determinants of Organizational Structure

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Abstract
Multiple regression and path analysis were employed to explore the relationships among organizational context, organizational complexity, and bureaucratic control in a sample of 50 Japanese industrial manufacturing plants. Of three contextual variables, internal dependence is found to be the most powerful predictor of bureaucratic control; organizational size and technological authomaticity show their influence on control by channeling through some intervening variables. The finding that structural differentiation has no important associations with centralization and formalization disconfirms part of our proposition, but each of the other two complexity variables (functioanl specialization and knowledge complexity)is a significant predictor of one of the two control variables. The magnitude of predictor of variance explained by all the variables examined suggests that the model used is more predictive of formalization than of centralization.

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