Which of the following structures is a variant of the multidivisional structure?

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Abstract

Until recently, explanations of why firms use the multidivisional form (MDF) have focused on economic processes. We develop alternative political and ecological/life-cycle explanations of the MDF and test them, along with the dominant economic ones, by estimating a structural equation model with data on large U.S. industrial corporations. The results conform closely to one version of the economic explanation. While industrial diversity and geographic dispersion directly stimulate use of the MDF, size does so only indirectly, by increasing diversity and dispersion. Further, producing in the petroleum and agriculture industries inhibits diversification. The results also support the political and, to a lesser extent, ecological/life-cycle explanations. Bank-dominated firms are less diverse, and both family-and bank-dominated firms are less dispersed and less likely to use the MDF. Further, producing in the metals and materials and the petroleum and agricultural industries increases dispersion, and the latter inhibits use of the MDF. Age, however, has no effect on the extent to which firms are diverse, dispersed, or likely to use the MDF. These results suggest that future analyses of organizational behavior should view economic transactions as embedded in social structures and should focus more explicitly on the spatial dimension of organizational behavior.

Journal Information

Founded in 1956 by James Thompson, the Administrative Science Quarterly is a peer-reviewed, interdisciplinary journal publishing theoretical and empirical work that advances the study of organizational behavior and theory. ASQ publishes articles that contribute to organization theory from a number of disciplines, including organizational behavior and theory, sociology, psychology and social psychology, strategic management, economics, public administration, and industrial relations. ASQ publishes both qualitative and quantitative work, as well as purely theoretical papers. Theoretical perspectives and topics in ASQ range from micro to macro, from lab experiments in psychology to work on nation-states. An occasional feature is the "ASQ Forum," an essay on a special topic with invited commentaries. Thoughtful reviews of books relevant to organization studies and management theory are a regular feature. Special issues have explored qualitative methods, organizational culture, the utilization of organizational research, the distribution of rewards in organizations, and critical perspectives on organizational control.

Publisher Information

Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com

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