Abstract:
This study attempts to extend current understanding of the
relationship between an organization's structure and its strategy. A selective
review of conceptual and empirical studies has been used to find out whether
the strategy determines structure or structure determines strategy. It is
assumed that, each affects the other simultaneously. To find a better solution
for this phenomenon a conceptual framework and hypotheses related to the
argument have been developed. Most of the studies suggest that the
relationship between strategy and structure is highly complex. It is confirmed
that changes in the structure depend on the strategy. However, some scholars
argue that structure leads to change the strategy. Even though evidence does
exist, however, to say with confidence that chosen strategies cannot be
effectively implemented without developing a sound organizational structure.
