Exploring the structural effects of internetworking

Abstract

Extant theory presents conflicting perspectives on how internetworking might affect the organizational structures of established firms. One prediction is that internetworking could narrow organizational scope and deepen specialization, reduce hierarchy, and increase external partnering. A second contends that internetworking might increase scope, expand hierarchy, and decrease external partnering. Analysis of a multinational sample of 469 firms reveals that deeply internetworked firms are more focused and specialized, less hierarchical, and more engaged in external partnering than less intensively internetworked organizations are. No scope broadening or hierarchy expansion effects are observed. Copyright © 2004 John Wiley & Sons, Ltd.