Effects of Environmental Scarcity and Munificence on the Relationship of Context to Organizational Structure

Abstract

This study compared the relationships between context and organizational structures under conditions of environmental scarcity and conditions of environmental munificence. The study analyzed data on a sample of 45 firms in the electrical and electronics industry in England. Results show that relationships between perceived environmental pressures and structure and between inflexibility of technology and structure are different under conditions of scarcity and munificence. Results further reveal that the relationships between size and structure do not differ under scarcity and munificence.