AS THE LEFT FOOT FOLLOWS THE RIGHT - THE DYNAMICS OF STRATEGIC AND STRUCTURAL-CHANGE

This study empirically tested the contingency relationship between str ategy and structure proposed by Chandler and others with hypotheses li nking the probability, timing, and magnitude of changes in one attribu te to changes in the other attribute. A dynamic analysis of 262 large firms observed over 28 years generally supported the hypotheses, indic ating a reciprocal relationship between strategy and structure. Howeve r, our results support the original conception of a hierarchical relat ionship between the two-strategy is a more important determinant of st ructure than structure is of strategy.