Complexity and the functions of the firm: breadth and depth

In this paper, we assess complexity in organizations in terms of the dimens ions of 'depth' and 'breadth'. We examine how this operates in firms, indic ating how different fields of research have tended to highlight only certai n aspects of complexity, for instance, technology or products. In addition to assessing the impact of growing complexity in each functional area along either dimension, we further investigate the conditions under which comple xity between the dimensions or functional areas may be coactive or conflict ing. Detailed examination of historical evidence shows that greater complex ity in one dimension or function does not necessarily lead to greater compl exity in another. However, any simplification within a function or between functions may require changes in organizational structure and managerial co ntrol. (C) 2000 Elsevier Science B.V. All rights reserved.