HYONG YI is a doctoral candidate in management science at the Korea Advanced Institute of Science and Technology (KAIST), Seoul, Korea, and Linsu Kim is Professor of Management, College of Business Administration, Korea University, Seoul. This paper examines both contextual and managers' personal variables in identifying the determinants of structure in small business organisations in a rapidly developing country - Korea. The results support hypotheses derived deductively from literature in advanced countries that a manager's personal variables are stronger predictors of centralisation and formalisation than contextual variables and that contextual variables are stronger predictors of specialisation that a manager's personal variables. The paper discusses the implications of the findings and concludes that the determinants of structure appear to be significantly different between small and large organisations and that hypotheses deductively derived from literature in advanced countries are supported in a rapidly developing country.
Get full access to this article
View all access options for this article.
References
1.
Aldrich, H. E., and Pfeffer, J. (1976), 'Environments of Organisations', Annual Review of Sociology, 2, pp 79-105.
2.
Anderson, C. R., and Paine, F. T. (1975), 'Managerial Perceptions and Strategic Behaviour', Academy of Management Journal, 4, pp 811-823.
3.
Ansoff, H. I. (1980), 'Strategic Issue Management', Strategic Management Journal, 1, pp 131-148.
4.
Ansoff, H. I. (1984), Implanting Strategic Management. N.J.: Prentice Hall.
5.
Axelrod, R. (1976), Structure of Decision. Princeton University Press.
6.
Bamberger, I. (1983), 'Value Systems, Strategies, and Performance of Small and Medium-Sized Firms'. European Small Business Joumal, 1, pp 25-39.
7.
Beyer, J. M. (1981), 'Ideologies, Values, and Decision-Making in Organisation'. In Nystrom, P. C., and Starbuck, W. G. (eds.), Handbook of Organisational Design, Vol. 2, London: Oxford University Press.
8.
Birnbaum, P. H. (1984), 'The Choice of Strategic Alternatives Under Increasing Regulation in High Technology Companies'. Academy of Management Journal, 3, pp 489-510.
9.
Blau, P. M., Falke, C. M., Mckinley, W., and Tracy, P. K. (1976), 'Technology and Organisation in Manufacturing'. Administrative Science Quarterly, 21, pp 20-40.
10.
Blau, P. M., and Schoenherr, R. A. (1971), The Structure of Organisations. N.Y.: Basic Books.
11.
Bobbitt, H. R., and Ford, J. D. (1980), 'Decision-Maker Choice as a Determinat of Organisational Structure', Academy Management Journal, 5, ppl 3-23.
12.
Bourgeois, L. J. (1980), 'Performance and Consensus', Strategic Management Journal, 1, pp 227-248.
13.
Burns, T., and Stalker, G. M. (1961), The Management of Innovation. London: Tavistock Publications.
14.
Child, J. (1972), 'Organisational Structure, Environment and Performance: The Role of Strategic Choice'. Sociology, 6, pp 1-22.
15.
Connor, P. E., and Becker, B. W. (1975), 'Values and the Organisation: Suggestions for Research'. Academy of Management Journal, Sept., pp 550-561.
16.
Dill, W. R. (1958), 'Environment as an Influence on Managerial Autonomy'. Administrative Science Quarterly, Mar., pp 409-443.
17.
Downey, H. K. (1974), 'Perceived Uncertainty: Conceptual Frameworks and Research Instruments'. Paper presented at the National Academy of Managment Meeting.
18.
Driver, M., and Mock, T. (1975), 'Human Information Processing, Decision Style Theory, and AccQunting Information Systems'. The Accounting Review, 50, pp 490-511.
19.
Duncan, R. B. (1972), 'Characteristics of Organisational Environments and Perceived Environmental Uncertainty'. Administrative Science Quarterly, 17, pp 313-326.
20.
Duncan, R. B. (1979), 'What is the Right Organisation Structure?'. Organisation Dynamics, Winter, pp 58-71.
21.
Emery, F. E., and Trist, E. L. (1965), 'The Causal Texture of Organisational Environment'. Human Relations, Feb., pp 21-32.
22.
England, G. W. (1967), 'Personal Values Systems of American Managers'. Academy of Management Journal, 1, pp 53-68.
23.
England, G. W., and Lee, R. (1971), 'Organisational Goals and Expected Behaviour Among Americans, Japanese and Korean Managers - A Comparative Study'. Academy of Management Journal, 4, pp 425-438.
24.
Ford, J. D., and Hegarty, W. H. (1984), 'Decision-Makers' Belief aboutthe Causes and Effects of Structure: An Exploratory Study'. Academy of Management Joumal, 27, pp 271-291.
25.
Ford, J. D., and Slocum, J. W., Jr. (1977), 'Size, Technology, Environment, and The Structure of Organisations', Academy of Management Review, 2, pp 561-575.
26.
Guth, W. D., and Tagiuri, R. (1965), 'Personal Values and Corporate Strategy', Harvard Business Review, Sept.-Oct., pp 123-134.
27.
Hage, J., and Aiken, M. (1967), 'Relationships of Centralisation to Other Structural Properties'. Administrative Science Quarterly, 1, pp 72-92.
28.
Hage, J., and Aiken, M. (1970), Social Change in Complex Organisations. N.Y.: Random House.
29.
Hall, R. I. (1978), 'Simple Techniques for Constructing Explanatory Models of Complex Systems for Policy Analysis', Dynamica, 4, pp 101-114.
30.
Hall, R. H. (1977), Organisations: Structure and Process. 2nd ed., N.J.: Prentice-Hall.
31.
Hall, R. H., Hass, E., and Johnson, N. J. (1967), Organisational Size, Complexity, and Formalisation', American Sociological Review, 32, pp 903-912.
32.
Harvey, E. (1968), 'Technology and the Structure of Organisations', American Sociological Review, 33, pp 247-259.
33.
Hickson, D. J., Pugh, D. S., and Pheysey, D. C. (1969), 'Operations Technology and Organisation Structure: An Empirical Reappraisal', Administrative Science Quarterly, 14, pp 378-397.
34.
Hrebiniack, L. G. (1974), 'Job, Technology, Supervision, and Work-Group Structure', Administrative Science Quarterly, 19, pp 359-410.
35.
Hoy, F., and Hellriegel, D. (1982), 'The Kilmann and Herden Model of Organisational Effectiveness Criteria for Small Business Managers', Academy of Management Journal, 2, pp 308-322.
36.
Hulbert, J. M., Lehmann, D. R., and Winter, R. S. (1983), 'Objective and Strategy Determination: Some Empirical Results', Journal of Business Research, 11, pp 427-438.
37.
Inkson, H. K., Pugh, D. S., and Hickson, D. J. (1970), 'Organisational Context and Structure: An Abbreviated Replication', Administrative Science Quarterly, Sept., pp 318-329.
38.
Kets de Vries, M. F. R., and Miller, D. (1984), 'Neurotic Style and Organisational Pathology', Strategic Management Journal, 5, pp 35-55.
39.
Kilmann, R. H., and Herden, R. P. (1976), 'Toward a Systematic Methodology for Evaluating the Impact of Interventions on Organisational Effectiveness', Academy of Management Review, 3, pp 87-98.
40.
Kimberly, J. R. (1976), 'Organisational Size and the Structuralist Perspective: A Review, Critique, and Proposal', Administrative Science Quarterly, 21, pp 571-597.
41.
Lawrence, P. R., and Lursch, J. W. (1967), 'Organisation and Environment'. Harvard Graduate School of Business Administration.
42.
Leatt, P., and Scheneck, R. (1982), 'Technology, Size, Environment, and Structure in Nursing Subunits', Organisation Studies, 3, pp 221-242.
43.
Lusk, E. J., and Oliver, B. L. (1974), 'American Managers' Personal Value Systems: Revisited', Academy of Management Journal, Sept., pp 549-554.
44.
March, J. G. (1981), 'Decisions in Organisations and Theories of Choice'. In Van de Van, A. H., and Joyce, W. F. (eds.), Perspectives on Organisation Design and Behaviour, N.Y.: John Wiley & Sons.
45.
McGhee, W., Shields, M., and Birnberg, J. (1977), 'The Effects of Personality and Task on a Subject's Information Processing'. Unpublished manuscript, University of Pittsburgh.
46.
Miller, D. (1986), 'Strategy, Structure, CEO Personality and Performance in Small Firms', American Journal of Small Business, Winter, pp 47-62.
47.
Mills, D. L., and Gardner, M. J. (1984), 'Financial Profiles and the Disclosure of Expenditures for Socially Responsible Purposes', Journal of Business Research, 12, pp 407-424.
48.
Mintzberg, H. (1976), The Structure of Organisations. N.J.: Prentice-Hall.
49.
Mohr, L. B. (1971), 'Organisational Technology and Organisational Structure', Administrative Science Quarterly, 16, pp 444-459.
50.
Montanari, J. R. (1978), 'Managerial Discretions: An Expanded Model of Organisation Choice', Academy of Management Review, 3, pp 231-241.
51.
Perrow, C. (1967), 'Framework for Comparative Analysis of Organisations', American Sociological Review, 32, pp 194-208.
52.
Perrow, C. (1972), 'Complex Organisations: A Critical Essay'. Ill.: Scott, Foreman.
53.
Porter, M. E. (1980), 'Competitive Strategy'. N.Y.: The Free Press.
54.
Pugh, D. S., Hickson, D. J., Hinings, C. R., and Turner, C. (1968), "Dimensions of Organisation Structure', Administrative Science Quarterly, June, pp 65-105.
55.
Pugh, D. S., Hickson, D. J., Hinings, C. R., and Turner, C. (1969), 'The Context of Organisation Structure', Administrative Science Quarterly, Mar., pp 91-114.
56.
Pugh, D. S., Hickson, D. J., Hinings, C. R., Turner, C., and Lupton, T. (1963), 'A Conceptual Scheme for Organisational Analysis', Administrative Science Quarterly, Dec., pp 289-315.
57.
Reimann, B. C. (1973), 'On the Dimensions of Bureaucratic Structure: An Empirical Reappraisal', Administrative Science Quarterly, Dec., pp 462-476.
58.
Reimann, B. C. (1974), 'Dimensions of Structure in effective Organisations: Some Empirical Evidence', Academy of Management Journal, Dec., pp 693-708.
59.
Reimann, B. C. (1975), 'Organisational Effectiveness and Management's Public Values: A Canonical Analysis', Academy of Management Journal, June, pp 224-241.
60.
Robbins, S. P. (1983), 'Organisation Theory'. N.J.: Prentice-Hall.
61.
Samuel, Y., and Mannheim, B. F. (1970), 'A Multidimensional Approach Toward a Typology of Bureaucracy', Administrative Science Quarterly, June, pp 216-228.
62.
Scoff, W. R. (1981), 'Organisations: Rational, Natural, and Open Systems'. N.J: Prentice-Hall.
63.
Schroll, J. N. (1974), 'Task Performance of Small Groups Composed on the Basis of Jung's Psychological Types'. Unpublished Ph.D. Dissertation, Temple University.
64.
Shull, F. A., Delbecq, A. L., and Cummings, L. L. (1970),'Organisational Decision-Making'. N.Y.: McGraw-Hill.
65.
Solo, R. (1967), 'Economic Organisations and Social Systems'. Indianapolis: Bobbs-Merrill.
66.
Sturdivant, F. D., Ginter, J. L., and Sawyer, A. G. (1985), 'Managers' Conservatism and Corporate Performance', Strategic Management Journal, 6, ppl 7-38.
67.
Thompson, J. D. (1967), 'Organisations in Action'. N.Y.: McGraw-Hill.
68.
Van de Ven, A., Delbecq, A., and Koenig, R., Jr. (1976), 'Determinants of Co-ordination Modes Within Organisations', American Sociological Review, April, pp 322-338.
69.
Woodward, J., 'Industrial Organisations: Theory and Practice'. Oxford University Press, London, 1965.
