A systematic literatura revew of the impact of organizational structure on firm performance

Abstract

The objective of this paper is to determine the impact of a firm’s organizational structure on its performance, measured through both financial and non-financial dimensions. A systematic literature review was carried out using a total of 35 articles from select management, finance and other relevant journals. Finalized articles included data and findings from a multitude of different geographic locations, industries and firm sizes. For analysis, a range of organizational structures were considered, including organizational structures comprised of hybrid internal systems. Similarly, performance was analyzed including both objective and subjective measures. Findings of this review were categorized into three items; positive effect of organizational structure on firm performance, partial effect of organizational structure on firm performance and no effect of organizational structure on firm performance. Results of finalized articles reviewed were illustrated by means of a table with relevant data. No conclusive relationship between firm structure and performance was established therefore suggestions were made for future research.