Synergism between information technology and organizational structure: A managerial perspective

Anita Lee, Chun Hung Cheng, Gurmeet S. Chadha

Research output: Contribution to journalArticlepeer-review

Abstract

This paper presents a hybrid organizational structure chosen by a corporation as a means to combine the benefits of centralization and decentralization. The hybrid structure is the result of a restructuring effort by a coal company in Kentucky under the directive of its parent corporation to ensure maximum resource utilization within a more streamlined organizational structure. Through an observation of the restructuring process, we are able to demonstrate how and why it is important for top-level managers to understand and make the best use of the intricate synergism between information technology and organizational structure. The strategic implications of a hybrid structure and the roles of information technology in organizational changes are explored. We argue that a hybrid structure is a viable and strategically valuable structural alternative, especially for highly diversified conglomerates that grow through mergers and acquisitions of other companies.

Original languageEnglish
Pages (from-to)37-43
Number of pages7
JournalJournal of Information Technology
Volume10
Issue number1
DOIs
StatePublished - Mar 1995

ASJC Scopus subject areas

  • Information Systems
  • Strategy and Management
  • Library and Information Sciences

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