Firms in the petroleum industry adopting a multidivisional structure arestudied to observe the impact of structural change on financial performance. The outcome did not clearly show divisional structure to be a determining factor in performance. There is some suggestion that this may have a great deal to do with the vertical integration inherent in the petroleum industry.
multidivisional structure, M-form hypothesis, goals, decision-making, information, control
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Bettis, Richard A. and Chen, Andrew, "Organization Structure and Financial Market Performance: A Preliminary Test" (1985). Working Papers. 125.