The Impact of Organizational Structure on Internal and External Integration: An Empirical, Cross-Regional Assessment

Abstract

We examine the effects of organizational structure on cross-functional integration, supplier integration, and customer integration and assess whether such effects vary by geographical region. Specifically, we investigate the impact of centralization, formalization, and complexity on both internal (cross-functional) and external (supplier, customer) integration. Relationships are examined across Western and East Asian environments using data collected from 238 manufacturing plants in eight countries. We find that structural features have differing impacts on cross-functional, supplier, and customer integration, and these effects vary across geographical regions.

Keywords: Supply chain management, supply chain integration, organizational structure, organization design, cross-cultural research