Chair of Organization Theory and Design

Reasons for renewed importance of the matrix structures in international companies

Project member: Prof. Dr. Dr. h.c. Joachim Wolf and Prof. William G. Egelhoff

Currently, the matrix structure is not in the focus of organization research. This is astonishing as this kind of organizational structure appears to be adequate in case of high environmental complexity and multi-dimensional strategies, which is a typical characteristic of international companies. In this project we apply existing elements of the strategy-structure-theory while choosing an information-processing perspective to conceptualize the functioning of the matrix structure. Moreover we compare the identified functional principles of the matrix structure with those of the network organization which currently receives high attention in international management research. The analysis points out that the matrix structure is unjustifiably misjudged in current research.