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An Economic Analysis of Matrix Structure, Using Multinational Corporations as an Illustration
Chi, Tailan Nystrom, Paul
Chi, Tailan
Nystrom, Paul
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Abstract
This paper applies a comparative institutional perspective to the organizational design called matrix structure. After discussing the motivations for a multidimensional form of organization, the paper compares the transaction cost characteristics of the matrix (MX-form) structure with those of the well-known multidivisional (M-form) structure. This analysis reveals three advantages and three disadvantages of the matrix structure as well as two conditions affecting the efficacy of a matrix. Examples from multinational corporations are used throughout the paper to illustrate the analysis.
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This is the author's final draft. The publisher's official version is available from: http://dx.doi.org/10.1002/(SICI)1099-1468(199805)19:3<141
Date
1998
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Wiley
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Chi, Tailan. (1998) An Economic Analysis of Matrix Structure, Using Multinational Corporations as an Illustration. Managerial and Decision Economics, 19, 141-156. http://dx.doi.org/10.1002/(SICI)1099-1468(199805)19:3<141