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Small Business Economics

, Volume 25, Issue 1, pp 83–96 | Cite as

Organizational Structure and Performance in Dutch small Firms

  • Joris Meijaard
  • Maryse J. Brand
  • Marco Mosselman
Article

Abstract

The relationship between organizational structure and performance in small firms has received relatively limited attention over the last few decades. In understanding small firm performance this seems to be a serious omission. In this paper, we first present the rationale for including organizational structure in the analysis of small firm performance. Then, from the literature on organizational theory, we retrieve several dimensions that may be postulated to describe organizational structures of small firms. Based on the study of a stratified sample of 1411 Dutch small firms we show that nine structure stereotypes can be delineated. We further investigate the relevance of the empirical taxonomy by looking at the relationship with firm performance in terms of sales growth, profitability and innovativeness. Eventually, we conclude that organizational structure indeed matters and that it deserves to be taken into account in models and future analysis of small firm performance.

Keywords

innovativeness organizational structure small firm performance 

Jel Code

M21 D21 

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Copyright information

© Springer 2005

Authors and Affiliations

  • Joris Meijaard
    • 1
  • Maryse J. Brand
    • 2
  • Marco Mosselman
    • 3
  1. 1.Department of Innovation Management Rotterdam School of ManagementErasmus University RotterdamDR RotterdamThe Netherlands
  2. 2.Faculty of Management and OrganizationUniversity of GroningenAV GroningenThe Netherlands
  3. 3.EIM Business and Policy ResearchAA ZoetermeerThe Netherlands

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