Structural Co-Alignment Influence on SMEs Performance

Abstract

Organizational structure is a determining factor in organizational performance. Although structural contingency theory in the field of organizational studies and the structural co-alignment theory in the field of strategic management, have provided points of reference to comprehend the phenomenon of organizational performance, there are still gaps to be filled and empirical validation is required, above all in the influences on performance and especially in relation to Colombian Small and Medium Enterprises (SMEs). As such, the objective of this study is to determine the effect of structural co-alignment on organizational performance, applying causal inference methodology to a structural equations model. The results will indicate that differentiation, centralization and formalization have a synergistic effect on performance, when the fit is achieved.