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How Organizational Structure Affects Ecological Responsiveness

Abstract:

In this article, we analyze the relationship between the main dimensions of organizational structure (i.e., formalization, centralization, and complexity) and ecological responsiveness in a sample of 109 firms in the European air passenger transport industry. Broadly confirming our hypotheses, the results show that high formalization of routine tasks favors ecological responsiveness. Structures characterized by high decentralization and low complexity also favor ecological responsiveness. Furthermore, decentralization has a significant, positive relationship with ecological responsiveness among firms with low vertical complexity. Overall, the results indicate that organizational structure plays a major role in ecological responsiveness.