Why and How Organizational Structures Change: An Integrative Review and Framework

Organizational structure is conceptualized as an enduring and persistent configuration of activities related to how work is divided and integrated within organizations. Yet, a growing body of research has investigated why and how organizational structures change. Initially, these questions were investigated using a macro-oriented approach and generated insights about organizational structure change in response to top-down initiatives designed to align the structure with changes in the environment or strategy. However, an increasing number of studies have investigated additional factors that prompt or inhibit structure change (e.g., founder imprinting, turnover) and the nuances of the change process (e.g., bottom-up effects of employee behavior). Thus, conversations about organizational structure change are shifting from alignment to adaptation, and from describing the nature of a change event to unpacking the change process. As these emergent insights expand and challenge understanding of why and how organizational structures change, it is necessary to take stock and construct a more comprehensive knowledge base for the domain. Accordingly, we synthesize the research on organizational structure change, uncover underlying and facilitating mechanisms, and advance a unifying framework. We also offer multiple avenues for future research to address unresolved areas and accelerate novel theoretical development by using a micro-oriented approach.