Premium
Decentralization in growth and decline: A catastrophe theory approach
Author(s) -
Baack Donald,
Cullen John B.
Publication year - 1994
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830390304
Subject(s) - decentralization , catastrophe theory , organizational theory , positive economics , economic system , economics , evolutionary theory , epistemology , management , philosophy , geotechnical engineering , engineering , market economy
Catastrophe theory provided a framework to consider the centralization or decentralization of organizational decision‐making. The specific concern was the relationship of centralization to the growth or decline in organizational size. Three bodies of literature contributed to the development of hypotheses. First, catastrophe theory suggested a general framework for studying organizational processes. Second, previous theoretical and empirical evidence regarding the relationships between centralization and size suggested the applicability of a cusp catastrophe model. Third, further implications for centralization were drawn from the literature dealing with evolutionary and revolutionary changes in organizational structure. Based on these reviews, catastrophe theory hypotheses were developed concerning the relationship of changes in size to evolutionary and revolutionary changes in the centralization or decentralization of organizational decision‐making.