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Bureaucratic Structure, Strategy, and Performance: An Empirical Analysis on Korean Quasi-Governmental Organizations

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2018, 29(1), pp.119-143
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

KWON BO KYUNG 1 Lee Kyung Eun 2 Young-Han Chun 2

1서울대학교행정대학원
2서울대학교

Accredited

ABSTRACT

The aim for this research is to find an empirical evidence of the relationship among bureaucratic structure, strategy, and organizational performance of Korean quasi-governmental organizations. There has been a consensus of strategy and structural fit leads to organizational performance. Miles&Snow(1978) had suggested organizations which adopted defending strategy, centrally operated structure is appropriate in that it is beneficial for pursuing efficiency. On contrary, prospectors are apt to have decentralized and participative decision-making process for better performance. However, reactors did not have specific form of structure in the literature. Despite fruitful research for the subject in the business field, there has been dearth of empirical research tried to test the relationship between strategy and bureaucratic structure for the improvement of organizational performance. Among our findings, given by strategic types, some results were consistent with previous research, however, some were different to the extent. Defenders with higher level of formalization had strongly positive effect to the performance. This result has importance in that the fit between defending strategy and formalization has not been empirically tested yet. Like previous studies, reactors with higher red tape had detrimental effect to organizational performance. In contrast, higher group of prospecting strategy with bureaucratic structures did not have significant difference to the performance. These results can contribute to the study on strategies of Korean public organizations

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