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Knowledge Technology and Organizational Structure
The objective of this study is to develop a contingency theory of organizational capability based on the identification of decision variables relevant to the design of firms. The paper supports a model in which superior performance is the result of the proper fit between knowledge technology and organizational structure. More specifically, the study focuses on showing that the degree of structural centralization of an organization reflects the characteristics of technology knowledge required to elaborate connectivity knowledge. The theoretical model connecting knowledge technology and organizational structure is empirically tested on data collected in the healthcare sector. Applying a logistic regression model on a dataset of 115 hospitals located in New York and New Jersey, this paper measures and compares the odds of key therapeutic tasks being provided by centralized hospitals in which physicians work as employees instead of autonomous professionals. Empirical findings provide preliminary support to the core hypothesis that therapeutic tasks requiring more connectivity knowledge has greater odds of being provided by centralized hospital than those therapeutic tasks requiring less connectivity knowledge.