Abstract
The strategy-structure-performance (SSP) paradigm has developed a
central role within strategy research. However, recent critiques
of the paradigm have called for research that uses more appropriate
measures of strategy and structure, inductive methods that enable
richer exploration of the paradigm, and extension of the paradigm
to the expert-focused organizations that have grown in importance
since the paradigm was first developed. This paper answers this call
by integrating inductive methods with quantitative analysis of a
unique panel data set of 317 professional services firms (PSFs) to
find new measures of strategy and to understand their linkages to
organizational structure within such firms. It shows how the core
knowledge required for decision making and the coordination challenges
in these firms drive their internal structures and that the degree
of strategy-structure fit has important performance implications
for those firms.
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