Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance

This study examines the characteristics of organizational structure that relate to hybrid competitive strategies. Such strategies seek to obtain higher performance levels by simultaneously emphasizing high differentiation and low-cost levels. In addition, this paper analyzes the mediating role of competitive strategy in the relationship between organizational structure and firm performance. The study examines a sample of large Spanish firms belonging to different sectors. The findings reveal that hybrid competitive strategy influences firm performance positively. Similarly, organizational complexity and the existence of formalization positively influence hybrid competitive strategy, whereas centralization has a negative influence. Organizational structure does not exert a direct influence on performance, but an indirect one, through hybrid competitive strategy. (C) 2011 Elsevier Inc. All rights reserved.