The influence of organization structure and strategic posture on the degree of formalization of strategic planning : SMEs in Singapore's automotive distribution sector.

Abstract

This paper is a predictive study of the interplay amongst organizational structure, strategic posture and the degree of formalization in strategic planning in a highly uncertain environment context. Burns and Stalker (1961) first came up with the „Theory of Mechanistic and Organic Systems‟ to provide a way to understand which organization forms fit to specific circumstances of change or stability. Gibb and Scott (1985) also developed a framework of four generic task environments of which small firms might operate that offers an insight to the type of organizational structure appropriate for the level of environmental uncertainty. Covin and Slevin (1989) identified and contrasted the strategic postures and organizational structures of small firms in both hostile and benign environment. As such, based on the above mentioned theoretical frameworks, we investigate the concepts of strategic planning, organizational structure and strategic posture in Singapore‟s automotive sector.