Divisionalisation and Size: A Reply to Grinyer

Adoption of the divisional for M of organisation structure has been explained with reference to size. The present author (Donaldson 1982a) has argued against this view and asserted that strategy is a more compelling explanation theoretically and empirically. Grinyer (1982) has defended the argument from size. The present paper replies to Grinyer. It points to continuing theoretical weaknesses with size. Aspects of the defence by Grinyer are challenged. And his criticisms of the empirical research of Donaldson (1982a) are answered. Several causal models are explicated from Grinyer (1982). Fresh evidence is adduced against three out of four of them. The conclusion is that strategy is a more important cause of divisionalisation than size.