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Journal of economic studies
Journals / Journal of economic studies / Volume 11 Issue 2 / Using Alfred Chandler's model of organizational change "Strategy determines structure" in modern conditions of socio-economic transformations
UDC 330 UDC 338

USING ALFRED CHANDLER'S MODEL OF ORGANIZATIONAL CHANGE "STRATEGY DETERMINES STRUCTURE" IN MODERN CONDITIONS OF SOCIO-ECONOMIC TRANSFORMATIONS Using Alfred Chandler's model of organizational change "Strategy determines structure" in modern conditions of socio-economic transformations

Published in Journal of economic studies · Volume 11, Issue 2 · Pages 3–16 · Rubric: Economic Theory
Received: 28.02.2025 Accepted: 04.03.2025 Published: 23.05.2025
Authors
A.
A. Tebekin
E.
E. P. Kim
ABSTRACT
This study examines Alfred Chandler’s model of organizational change, which postulates that a company’s strategic priorities determine its internal structure. The concept explores how managerial decisions influence organizational configurations over time. The article assesses the applicability of this model in the modern business environment, considering technological progress and intensifying competition. Chandler’s theoretical principles are analyzed through corporate case studies, demonstrating the interdependence of structural frameworks and long-term strategic goals. The necessity of adjusting managerial mechanisms to evolving market demands is emphasized, as misalignment between strategy and structure undermines operational efficiency. The research explores organizational transformations driven by business expansion, innovation adoption, and shifts in corporate governance models. Structural modifications are examined in relation to strategic objectives, with an emphasis on factors that enhance the model’s successful implementation. The findings underscore its relevance for companies seeking sustainable development amid external changes. The scientific novelty of the work lies in the fact that it demonstrates that the urgency of using A. Chandler's model "strategy determines structure" increases many times over with the change of technological structures, accompanied by structural shifts in the economy, which in turn, for both leading and follower companies, raise the question of the need for a radical change in development strategies, adequate to the change in the dominant technological core in the global economy, and with them, a change in the structure of managed companies.
KEYWORDS
strategy, structure, organizational transformation, management, Alfred Chandler, corporate development, adaptation
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