Approaches to Business Organization: from Functional to Network Structure (a Scientific and Practical Review)

Abstract

The presented study examines approaches to the organizational structure of the business and the history of development of the corresponding schools of scientific thought and business practices. Aim . The study aims to track changes in theoretical and practical approaches to organizational structure. Tasks . The authors examine approaches to the organizational structure of the business and describe those that remain relevant at present; show the history of development of scientific thought on company structure and strategy and identify the most significant works in this field; conclude which approaches (structures) are the most important and promising with allowance for real business practices. Methods . This study uses the methods of information analysis and subsequent synthesis of new knowledge in the form of the authors' conclusions and predictions based on relevant scientific publications of Russian and foreign authors, including original publications in English and French. Results . The major types of organizational structures are briefly described, and a review of the history of development of approaches to business structure and strategy is provided. Conclusions . There is a direct correlation between the development of the theory and practice of organizational structures and the development of economic and social processes. The emergence of network structures naturally and logically follows from the history of development of previous types of structures. Network structure is the most progressive and promising form of organization for modern companies. Further research is required in the field of network business structures, their history, and modern usage practices.