Abstract
Matrix structures and network designs are the primary organizational alternatives available toMNCsto implement increasingly complex multidimensional strategies. Despite a growing interest in matrix structures amongMNCmanagers, theory about how to design and fit the different types of matrix structure toMNCstrategy is largely absent from the scholarly literature. To address this gap, the present study develops an information‐processing model of strategy‐structure fit forMNCmatrix structures. It does this by modifying and extending logic already established for fitting elementary structures toMNCstrategy. Hypotheses based on the model are empirically supported, using a sample of 57GermanMNCswith matrix structures. Multivariate discriminant analysis further reveals that an important element of strategy—the technological similarity of products in anMNC—is still missing from the literature and proposed model.
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