How Does Hierarchy Steepness Affect Coordination in Project-Based Organizations? A Social Network Analysis

Abstract

This study aims to reveal the impacts of hierarchy steepness on intraorganizational coordination in project-based organizations (PBOs) at both organizational and individual levels. We discovered that hierarchy steepness has a positive correlation with organizational coordination intensity but a negative correlation with an individual’s coordination power. A steeper hierarchy is beneficial for intraorganizational coordination so, averagely, an individual’s coordination power weakens in well-coordinated organizations. The findings refuted previous arguments that took hierarchy as an obstacle to coordination and proved the functionality of a steeper hierarchy. They suggest PBOs steepen the hierarchical structure to improve intraorganizational coordination.