Linking technology and structure to enhance group performance.

Abstract

We examined linkages between technology and structure at the group level of analysis as predictors of group performance. The general hypothesis is that group technology/structural fit is a better predictor of work group performance than either technology or structure alone. Related hypotheses match three technology variables (task predictability, problem analyzability, and interdependence) with three group structural variables (horizontal differentiation, vertical differentiation, and connectedness) to predict group performance. Technology/structural fit variables in this study are significant predictors of group performance, as are group structural properties alone. Technology variables are very poor predictors alone. The fit variables add significant explained variance over and above the technology and structural variables as universalistic predictors. Predictions about which technology and structural variables to match for higher group performance are generally supported. These results could allow future contingency research to make greater contributions to theory building about group performance. Several recent studies have examined the fit between technology and structure as a predictor of work group performance (Alexander & Randolph, 1985; Campbell & Gingrich, 1986;' Fry & Slocum, 1984; Ito & Peterson, 1986; Kozlowski & Hults, 1986). These studies suggest that group measures of technology and structure may be more effective in assessing work group design and performance issues than organizational-level measures. The problem with linking technology and structure at the organizational level to predict group performance is that multiple technologies and diverse structures, often cannot be matched in a meaningful way (Argote, 1982; Dewar & Werbel, 1979). Fry's (1982) analysis of 108 studies of technology and structure found a stronger relationship between technology and structure at the group level than at the organization level. Specifically, 72% of the subunit studies reported significant relationships between technology and structure, whereas only 57% of the organization studies reported significant relationships. The thesis of this article is that group measures of technology (task predictability, problem analyzability, and interdependence) can be matched effectively with group measures of structure (vertical differentiation, horizontal differentiation, and connectedness) to improve management's understanding of group performance. Literature Review