Organisational Structure and Strategic Business Success in the Petroleum Industry in Uganda

Abstract

This paper explores the relationship between organisational structure (ORG) and strategic business success (SBS) in the petroleum industry in Uganda. ORG was measured using span of control (SPOC), coordination of functional units (CORD), centralisation (CENT) and decentralisation (DECE). The study premised on institutional theory. The population was 347 licensed petroleum companies in Uganda and a sample of 186 was distributed and 174 used for analysis. The study used a survey research design. Regression and correlation were used to do analysis. The study used a self-administered questionnaire and semi-structure key informant interviews. Findings indicate that ORG has positive and significant relationship with SBS, although DECE and CORD make bigger contributions to ORG and ultimately SBS, CENT to a less extent. It is recommended that to generate more value, organisations should adopt CORD and DECE. It is concluded that petroleum companies should strengthen and manipulate DECE and CORD to meet the growing need of the petroleum industry. The study concluded that ORG does predict changes in SBS and is an important predictor of SBS.