Abstract
Contingency organization theory suggests that the match between environmental complexity and formal structure is an important determinant of organizational performance. However, there are a number of different interpretations of environmental complexity which may or may not be related. The purpose of this paper is to outline several different views of environmental complexity and empirically test the extent to which they predict the performance of 26 mechanistically structured antipoverty agencies. Statistical analysis is based on multiple linear regression. Measures for complexity include the general level of socioeconomic development, the occupational mix in the surrounding area, the uncertainty in the immediate environment of the agency, and the reliance of the agency on outside units. The performance criteria are based on an analysis of the degree of goal attainment of the sample units. Results suggest that there are considerable differences in different interpretations of environmental complexity in regard to predicting agency performance. It appears that the combined impact of general environment conditions (socioeconomic development and occupational mix) and reliance on external units forms a basis for measuring environmental complexity.
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