Size-Structure Relationship in Manufacturing Enterprises in Transition

Abstract

The paper describes research on a size-structure relationship in manufacturing enterprises. The research was carried out in 30 manufacturing firms, mainly from the metalworking industry (seven oil and oil derivative processing companies) during the period from 1994 till 2006. Multiple correlation analysis indicated a positive relationship between a firm size and horizontal diversification, and also between a firm size and vertical diversification. The results showed that there was a high level of correlation between size and organizational structure in metalworking enterprises of a country in transition. The results of this study indicated that manufacturing enterprises, of a country in transition followed a global trend of flat organizational structure, which increased enterprises' flexibility and adaptability to changeable environmental factors.