Complexity absorption and performance: A structural analysis of acute-care hospitals

Bruce A. Walters*, Shahid N. Bhuian

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

21 Citations (Scopus)

Abstract

This study assesses the degree to which a complexity absorption response enhances performance in an industry increasingly described as highly complex: acute-care hospitals. Business-level strategy, organizational structure, and analytical comprehensiveness are viewed as mechanisms through which executives can increase internal complexity. A case is made that hospitals are well served to pursue a hybrid (or combination) strategy, employ an organic structure, and engage in a high degree of information acquisition and use. In keeping with a complexity absorption view, results indicate that these elements generally exhibit stronger associations with performance as dynamism increases.

Original languageEnglish
Pages (from-to)97-121
Number of pages25
JournalJournal of Management
Volume30
Issue number1
DOIs
Publication statusPublished - Feb 2004

ASJC Scopus subject areas

  • Finance
  • Strategy and Management

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