The Bias of Structures: How Multidivisional Organizations Work in the Public Sector

This paper discusses the unexploited possibilities that organization theory offers for explaining the policy output of public-sector organizations. Although political scientists frequently argue that organization matters, exactly how it matters remains unresolved. To investigate this issue, the concept of the multidivisional organization (M-form) is applied to the public sector. Three dimensions of the M-form are identified for closer inspection: 1) the structure-strategy relationship, 2) the managerial or leadership dimension, and 3) the external-relations dimension. Several empirical examples are used to demonstrate that the M-form exerts an independent impact on policy output. While the M-form allows a single organization to perform multiple functions, it also works against crosscutting policies and is inclined toward clientelism and capture. The use of the M-form concept is beneficial for political science analyses in that it requires paying greater attention to the “internal life” of governmental and public-sector organizations.