Information technology and its effect on organizational structure
Those organizations that choose to ignore the new trend in technology and do not adapt to those changes are bound to find themselves out of business quickly
The Internet and information technology is fundamentally changing our whole society and it is no longer a case that some companies are IT oriented and others are not. Those who do not join the IT revolution 'will go to the wall' - and fast. (Percey Barnevick, chairman of Investor, the largest owner on the Stockholm stock exchange)
From this study, we find that there is substantial evidence of a relationship between increased levels of IT usage and smaller firm size, therefore, our findings are consistent with the hypothesis that IT changes organizational structure and leads to a decline in the average size of firms.
In the next century (Millenium) which is just a few days away, Organizations should look different as a direct result of the ability to process information and the disappearance of such traditional barriers to innovation as location and organizational boundaries. Organizations such as we know them today, might cease to exist and give place to virtual organizations that exchange and share information on the Internet.
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