{"id":20570,"date":"2011-11-28T00:00:00","date_gmt":"2011-11-28T00:00:00","guid":{"rendered":"http:\/\/global2020prd.wpengine.com\/insights\/matrix-monday-an-economic-analysis-of-matrix-structure\/"},"modified":"2020-03-21T08:29:56","modified_gmt":"2020-03-21T08:29:56","slug":"matrix-monday-an-economic-analysis-of-matrix-structure","status":"publish","type":"post","link":"https:\/\/www.global-integration.com\/insights\/matrix-monday-an-economic-analysis-of-matrix-structure\/","title":{"rendered":"Matrix Monday: an economic analysis of matrix structure"},"content":{"rendered":"<h3>Continuing with our\u00a0<a title=\"Matrix management resources\" href=\"https:\/\/www.global-integration.com\/blog\/category\/matrix-monday\/\" target=\"_blank\" rel=\"noopener noreferrer\">\u2018Matrix Monday\u2019 series<\/a>, we report back on some of the limited literature available on\u00a0<a title=\"matrix management\" href=\"https:\/\/www.global-integration.com\/matrix-management-training\/\" target=\"_blank\" rel=\"noopener noreferrer\">matrix management<\/a>. Today we look at an older, but still relevant, paper on the economics of a matrix structure.<\/h3>\n<p><em><strong><a title=\"Ecoinomic analaysis of matrix stracture\" href=\"https:\/\/onlinelibrary.wiley.com\/doi\/10.1002\/%28SICI%291099-1468%28199805%2919:3%3C141::AID-MDE877%3E3.0.CO;2-D\/abstract\" target=\"_blank\" rel=\"noopener noreferrer\">An Economic Analysis of Matrix Structure, Using Multinational Corporations as an Illustration<\/a>\u00a0<\/strong>by Tailan Chi and Paul Nystrom School (MANAGERIAL AND DECISION ECONOMICS,\u00a0Manage. Decis. Econ. 1998)<\/em><\/p>\n<p>This paper provides an economic analysis of <a href=\"https:\/\/www.global-integration.com\/global-working-training\/account-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">matrix structures<\/a> (the &#8216;MX-form&#8217;) compared to the more commonly found multi-divisional structures (the M-form), using multinational corporations to examine both cost-effectiveness and organizational advantages\/disadvantages.<\/p>\n<p>The reasons a multinational corporation would have a multi-divisional structure in place are discussed, and issues such as the significance of divisional autonomy and multidimensional interdependence are addressed. The paper examines when it becomes difficult to coordinate multi national corporations along the lines of a more conventional structure, and where the matrix may be a solution.<\/p>\n<p>The paper finally goes on to look at merits and demerits of the matrix form, which it describes as a structure which &#8216;essentially combines two or more layers of M-form structures&#8217;, and examines the conditions which affect how efficient the matrix structure can be in a multi-national corporation.<\/p>\n<p><em>With the limited academic resources on matrix management available online, many older (but still relevant), if you&#8217;ve found a great resource and would like to summarise it as a guest post, please <a title=\"Contact Global Integration\" href=\"https:\/\/www.global-integration.com\/contact-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact Global Integration<\/a>.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/10.1002\/(SICI)1099-1468(199805)19:3%3C141::AID-MDE877%3E3.0.CO;2-D\/abstract\"><br \/>\n<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Continuing with our\u00a0\u2018Matrix Monday\u2019 series, we report back on some of the limited literature available on\u00a0matrix management. Today we look [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-20570","post","type-post","status-publish","format-standard","hentry","type-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Matrix Monday: an economic analysis of matrix structure - Global Integration<\/title>\n<meta name=\"description\" content=\"Continuing with our\u00a0\u2018Matrix Monday\u2019 series, we report back on some of the limited literature available on\u00a0matrix management. Today we look at an older,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.global-integration.com\/insights\/matrix-monday-an-economic-analysis-of-matrix-structure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Matrix Monday: an economic analysis of matrix structure\" \/>\n<meta property=\"og:description\" content=\"Continuing with our\u00a0\u2018Matrix Monday\u2019 series, we report back on some of the limited literature available on\u00a0matrix management. 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