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Abstract
The purpose of this study was to identify the extent to which organizational characteristics are similar and different in two countries (Thailand and the United States), and to test the validity of the two opposing theses (the contingency and the culture-specific theses). The contingency thesis posits that organizational context and environment determine organizational characteristics, whereas the culture-specific thesis emphasizes the role of culture in determining organizational characteristics.
A research sample was matched for six different industries (banking, insurance, real estate, food, stone and clay products, and textile). Two hundred and nineteen executives from 71 Thai and 61 American firms responded to a questionnaire, asking information regarding environment, size, characteristics, and performance of their organizations.
The study yielded several important findings regarding organizational characteristics and performance. Most importantly, the contingency propositions were not fully supported. Rather, the study suggests that organizational characteristics are a function of both culture and contingencies. Contingency factors such as firm size and environment have the greatest impact on organizational form which includes those outer features of organizations, such as complexity and formal structuring of activities in organizations. Culture, on the other hand, appears to have its greatest influence on organizational regime which includes the style of organizational governance and other informal structures of organizations. Thai and American firms do share some similarities in their organizational form. They are, however, different from each other in terms of organizational regime.
The study did not support the contingency proposition that organizational performance depends on the fit between characteristics of an organization and its environment. This study suggests that internal characteristics of the organization (e.g., flexibility) play a more important role in determining organizational performance.
Implications of this study include: (a) researchers must understand the role of contingency as well as culture in the study of organizations; and (b) future research should pay more attention to internal characteristics of an organization as an important determinant of organizational performance.
