Organizational Size and Specialization

This research note uses the Aston measure of Functional Specialization to examine the effect of the inclusion of smaller organizations than are normally present in studies employing this measure on the relationship between size and specialization. The presence of organizations between 25 and 100 employees raises the magnitude of the correlation coefficient slightly. A regression analysis is also carried out that implies that the prediction of specialization from size is somewhat sensitive to sample size. A correlation analysis of the size-specialization relationship is also undertaken for discrete size ranges.