The role of technological innovation, strategy, firms performance, and firms size and their aggregate impact on organizational structure

This study investigates how numerous contingencies work together to influence the organizational structure of privately held businesses in China. This study is using a cross‐section primary data set from 83 private firms listed in China. The data are gathered by face‐to‐face interviews with entrepreneurs, and six hypotheses tests are performed regarding the contingencies of organizational form. Furthermore, the empirical findings indicate that environment, strategy, size, and technology play a significant role in explaining organizational form. Finally, financial factors are important aspects of the business environment, notably in dealing with cash flow problems and in forming profit expectations.