The impact of information and communication technologies on firm structure: evidence from an economy in transition

The present research attempts to identify the dynamic relationships involved between information and communication technologies (ICT) adoption and management efforts towards modernization and reorganization. Using data from leading Greek firms, we report evidence as to how changes in organizational structure, i.e. number of hierarchical levels, formalization, centralization and extensiveness of middle line management, link with the current and prospective level of use of various types of advanced ICT. The results show that ICT significantly affects important elements in of all these structural dimensions. In particular, ICT adoption is found related with delayering, low formalization, clear delineation of managerial role and, prospectively, with decentralization. More generally the findings suggest that ICT correlates with an internal environment characterized by open organization and flexibility.