Information technology and organisational structure: vindicating theories from the past

Last century, J.R. Galbraith discussed the relationship between the amount of information an organisation processes and its structure. J.D. Thompson discussed a related topic of task interdependence and coordination. Given that the processing and management of information is the basis of electronic commerce (EC), the fastest developing mode of conducting business today, it is apposite to ask how relevant Galbraith’s and Thompson’s theories are today. As organisations increase their offerings and influence to attain competitive advantage they become more complex. Both information technology (IT) and the theories of Galbraith and Thompson assist them to reduce that complexity.