Complexity and the functions of the firm : breadth and depth

In this paper, we assess complexity in organizations in terms of the dimensions of ‘depth’ and ‘breadth’. We examine how this operates in firms, indicating how different fields of research have tended to highlight only certain aspects of complexity, for instance, technology or products. In addition to assessing the impact of growing complexity in each functional area along either dimension, we further investigate the conditions under which complexity between the dimensions or functional areas may be coactive or conflicting. Detailed examination of historical evidence shows that greater complexity in one dimension or function does not necessarily lead to greater complexity in another. However, any simplification within a function or between functions may require changes in organizational structure and managerial control.

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