The network structure becomes most useful when the environment of a firm is unstable and is expected to remain so.

Question

Quizplus · Accepted Answer

The network structure is designed to provide flexibility and adaptability to changes in the environment. Therefore, it is best suited for unstable environments where firms need to be agile and responsive to changing conditions. In contrast, in more stable environments, firms may benefit from a more rigid hierarchical structure that focuses on efficiency and control.

The Network Structure Becomes Most Useful When the Environment of a Firm