The configurational theory of organizations was used to analyze the relationships among organization environment, structure, and performance in proprietary nursing homes. This theory extends previous contingency theory research and conceptualization by including performance as the main focus behind organization design activities. Thirty proprietary nursing homes in the state of Washington responded to comprehensive interviews and survey questionnaires designed to measure variables specified in the configurational theory. The results of this study suggest partial support for the configurational theory; most notably in explaining differences in efficiency among nursing homes operating in low intensity environments.
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