Abstract:

This study analyses the organizational structure of software industry organizations.  The paper aims to evaluate the relationship between organizational characteristics and organizational effectiveness of software development companies. The empirical research includes 120 software development companies. Regression, correlation and compare means based methodology were used to analyze the collected data. The study demonstrates that three main organizational determinants are significantly important for organizational effectiveness. Formalization and specialization affects the organizational performance positively. However, the third determinant, organizational size affects the organizational effectiveness of software companies negatively.