Date of Award

Summer 8-2026

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Engineering Management & Systems Engineering

Program/Concentration

Engineering Management and Systems Engineering

Committee Director

Andres Sousa-Poza

Committee Member

Ambrosio Valencia-Romero

Committee Member

Saltuk Bugra Karahan

Abstract

The question of when to centralize or decentralize decision-making authority is a foundational problem in organizational theory and management science. Yet existing research often favors decentralized structures, frequently treating them as universally superior, and provides limited guidance on when centralization may be more effective. Leaning toward decentralization without thoroughly exploring options leaves organizational designers without clear direction under varying environmental conditions. This study addresses that gap by developing and applying a simulation-based framework to evaluate the context-dependent effectiveness of centralized and decentralized decision-making structures.

Drawing on contingency theory and decision science, the study conceptualizes environmental complexity along two dimensions: dynamism (static vs. dynamic) and contextual specificity (context-specific vs. non-context-specific), resulting in four situation types of increasing complexity. A discrete-event simulation model based on Lanchester attrition dynamics is developed and implemented using a full-factorial experimental design, with command structure, operation type, situation type, and force ratio as independent variables. Performance is evaluated using three measures: effectiveness, resource efficiency, and time efficiency.

The results show that the relative effectiveness of centralized and decentralized structures is systematically context dependent. Centralized structures achieve higher performance under stable, predictable conditions, while decentralized structures outperform in dynamic, complex environments. This crossover pattern is explained by a fundamental trade-off between two underlying mechanisms: redistribution, which enables coordinated resource allocation under centralized decision-making, and responsiveness, which enables continuous local adaptation under decentralized decision-making. As environmental complexity increases, redistribution becomes temporally misaligned with operational conditions, whereas responsiveness sustains performance through ongoing adaptation.

These findings contribute to organizational theory by providing a mechanism-based explanation for the contingent effectiveness of decision-making structures. The study also offers practical insight for organizational design under uncertainty, suggesting that structure selection should align with the rate and nature of environmental change rather than reflect a fixed preference for centralization or decentralization.

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In Copyright. URI: http://rightsstatements.org/vocab/InC/1.0/ This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).

DOI

10.25777/m827-0p49

ISBN

9798193217350

ORCID

0009-0003-0056-8026

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