There is a growing awareness that information technology plays a critical role in helping determine organizational structure. Unfortunately, that role has not been adequately defined. This study provides a foundation for an increase in our understanding of the relationship between information technology and organizational structure by defining a new set of information technology variables and identifying differences in organizational structure based on these new variables.

Insufficient literature exists in the area of incremental and revolutionary change to explain and predict the convergence and reorientation phenomena happening in organizations. The process of strategic reorientation involves the internal organizational complexities of fast-paced (within two years) changes in competitive strategy as a necessary condition coupled with changes in at least two of organization structure, power distribution, and control systems. Antecedent forces believed to influence the discontinuous change process include industry sales turbulence, structural inertia/firm size, firm past financial performance, CEO turnover, top management team turnover, management team heterogeneity, management environmental awareness, and external attributions for negative financial performance. Punctuated equilibrium was the foundational theory for this study in which a strategic reorientation model published in Strategic Management Journal was reconstructed. The research question was: What seem to be the significant time-based antecedent forces or conditions that lead to strategic reorientation? The study used two hierarchical logit regression models to analyze data gathered from COMPUSTAT PC Industrial Data Base and Compact Disclosure (CD-ROM) over the years 1987-1993 from the turbulent computer software and stable furniture industries. Qualitative data were found in 10-K reports and President's Letters in Annual Reports filed with the SEC and available on Laserdisclosure. The sample, …