From a practical perspective, asking if an organization that fits its environment will perform better than an organization that does not seems to make as much sense as asking if an individual who is qualified for a job will perform better than a person who is not. However, in the world of organizational studies, structural contingency researchers give considerable thought to understanding the environmental factors that influence organizational effectiveness, while often failing to prove a connection between fit and performance (March & Sutton, 1997) and not adequately considering managerial choice as a factor driving organizational fit.
Contingency theorists argue that an organization that adapts to its environment will perform better than an organization that does not (Donaldson, 1996) and that mismatched characteristics within organizational configurations will prevent an organization from achieving natural harmony with its environment that will lead to better performance (Mitzberg, 1981).
This article explores contingency theory models to find if a connection exists between fit and environmental contingencies to understand if organizations that find a proper fit perform better than those that do not and to identify applications of contingency models managers might consider for enhancing organizational performance.