Organizational Size: A Key Element In The Development Of Private Enterprises In The Less Developed Countries: The Case Of Ecuador

Abstract

The purpose of this article was to examine and evaluate the prerequisites needed in private enterprises in Ecuador that are conducive to economic development and determine if economic development via this choice is feasible. The prerequisites are ample organizational size, a situation that allows the formation of a well-constructed and viable organizational structure with three hierarchal levels and sufficient departmentalization. All of the above permits the formation, sustenance, and development of the chain and unity of command; span of control; and delegation which, when integrated with the organizational structure, organizational levels, and departmentalization, form the infrastructure for organizational development. It was determined that most Ecuadorian enterprises do not posses such prerequisites; therefore, they cannot play the needed role for micro-economic development at this time.