'Organizational Structure and Economic Performance: a Test of the Multidivisional Hypothesis', The Bell Journal of Economics, 9, pp. 106-22.

If this hypothesis is correct, then for a class of large complex firms the adoption of the multidivisional organizational innovation will significantly affect their efficiency. Assuming that interfirm differences in efficiency can exist at any given time and that such differences are reflected in profitability, it follows that organizational form may be expected to account for some part of the observed interfirm variation in profitability.