Abstract: The selection of an organizational structure is one of the most important decisions to make when executing a project. The form of the structure will define the authority, the relationships between the members of the project, where each member is located, the lines of coordination, control, etc. There exists a wide array of quantitative metrics that may be used to measure the complexity of a project organizational structure and that are borrowed from other fields. In this paper, we adopt a metric developed from Shannon?s information entropy, the network entropy, which is a useful metric to measure the complexity of a project organizational structure linking the complexity of the structure to its functional role. The measure is applied to the project organizational structure of an international company dedicated to the development, construction, and operation of renewable energy projects in Europe, Asia, and America. Additionally, and for comparative purposes, alternative organizational structures are considered for the company. Our results show that adopting an organizational structure different from the structure that the company is currently using, the company would reduce its complexity and improve its structural agility and performance.
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