7ukpaptt examines thc relatwnsh$ between ccntralization/deccntralizat~n ofdecision making and organizational context in government owned businesses. Eleven items covering a wrdc range of decisions finned thc basu of centralization/decentralization measure. Organizational context rt$k to size, age, geogtaphicaf dispersion, and the extent of dependence upon government. Data were collected from 4 7provincMlly controlled organizations in Canada. The results show that size, age, and geographical dispersion contribute to decentralization and dependence creates the need for more centralized decision structures. The results also show that there is a conslderable variation in the extent ofcentralization ofstrategtc versus non-strategu decisions. Whilst the fmtt decisions are highly centralized, the latter are comparatively decentralized. Also, the influence of context seems to be more apparent in the care of non-strategzc deciswnr.One of the important dimensions of organizational structure that has been employed in almost all of its major studies is the degree of centralization of decision making. This generally refers to the hierarchical level at which decisions are made. The higher these levels the more centralized, and the lower the more decentralized the decision making structure is likely to be. The concepts of centralization and decentralization are generally considered to be relative, rather than absolute and dichotomous (Jennergren, 198 1). That is, in comparing different decisions and the decision making in different organizations, one should speak of the degrees of centralization and decentralization.In addition to the above definition of the concept of centralization. researchers have employed other operational definitions and measures. Carter and Cullen ( 1 984). compared various concepts and measures of centralizatioddecentralization, and classified them as: simple hierarchical,concentratioddispersion, and participation. Concentration/dispersion is similar to the hierarchical explanation of the concept, except for the assumption that centralization can occur at any level with decentralization dispersing outward from that level (Hage and Aiken, 1970). This is C m j .