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This paper critically examines available theoretical models which have been derived front statistically established patterns of association between contextual and organizational variables. These models offer an interpretation of organizational structure as a product of organizational structure as a product of primarily economic constraints which contextual variable are impose. It is argued that available models in fact attempt to explain organization at one remove by ignoring the essentially political process, whereby power-holders within organizations decide upon courses of strategic action. This `strategic choice' typically includes not only the establishment of structural forms but also the manipulation of environmental features and the choice of relevant performance standards. A theoretical re-orientation this kind away from functional imperatives and towards' a recognition of political action is developed and illustrated in the man body of the paper. [ABSTRACT FROM AUTHOR]