In general, there are some factors influencing centralization versus decentralization:
• Higher level of environmental dynamism (greater change and uncertainty) is associated with decentralized decision making while a stable environment is associated with centralization.
• In time of crisis or risk of failure, authority may be centralized at the top.
• Adaptive organizational culture is more appropriate for decentralization.
• Risk taking and innovation and associated with decentralized authority. The correct answer is E.