This study suggests that organizational structures and strategy-making processes are highly interdependent and must be complementary in many ways to ensure good performance under challenging conditions An empirical analysis of 97 smell and medium-sized firms showed that structural formalization and integration were related to the levels of interaction and proactiveness among decision makers and to four aspects of rationality in decision making: analysis of decisions, planning, systematic scanning of environments, and explicitness of strategies. Centralization of authority was related to planning, risk taking, and consensus-building. Structural complexity had few associations with strategy making. Relationships between strategy making and structure were usually strongest among successful and innovative firms and seemed to contribute the most to performance in sizeable and innovative firms.