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Organizational typologies have proved to be a popular approach for thinking about organizational structures and strategies. Authors developing typologies, however, have been criticized for developing simplistic classification systems instead of theories. Contrary to these criticisms, we argue that typologies meet the criteria of a theory. When typologies are properly developed and fully specified, they are complex theories that can be subjected to rigorous empirical testing using the quantitative models we develop. We conclude by discussing the advantages of typological theories and presenting guidelines to improve the development of typologies.