Question

Why would greater geographical dispersion of an organization result in a more favorable condition for decentralization?

Answer 1

When an organization spreads beyond boundaries into larger geographical areas and expands it's business, there comes a need to have separate authorities at every point of it's operation as it becomes difficult to operate the whole organization from a single place. Thus power gets distributed to local authorities so that the operations run in a smooth manner without interruptions. Hence decentralization becomes easier and the conditions also get favourable for an organization to decentralize when the geographical dispersion increases.