This study replicates and extends the Abernethy and Lillis (2001) interdependencies model of organization design to Australian universities. The model proposes interdependent relations among strategy, structure, and performance measurement systems affecting effectiveness and efficiency. We find support for the model. Further, we modify the model to take account of differences between the hospital and university contexts, producing a better fit and suggesting some tailoring may be important in different contexts. Our results have implications for management control systems design in universities, and more generally.