Organizational Structure and Organizational Culture Impact on Innovative Behavior of the Organization
Main Article Content
Abstract
The innovative capacity of an organisation is determined by numerous factors which operate in the external and internal environment. Without diminishing the role and importance of external environment factors, the focus of this paper is the analysis of the impact of the organisational structure and culture, which are the elements of the internal environment, on the innovative behaviour of organisations. The paper starts from the assumption that business innovation is under a strong influence of the abovementioned elements, bearing in mind that the influence can be both positive and negative depending on the dimensions of the organisational structure and the values promoted by the organisational culture. The findings in the paper can contribute to the existing literature to interpret the nature of the relationship between the organisational structure and culture and the innovative ability of a company; as well as to find the way how to improve the existing business innovation practice based on the creation of the organisational design that encourages workplace creativity and innovation.
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References
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Abdi, K., Mardani, A., Senin, A.A., Tupėnaitė, L., Naimavičienė, J., Kanapeckienė, L., & Vladislavas, K. (2018). The effect of knowledge management, organizational culture and organizational learning on innovation in automotive industry. Journal of Business Economics and Management, 19 (1),1-19.
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context. Journal of Management Development. 39 (4), 437-451.
Agbim, K.C. (2013). The Impact of Organizational Structure and Leadership Styles. Journal of Business and Management, 6 (6), 56-63.
Ahmetagić, D., & Fazekaš, T. (2010). Neke determinante inovacionog uspeha. Montenegrin Journal of Economics, 12(6), 234.
Cameron, K. S. (1985). Cultural Congruence, Strength, and Type: Relationships to Effectiveness. ASHE 1985 Annual Meeting Paper. https://eric.ed.gov/?id=ED259627
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (3rd ed.) San Francisco, CA: JosseyBass.
Chandler, A.D. (1962). Strategy and Structure, Cambridge: MIT Press.
Cingöz, A., & Akdoğan, A. (2013). Strategic flexibility, environmental dynamism, and innovation performance: An empirical study. Procedia - Social and Behavioural Sciences 99, 582 – 589.
Cosh, A., Fu, X., & Hughes, A. (2012). Organisation structure and innovation performance in different environments. Small Bus Econ, 39, 301–317.
Courtright, J.A., Fairhurst, G.T., & Rogers, L.E. (1989). Interaction Patterns in Organic and Mechanistic Systems. The Academy of Management Journal, 32 (4), 773-802.
Davis, S., & Lawrence, P. (1977). Matrix. Massachusetts: Addison-Wesley.
Dani, M.V., & Gandhi, A.V. (2022). Understanding the drivers of innovation in an organization: a literature review. International Journal of Innovation Science. 14 (3/4), pp. 476-505.
Damanpour, F., & Gopalakrishnan, S. (1998). Theories of organizational structure and innovation adoption: the role of environmental change. Journal of Engineering and Technology Management - JET-M. 15, 1–24.
Denison, D., & Mishra, A. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204-223.
Dess, G., Lumpkin, G., & Eisner, A. (2007). Strategijski menadžment, Data Status, Belgrade.
Dedahanov, A.T., Rhee, C., & Yoon, J. (2017). Organizational structure and innovation performance: Is employee innovative behavior a missing link? Career Development International, 22 (4),334-350.
DeSanctis G., Glass J.T., & Ensing I.M. (2002). Organizational designs for R&D, Academy of Management Executive, 16 (3), 55–66. https://cafetarjome.com/wp-content/uploads/260/translation/order-z-1428315529-5322.pdf
Drucker, P. (2003). Moj pogled na menadžment, Adižes, Novi Sad.
Erić, D. (2000). Uvod u menadžment, Čigoja, Belgrade.
Ghiasi, A., Lord, J., Banaszak-Holl, J., Davlyatov, G., Hearld, L. & Weech-Maldonado, R. (2022). Organizational Culture and High Medicaid Nursing Homes Financial Performance. Journal of Long-Term Care,142–153. https://doi. org/10.31389/jltc.115
Hage, J., & Aiken. M. (1967). Program change and organizational properties, A Comparative Analysis, American Journal of Sociology, 72, 503-519.
Hall, D.J., & Saias, M.A. (1980). Strategy follows structure. Strategic Management Journal, 1, 149-163.
Hurley, R. F., & Hult, T. M. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), 42-54.
Janićijević, N. (2011). Methodological Approaches in the Research of Organizational Culture. Economic Annals, LVI (189), 69 -100.
Janićijević, N. (2012). Uticaj organizacione kulture na kontrolu ponašanja u organizacijama, Ekonomske teme, 59 (3), 283-300.
Kalay, F., & Lynn, G.S. (2016). The impact of organizational structure on management innovation: An empirical research in Turkey. Journal of Business, Economics and Finance -JBEF, Vol. 5(1), 125-137.
Lazarević-Moravčević, M., & Kamenković, S. (2021). The Impact of the COVID-19 Crisis on the Serbian Economy - Consequences and Recovery. Economic Analysis, 54 (2), 41-54.
Lemon, M., & Sahota, P.S. (2004). Organizational culture as a knowledge repository for increased innovative capacity. Technovation, 24 (6), 483–498.
Mäkimattila, M., Saunila, M., & Salminen, J. (2014). Interaction and innovation - Reframing innovation activities for a matrix organization. Interdisciplinary Journal of Information, Knowledge, and Management, 9, 131-152. http://www.ijikm.org/Volume9/IJIKMv9p131-152Makimattila0758.pdf
Marković, S., Carić, M., & Đoković, V. (2022). Dizajniranje fleksibilnog modela organizacije preduzeća u dinamičnim uslovima poslovanja. Ekonomija – teorija i praksa, 3, 33-53.
Maravelakis, E., Bilalis, N., Antoniadis, A., Jones, K. A., & Moustakis, V. (2006). Measuring and benchmarking the innovativeness of SMEs: A three-dimensional fuzzy logic approach. Production Planning & Control, 17(3), 283–292.
Miller, D. (1986). Configurations of Strategy and Structure: Towards a Synthesis. Strategic Management Journal, 7 (3), 233-249.
McLean, L. (2005). Organizational culture’s influence on creativity and innovation: A review of the literature and implications for human resource development. Advances in Developing Human Resources.https://journals.sagepub.com/doi/pdf/10.1177/1523422305274528?casa_token=QhLFANcWoAcAAAAA:zTCldpc0tJg58YnKbjd0olpLI_iPz6G_dsndsKBQe5M9daV58TILllSKc4f4mvARI-pqhOHxM83e
McNamara, D.E. (2009). From Fayols Mechanistic to Todays Organic Functions of Management. American Journal of Business Education (AJBE), 2(1), 63–78.
Mintzberg, H. (1979). The Structuring of Organizations. Englewood Cliffs NJ: Prentice Hall.
Mintzberg, H. (1980). Structure in 5's: A Synthesis of the Research on Organization Design. Management Science, 26 (3), 322-341.
Martínez‐León, I.M., & Martínez‐García, J.A. (2011). The influence of organizational structure on organizational learning. International Journal of Manpower, 32 (5/6), 537-566.
Mosurović, M., Kutlača, Đ. (2011). Organizational design as a driver for firm innovativeness in Serbia. The European Journal of Social Science Research, 24(4), 427-447.
Mumford, M., Ginamarie, M.S., Gaddis, B., & Strange, J. (2002). Leading creative people: Orchestrating expertise and relationships. The Leadership Quarterly 13, 705 – 750.
Naqshbandi, M.M., Kaur, S., & Ma, P. (2014). What organizational culture types enable and retard open innovation? Quality &Quantity, 49(5), 2123-2144.
Naranjo-Valenciaa, J.C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Casopis Revista Latinoamericana de Psicología, 48, 30-41.
Nemeth, C. J. (1997). Managing innovation: When less is more. California Management Review, 40(1), 59-74.
Oh, S., & Han, H. (2020). Facilitating organisational learning activities: Types of organisational culture and their influence on organisational learning and performance, Knowledge Management Research & Practice, 18 (1),1-15.
Patterson, F., Karrin, M., Gatto-Roissard, G., & Coan, G. (2009). Everyday Innovation: How to enhance innovative working in individuals and organizations. NESTA: National Endowment for Science Technology & the Arts, UK.
Pierce, J., & Delbecq, A. (1997). Organization structure, individual attitudes and innovation. The Academy of Management Review, 2, 27-37.
Qudah, M.A. (2018). The Impact of Entrepreneurship Initiatives in Enhancing Creativity and Innovation. International Journal of Business and Management. 13 (7), 157-168.
Pierce, J.L., & Delbecq, A.L. (1977). Organization Structure, Individual Attitudes and Innovation. Academy of management review, 2 (1), 23-37.
Ritala, P., Vanhala, M., & Järveläinen, K. (2020). The role of employee incentives and motivation on organisational innovativeness in different organisational cultures. International Journal of Innovation Management, 20 (4), https://lutpub.lut.fi/bitstream/handle/10024/160963/ritala_et_al_the_role_postprint.pdf?sequence=1&isAllowed=n
Ritala, P., Vanhala, M., & Järveläinen, K. (2020). The role of employee incentives and motivation on organisational innovativeness in different organisational cultures. Journal of Innovation Management, 24 (4). https://doi.org/10.1142/S1363919620500759
Robbins, S., & Coulter, M. (2005). Menadžment, Data Status, Belgrade.
Stoffers, J., Neessen, P., & Van Dorp, P. (2015). Organizational Culture and Innovative Work Behaviour: A Case Study of a Manufacturer of Packaging Machines. American Journal of Industrial and Business Management. 5 (4), 198-207.
Slevin, D.P., & Covin, J.G. (1990). Juggling entrepreneurial style and organizational structure: How to get your act together, Sloan Management Review, 31 (2), 43-53.
Smith, M., Busi, M., Ball, P., & Van Der Meer, R. (2012). Factors influencing an organisation's ability to manage innovation: A structured literature review and conceptual model. International Journal of Innovation Management. 12 (4), 655-667.
Schnetler, R., Steyn, H., & Van Staden, P. J. (2015). Characteristics of matrix structures, and their effects on project success. South African Journal of Industrial Engineering. 26(1),11-26.
Schein, E. H. (1992). Organizational culture and leadership San Francisco: Jossey-Bass Inc.
Saunila, M., Mäkimattila, M. & Salminen, J. (2014). Matrix structure for supporting organizational innovation capability, International Journal of Business Innovation and Research, 8 (1), 20-35.
Schuldt, K.S., & Gomes, G. (2020). Influence of organizational culture on the environments of innovation and organizational performance, innovation and organizational performance, Gestão & Produção, 27, (3). https://doi.org/10.1590/0104-530X4571-20
Shahzad, F., Yi Xiu, G., & Shahbaz, M. (2017). Organizational culture and innovation performance in Pakistan's software industry. Fakhar Technology in Society, 51, 66-73.
Taha, VA., Sirkova, M., & Ferencova, M. (2016). The impact of organizational culture on creativity and innovation. Polish Journal of Management Studies, 14 (1), 7-17.
Tidd, J., Besant, J., & Pavitt, K. (1997). Managing Innovation. Wiley&Sons Ltd.
Turró, A., Urbano, D., & Peris-Ortiz, M. (2013). Culture and innovation: the moderating effect of cultural values on corporate entrepreneurship. Technological Forecasting and Social Change, 88, 360-369.
Thompson, V.A. (1965). Bureaucracy and Innovation. Administrative Science Quarterly, 10 (1), 1-20.
Thompson, J. D. (1967). Organizations in Action. New York: McGraw-Hill.
Umar, A., Omar, C., & Hamzah, M.S.G. (2018). The Mediating Effect of Innovation on Entrepreneurial Competencies and Business Success in Malaysian SMEs. International Business Research. 11 (8),142-153.
Williams, C. (2010). Principi menadžmenta, Data Status, Belgrade.
Wiewiora, A. Trigunarsyah, B., Murphy, G., & Coffey, V. (2013). Organizational culture and willingness to share knowledge: A competing values perspective in Australian context, International Journal of Project Management, 31(8), 1163-1174. https://doi.org/10.1016/j.ijproman.2012.12.014
Zhang, W., Zeng, X., Liang, H., Xue, Y., & Cao, X. (2023). Understanding How Organizational Culture Affects Innovation Performance: A Management Context Perspective. Sustainability, 15(8), 6644. https://doi.org/10.3390/su15086644
Abdi, K., Mardani, A., Senin, A.A., Tupėnaitė, L., Naimavičienė, J., Kanapeckienė, L., & Vladislavas, K. (2018). The effect of knowledge management, organizational culture and organizational learning on innovation in automotive industry. Journal of Business Economics and Management, 19 (1),1-19.
Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2020). Organizational culture, innovation and performance: a study from a non-western context. Journal of Management Development. 39 (4), 437-451.
Agbim, K.C. (2013). The Impact of Organizational Structure and Leadership Styles. Journal of Business and Management, 6 (6), 56-63.
Ahmetagić, D., & Fazekaš, T. (2010). Neke determinante inovacionog uspeha. Montenegrin Journal of Economics, 12(6), 234.
Cameron, K. S. (1985). Cultural Congruence, Strength, and Type: Relationships to Effectiveness. ASHE 1985 Annual Meeting Paper. https://eric.ed.gov/?id=ED259627
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (3rd ed.) San Francisco, CA: JosseyBass.
Chandler, A.D. (1962). Strategy and Structure, Cambridge: MIT Press.
Cingöz, A., & Akdoğan, A. (2013). Strategic flexibility, environmental dynamism, and innovation performance: An empirical study. Procedia - Social and Behavioural Sciences 99, 582 – 589.
Cosh, A., Fu, X., & Hughes, A. (2012). Organisation structure and innovation performance in different environments. Small Bus Econ, 39, 301–317.
Courtright, J.A., Fairhurst, G.T., & Rogers, L.E. (1989). Interaction Patterns in Organic and Mechanistic Systems. The Academy of Management Journal, 32 (4), 773-802.
Davis, S., & Lawrence, P. (1977). Matrix. Massachusetts: Addison-Wesley.
Dani, M.V., & Gandhi, A.V. (2022). Understanding the drivers of innovation in an organization: a literature review. International Journal of Innovation Science. 14 (3/4), pp. 476-505.
Damanpour, F., & Gopalakrishnan, S. (1998). Theories of organizational structure and innovation adoption: the role of environmental change. Journal of Engineering and Technology Management - JET-M. 15, 1–24.
Denison, D., & Mishra, A. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204-223.
Dess, G., Lumpkin, G., & Eisner, A. (2007). Strategijski menadžment, Data Status, Belgrade.
Dedahanov, A.T., Rhee, C., & Yoon, J. (2017). Organizational structure and innovation performance: Is employee innovative behavior a missing link? Career Development International, 22 (4),334-350.
DeSanctis G., Glass J.T., & Ensing I.M. (2002). Organizational designs for R&D, Academy of Management Executive, 16 (3), 55–66. https://cafetarjome.com/wp-content/uploads/260/translation/order-z-1428315529-5322.pdf
Drucker, P. (2003). Moj pogled na menadžment, Adižes, Novi Sad.
Erić, D. (2000). Uvod u menadžment, Čigoja, Belgrade.
Ghiasi, A., Lord, J., Banaszak-Holl, J., Davlyatov, G., Hearld, L. & Weech-Maldonado, R. (2022). Organizational Culture and High Medicaid Nursing Homes Financial Performance. Journal of Long-Term Care,142–153. https://doi. org/10.31389/jltc.115
Hage, J., & Aiken. M. (1967). Program change and organizational properties, A Comparative Analysis, American Journal of Sociology, 72, 503-519.
Hall, D.J., & Saias, M.A. (1980). Strategy follows structure. Strategic Management Journal, 1, 149-163.
Hurley, R. F., & Hult, T. M. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), 42-54.
Janićijević, N. (2011). Methodological Approaches in the Research of Organizational Culture. Economic Annals, LVI (189), 69 -100.
Janićijević, N. (2012). Uticaj organizacione kulture na kontrolu ponašanja u organizacijama, Ekonomske teme, 59 (3), 283-300.
Kalay, F., & Lynn, G.S. (2016). The impact of organizational structure on management innovation: An empirical research in Turkey. Journal of Business, Economics and Finance -JBEF, Vol. 5(1), 125-137.
Lazarević-Moravčević, M., & Kamenković, S. (2021). The Impact of the COVID-19 Crisis on the Serbian Economy - Consequences and Recovery. Economic Analysis, 54 (2), 41-54.
Lemon, M., & Sahota, P.S. (2004). Organizational culture as a knowledge repository for increased innovative capacity. Technovation, 24 (6), 483–498.
Mäkimattila, M., Saunila, M., & Salminen, J. (2014). Interaction and innovation - Reframing innovation activities for a matrix organization. Interdisciplinary Journal of Information, Knowledge, and Management, 9, 131-152. http://www.ijikm.org/Volume9/IJIKMv9p131-152Makimattila0758.pdf
Marković, S., Carić, M., & Đoković, V. (2022). Dizajniranje fleksibilnog modela organizacije preduzeća u dinamičnim uslovima poslovanja. Ekonomija – teorija i praksa, 3, 33-53.
Maravelakis, E., Bilalis, N., Antoniadis, A., Jones, K. A., & Moustakis, V. (2006). Measuring and benchmarking the innovativeness of SMEs: A three-dimensional fuzzy logic approach. Production Planning & Control, 17(3), 283–292.
Miller, D. (1986). Configurations of Strategy and Structure: Towards a Synthesis. Strategic Management Journal, 7 (3), 233-249.
McLean, L. (2005). Organizational culture’s influence on creativity and innovation: A review of the literature and implications for human resource development. Advances in Developing Human Resources.https://journals.sagepub.com/doi/pdf/10.1177/1523422305274528?casa_token=QhLFANcWoAcAAAAA:zTCldpc0tJg58YnKbjd0olpLI_iPz6G_dsndsKBQe5M9daV58TILllSKc4f4mvARI-pqhOHxM83e
McNamara, D.E. (2009). From Fayols Mechanistic to Todays Organic Functions of Management. American Journal of Business Education (AJBE), 2(1), 63–78.
Mintzberg, H. (1979). The Structuring of Organizations. Englewood Cliffs NJ: Prentice Hall.
Mintzberg, H. (1980). Structure in 5's: A Synthesis of the Research on Organization Design. Management Science, 26 (3), 322-341.
Martínez‐León, I.M., & Martínez‐García, J.A. (2011). The influence of organizational structure on organizational learning. International Journal of Manpower, 32 (5/6), 537-566.
Mosurović, M., Kutlača, Đ. (2011). Organizational design as a driver for firm innovativeness in Serbia. The European Journal of Social Science Research, 24(4), 427-447.
Mumford, M., Ginamarie, M.S., Gaddis, B., & Strange, J. (2002). Leading creative people: Orchestrating expertise and relationships. The Leadership Quarterly 13, 705 – 750.
Naqshbandi, M.M., Kaur, S., & Ma, P. (2014). What organizational culture types enable and retard open innovation? Quality &Quantity, 49(5), 2123-2144.
Naranjo-Valenciaa, J.C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Casopis Revista Latinoamericana de Psicología, 48, 30-41.
Nemeth, C. J. (1997). Managing innovation: When less is more. California Management Review, 40(1), 59-74.
Oh, S., & Han, H. (2020). Facilitating organisational learning activities: Types of organisational culture and their influence on organisational learning and performance, Knowledge Management Research & Practice, 18 (1),1-15.
Patterson, F., Karrin, M., Gatto-Roissard, G., & Coan, G. (2009). Everyday Innovation: How to enhance innovative working in individuals and organizations. NESTA: National Endowment for Science Technology & the Arts, UK.
Pierce, J., & Delbecq, A. (1997). Organization structure, individual attitudes and innovation. The Academy of Management Review, 2, 27-37.
Qudah, M.A. (2018). The Impact of Entrepreneurship Initiatives in Enhancing Creativity and Innovation. International Journal of Business and Management. 13 (7), 157-168.
Pierce, J.L., & Delbecq, A.L. (1977). Organization Structure, Individual Attitudes and Innovation. Academy of management review, 2 (1), 23-37.
Ritala, P., Vanhala, M., & Järveläinen, K. (2020). The role of employee incentives and motivation on organisational innovativeness in different organisational cultures. International Journal of Innovation Management, 20 (4), https://lutpub.lut.fi/bitstream/handle/10024/160963/ritala_et_al_the_role_postprint.pdf?sequence=1&isAllowed=n
Ritala, P., Vanhala, M., & Järveläinen, K. (2020). The role of employee incentives and motivation on organisational innovativeness in different organisational cultures. Journal of Innovation Management, 24 (4). https://doi.org/10.1142/S1363919620500759
Robbins, S., & Coulter, M. (2005). Menadžment, Data Status, Belgrade.
Stoffers, J., Neessen, P., & Van Dorp, P. (2015). Organizational Culture and Innovative Work Behaviour: A Case Study of a Manufacturer of Packaging Machines. American Journal of Industrial and Business Management. 5 (4), 198-207.
Slevin, D.P., & Covin, J.G. (1990). Juggling entrepreneurial style and organizational structure: How to get your act together, Sloan Management Review, 31 (2), 43-53.
Smith, M., Busi, M., Ball, P., & Van Der Meer, R. (2012). Factors influencing an organisation's ability to manage innovation: A structured literature review and conceptual model. International Journal of Innovation Management. 12 (4), 655-667.
Schnetler, R., Steyn, H., & Van Staden, P. J. (2015). Characteristics of matrix structures, and their effects on project success. South African Journal of Industrial Engineering. 26(1),11-26.
Schein, E. H. (1992). Organizational culture and leadership San Francisco: Jossey-Bass Inc.
Saunila, M., Mäkimattila, M. & Salminen, J. (2014). Matrix structure for supporting organizational innovation capability, International Journal of Business Innovation and Research, 8 (1), 20-35.
Schuldt, K.S., & Gomes, G. (2020). Influence of organizational culture on the environments of innovation and organizational performance, innovation and organizational performance, Gestão & Produção, 27, (3). https://doi.org/10.1590/0104-530X4571-20
Shahzad, F., Yi Xiu, G., & Shahbaz, M. (2017). Organizational culture and innovation performance in Pakistan's software industry. Fakhar Technology in Society, 51, 66-73.
Taha, VA., Sirkova, M., & Ferencova, M. (2016). The impact of organizational culture on creativity and innovation. Polish Journal of Management Studies, 14 (1), 7-17.
Tidd, J., Besant, J., & Pavitt, K. (1997). Managing Innovation. Wiley&Sons Ltd.
Turró, A., Urbano, D., & Peris-Ortiz, M. (2013). Culture and innovation: the moderating effect of cultural values on corporate entrepreneurship. Technological Forecasting and Social Change, 88, 360-369.
Thompson, V.A. (1965). Bureaucracy and Innovation. Administrative Science Quarterly, 10 (1), 1-20.
Thompson, J. D. (1967). Organizations in Action. New York: McGraw-Hill.
Umar, A., Omar, C., & Hamzah, M.S.G. (2018). The Mediating Effect of Innovation on Entrepreneurial Competencies and Business Success in Malaysian SMEs. International Business Research. 11 (8),142-153.
Williams, C. (2010). Principi menadžmenta, Data Status, Belgrade.
Wiewiora, A. Trigunarsyah, B., Murphy, G., & Coffey, V. (2013). Organizational culture and willingness to share knowledge: A competing values perspective in Australian context, International Journal of Project Management, 31(8), 1163-1174. https://doi.org/10.1016/j.ijproman.2012.12.014
Zhang, W., Zeng, X., Liang, H., Xue, Y., & Cao, X. (2023). Understanding How Organizational Culture Affects Innovation Performance: A Management Context Perspective. Sustainability, 15(8), 6644. https://doi.org/10.3390/su15086644