How Organizational Structure May Affect Innovation

This article looks at how organizational structure affects innovation and how companies can design systems that promote employee engagement for better innovation performance. Innovation fosters competitive advantage and growth, and it results from the collective efforts and ideas of an organization. An organization’s culture defines its innovation success, especially when combined with the best strategies. The success of innovation, however, is led by structure, not creativity. Thus, structure and strategy determine the competitive advantage of a business enterprise. In short, organizational and managerial processes, like learning, integrating, and reconfiguration, are essential in a company’s innovative performance.