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First, organizational structure has more effects on organizational learning than on innovation, organizational learning has an indirect effect on performance through innovation, except the direct effect of structure on performance. Second, managers in Austria think structure has a more important effect on performance; both managerial and technical innovation influence performance, managerial innovation is not significant in China.
Fourth, for younger firms, learning is important in the relationship of organizational structure with performance, but in older firms, innovation is the mediator for structure on performance. Finally, senior managers think organizational structure improves performance directly and through innovation.
Tall Building Structures: Analysis and Design - PDF Free Download
But the middle and junior managers think organizational learning has an important mediating effect on performance. The paper shows that innovation is a more important mediating variable in the influence of organizational structure on performance. Innovation needs to be encouraged at the strategy level instead of at the implication level.
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You can start or join in a discussion here. Visit emeraldpublishing. Abstract Purpose — The purpose of this paper is to investigate the relationship between organizational structure and performance, especially through organizational learning and innovation, based on evidence from Austria and China. Business decisions often relate to the amount of information business owners, directors or managers and gather in a timely period. Organizational structures can be designed to promote the flow of information from frontline operations to managers responsible for making business decisions.
Organization Structures: Theory and Design, Analysis and Prescription / Edition 1
Executive level management can use organizational structure channels for sending information to managers or employees responsible for completing business functions. As small businesses continue to grow and expand, they may open multiple locations in local, regional or domestic economic markets. Organizational structures help business owners create a management chain to ensure all business locations operate according to the company's standard procedures.
Business owners rely on organizational structures because the owner may not be able to visit each location in a timely manner. Organizational structures often outline employee tasks and which manager is responsible for overseeing each employee. Employees may undergo a training period in which they learn the company's organizational structure.
This process informs employees which managers can take specific decisions or where they need to send information for approval. Organizational structures also can be created with some flexibility to add new departments or employees so as not to burden one manager in the company.
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Companies using a well-defined organizational structure should be able to spend more time focusing on customer service rather than correcting operational issues. Improved customer service can help companies answer consumer inquiries or questions regarding goods or services.
Companies may also focus on increasing sales revenues and profits from business operations by meeting consumer needs and wants.