Organizational Structure and Organizational Culture - Impact on Innovative Behavior of the Organization

Lazarević-Moravčević, Marija and Mosurović Ružičić, Marija (2023) Organizational Structure and Organizational Culture - Impact on Innovative Behavior of the Organization. Economic Analysis, 56 (2). pp. 39-53. ISSN 2560-3949

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Abstract

The innovative capacity of an organization is determined by numerous factors which operate in the external and internal environment. Without diminishing the role and importance of external environmental factors, the focus of this paper is the analysis of the impact of the organizational structure and culture on the innovative behavior of organizations. The paper starts from the assumption that business innovation is under the strong influence of the above-mentioned elements of the internal environment. The research results indicate that this influence can be positive or negative depending on the dimensions of the organizational structure and the values promoted by the organizational culture. The findings in the paper can contribute to the existing literature to interpret the nature of the relationship between the organizational structure and culture and the innovative ability of a company, as well as to find a way to improve the existing business innovation practice based on the creation of the organizational design that encourages workplace creativity and innovation. The desk research method has been used in this research. The papers and publications from scientific journals that addressed similar topics, along with other specialized literature focusing on the impact of organizational design on organizational innovativeness, have been used as data sources.

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