Abstract
An emerging multidimensional approach to organizational design outlines the need for the alignment of relevant structural and process characteristics of organizations. However, neither the interaction of these characteristics nor their role and importance for organizational competitiveness is properly examined in the literature. Therefore, the main goal of this paper is to investigate the relationship between the structural and process characteristics of organizational design to determine how and to what extent these characteristics contribute to achieving a competitive advantage. The field survey was conducted on a cross-sectional sample of 134 Croatian compa nies. The research findings outlined the need for a new organizational design approach that em phasizes both the vertical and horizontal dimensions of design solutions. This paper contributes to previous research by showing that organizational design represents a source of competitive advantage only if structural and process characteristics are commonly designed. In addition, we confirmed that although structural characteristics are usually more often addressed, it is process characteristics that make a difference.
Highlights
Organizational design has become an important and relevant topic both in theory and in practice
The results have clearly shown that in the case of companies in which organizational design is perceived as a source of competitive advantage, there were more significant relationships reported between two types of independent variables than in the opposite subsample
Organizational design was not considered a source of competitive advantage in those companies that only addressed its structural aspects
Summary
Organizational design has become an important and relevant topic both in theory and in practice. Contemporary organizations must be efficient, effective, flexible, agile, innovative, fast-cycled, responsive, and aligned. They must focus on increasing the capacity of existing resources as an additional strategy for meeting the resource demands of the business (Steinmetz, Bennet, & Hakonsson, 2012). Such organizational goals require very broad systemic efforts and call for numerous organizational interventions, differentiation and integration of activities can be recognized as one of the most relevant design issues (e.g., Dougherty, 2001; Lawrence & Lorsch, 1967; Raisch et al, 2009). Such organizational goals require very broad systemic efforts and call for numerous organizational interventions, differentiation and integration of activities can be recognized as one of the most relevant design issues (e.g., Dougherty, 2001; Lawrence & Lorsch, 1967; Raisch et al, 2009). www.ce.vizja.pl Vizja Press&IT
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