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The Designing of Organization Structure in Innovative Firms
Abstract
Globalization and information technolgy are key factors for altering all dynamics of the business life. These factors push firms to create new tools for struggle with competitive markets. Nowadays, one of the key tools is innovation and to become an innovative firm. The firms focus on differantiation and offering a higher value to their customer. So, they must have suitable numbers of creative employees and infrastructure such as buildings, machines, so on. But, unless these factors integrate each other, it does not create a synergy of them. The structure is like that skeleton for a firm. The structure should coordinate all its factors so that it gets higher effectiveness as a result of the firm's operations. In other words, the firm's aims and strategies determine its structure. For this reason, innovative firms can prefer one or two of their organization structure's types simultaneously such as matrix organization based on projects, ambidexterous structure with its explorary and exploratative sides, or starfish structure with decentralization. In the chapter, innovative firm and its features are described. Then the innovative organization structure is analyzed. Which factors affect the organization structure, what types of innovative structure are, and why the choiced structure type is ideal for innovative operations are explored.
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