ORGANIZATION DESIGN AND INNOVATION: A COMPARATIVE ANALYSIS OF TWO CORPORATIONS

Year 2011, Volume: 3 Issue: 1, 67 - 79, 01.06.2011

Baris Baraz A.Nurhan Şakar

Abstract

Mechanistic organizational structure is optimal when the environmental conditions are stagnant and balanced; while organic organization structure is optimal when the conditions are constantly and rapidly changing (Burns Stalker). In this research, structuring of the research and development (R&D) departments in the corporations executing in Turkey is examined. The research contains a field research stating the R&D structuring of two corporations in Eskişehir. These corporations are on the top two ranks among the members of Eskişehir Camber of Industry in terms of allocating resources for R&D. Neither of these corporations have an independent R&D structure. A seperate R&D structure as shown in Seperate Early model stated at the classification of Westerman doesn’t apply for them. Both of them organize their studies by structuring a central R&D. This situation can be explained in two reasons: Saving money and benefiting from incentives. R&D departments of these corporations conduct their business by conceptualizing projects. In other words, some business executions are only possible by framing them in a project. Conducting project type business has brought along an organizational structure with specific characteristics. This development is the result of the need for different persons, sources and groups in order to complete a work defined as “project”. The organizational structure widely used in project management is matrix organization. All these results indicate that corporations design their R&D structures by considering the dynamics of Turkey

Keywords

Organization design, innovation, research and development department

References

• Burns, Tom and G. M. Stalker, (1994), The Management of Innovation. Oxford University Press Inc, Rev. Ed., New York.
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• Lawrence, Paul R and Jay W. Lorsch (1986), Organization and Environment. Harvard Business School Press, Rev. Ed., Boston, MA.
• Westerman, George, F.Warren McFarlan and Marco Iansiti, (2006), “Organization Design and Effectiveness Over the Innovation Life Cycle”, Organization Science 17(2), pp. 230-238.