Structural Versus Experienced Complexity: A New Perspective on the Relationship between Organizational Complexity and Innovation
Entrepreneurship, Innovation, and Platforms
ISBN: 978-1-78743-080-8, eISBN: 978-1-78743-079-2
Publication date: 16 September 2017
Abstract
In this chapter, we explore the relationship between organizational complexity and firm-level innovation. We define and operationalize a new construct, experienced complexity, which is the extent to which the organizational environment makes it challenging for decision makers to do their jobs effectively. We distinguish experienced complexity from structural complexity, which is the elements of the organization, such as the number of reporting lines or integrating mechanisms, that are deliberately put in place to help the organization deliver on its objectives, and we argue that structural complexity correlates positively with firm-level innovation, while experienced complexity correlates negatively with innovation. Using a novel dataset combining survey and objective data on 209 large firms, we find support for our arguments.
Keywords
Citation
Cara, M., Birkinshaw, J. and Heywood, S. (2017), "Structural Versus Experienced Complexity: A New Perspective on the Relationship between Organizational Complexity and Innovation", Entrepreneurship, Innovation, and Platforms (Advances in Strategic Management, Vol. 37), Emerald Publishing Limited, Leeds, pp. 115-150. https://doi.org/10.1108/S0742-332220170000037005
Publisher
:Emerald Publishing Limited
Copyright © 2017 Emerald Publishing Limited