MODERATING ROLE OF ORGANIZATIONAL INNOVATIVE CULTURE IN THE RELATIONSHIP BETWEEN ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL INNOVATION

Abstract

The aim of the study is to analyze the influence of multi-dimensions of organizational structure on organizational innovation through the moderating role of organizational innovative culture. The research has been motivated from the potential impact of the intrinsic elements of organizational structure such as departmentalization, decentralization, and formalization on ability of the organization to engage actively in innovation activities. Also, this study examined the moderating impact of the organizational innovative culture on organizational innovation. Since the SMEs are less organized structurally and susceptible to unethical organizational practices, therefore, this study focused SMEs of Karachi, Pakistan. The collection of data was done through a survey instrument for a sample of 400 respondents on the basis of non-proportion quota sampling. SPSS 23 version was used to test the hypothesis. Out of 400, 370 duly filled in questionnaires were received. The findings of the study supported the relationship of decentralization and formalization with organizational innovation. However, study does not support the relationship between departmentalization and organizational innovation. The study was further extended to analyze the moderating impact of organizational innovative culture. The findings supported the moderating impact of organizational innovative culture for decentralization. The managers may adopt the aforementioned structure from their present structure of organization. Furthermore, the managers should think about the efficacy of each element of the organizational structure.