The Effects of Absorptive Capacity and Decision Speed on Organizational Innovation: A Study of Organizational Structure as an Antecedent Variable

Authors

  • Shin Tien Chen Mingchi University of Technology
  • Bao Guang Chang Tamkang University

DOI:

https://doi.org/10.7903/cmr.7996

Abstract

Following the dimensions of organizational structure and organizational innovation, this paper aims to discuss how organizational structure affects organizational absorptive capacity and decision speed, and subsequently influences organizational innovation. Based on the sample of 260 enterprises with 1282 valid questionnaires, the empirical method, using the Structural Equations Model showed the following. (1) The higher the degree of organizational formalization, the stronger the absorptive capacity of the organization, and then the higher the degree of organizational innovation. (2) The higher the degree of organizational centralization, the lower the absorptive capacity of the organization, and then the lower the degree of organizational innovation. (3) The higher the degree of organizational formalization, the slower the organizational decision speed, and then the slower that degree of organizational innovation. (4) The degree of organizational centralization is irrelative to absorptive capacity and decision speed; and therefore organizational innovation speed is not affected. Keywords: Organizational Structure, Absorption Capacity, Decision Speed, Organizational Innovation

Author Biographies

Shin Tien Chen, Mingchi University of Technology

Department of Business and Management, Professor

Bao Guang Chang, Tamkang University

Accounting Department, Associate Professor

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Published

2012-02-22

How to Cite

Chen, S. T., & Chang, B. G. (2012). The Effects of Absorptive Capacity and Decision Speed on Organizational Innovation: A Study of Organizational Structure as an Antecedent Variable. Contemporary Management Research, 8(1). https://doi.org/10.7903/cmr.7996

Issue

Section

Organization Behavior and Human Resource Management