ORGANIZATIONAL DESIGN AND THE ROLE OF MANAGEMENT IN MODERN COMPANIES: COMPLEMENTARITY, TRUST AND INNOVATIONS
2022 Volume 49 Pages 6-16
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2022 Volume 49 Pages 6-16
The purpose of this study is to conduct an exploratory analysis of the relationship between organizational design, trust in management, and innovation in Japanese companies, based on data from a survey on organizational design in Japanese companies.
For modern companies, including Japanese companies, the key management issue is how to sustainably create differentiated value through the realization of innovation. Such innovation is realized through cross-organizational collaboration, and therefore, its success or failure depends on the design of the organization in which such innovation activities are carried out.
The hypotheses of this study are, first, that the formation of complementary patterns of structural and process characteristics (forms of organizing) is important for the realization of organizational designs that promote innovation, and second, that the effect of such complementary organizational designs on innovation is mediated by trust in management.
The results of the analysis show that complementary organizing patterns, which comprehensively introduce various forms of organizing, have a highly positive effect on innovation, indicating a complementarity effect. In addition, these complementary organizing patterns are also found to increase trust in management, and the positive effect of complementary organizing on innovation is found to be partially mediated by the trust in management.
From the results of the analysis, the following conclusions can be drawn. To realize an organizational design that promotes innovation creation, it is important to have a comprehensive transformation that forms a mutually complementary relationship among the various elements and variables that make up the organization, and the realization of “overall consistency” of the organization is considered to be crucial. Furthermore, it is suggested that the formation of such a comprehensive complementary organizational design may increase trust in management, avoid the decline in morale associated with organizational change, and promote efforts to realize innovation.
