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Structural versus experienced complexity : a new perspective on the relationship between organizational complexity and innovation

Subject

Strategy and Entrepreneurship

Publishing details

in Jeffrey Furman , Annabelle Gawer , Brian S. Silverman , Scott Stern (ed.) Entrepreneurship, Innovation, and Platforms (Advances in Strategic Management, Volume 37) Emerald Publishing Limited, pp.115 - 150

Authors / Editors

Cara M;Birkinshaw J

Biographies

Julian Birkinshaw

Publication Year

2017

Abstract

In this paper, 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.

Available on ECCH

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