The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities

Xiaoling Wang; Yan Chen; Bo Yang

doi:doi:10.11648/j.ajmse.20200504.11

| Peer-Reviewed

The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities

Xiaoling Wang, Yan Chen, Bo Yang

Published in American Journal of Management Science and Engineering (Volume 5, Issue 4)

Received: 2 August 2020 Accepted: 13 August 2020 Published: 25 August 2020

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.

Published in	American Journal of Management Science and Engineering (Volume 5, Issue 4)
DOI	10.11648/j.ajmse.20200504.11
Page(s)	42-50
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Internet Era, Organizational Structure, Dynamic Capabilities, Flattening, Decentralization

References

[1]	Vergne, J. P., Durand, R. (2011). The Path of Most Persistence: An Evolutionary Perspective on Path Dependence and Dynamic Capabilities. Organization Studies, 32.
[2]	Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18: 509-533.
[3]	Barreto, I. (2010). Dynamic capabilities: A review of past research and an agenda for the futur. Journal of Management, 36: 256-280.
[4]	Dai Tianjing, Tang Guliang, Peng Jiajun. (2012). The case study of enterprise dynamic capabilities enhancement, organization structure inversion and new management control system embedded —— based on Haier group self-management exploration. China Industrial Economics. 2: 128-138.
[5]	Li Pengbo, Liang Han. (2017). Research on Evolution Mechanism of Enterprise Organization Structure Based on Value Creation Perspective —— Taking Alibaba Group as an Example. Hubei Social Sciences, 2: 104-111.
[6]	Feng Junzheng, Wei Jiang. (2011). A Review and Prospect of Dimensional Division and Measurement of Foreign dynamic capabilities. Foreign Economics & Management, 7: 26-33.
[7]	Drucker., P. F (1988). The coming of new organizations. Harvard Business Review.
[8]	Peters, T. J. (1992). Liberation of management; necessary disorganization for the nanosecond nineties. New York: Alfred P. Knopf.
[9]	Zhao Wen. (2001). Causes and Countermeasures of Enterprise Organization Pattern Innovation in Network Age. XueHai, 4: 71-75.
[10]	Hu Guodong, Wang Xiaojie (2019). Evolutionary Logic and Self-organization Mechanism of Platform Enterprises. China Soft Science Magazine, 3: 143-152.
[11]	Mintzberg H, Hall P (1979). Structuring of Organizations. Chemische Berichte, 130 (5): 621-631.
[12]	Daft, R. L. Organization Theory and Design. South Western Educational Publishing: Cincinnati, OH. 2009.
[13]	Lawrence, P. R, & Lorsch, J. W (1967). Differentiation and Integration in complex organizations. Administrative Science, 12: 1-47.
[14]	Luo Min, Zhou Siwei. Complexity of Organizations (2011). Foreign economy and management, 33 (1): 26-33-42.
[15]	Ramezan, M (2011). Intellectual Capital and Organizational Organic Structure in Knowledge Society: How Are These Concepts Related? International Journal of Information Management, 31 (1): 88-95.
[16]	Chen Guoquan, Liu Wei (2017). An empirical study on the impact of enterprise environment on exploratory learning and applied Learning and Its Balance, China Soft Science Magazine, 3: 99-109.
[17]	Wang Tao, Lu Yuxin, Jin Luoxin (2018). Research on the Influence of Organic Structure on the Performance of Reverse Internationalization from based on the dynamic capabilities. Chinese Journal of Management Journal, 5 (2): 174-182.
[18]	Cardinal, L. B (2001). Technological innovation in the pharmaceutical industry: The use of organizational control in managing research and development. Organization Science, 12 (1): 19-36.
[19]	Jansen,. J. P, Van Den Bosch, F. A. J, & Volberda, H. W (2006). Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Science, 52 (11): 1661-1674.
[20]	Eisenhardt K. M, Martin J. A (2000). Dynamic Capabilities: What are They? Strategic Management Journal, 21 (10): 1105-1121.
[21]	Zollo M, Winter S G (2002). Deliberate Learning and the Evolution of Dynamic Capabilities. Organization Science, 13 (3): 339-351.
[22]	Helfat, C. E. & Winter, S. G (2011). Untangling Dynamic and Operational Capabilities: Strategy for the Ever-Changing World. Strategic Management Journal, 32 (11): 1243-1250.
[23]	Luo Min (2010). Analysis on evolution and development track of organizational design thought. Foreign Economics & Management, (4): 128- 132.
[24]	Wang C. L., & Ahmed P. K (2007). Dynamic Capabilities: A Review and Research Agenda. International Journal of Management Reviews, 9 (1): 31-51.
[25]	Huang Jiatang (2017). The Influence of Enterprise Dynamic Capabilities on Value Creation: A Perspective of Creative Experience. Enterprise Economy, 8: 30-37.
[26]	Hu Chunhui, Xu Guojun, An Yi (2016). Research on organizational structure reengineering and accounting method based on dynamic capabilities enhancement. Contemporary Finance, 1: 108-120.
[27]	Xiao Hongjun, Li Miaomiao (2012). Research on Dimensional Division of Dynamic Capabilities —— Based on Haier’s Case Study. Journal of Management Case Studies, 5 (2): 77-85.
[28]	Tsoukas, H., & Mylonopoulos, N. (2004) Introduction: What does it Mean to View Organizations as Knowledge Systems?. Organizations as Knowledge Systems. Palgrave Macmillan UK.
[29]	Martínez - León, I. M, & Martínez - García, J. A (2011). The influence of organizational structure on organizational learning. International Journal of Manpowe, 32 (5/6): 537-566.
[30]	Bapuji, H., & Crossan, M. (2013) From Questions to Answers: Reviewing Organizational Learning Research. Management Learning, 35 (4): 397-417.
[31]	Zahar, S. A., George, G (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27 (2): 185-203.
[32]	Huang X, Kristal, M. M, Schroeder, R. G (2010). The Impact of Organizational Structure on Mass Customization Capability: A Contingency View. Production & Operations Management, 19 (5): 515-530.
[33]	Salunke, S, Weerawardena, J, Mccoll-kennedy J R (2011). Towards a model of dynamic capabilities in innovation-based competitive strategy: Insights from project-oriented service firms. Industrial Marketing Management, 40 (8): 1251-1263.
[34]	He Xiaogang, LiXinchun (2006). Measurement and Effectiveness of Dynamic Capabilities: An Empirical Study Based on Chinese Experience. Management World, 3: 94-103.
[35]	Luo Min, Li Liangyu (2015). Innovation of Business Model in Internet Age: Value Creation Perspective. China Industrial Economics, 1: 95-107.
[36]	Rindova, V. P., Kotha, S (2001). Continuous "morphing ": Competing through dynamic capabilities form and function. Academy of Management Journal, 44: 1263-1280.
[37]	Linderman, K., Schroeder, R. G,. & Zaheer, S (2004). Integrating Quality Management Practices with Knowledge Creation Processes. Journal of Operations Management, 22 (6): 589-607.
[38]	Jensen, M. C (1992) Specific and General Knowledge and Organizational Structure. Journal of Applied Corporate Finance.
[39]	Chen Jianjun, Wang Zhengpei, Li Guoxin (2018). Organizational Structure and Innovation Performance of Chinese Aerospace Enterprises: The Intermediary Effect of Dynamic Capabilities and Innovation Atmosphere. China Soft Science Magazine, 11: 122-130.
[40]	Aiken, M., & Hage, J (1971). The Organic Organization And Innovation. Sociology, 5 (1): 63-82.
[41]	Debra. Emilton (1998). Innovation Strategy of Knowledge Economy. Xinhua Press.

Cite This Article

Plain Text BibTeX RIS

APA Style

Xiaoling Wang, Yan Chen, Bo Yang. (2020). The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. American Journal of Management Science and Engineering, 5(4), 42-50. https://doi.org/10.11648/j.ajmse.20200504.11

Copy | Download

ACS Style

Xiaoling Wang; Yan Chen; Bo Yang. The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. Am. J. Manag. Sci. Eng. 2020, 5(4), 42-50. doi: 10.11648/j.ajmse.20200504.11

Copy | Download

AMA Style

Xiaoling Wang, Yan Chen, Bo Yang. The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. Am J Manag Sci Eng. 2020;5(4):42-50. doi: 10.11648/j.ajmse.20200504.11

Copy | Download

@article{10.11648/j.ajmse.20200504.11,
  author = {Xiaoling Wang and Yan Chen and Bo Yang},
  title = {The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities},
  journal = {American Journal of Management Science and Engineering},
  volume = {5},
  number = {4},
  pages = {42-50},
  doi = {10.11648/j.ajmse.20200504.11},
  url = {https://doi.org/10.11648/j.ajmse.20200504.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20200504.11},
  abstract = {In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities
AU  - Xiaoling Wang
AU  - Yan Chen
AU  - Bo Yang
Y1  - 2020/08/25
PY  - 2020
N1  - https://doi.org/10.11648/j.ajmse.20200504.11
DO  - 10.11648/j.ajmse.20200504.11
T2  - American Journal of Management Science and Engineering
JF  - American Journal of Management Science and Engineering
JO  - American Journal of Management Science and Engineering
SP  - 42
EP  - 50
PB  - Science Publishing Group
SN  - 2575-1379
UR  - https://doi.org/10.11648/j.ajmse.20200504.11
AB  - In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.
VL  - 5
IS  - 4
ER  -

Copy | Download

Author Information

Xiaoling Wang

School of Business, Jiangxi Normal University, Nanchang, China
Yan Chen

Hangzhou Vanke Property Services Co. Ltd, Hangzhou, China
Bo Yang

School of Business, Jiangxi Normal University, Nanchang, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Xiaoling Wang, Yan Chen, Bo Yang. (2020). The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. American Journal of Management Science and Engineering, 5(4), 42-50. https://doi.org/10.11648/j.ajmse.20200504.11

Copy | Download

ACS Style

Xiaoling Wang; Yan Chen; Bo Yang. The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. Am. J. Manag. Sci. Eng. 2020, 5(4), 42-50. doi: 10.11648/j.ajmse.20200504.11

Copy | Download

AMA Style

Xiaoling Wang, Yan Chen, Bo Yang. The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities. Am J Manag Sci Eng. 2020;5(4):42-50. doi: 10.11648/j.ajmse.20200504.11

Copy | Download

@article{10.11648/j.ajmse.20200504.11,
  author = {Xiaoling Wang and Yan Chen and Bo Yang},
  title = {The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities},
  journal = {American Journal of Management Science and Engineering},
  volume = {5},
  number = {4},
  pages = {42-50},
  doi = {10.11648/j.ajmse.20200504.11},
  url = {https://doi.org/10.11648/j.ajmse.20200504.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajmse.20200504.11},
  abstract = {In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Choice of Organizational Structure in the Internet Era: Flattening and Decentralization —— Based on Perspective of Dynamic Capabilities
AU  - Xiaoling Wang
AU  - Yan Chen
AU  - Bo Yang
Y1  - 2020/08/25
PY  - 2020
N1  - https://doi.org/10.11648/j.ajmse.20200504.11
DO  - 10.11648/j.ajmse.20200504.11
T2  - American Journal of Management Science and Engineering
JF  - American Journal of Management Science and Engineering
JO  - American Journal of Management Science and Engineering
SP  - 42
EP  - 50
PB  - Science Publishing Group
SN  - 2575-1379
UR  - https://doi.org/10.11648/j.ajmse.20200504.11
AB  - In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.
VL  - 5
IS  - 4
ER  -

Copy | Download