Organizational design as a driver for firm innovativeness in Serbia

Abstract

The area of innovation and innovation activities includes numerous aspects and changes needed to increase and improve the innovation potential of firms. Besides technological changes, organizational changes also play a very important role. Although these changes are considered within a wider innovation concept that is not limited merely to technological changes, they can significantly influence business improvement. Statistical data processing of an official pilot study – conducted by Statistical Office of the Republic of Serbia in cooperation with the Mihajlo Pupin Institute – illustrates the significance of organizational design regarding the innovative behavior of a company. It also points out that some elements of organizational design give a remarkable impetus to the innovative behavior of corporations, while others can be seen as a limiting factor. Detailed statistical analysis shows that one component of organizational design, namely the introduction of a new or significantly improved knowledge management system for a better use or exchange of information, knowledge and skills within companies, has the most influence on the innovation behavior of the company. Another component, a firm's completely new or significantly different relation with other firms or public institutions (such as alliances, partnerships, outsourcing or sub-contracting), has the least influence. These analyses are of crucial importance for defining the innovation pattern related to corporation management.

Keywords:

• organizational design
• components of organizational design
• innovation
• innovation activity
• innovation behavior

Acknowledgements

Research presented in this paper was supported by the Ministry of Education and Science of the Republic of Serbia, under the projects: “Role of National Innovation Capacity in Creation of Knowledge Based Economy and Society in Serbia, Compatible with EU Innovation System”, 2006–2010, reg. no. 149021D.