Introduction to

Corporate
Entrepreneurship and
Innovation
Management

Dr Rachael Lamb
 Structure for
Entrepreneurial
Organisations

Session Five
 Concept Map: The Diagnostic Framework

Strategy

Based on our core Learning Culture

textbook –

‘Building an Uncertainty Sources and

Innovation
Entrepreneurial and Failure Challenges

Organisation by
Mosey, Noke and
External
Kirkham, (2017) Processes
Stakeholders

Structure

Autumn 2020 Dr. Rachael Lamb, Haydn Green institute 3

 After studying this topic you will be able to:

 To develop an understanding of how structure is critical to the

effectiveness of innovation management
 Explore how organisational structures change over time
 Understand the different types of organisational structure and how
these influence innovation

Autumn 2020 Dr. Rachael Lamb, Haydn Green Institute 4

 Despite the best intentions…

Innovation management
will not work in an
organisation if its internal
environment is
bureaucratic, stifles
creativity, kills innovation,
and places a stranglehold
on autonomy
 The key issue is time

As organisations evolve, they

change internally, consciously
and unconsciously…

That is, the organisation's

entrepreneurial ability can (and
mostly will) deteriorate.
 Structure

 Griener (1972) and Mintzberg (1979): structure evolves as a

company grows and proceeds through its life cycle

 Cannot be fixed – no one best way…

Name, Department 7
Traditional Mechanistic Structures
However, a dilemma exists…

To overcome liabilities of newness,

Stinchcombe (1965) suggests that
formal structure is needed to reduce
role ambiguity and uncertainty…

NEURSHIP
E N TR EP R E

…But Greiner (1997) argues that

formalization erodes
entrepreneurship and in line with
Burns and Stalker (1961), what is
needed is organic structure.
See Sine, Mitsuhashi and Kirsch (2006) for a review.
 Structure and Size

Large organisations are increasingly aware that size is the enemy of

creativity and innovation

But how do you organise large numbers of people and maintain an

entrepreneurial culture?

Part of the answer is deconstruction and creating new structures

March 1, 2024 Name, Department 10

Organic Structures
 A Structural Framework

Innovation needs creative thinking, collaboration, empowerment, room

to manoeuvre, flexibility in resources and time available, good
communication, and tolerance of failure.

Implication: need an organic structure (Burns and Stalker, 1969):

For the effects of time and change…

(what sort of environment is the firm evolving into…?)

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 Differences in models

Mechanistic Models Organic Model

 High specialisation  Cross-functional teams
 Rigid departmentalisation  Cross hierarchical teams
 Clear chain of command  Free flow of information
 Narrow spans of control  Wide spans of control
 Centralisation  Decentralisation
 High formalisation  Low formalisation

Miller, 1986; Covin and Slevin, 1990; Thornhill and Amit, 2001
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 Organic models change over time

“Organisational designs that

facilitate variety, change and speed
are sources of competitive
advantage. These designs are
difficult to execute and copy
because they are intricate blends of
many different policies”

Galbraith, 1995; Designing Organisation

 Summary

Structure cannot be fixed as environmental pressures, internal and

external, constantly change.

A structural framework can be used as a guide when firms change,

ensuring they do not create stagnation and inertia.

Change can be traumatic for the firm but if looked at from the flip-side,
it can be a source of advantage.

March 1, 2024 Name, Department 15

 Independent Study - Activities

 Read section 4.2 (in Chapter 4) in Mosey et al, Building an

Entrepreneurial Organisation. (2017)

 Choose your firm if you haven’t done so already – at least 500

employees and been operating for at least 5 years

 Research the organisation’s structure and how this affects the

company’s innovation performance

1 March 2024 Name, Department 16

 Independent Study - Suggested Reading

 Lam, A., 2004, Organizational innovation, Handbook of Innovation,

edited by Fagerberg, J., Mowery D. and Nelson, R.R., Oxford
University Press
 Greiner, L.E., 1972. Revolution and evolution as organizations
grow. Harvard Business Review, 50(4), pp.37-46.
 Galbraith, J.R., 1995. Designing organizations: An executive briefing
on strategy, structure, and process. Jossey-Bass.