Matrix structure for supporting organisational innovation capability

Abstract

The importance of an organisation's capability to produce innovations has been noticed to be increasingly important. Previous literature has discussed appropriate organisational structures for innovation activities. The matrix structure is widely seen to be appropriate for innovation activities, as it aims to capture both the efficiency and specialisation of a functional organisation, as well as the customer focus and flexibility of a multidivisional organisation. The aim of this study is to find out whether a matrix organisational structure supports harnessing hidden innovation capability. The paper presents a study conducted in an organisation specialising in different areas of media business. The analysis shows that turning into a matrix is not an answer to realising all dimensions of innovation capability. The paper contributes to the current understanding by providing guidelines for how innovation capability can be understood in a matrix design, and also by defining guidelines for further research.