Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 55, Issue 18, Pages 5259-5270Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2017.1304667
Keywords
performance management; innovation management; structural equation modelling; processes; work organisation; financial services
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Market competition requires that organisations excel at both operational performance and innovation. Though process orientation is intended to benefit operations in general, the impact of specific elements remains unclear. The purpose of this study is to identify the specific organisational design components of process orientation that simultaneously influence operational performance and innovation. We survey employees in the financial services sector (N = 1069) regarding the influence of six process-oriented organisation design components on operational performance and innovation using PLS-SEM. The results indicate that organisational structure and process improvement encourage both operational performance and innovation. Personal autonomy is partially beneficial, while the others have no joint influence on operational performance and innovation. This study is first in providing evidence regarding the influence of a broad variety of organisational design components of process orientation on operational performance and innovation. The study contributes to theory on how process orientation improves operational performance and innovation. The findings can serve as a guideline for managers and organisations as to which organisational design components should be implemented to improve operations.
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