IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v63y2010i3p310-320.html
   My bibliography  Save this article

Can formalization, complexity, and centralization influence knowledge performance?

Author

Listed:
  • Pertusa-Ortega, Eva M.
  • Zaragoza-Sáez, Patrocinio
  • Claver-Cortés, Enrique

Abstract

Based on the theory of organizational design and on the theory of knowledge, this paper analyzes how the traditional variables which define a firm's organizational structure (formalization, complexity, and centralization) influence knowledge performance (the degree to which a firm generates knowledge internally and uses it to reach a competitive advantage). The paper tests three hypotheses using a sample of 164 large Spanish firms. The results show that organizational complexity and centralization exert a positive and a negative influence, respectively, on knowledge performance, which confirms the two hypotheses related to these variables. However, the analysis reveals no empirical evidence to confirm the hypothesis according to which formalization and knowledge performance have a positive relationship.

Suggested Citation

  • Pertusa-Ortega, Eva M. & Zaragoza-Sáez, Patrocinio & Claver-Cortés, Enrique, 2010. "Can formalization, complexity, and centralization influence knowledge performance?," Journal of Business Research, Elsevier, vol. 63(3), pages 310-320, March.
    • Handle: RePEc:eee:jbrese:v:63:y:2010:i:3:p:310-320
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(09)00093-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David J. Hall & Maurice A. Saias, 1980. "Strategy follows structure!," Strategic Management Journal, Wiley Blackwell, vol. 1(2), pages 149-163, April.
    2. Bénédicte Reynaud, 2005. "The void at the heart of rules: Routines in the context of rule-following," PSE Working Papers halshs-00590855, HAL.
    3. Markus C. Becker & Nathalie Lazaric & Richard R. Nelson & Sidney G. Winter, 2005. "Applying organizational routines in understanding organizational change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 775-791, October.
    4. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    5. Rahinah Ibrahim & Mark Nissen, 2007. "Discontinuity in Organizations: Developing a Knowledge-Based Organizational Performance Model for Discontinuous Membership," International Journal of Knowledge Management (IJKM), IGI Global, vol. 3(1), pages 10-28, January.
    6. Patrick Cohendet & Frédéric Creplet & Morad Diani & Olivier Dupouët & Eric Schenk, 2004. "Matching Communities and Hierarchies within the Firm," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(1), pages 27-48, March.
    7. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    8. Anja Kern, 2006. "Exploring the Relation Between Creativity and Rules: The Case of the Performing Arts," International Studies of Management & Organization, Taylor & Francis Journals, vol. 36(1), pages 63-80, January.
    9. Steven Postrel, 2002. "Islands of Shared Knowledge: Specialization and Mutual Understanding in Problem-Solving Teams," Organization Science, INFORMS, vol. 13(3), pages 303-320, June.
    10. Stanley F. Slater & Eric M. Olson, 2000. "Strategy type and performance: the influence of sales force management," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 813-829, August.
    11. Sridhar Seshadri & Zur Shapira, 2003. "The flow of ideas and timing of evaluation as determinants of knowledge creation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1099-1124, October.
    12. Bénédicte Reynaud, 2005. "The void at the heart of rules: routines in the context of rule-following. The case of the Paris Metro Workshop," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 847-871, October.
    13. Julie Smith David & Yuhchang Hwang & Buck K. W. Pei & J. Hal Reneau, 2002. "The Performance Effects of Congruence Between Product Competitive Strategies and Purchasing Management Design," Management Science, INFORMS, vol. 48(7), pages 866-885, July.
    14. Gerardo A. Okhuysen & Kathleen M. Eisenhardt, 2002. "Integrating Knowledge in Groups: How Formal Interventions Enable Flexibility," Organization Science, INFORMS, vol. 13(4), pages 370-386, August.
    15. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    16. Cepeda, Gabriel & Vera, Dusya, 2007. "Dynamic capabilities and operational capabilities: A knowledge management perspective," Journal of Business Research, Elsevier, vol. 60(5), pages 426-437, May.
    17. Norman, Patricia M., 2004. "Knowledge acquisition, knowledge loss, and satisfaction in high technology alliances," Journal of Business Research, Elsevier, vol. 57(6), pages 610-619, June.
    18. Forrester, Rosalind H., 2000. "Capturing Learning and Applying Knowledge: An Investigation of the Use of Innovation Teams in Japanese and American Automotive Firms," Journal of Business Research, Elsevier, vol. 47(1), pages 35-45, January.
    19. Bruce Kogut & Udo Zander, 1996. "What Firms Do? Coordination, Identity, and Learning," Organization Science, INFORMS, vol. 7(5), pages 502-518, October.
    20. Fariborz Damanpour, 1996. "Organizational Complexity and Innovation: Developing and Testing Multiple Contingency Models," Management Science, INFORMS, vol. 42(5), pages 693-716, May.
    21. Frans A. J. Van den Bosch & Henk W. Volberda & Michiel de Boer, 1999. "Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities," Organization Science, INFORMS, vol. 10(5), pages 551-568, October.
    22. Nielsen, Bo Bernhard, 2005. "The role of knowledge embeddedness in the creation of synergies in strategic alliances," Journal of Business Research, Elsevier, vol. 58(9), pages 1194-1204, September.
    23. William G. Ouchi, 2006. "Power to the Principals: Decentralization in Three Large School Districts," Organization Science, INFORMS, vol. 17(2), pages 298-307, April.
    24. Graham, Ann B. & Pizzo, Vincent G., 1996. "A question of balance: Case studies in strategic knowledge management," European Management Journal, Elsevier, vol. 14(4), pages 338-346, August.
    25. Hall, Richard & Andriani, Pierpaolo, 2003. "Managing knowledge associated with innovation," Journal of Business Research, Elsevier, vol. 56(2), pages 145-152, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghulam Mustafa & Hans Solli-Sæther & Virginia Bodolica & Jon Ivar Håvold & Anam Ilyas, 2022. "Digitalization trends and organizational structure: bureaucracy, ambidexterity or post-bureaucracy?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(4), pages 671-694, December.
    2. Wei-Shong Lin & Jui-Ling Huang & Margaret L. Sheng, 2014. "How the Organizational Goals Affect Knowledge Management," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(1), pages 3-22.
    3. Ben Martin, 2016. "What is Happening to our Universities?," SPRU Working Paper Series 2016-03, SPRU - Science Policy Research Unit, University of Sussex Business School.
    4. Bo Song & Yi Li & Liangjie Zhao, 2019. "Complementary Effect of Knowledge Management Strategy on Firm Performance: Evidence from Chinese Firms," Sustainability, MDPI, vol. 11(13), pages 1-16, July.
    5. Tolulope Paul Akinbobola & Oluwole Matthew Akinnagbe, 2023. "Determinants of linkages between agricultural institutions and agro-allied industries in Southwest, Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(1), pages 228-248, January.
    6. Douglas Wegner & Greici Sarturi & Leander Luiz Klein, 2022. "The governance of strategic networks: how do different configurations influence the performance of member firms?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 1063-1087, September.
    7. Ayse Kucuk Yilmaz & Konstantinos Malagas, 2021. "Α proposed organizational structure that contributes to the efficient handling of risk in an approved training organization (ATO)," SN Business & Economics, Springer, vol. 1(7), pages 1-22, July.
    8. Michele Meoli & Stefano Paleari & Silvio Vismara, 2019. "The governance of universities and the establishment of academic spin-offs," Small Business Economics, Springer, vol. 52(2), pages 485-504, February.
    9. Lee, Jeoung Yul & Choi, Byung Chul & Ghauri, Pervez N. & Park, Byung Il, 2021. "Knowledge centralization and international R&D team performance: Unpacking the moderating roles of team-specific characteristics," Journal of Business Research, Elsevier, vol. 128(C), pages 627-640.
    10. Mohammed Khalifa Abdelsalam & Ibrahim Mohammed Massoud Egdair & Halima Begum & Diara Md. Jadi & Hussein-Elhakim Al Issa & Omar Saad Saleh Abrika & A. S. A. Ferdous Alam, 2021. "The Key Organizational Factors in Healthcare Waste Management Practices of Libyan Public Hospitals," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    11. Eva, Nathan & Sendjaya, Sen & Prajogo, Daniel & Madison, Karryna, 2021. "Does organizational structure render leadership unnecessary? Configurations of formalization and centralization as a substitute and neutralizer of servant leadership," Journal of Business Research, Elsevier, vol. 129(C), pages 43-56.
    12. Rogerio S. Victer, 2020. "Connectivity knowledge and the degree of structural formalization: a contribution to a contingency theory of organizational capability," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-22, December.
    13. Ghulam Mustafa & Richard Glavee-Geo & Kjell Gronhaug & Hanan Saber Almazrouei, 2019. "Structural Impacts on Formation of Self-Efficacy and Its Performance Effects," Sustainability, MDPI, vol. 11(3), pages 1-24, February.
    14. Leif Jarle Gressgård & Torstein Nesheim, 2018. "Knowledge Management Systems and Work Improvements: The Moderating Effects of Work Characteristics," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-18, December.
    15. De Toni, Alberto F. & Pessot, Elena, 2021. "Investigating organisational learning to master project complexity: An embedded case study," Journal of Business Research, Elsevier, vol. 129(C), pages 541-554.
    16. Céline Bérard & Marc Fréchet, 2020. "Organizational antecedents of exploration and exploitation in SMEs: The role of structural and resource attributes," Post-Print halshs-02570775, HAL.
    17. Tomislav Hernaus & Ana Aleksic & Maja Klindzic, 2013. "Organizing for Competitiveness – Structural and Process Characteristics of Organizational Design," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(4), December.
    18. Yen, Chang-Hua & Teng, Hsiu-Yu, 2013. "The effect of centralization on organizational citizenship behavior and deviant workplace behavior in the hospitality industry," Tourism Management, Elsevier, vol. 36(C), pages 401-410.
    19. Simona Gentile-Lüdecke & Rui Torres de Oliveira & Justin Paul, 2020. "Does organizational structure facilitate inbound and outbound open innovation in SMEs?," Small Business Economics, Springer, vol. 55(4), pages 1091-1112, December.
    20. Ali, Murad & Park, Kichan, 2016. "The mediating role of an innovative culture in the relationship between absorptive capacity and technical and non-technical innovation," Journal of Business Research, Elsevier, vol. 69(5), pages 1669-1675.
    21. Dinuka B. Herath & Shelley Harrington, 2023. "Saying yes to mess: disorganization as an antecedent to dynamic capabilities," Review of Managerial Science, Springer, vol. 17(5), pages 1539-1558, July.
    22. Cristina B Gibson & Patrick D Dunlop & John L Cordery, 2019. "Managing formalization to increase global team effectiveness and meaningfulness of work in multinational organizations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(6), pages 1021-1052, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claver-Cortés, Enrique & Pertusa-Ortega, Eva M. & Molina-Azorín, José F., 2012. "Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance," Journal of Business Research, Elsevier, vol. 65(7), pages 993-1002.
    2. Sreedhar Madhavaram & Andrew C. Gross & Radha Appan, 2014. "Knowledge needs of firms: the know-x framework for marketing strategy," AMS Review, Springer;Academy of Marketing Science, vol. 4(3), pages 63-77, December.
    3. Forés, Beatriz & Camisón, César, 2016. "Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?," Journal of Business Research, Elsevier, vol. 69(2), pages 831-848.
    4. Soufiane Mezzourh & Walid A Nakara, 2009. "Governance and innovation : A Knowledge-based approach [La gouvernance de l'innovation : une approche par la connaissance]," Post-Print halshs-01955966, HAL.
    5. Rogerio S. Victer, 2020. "Connectivity knowledge and the degree of structural formalization: a contribution to a contingency theory of organizational capability," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-22, December.
    6. Bauer, Florian & King, David & Matzler, Kurt, 2016. "Speed of acquisition integration: Separating the role of human and task integration," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 150-165.
    7. Stefano Brusoni & Lorenzo Cassi & Simge Tuna, 2021. "Knowledge integration between technical change and strategy making," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1521-1552, November.
    8. Alex Eapen & Rekha Krishnan, 2019. "Transferring Tacit Know-How: Do Opportunism Safeguards Matter for Firm Boundary Decisions?," Organization Science, INFORMS, vol. 30(4), pages 715-734, July.
    9. TINA M. Jose Vega & Dennis M. López, 2012. "Evaluating The Effect Of Industry Specialist Duration On Audit Quality And Audit Fees," Working Papers 0023, College of Business, University of Texas at San Antonio.
    10. Hurmelinna-Laukkanen, Pia & Nätti, Satu, 2012. "Network orchestration for knowledge mobility: The case of an international innovation community," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 5(4), pages 244-264.
    11. Chengli Shu & Cuijuan Liu & Shanxing Gao & Mark Shanley, 2014. "The Knowledge Spillover Theory of Entrepreneurship in Alliances," Entrepreneurship Theory and Practice, , vol. 38(4), pages 913-940, July.
    12. W. Sofka, 2008. "Globalizing Domestic Absorptive Capacities," Management International Review, Springer, vol. 48(6), pages 769-792, December.
    13. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    14. Tzu-Hsin Liu & Yung-Chang Hsiao, 2019. "Fitting cooperative mode in inter-organizational strategic alliance: a perspective from innovative and financial performances," The Journal of Technology Transfer, Springer, vol. 44(1), pages 73-96, February.
    15. Li Chen & Shaoming Zou & Hui Xu & Yiwen Chen, 2020. "Entrepreneurial Orientation in Multinational Corporations: Antecedents and Effects," Management International Review, Springer, vol. 60(1), pages 123-148, February.
    16. Lívia Lopes Barakat & Torben Pedersen & Marcio Amaral-Baptista & Sherban Leornardo Cretoiu & Paulo Bento, 2022. "Too Much of Two Good Things: Explicating the Limited Complementarity Between Drivers of MNC Headquarters’ Absorptive Capacity," Management International Review, Springer, vol. 62(3), pages 393-426, June.
    17. Zerbini, Fabrizio & Borghini, Stefania, 2015. "Release capacity in the vendor selection process," Journal of Business Research, Elsevier, vol. 68(2), pages 405-414.
    18. Cynthia A. Lengnick-Hall & Robert J. Griffith, 2007. "Knowledge Resources, Exploration, and Exploitation: A New Perspective on the Interplay Between Innovation and Application," Working Papers 0027, College of Business, University of Texas at San Antonio.
    19. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    20. Mohammed Khalifa Abdelsalam & Ibrahim Mohammed Massoud Egdair & Halima Begum & Diara Md. Jadi & Hussein-Elhakim Al Issa & Omar Saad Saleh Abrika & A. S. A. Ferdous Alam, 2021. "The Key Organizational Factors in Healthcare Waste Management Practices of Libyan Public Hospitals," Sustainability, MDPI, vol. 13(22), pages 1-19, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:63:y:2010:i:3:p:310-320. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.