1. Encouraging innovation through organic structure

Organic structures have a positive influence on innovation. Their low degree of formalization, centralization and specialization enables flexibility and the sharing of ideas, which are key factors in innovation.

The availability of substantial resources is also essential, enabling management to procure innovations, bear the cost of implementing them and cushion any failures.

Frequent communication between production units will break down any barriers to innovation, thanks to greater interaction between departments.

Cross-functional teams will foster innovation by facilitating interaction across departmental boundaries that might otherwise operate in silos.

Finally, studies also show that an employee's creativity increases when the organizational structure explicitly supports it.