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Role of Organization Structure in Innovation in the Bulk- Drug Industry

Indian Journal of Industrial Relations

Volume 46 Issue 3

Published: 2011
Author(s) Name: Yamini Prakash Sahay & Meenakshi Gupta
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This study explores the relationship between Organization Structure and Innovation in the bulk-drug firms of India. Structure variables include Horizontal Complexity, Formalization, Centralization, Concentration of Authority and Participation in Decision-Making. Innovation includes Number of Innovations and Perceived Innovation. Data was collected from employees of two leading bulk-drug firms of India. Qualitative analysis was done using content-analysis. Statistical analysis showed significant relationship between horizontal complexity and number of innovations. Negative and significant relationship has been obtained between Centralization and Innovation and between Concentration of Authority and Innovation. A positive and significant relationship has been obtained between Participation in decision- making and Innovation.

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