Impact of organizational structure on management innovation in public sector universities of Pakistan

Abstract

The paper analyses the effect of two components of organizational structure (formalization and centralization) on management innovation. The research uses the theoretical framework of dual-core theory of innovation. For this purpose, the data is collected with the help of questionnaire from 190 academics of public sector universities in Peshawar, Pakistan by using convenient sampling technique. The analysis is done with the help of structural equation modeling and hierarchical regression analysis. The findings show that the centralization in organizational structure enhances management innovation. They also indicate that formalization has a significantly positive impact on management innovation. The implication of the results refer that a tighter and well-directed control from „above‟ can lead to efficient utilization of resources which results in innovation.