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The Organisational Architecture

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Abstract

One of the basic elements for developing a breakthrough innovation is ‘the organisational architecture: the process, culture, structure, people, resources, technology, and incentives.’ (Wind and Mahajan, 1997: 3) The company’s organisational architecture encompasses the assignment of decision rights to NPD participants within the company, the system of rewarding and punishing new product project members, and the performance measurement system to evaluate the corporate executive officer (CEO); business units; and project teams. The importance of these systems for organisations has been recognised by many writers in economics and management (e.g., Brickley, Smith, and Zimmerman, 2004; Jensen, 1983; Jensen and Meckling, 1995; Milgrom and Roberts, 1992; Robey, 1991).

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© 2009 Magdy G. Abdel-Kader and Erin Yu-Ching Lin

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Abdel-Kader, M.G., Lin, E.YC. (2009). The Organisational Architecture. In: Performance Measurement of New Product Development Teams. Palgrave Macmillan, London. https://doi.org/10.1057/9780230584273_3

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