The influence of process-oriented organisational design on operational performance and innovation: a quantitative analysis in the financial services industry

Abstract

Market competition requires that organisations excel at both operational performance and innovation. Though process orientation is intended to benefit operations in general, the impact of specific elements remains unclear. The purpose of this study is to identify the specific organisational design components of process orientation that simultaneously influence operational performance and innovation. We survey employees in the financial services sector (N = 1069) regarding the influence of six process-oriented organisation design components on operational performance and innovation using PLS-SEM. The results indicate that organisational structure and process improvement encourage both operational performance and innovation. Personal autonomy is partially beneficial, while the others have no joint influence on operational performance and innovation. This study is first in providing evidence regarding the influence of a broad variety of organisational design components of process orientation on operational performance and innovation. The study contributes to theory on how process orientation improves operational performance and innovation. The findings can serve as a guideline for managers and organisations as to which organisational design components should be implemented to improve operations.