ABSTRACT
This chapter explains a method for analysing the hidden operating structures used by firms in their endeavour to initiate and implement product innovation. Fortunately, sociologists have addressed this problem and have developed methods for identifying and measuring differences in the informal or "hidden" working structures of an organisation. Lawrence and Lorsch's approach was a useful step forward in attempting to capture what actually occurs within the formal organisation structure across the firm as a whole. The assertions made in the organisation literature are especially interesting because they suggest that certain structures might be better suited for particular product innovation tasks. Two main categories of working structures were identified. First, those which reflect how particular activities are structured in terms of the amount of specialisation, formalisation and standardisation. Second, there are the structures which reflect how these activities are coordinated and controlled in terms of the amount of centralisation and stratification.
