Interaction and Innovation - Reframing Innovation Activities for a Matrix Organization

In this article we point out the importance of reframing and orchestrating an innovation process while adopting a matrix organization (MO) structure. Some studies implicate that a MO gives the flexibility desired and supports sharing of information and efficient use of resources in an organization. However, the MO is also a target of hard criticism by real life operational actors in organizations performing daily tasks. To find out reasons behind this gap, we studied the transformation phase of an organization from a line organization to a MO while simultaneously participating in innovation process development. The assumption was that collaboration with a motivated firm developing innovation activities and simultaneously adopting a MO gives exceptional insight into analyzing the change in a practical manner. Understanding the interplay between the organizational change and innovation activities is the key to success in today’s pace of change in the dynamic business environment. Our case study was done in the field of media, which is one of the most challenging due the external systemic change of technology and consumer habits. To survive and compete in business, firms adjust their organizational designs and processes to gain innovations and to connect external innovation sources. Our study shows that different phases of the innovation process need different types of management and support from the organization. Organizations under constant change have to update their innovation process management to match their organizational designs.