The dynamics of organizational structure, strategy, and innovation — an empirical study of M&As in the Taiwanese electronics industry

An extensive body of research suggests that an organizationpsilas ability to achieve its goal is a function of the congruence between various components. Following the concept ldquostructure follows strategyrdquo, this study suggested that suited strategy-structure fit should enhance pos-acquisition technological performance for the high tech firms. Further, this study also wishes to examine effects of organizational structure and corporate strategy on process, product, and marketing innovation. Results reveal that organizational coordination and differentiation strategy will enhance product innovation; organizational decentralization and cost leadership strategy will enhance process innovation. For the type of M&As, related M&A firms have better innovation performance than firms undertook unrelated diversification.