Actual problems of innovative economy and law

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Flexible organizational structures: the essence, variables and factors of performance

# 11 65-71 Download/view the full text of the article

УДК: 65.014.12

DOI: https://doi.org/10.36887/2524-0455-2023-1-11

Gres Georgiy,
PhD Student of Management and Business Department,
Simon Kuznets Kharkiv National University of Economics,
https://orcid.org/0000-0002-4456-8250

The article aims to clarify the essence of flexible organizational structure, the variables (dimensions) distinguishing the flexibility and rigidity of a structure, and the impact of structure flexibility on enterprise performance. The need for a clear definition of flexible organizational structure and the confusion between flexible and organic structures makes conducting research in this field essential. Various reports of flexible organizational structure are presented in the article, each highlighting different aspects of flexibility. Some definitions focus on temporary units and specific tasks, while others encompass broader characteristics such as flat hierarchy, decentralization, and adaptability. An empirical research study is conducted through interviews with top managers of Ukrainian and foreign enterprises to clarify the essence of flexible organizational structure. The research identifies critical characteristics (variables) of flexible structures, including low hierarchy, low complexity, substantial decentralization, and low degree of formalization. The study finds that flexible structures positively correlate with flexible business processes and better adaptability to VUCA (Volatility, Uncertainty, Complexity, Ambiguity) external environments, as seen during the pandemic. Thus, the article defines flexible organizational structures as flat, simple, decentralized structures with a low level of formalization, enabling flexibility of the enterprise’s business processes and allowing better adoption to VUCA external environment. Regarding performance, the research indicates that enterprises with flexible structures did not consistently demonstrate better overall performance than rigid structures. However, certain flexible structures were associated with higher performance in specific areas, such as overall efficiency, profitability, growth, and customer satisfaction.

Keywords: organizational structure, flexible organizational structure, factors of enterprise performance, key performance indicators, adaptation to external environment, determinants of organizational structure, variables of organizational structure, organizational structure profile. of organizational structure, variables of organizational structure, organizational structure profile.

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The article was received 08.04.2023

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Gres Georgiy. 08.04.2023. Flexible organizational structures: the essence, variables and factors of performance. The journal "Actual problems of innovative economy and law". 2023 / #1-2. 65-71pp. https://doi.org/10.36887/2524-0455-2023-1-11

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Gres Georgiy. "Flexible organizational structures: the essence, variables and factors of performance". The journal "Actual problems of innovative economy and law". 08.04.2023. https://doi.org/10.36887/2524-0455-2023-1-11

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