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Nov 04, 2023



In the fast-evolving landscape of business, the role of organizational structures in fostering innovation is extensively documented. The case of Kodak’s failure to adapt to technological advancements exemplifies the critical role of organizational structure in influencing a company’s innovative capacity. Organizational structures serve as the framework defining how a company operates, interacts, and innovates within its environment.

Section 1

Organizational Structure

Research conducted by Thompson (2017) delves into the different types of organizational structures, providing detailed insights into the characteristics of functional, divisional, matrix, lattice, team-based, and network structures. These structures play a significant role in determining how organizations function and innovate. For instance, the functional structure organizes around specialized roles, emphasizing efficiency and clear reporting relationships, but it can stifle innovation due to compartmentalization. On the other hand, a network structure focuses on external partnerships and alliances, fostering innovation through external collaboration.

In the context of Kodak’s revival, Johnson and Davies (2020) elaborate on the benefits of a matrix organizational structure. This structure combines functional expertise with product divisions, facilitating cross-functional collaboration and thereby promoting innovation. It allows for a balance between expertise in different functional areas and the focused innovation needed for product development, addressing Kodak’s historic struggles in the digital era. Creating a graphical representation of this proposed matrix structure for Kodak would visually demonstrate the intersection of functional expertise and product innovation, emphasizing the collaborative nature essential for Kodak’s revitalization.

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