International Journal of Research Studies in Management
CollabWritive Special Issue
2024 Volume 12 Issue 6
Available Online: 15 July 2024
Author/s:
Chen, Chunhai
Graduate School, Lyceum of the Philippines University – Batangas, Philippines
Abstract:
China’s manufacturing sector has experienced rapid growth, becoming a vital part of the global economy. This growth, powered by industrial policies, infrastructure investment, and a vast labor force, is now at a crossroads due to technological advancements and market dynamics. The sector’s future depends on navigating digital transformation and embracing technological innovation to maintain its competitive edge and sustain growth. The study aimed to explore the interplay between organizational structure, business integration, and technological innovation within China’s manufacturing industry. Its primary goal was to assess how these elements influenced the industry’s capability to adapt to technological advancements and market uncertainties. Additionally, the research sought to develop a digitally transformed manufacturing industry framework tailored to the unique context of China’s manufacturing sector, guiding enterprises in leveraging their organizational and business integration practices to foster innovation. Employing a descriptive correlational research design, this study examined the relationship between organizational structure, business integration, and technological innovation without manipulating the variables. Data were collected from professionals across various levels in the manufacturing industry using stratified random sampling and analyzed using non-parametric statistical methods due to the data’s non-normal distribution. The findings indicate a generally positive perception of organizational support for digital transformation, with emphasis on corporate culture, adaptable internal processes, and employee acceptance of digital tools. However, there were nuances in the effectiveness of cross-functional collaboration, information sharing, and process integration across departments. Moreover, the significant barriers to technological innovation included digital security concerns, infrastructural inadequacies, and organizational resistance, particularly concerning cultural alignment and job security fears. The study concluded that the relationship between organizational structure, business integration, and technological innovation significantly impacts the digital transformation readiness of China’s manufacturing enterprises. Effective business integration, especially in terms of cross-functional collaboration and information sharing, emerged as crucial for technological innovation. Nonetheless, addressing technological barriers and organizational resistance was vital for realizing the full potential of digital transformation initiatives. The research recommends enhancing cross-departmental cooperation and developing a unified digital framework to improve process integration. It also suggests investing in technological infrastructure and training programs to overcome barriers and mitigate resistance by aligning organizational culture with digital transformation goals. Lastly, adapting to market uncertainties through agile strategic planning and fostering employee engagement in digital initiatives is advised. The paper culminated in the proposition of a Digital Transformation Framework specifically designed for China’s manufacturing sector. This framework was grounded in the study’s findings and aimed to support manufacturing enterprises in navigating the complexities of digital transformation. By addressing the identified barriers and leveraging the strengths in organizational and business integration practices, the framework serves as a strategic guide for sustaining competitive advantages in the global market.
Keywords: organizational structure, business integration, technological innovation, manufacturing industry
DOI: https://doi.org/10.5861/ijrsm.2024.1074
Cite this article:
Chen, C. (2024). Organizational structure, business integration and technological innovation of manufacturing industry: Basis for digitally transformed manufacturing industry framework. International Journal of Research Studies in Management, 12(6), 11-21. https://doi.org/10.5861/ijrsm.2024.1074