The Contingency Factors Influencing Organizational Structuring of the Design Units within a Company
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This research aims to identify the critical contingency factors affecting organizational structuring of corporate design units based on ten Korean companies. By increasing the centralization of their design function, today many larger companies are attempting to bring a more strategic focus to design. Some companies are creating corporate design units that are responsible for company design strategy. Others are restructuring their organization to enhance design management. Especially Korean companies recently, are highly sensitive to design-driven management because they totally believe that corporate design capability is the most important key to competency and business success in the design aware Korean market. For this reason, large Korean companies are building internal design groups or have changed their organizational structure to successfully manage their designers and design team. However there is a lack of research that addresses the issues of organizational design to design management, and the design function and role have been largely neglected in the studies of organizational settings. To solve this situation, this paper presents and analyses the ten cases by literature review and interviews with ten Korean design managers. Hence this paper identifies seven factors; size, leadership, environment, responsibility, experience, strategy, and network in design-based structural variables. The factor differences by two structure types; design center and design team in marketing department are explored for the discovering. Consequently, this research will serve as a useful theoretical guide for firms in the process of implementing a design team organization.
Abstract
This research aims to identify the critical contingency factors affecting organizational structuring of corporate design units based on ten Korean companies. By increasing the centralization of their design function, today many larger companies are attempting to bring a more strategic focus to design. Some companies are creating corporate design units that are responsible for company design strategy. Others are restructuring their organization to enhance design management. Especially Korean companies recently, are highly sensitive to design-driven management because they totally believe that corporate design capability is the most important key to competency and business success in the design aware Korean market. For this reason, large Korean companies are building internal design groups or have changed their organizational structure to successfully manage their designers and design team. However there is a lack of research that addresses the issues of organizational design to design management, and the design function and role have been largely neglected in the studies of organizational settings. To solve this situation, this paper presents and analyses the ten cases by literature review and interviews with ten Korean design managers. Hence this paper identifies seven factors; size, leadership, environment, responsibility, experience, strategy, and network in design-based structural variables. The factor differences by two structure types; design center and design team in marketing department are explored for the discovering. Consequently, this research will serve as a useful theoretical guide for firms in the process of implementing a design team organization.
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