Impact of Organizational Structure on Achieving Competitive Advantage: Field Study on Industrial and Service Establishments in Jordan

Abstract

This study aims at identifying the impact of organizational structure and their impact on achieving competitive advantage in terms of its dimensions (cost, quality, flexibility and creativity). The study sample was composed of all the private sector institutions that won King Abdullah II Award for Excellence in the years 2014 and 2015, amounting to (7) institutions. The number of employees in these institutions was (1241) employees. A questionnaire was used as a data collection tool. It was distributed to a random sample consisting of all employees at the top and middle management levels, totaling (208) employees. (175) questionnaires were analyzed, with a response rate of (84.1%). The study concludes that there is a statistically significant effect of organizational structure on achieving high competitive advantage. Based on the conclusions, the most important recommendations are to avoid centralization of decision-making, to activate communication channels between administrative levels and to deal constructively with conflicts within the organization in order to increase the ability to make change and face challenges.