Testing Two Contrasting Structural Models of Innovativeness in a Contractual Network

This study examined contrasting models of the impact of formal and informal structural factors and the communication environment on organizational innovativeness. Specifically, three formal structural variables (decentralization, formalization, and slack resources), two informal structural variables (range and prominence), and two communication environment variables (communication quality and acceptance) are posited to be antecedents of organizational innovativeness. In the traditional model, formal structural impacts are posited to be shaped by informal structure. Conversely, the coexisting model argues that both formal and informal structural variables directly affect the communication environment, which, in turn, shapes perceptions of innovativeness. Data were gathered from self-report questionnaires and network analysis communication logs completed by organizational members (N = 79) of a geographically dispersed government health information agency, the Cancer Information Service (CIS). Tests of the models demonstrate that the coexisting model is clearly superior. These results suggest that the dual role of formal and informal structures needs to be more systematically specified as we focus on innovation in new organizational forms, such as the CIS.