Coherent organizational structure: concept and its influence on MSMEs performance

Purpose This study aims to develop and validate the concept of a coherent organizational structure (COS), an adaptive system that includes three fundamental pillars (human capital, leadership and a customer-centric approach) and positively impacts the performance of micro-, small- and medium-sized enterprises (MSMEs). Design/methodology/approach Using data gathered from 174 MSMEs, a path-modeling analysis was conducted to evaluate the research model that underpins the COS concept, along with its pillars, and to investigate its effects on MSME performance. Findings Through empirical evidence, this study shows that human capital, leadership and a customer-centric approach are the cornerstone elements of COS. Furthermore, the results of this study highlight the impact of COS on MSME performance. Research limitations/implications The restrictiveness of the empirical evidence used in this study prevents extension of the findings to other nations. Thus, additional research is required to establish the validity of COS through the acquisition of evidence from diverse countries. Originality/value The COS concept expands the view of dynamic capabilities, and to the best of the authors’ knowledge, this work is probably one of the first to reflect the importance of a company’s capabilities and resources acting in the system and internal coherence. Therefore, this study proposes a definition of COS based on three pillars (human capital, leadership and a customer-centric approach), investigates its relationship with MSME performance and offers new insights into the efficient implementation of organizational capabilities.