Organizational Design for Small Businesses Research Paper

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Examples of these start-ups include the literally hundreds of process outsourcing companies throughout the BRIC nations that have specialized in Sarbanes-Oxley (SOX) compliance initiatives. These start-ups are taking a very process-centric view to innovation. Their ability to tailor financial systems in companies to be in compliance to government requirements is their greatest strength. The resources necessary to accomplish this require a centralized workforce of well-educated solution architectures and process improvement expertise, most often with Six Sigma quality management experience. This type of skill set is prevalent in the manufacturing-centric regions of China and India, albeit expensive compared to the typical wage levels in these nations. Because of the value of process-centric knowledge, start-ups who concentrate on process-centric innovation often build practices or teams of experts with deep expertise, and often create career paths for junior associates that put them onsite at customers. An example of this would be the growth of business process Indian outsourcers including Infosys, HCL and others who have their Sarbanes-Oxley practice located in India, and send their analysts to the U.S., Europe or Asia to work on-site with clients for weeks or months to get the process re-engineering complete.

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This is a resource-based strategy to creating a practice-based organization that can assist in creating more immediate value at the customer site (Morris, Kuratko, Allen, Ireland, Schindehutte, 2010).

When product-based innovation is the basis of a new venture, the organizational structure is more oriented towards the sales function, less to a highly structured production organization (Wonglimpiyarat, 2010). Product-driven new ventures are created; sales, senior management and engineering often are all the same role, which makes social skills and acclimation more significant as a skill set (Khaire, 2010). The net effect is that the organizational structure moves in the direction of customer and market segmentation first, and over time transitions to a functional structure......

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