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Frontiers of Engineering Management

ISSN 2095-7513

ISSN 2096-0255(Online)

CN 10-1205/N

Postal Subscription Code 80-905

Front. Eng    2023, Vol. 10 Issue (3) : 373-390    https://doi.org/10.1007/s42524-022-0237-x
RESEARCH ARTICLE
Construction of digital 3D magic-cube organization structure for innovation-driven manufacturing
Qiao XIANG1, You ZHANG2, Jie ZHONG2, Guoxuan WANG3(), Lirong LONG3
1. Aero Engine Corporation of China (AECC), Beijing 100097, China
2. Chengdu Holy Industry & Commerce Corp., Ltd. (Group), Pengzhou 611936, China
3. School of Management, Huazhong University of Science and Technology, Wuhan 430074, China
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Abstract

Owing to the heterogeneity between functional units and resource scarcity, manufacturing firms have been struggling with intra-organizational coordination for productivity and innovation. Traditional organizational structures, such as linear-functional and matrix, may cause responsibility division and independent goals (Shahani, 2020), and are more difficult to be adopted by large-sized innovative manufacturing firms for quantity production. This is based on a review of several new forms of organization (i.e., network organization, multiteam system, and platform organization) compared with the traditional forms of organization (i.e., linear, matrix, and business unit organization, among others). This study proposes a three-dimensional (3D) magic-cube organizational structure, considering the product dimensions, business, and administration. Moreover, the characteristics, propositions of system operation, system dynamic model, and working model of the 3D magic-cube organization are described. Finally, the 3D model is applied in a Chinese manufacturing firm to test its effectiveness. By redesigning the post and pay system, the pilot organization establishes a project-driven and cross-functional coordination mechanism, positively affecting the firm’s financial profit, output value, labor productivity, and income of per capita. The proposed 3D model can be adopted by large- or medium-sized manufacturing firms for product development and innovation. The implications of both practice and theory are also discussed in this study.

Keywords innovation      manufacturing      3D magic-cube organization structure      coordination     
Corresponding Author(s): Guoxuan WANG   
About author:

* These authors contributed equally to this work.

Just Accepted Date: 07 December 2022   Online First Date: 25 December 2022    Issue Date: 29 August 2023
 Cite this article:   
Qiao XIANG,You ZHANG,Jie ZHONG, et al. Construction of digital 3D magic-cube organization structure for innovation-driven manufacturing[J]. Front. Eng, 2023, 10(3): 373-390.
 URL:  
https://academic.hep.com.cn/fem/EN/10.1007/s42524-022-0237-x
https://academic.hep.com.cn/fem/EN/Y2023/V10/I3/373
Fig.1  Pyramid organizational structure.
Fig.2  Inverted pyramid organizational structure.
Fig.3  Network organization.
Fig.4  Multiteam system (MTS).
Fig.5  Platform organization.
StructureAdvantagesDisadvantagesApplication scenarios
Traditional formsClassicalSimple and effectiveLack of systematic schedulingSmall workshops
LinearClear chain of command with clear authority and responsibilityPoor horizontal communication and high cost for managementSmall-sized enterprises
FunctionalProfessional division of labor and reasonable decentralizationUnclear authority and responsibilitySpecialized enterprises
Linear-functionalClear authority and responsibility, professional division of labor and stable structurePoor horizontal communication and inflated management costsMedium- and large-sized enterprises
Business unitBalanced cost and control with consideration of both individual motivation and high-level workloadInternal competitive frictions and managerial redundanciesLarge global enterprises
MatrixHigh flexibility and efficiency for projectsTwo lines of leadership with unclear authority and responsibilityLarge- and medium-sized project-based enterprises
New formsNetworkHigh connectivity and complementarityLack of business process pullStrategic network organizations
Multiteam systemMulti-team synergy and responsivenessHigh demands for coordinators to cross boundariesTemporary organizations responding to emergencies
PlatformUser-oriented and high degree of digitizationHigh demand for digital technology and resource allocation capabilities, higher risk, and uncertaintyDigital platform organizations act as intermediates of multiple sided markets
Tab.1  Comparison of organizational structures
Fig.6  Geometric model of 3D magic-cube organization structure.
Fig.7  System dynamic model of 3D magic-cube organization structure.
Fig.8  System operation model of 3D magic-cube organization structure.
Fig.9  Implemented model of 3D magic-cube organization structure for the pilot firm.
Fig.10  Product dimension.
Fig.11  Business dimension.
Fig.12  Administration dimension.
Fig.13  Post system of the product dimension.
Fig.14  Post system of the business dimension.
Fig.15  Post system of the administration dimension.
Fig.16  Change effect of the implementation of 3D magic-cube organization structure (Note: The annotated data is the growth rate compared with the data in year 2014).
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