Construction of digital 3D magic-cube organization structure for innovation-driven manufacturing

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.