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Major barriers in this category include: (1) Stratification, (2) Formalization, (3) Centralization, and (4) Specialization. In most cases, the extent to which a structural barrier will impede innovation depends upon the innovation stage involved. For example, some barriers may be problematic during the proposal stage, but not during implementation.
Stratification has been described in terms of distribution of rewards throughout an organization (Hage & Aiken, 1970) and degree of status, congruence and ease of intra organizational mobility. Reasons for this inhibition have been attributed to: (1) a preoccupation with status differences that diverts attention and energy from idea proposals, (2) perceived status differences create insecurity which reduces willingness to take risks, (3) an idea proposal may suggest reducing a status differential and would be resisted by those in high status positions, and (4) upward communication will be decreased due to fear of evaluation.
Formalization can be defined as, "the degree to which an organization emphasizes following rules and procedures in the role performance of its members". It is thought that formalization is detrimental to initiation of innovations, but favourable to adoption of innovations. If organizational members are expected to behave in prescribed ways and innovation is not prescribed, fewer idea proposals will be generated. However, the singleness of purpose that accompanies formalization can make it easier to adopt and implement new ideas.
The concentration of power and authority and their effect on participation in decision making will influence the degree to which an organization is centralized. Although there are some contradictory research results, centralization may be negatively related to idea proposals and positively related to adoption. The more that power is concentrated and the less the amount of lower‑level participation, the fewer will be the number of ideas that trickle up. If too many high‑powered individuals attempt to negotiate adoption, consensus is not likely to be achieved. Thus, centralization may inhibit initiation, but facilitate adoption. Moreover, centralization may encourage implementation.
Specialization (sometimes referred to as differentiation or complexity) typically is defined in terms of the degree of occupational variability that exists within an organization. When specialization is high (and thus diversity and cross‑fertilization of ideas should be high), initiation of idea proposals and idea adoption will be facilitated. However, implementation may be inhibited due to potential conflicts, although there is some disagreement on this.