Abstract:     For state-owned enterprises (SOEs) aiming to create an innovative milieu, tackling intrinsic structural challenges is pivotal. Rooted in the "Structure-Process-Boundary" framework, this study investigated the linkage effect of centralization, specialization, reward individualization, intra-organizational collaboration, and inter-organizational cooperation on firm innovation. Through a qualitative comparative analysis of 50 cases of SOEs′ innovation, this paper identified three configurations that contribute to high level of innovation: open platform, honeycomb collaboration, and concentrated network. In contrast, three configurations—closed centralization, rigid incentive, and internal dispersion—are found leading to low-level of innovation. The comparisons between configurations indicated the importance of harmonizing either centralized or decentralized structures with collective or individualized reward systems and the inherent value of inter-organizational cooperation. These findings shed light on the complex causal relationship between the organizational multi-dimensional change and the realization of innovation in SOEs. Beyond enhancing the configurational theory in the domain of organizational change, our insights will urge managers to embrace both holistic and dialectical methodologies when discerning the overarching effect of organizational change on innovation, and will provide strong support for the continuous promotion of firm innovation and development through appropriate organizational design. 

Key words: organizational change, state-owned enterprise (SOE), innovation, qualitative comparative analysis, configuration