Knowledge management is related to organizational structure [18, 34]. It has profound implications for organizational
structure [31]. Therefore, new organizational structure was proposed such as hypertext organization or N-form
organization for knowledge management [18, 31].
Two of the most common dimensions of structural frameworks are centralization and formalization. Formalization
refers to the degree to which decisions and working relationships are governed by formal rules, standard policies, and
procedures [36]. Centralization refers to the locus of decision authority and control within an organizational entity [44].
In order to develop organizational knowledge in a turbulent environment, firm should have various information
sources, various interpretation of information, and various perspectives developed from diversity of interpretation.
When this variety has been given, the range of organizational activities will be enlarged and the wide range of activities
will increase the possibility of developing organizational knowledge [22]. An organization that supports variation in
process and structure is more adaptable when unforeseen problems arise. It provides more options and allows rich
stimulation and interpretation for all its members [30]. Therefore, centralization and formalization are important
variables in our study.