In the Internet era, when information technology permeates into firm’s business process day by day, it is an urgent task to win competitive advantage by obtaining dynamic capabilities in super-competitive environment. This paper constructs the research model and puts forward the theoretical hypothesis on the basis of combing the existing relevant literature. Based on the mature organizational structure and dynamic ability scale, 328 valid sample data were empirically tested. The results show that the each dimension of organizational structure has a significant positive impact on the dynamic capabilities of the enterprise, that is, the flattening and the decentralization of the organization have a significant positive effect on the sense ability, the integration ability and the innovation ability. Then it puts forward the management enlightenment, limitation and research prospect. The contribution of this paper is to establish the research framework of organizational structure and dynamic capabilities from the perspective of dynamic capabilities, and point out that flattening and decentralization is a reasonable choice of enterprise organizational structure in the Internet era. This organizational structure is helpful for enterprises to sense the rapid changes of the market in time, efficiently integrate the internal and external resources, and obtain iterative and rolling competitive advantage through the innovation of technology and management.

location or group and given to smaller factions within it. Concepts of decentralization have been applied to group dynamics and management science in private Decentralization is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it. Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political sc Efficiency In business, decentralization leads to a management by results philosophy which focuses on definite objectives to be achieved by unit results. Decentralization of government programs is said to increase efficiency – and effectiveness – due to reduction of congestion in communications, quicker reaction to unanticipated problems, improved ability to deliver services, improved information about local conditions, and more support from beneficiaries of programs. Firms may prefer decentralization because it ensures efficiency by making sure that managers closest to the local information make decisions and in a more timely fashion; that their taking responsibility frees upper management for long term strategics rather than day-to-day decision-making; that managers have hands on training to prepare them to move up the management hierarchy; that managers are motivated by having the freedom to exercise their own initiative and creativity; that managers and divisions are encouraged to prove that they are profitable, instead of allowing their failures to be masked by the overall profitability of the company. The same principles can be applied to the government. Decentralization promises to enhance efficiency through both inter-governmental competitions with market features and fiscal discipline which assigns tax and expenditure authority to the lowest level of government possible. It works best where members of the subnational government have strong traditions of democracy, accountability, and professionalism.