Organizational Innovation

Author(s):  
Fariborz Damanpour

Innovation is a complex construct and overlaps with a few other prevalent concepts such as technology, creativity, and change. Research on innovation spans many fields of inquiry including business, economics, engineering, and public administration. Scholars have studied innovation at different levels of analysis such as individual, group, organization, industry, and economy. The term organizational innovation refers to the studies of innovation in business and public organizations. Studies of innovations in organizations are multidimensional, multilevel, and context-dependent. They investigate what external and internal conditions induce innovation, how organizations manage innovation process, and in what ways innovation changes organizational conduct and outcome. Indiscreet application of findings from one discipline or context to another, lack of distinction between generating (creating) and adopting (using) innovations, and likening organizational innovation with technological innovation have clouded the understanding of this important concept, hampering its advancement. This article organizes studies of organizational innovation to make them more accessible to interested scholars and combines insights from various strands of innovation research to help them design and conduct new studies to advance the field. The perspectives of organizational competition and performance and organizational adaptation and progression are introduced to serve as platforms to position organizational innovation in the midst of innovation concepts, elaborate differences between innovating and innovativeness, and decipher key typologies, primary sets of antecedents, and performance consequences of generating and adopting innovations. The antecedents of organizational innovation are organized into three dimensions of environmental (external, contextual), organizational (structure, culture), and managerial (leadership, human capital). A five-step heuristic based on innovation type and process is proposed to ease understanding of the existing studies and select suitable dimensions and factors for conducting new studies. The rationale for the innovation–performance relationship in strands of organizational innovation research, and the employment of types of innovation and performance indicators, is articulated by first-mover advantage and performance gap theory, in conjunction with the perspectives of competition and performance and of adaptation and progression. Differences between effects of technological and nontechnological innovation and stand-alone and synchronous innovations are discussed to articulate how and to what extent patterns of the introduction of different types of innovation could contribute to organizational performance or effectiveness. In conclusion, ideas are proposed to demystify organizational innovation to allure new researches, facilitate their learning, and provide opportunities for the development of new studies to advance the state of knowledge on organizational innovation.

2020 ◽  
pp. 108602661989399 ◽  
Author(s):  
Franziska Sump ◽  
Sangyoon Yi

Organizations often respond in different ways to common external shocks. To advance theories on organizational adaptation and performance heterogeneity, it is essential to understand different reasons for different organizational responses. We examine how incumbents in carbon-intensive industries adapt to heightened environmental pressure to reduce carbon emissions. Based on a review of the literature, we propose three dimensions along which diverse organizational responses can be efficiently mapped out: goal, timing, and scope. Building on our proposed dimensions, we develop a typology of five different organizational responses. With this, we show that organizational responses are more diverse than a one-dimensional scale could show but that the heterogeneity is somehow limited as the positions on the dimensions are not independent but correlated. To understand this observed limited heterogeneity, we proceed by identifying reasons behind different organizational responses. Furthermore, we discuss the theoretical implications of our findings for research on organizational adaptation and sustainability.


2021 ◽  
pp. 1111-1120 ◽  
Author(s):  
Nazlina Zakaria ◽  
Francis Chuah Chin Wei ◽  
Nor Azimah Chew Abdullah ◽  
Rushami Zien Yusoff

Many studies have focused on direct link between HRM practices and organizational performance. There is a strong relationship between these two variables that driven further research to identify the mechanism through which such relationship exists. Following resource-based view (RBV), the aim of this research was to investigate the indirect effect of organizational innovation on HRM practices-performance linkage. Data was collected from owners/managers of manufacturing SMEs in West Malaysia. 331 (60.5%) distributed questionnaires were received and analyzed through PLS-SEM. Out of six hypotheses on mediation, only one hypothesis was rejected. The findings strongly supported the RBV theory when organizational innovation significantly mediated the relationship. These results clearly indicate that organizational innovation plays an intermediate role between HRM practices (i.e. communication and information sharing, compensation, selection, performance appraisal, and training and development) and organizational performance of SMEs.


2021 ◽  
Vol 58 (1) ◽  
pp. 5152-5163
Author(s):  
Dr. Naveen Nandal Et al.

The purpose of this research is to analyze the determinants of product innovation and its impact on the financial performance of the organizations. Specifically, the study examines the impact of intelligence generation, intelligence dissemination, product-process innovation, marketing support of the product, quality, Dependability/ Delivery, Technology selection, Flexibility on the financial performance of the automobile companies. The models of product innovation provided the theoretical framework for the research. The model of product-process innovation provides the basis for further research. The first concept explains the link between organizations surroundings and its innovation targets (Utterback JM 1974, 1975) (Miller & Friesen, 1982)(Milling, 1996) whereas the second concept explains the connection between firm’s performance level i.e. innovative performance, financial performance, organizational performance and marketing performance and its innovation types i.e. product innovation, process innovation, organizational innovation and marketing innovation (Abernathy & Townseed, 1975) (Abernathy & Utterback, June/July 1978) (Gunday, et al., 2011). From these concepts evolved this study i.e. to evaluate the impact of product innovation on the financial performance of the organizations.


2021 ◽  
Vol 38 (4) ◽  
Author(s):  
Mosleh Zeebaree ◽  
Goran Yousif Ismael ◽  
Omar A. Nakshabandi ◽  
Saman Sattar Saleh ◽  
Musbah Aqel

Digital technologies quick advancement prompts immersive remodeling of our economies and social orders that are entirely extensive. Innovative progress particularly in the area of artificial intelligence (AI), robotics, huge information and business analytics, also the increased and virtual reality are giving an all-out digital connectivity and recent conceivable outcomes for successful study and managing. Establishment anticipates higher efficiency and open doors for advanced execution by expanding utilization and integration of technology innovations. Not simply machines or shrewd calculations will accomplish assignments, however new types of human-machine communication show important influences for situating focal job of human in structure and advance exercises. In this study, the creators show a diagram of accessible technological solutions that (incorporating innovation) prompting new types of human-machine interaction and organizational management improvement. Moreover, features of advancement necessities producing thoughts in initial improve procedures are distinguished, organizational innovation is particularly pertinent in the present dynamic and turbulent environment, where other inside factors, for example, mechanical resources, employee training, synchronization of new management competences, flexible human capital, and increasingly versatile hierarchical design, are urged to make worth and upper hand. The objective behind this paper is to figure out whether technological assets impact organizational management procedure and how innovation technologies impact organizational management and performance. We accomplish these objectives by breaking down the organizational innovation and performance, using an integrative study methodology that brought out with data accumulated through perusing numerous articles that are connected to the theme and papers keywords.The finding of the research displays that help modernization and enhancement of mechanical aptitudes, inventive and innovative particular that include (web 2.0, Business Intelligence (BI), Artificial Intelligence (AI), enormous information, Internet of Think (IOT), industry 4.0 and social media) competencies advance enhancement in authoritative execution through its positive impact on the methods of potential and recognized adequacy, proficiency of decision making process.Primarily, traditional procedures of the firm affect organizational procedures as well as its performance. Further, interior work adaptability impacts organizational performance through innovation. This concern specifically interest when considering the changing idea of tempestuous mechanical situations wherein association works. Technological resources in this manner recognize new wellsprings of adaptability and organizational development subject to progressively significant logical information and instruments that controls data volume in the organization.


2017 ◽  
Vol 18 (2) ◽  
pp. 286-315 ◽  
Author(s):  
Jorge Casas Novas ◽  
Maria do Céu Gaspar Alves ◽  
António Sousa

Purpose The purpose of this paper is to examine the role of management accounting systems (MAS) in the development of intellectual capital (IC) – i.e. human capital (HC), structural capital (SC) and relational capital (RC) – and the resultant effects on organizational performance. Design/methodology/approach A questionnaire was developed to conduct a survey of high-level managers of Portuguese companies. The data collected were analyzed through the use of structural equation modeling with AMOS. Findings Statistical support was found for six out of nine hypothesized relationships. The findings confirm the role of MAS in the development of HC and SC. Results also showed positive and statistically significant relationships between the three dimensions of IC, in line with previous research. Finally, results indicated that SC has a positive and significant link with organizational performance, in keeping with some research. Research limitations/implications The estimation procedure allowed only a partial validation of the proposed model because, although positive, the relationships between MAS and RC, between HC and performance and between RC and organizational performance were not statistically significant. Practical implications The study highlights the role of MAS as information networks that collect, process and communicate information that influences the development of IC, as well as networks of relationships that support the establishment of conditions for the creation and integration of organizational knowledge and the development of IC. Originality/value In this research, an arguably more complete framework of the relations between MAS, IC and performance is developed and empirically tested. Despite the existence of some literature addressing the relationship between MAS and IC, this is the first study, of which authors are aware, that focuses specifically on the relationships between MAS and the three dimensions of IC (HC, SC and RC), as well as their effects on organizational performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emanuel Soares Ponciano ◽  
Creusa Sayuri Tahara Amaral

PurposeThe purpose of this paper is to present the factors that form the innovation environment in the Business Process Outsourcing (BPO) sector, from a case study in a Brazilian multinational company operating in the Information and Communication Technologies (ICT) and BPO segment.Design/methodology/approachMinnesota Innovation Research Program (MIRP) questionnaire was adopted, aimed to environment conducive to innovation. It was applied to a sample of employees, from different hierarchical levels, who participated in an innovation training program developed and implemented by the organization. The data were analyzed to verify, in a simplified initial diagnosis, the influence of internal and external factors defined by MIRP in the company's innovation process.FindingsInnovation management process focuses predominantly on processes (71.4% of occurrences). As impact of the factors: results (88.9%), autonomy (76.3%), leadership (74.9%), resources (74.6%), internal relationship of the innovation group (73.1%), formalization (68.4%), processes (64.5%), relationship effectiveness (63.7%), external relationship of the innovation group (63.2%) and dependence on external resources (52.6%). There was confirmation that the innovation program of company is effective and that the culture of innovation is institutionalized.Research limitations/implicationsA crossing of supplementary information could reveal some significant difference in the perception of the innovative culture and performance of the innovation processes between distinguished profiles.Practical implicationsBetter guidance for management of ICT/BPO companies in an Open Innovation paradigm.Social implicationsBetter relationship among the actors of an Open Innovation industry arrangement.Originality/valueImprovement of the innovation process can occur through a greater focus on Open Innovation.


2013 ◽  
Vol 58 (199) ◽  
pp. 85-107 ◽  
Author(s):  
Marko Slavkovic ◽  
Verica Babic

The importance of knowledge management and its contribution to organizational performance and innovativeness has been the subject of many studies and is increasingly gaining recognition worldwide. Our study analyses the impact of knowledge management on perceived organizational performance and innovativeness in the context of the Serbian economy. The results of the empirical research on leading Serbian firms demonstrates the direct and positive effect of knowledge management. The regression results show that knowledge management generally has a positive effect on organizational performance. Also, the results show that knowledge management is positively related to the different dimensions of organizational innovation (process innovation and administrative innovation). The mediating effects of process innovation and administrative innovation on the relationship between knowledge management and organizational performance are only partially supported.


2020 ◽  
Vol 8 (4) ◽  
pp. 1014-1025
Author(s):  
Huang Xiaoyan ◽  
Lidia A. Fedorova ◽  
Hu Guiyu

Purpose of the study: Under the e-commerce environment, manufacturing enterprises need faster and more efficient information exchange, it is necessary to effectively carry out organizational innovation and improve organizational performance. The purpose of this study is to explore the effect of the interaction of the four elements of organizational innovation in manufacturing enterprises on organizational performance. Methodology: This study takes the four essential elements of organizational innovation and the interaction of them as independent variables, and performs a regression analysis method to analyze the influence of these elements on organizational performance through questionnaire surveys and interviews with 208 Chinese manufacturing enterprises. This study uses spss25.0 for data analysis. Main Findings: The organizational innovations have a positive impact on organizational performance. At the same time, verifying that the interaction between organizational innovation factors has a positive impact on organizational performance. This research proposes that one of the reasons for the low organizational performance and the implementation and management efficiency of the organizational innovation process is the inferior degree of integration of organizational innovation elements. Applications of this study: The recommendations of this study can be applied to the innovation and management of manufacturing enterprises in the context of e-commerce to provide a scientific theoretical basis and management strategy for policy formulation. This research has important practical significance for the realization of the stable development of manufacturing enterprises. Novelty of this study: Most previous studies have lacked research on the impact of factors of organizational innovation and the interaction of organizational innovation factors of manufacturing enterprises on organizational performance in the context of e-commerce. This article breaks through the fundamental laws of previous research and clarifies the relationship between the interaction of organizational innovation factors and organizational performance in e-commerce.


2015 ◽  
Vol 77 (22) ◽  
Author(s):  
Sri Gustina Pane ◽  
Dileep Kumar M ◽  
Muhammad Siddique

Recently, organizations are looking the ways to enhance their performance through innovation and learning. Most organizations are enhancing innovation to increase performance and to get a competitive advantage. However, very few studies are focused to investigate the role of organizational learning in the context of organizational innovation and performance. Current study aimed to investigate the mediating role of organizational learning between the relationship of the organizational innovation and performance. A random sample of 212 employees of the banking sector was selected to collect data. Results indicated that organizational learning significantly mediates the relationship of the organizational innovation and performance. Thus, a study was conducted to assess the presence of organizational learning can enhance the organizational performance in the presence of organizational innovation. 


Author(s):  
UDEGBE Scholastica E ◽  
UDEGBE Maurice I

In today’s global market, businesses are faced with intensive competition and in order to obtain a sustainable competitive advantage, they have to adopt processes and system for development of their new products, as well as the improvement of the existing products through innovation. This study was designed to investigate the relationship between organizational performance and product development by innovation. The data was collected from the marketing managers, operation managers and those managers who have been involving greatly in product development and innovation process. A total of 185 useable questionnaires were completed though research sample of 120 firms in Nigeria. The result of the study were interpreted using Likert model and SPSS package for the analysis of some appropriate statistical methods such as factor analysis, regression, and reliability analysis. The findings show that the impact of product development on organizational performance was higher in Nigeria when consumers perceive product innovation as stronger, more favorable and more unique. Creativity/quality of the innovation process exert a positive influence on product development and organizational performance. To literature, the study has supported previous studies on product development and performance especially in developing economies such as Nigeria, Malaysia, Ghana, and among others. Therefore, it was recommended that creative/quality innovations should be maintained continuously to develop appropriate product continually.


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