Critical Analysis of How Organisation can Facilitate and Manage Innovation - Free Essay Sample

Introduction

The organisation can be useful in indulging its innovativeness for since the industrial revolution of economies innovation has given firms long survival due to their generic competitiveness as per Distanont & Khongmalai (2018), and its role is clearly defined as follows.

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It is possible to analyse the relevance of an organisation based on the framework presented by Prajogos & Ahmed (2006), which looks into how an organisation can take measures to promote, facilitate and manage innovation. The framework shows the relationship between innovation stimulus and its resultant performance following its survey amongst 194 managers from Australian firms. Their correlation is indirect due to the fact that the innovation performance requires an intermediary component of an innovation capacity which in return channels back to the innovation stimulus.

The innovation stimulus, which refers to the conditions and environment necessary for the facilitation of the promotion and proper management of an innovation includes human and technological aspects. As observed to be equally useful, innovation capacity is the cultivated sense of relevance and practice that is linked to a particular organisation. On the performance of an innovation, results such as the number of subscribers and the level of engagement act to gauge it accordingly.

There are also factors that go hand in hand with the performance of an organisation which are: The human factors for organisation management which include the leadership for the organisation, its form of people management, creativity management, and finally an auxiliary factor of its organisational structure.

Leadership

The leadership of an organisation plays a key role in its innovation. The strategic level management of the organisation is responsible for coming up with the structure of how an organisation is run. These operations are based on people's way of life and how they are supported. Good socio-cultural support as a result of effective governance yields good innovation performance as is by (Elenkov & Manev, 2005).

As seen from the Prajogo & Ahmed (2006) framework, leadership that is visionary in nature meaning that it is focused on the future survival of the organisation is very important. Futuristic leaders pass down their concept of risky decisions and calculations that is characterised by predictions to open-minded employees. This is useful as backed up by a survey done in South Africa’s western cape where organisations grew exponentially for estimated a decade by (Yan et al., 2012). It is therefore recognised that visionary leadership of innovative organisations allow Small and Medium Enterprises to thrive and survive.

People Management

The employees of an organisation usually have managers of various departments working in integration. It has been hypothesised that employee performance management directly affects the level of individual management. The research done by Audenaert et al. (2016) is designed to first argue that individual employee innovation is a result of progressive and habitual practices for a considerable period of time under a leader-member exchange based on the goal-setting theory. The Leader-Member Exchange (LMX) acts as a mediator.

From this survey, it has been found that employee performance management directly affects individual and consequently organisational innovation performance both positively and negatively.

Knowledge Management

Knowledge management is generally a concept that is associated with practices such as knowledge creation, knowledge availability when relevant, storage, transfer, and maintenance. One of the tools for knowledge management is the inventory of organisation innovativeness (IOI) modeled by Tang (1999), following this, proper procurement through Knowledge management is undertaken. Overlooking such details can lead to high levels frustration whereby available and yet-to-be-acquired resources either human or technological are abused.

Crediting the work of Darroch (2005), organisations keep up with proper knowledge management and as a result use resources more efficiently and therefore a good performance in terms of innovation owing to the fact that resources exist.

By considering however information development is said with personal characteristics and private development, this text tries to produce helpful insights on the linkages between innovation and aggressiveness. These concerns show the importance of information development and also the role of information management so as to assure aggressiveness. This work proposes conjointly an abstract model, with a special target for the relationships between information management, aggressiveness, and innovation. the main factors square measure bestowed and directions for future analysis square measure urged in step with the projected model (Caneiro, 2000).

Creativity Management

Creativity is one aspect of innovation that is less homogenous, its management is crucial, considering its other components such as contributions and responsivity make its research very dynamic. (Anderson, 2014) depicts why proper management of creativity is key in facilitating and managing innovation in an organization and this entails open and accurate communication focusing on the availability of resources as in the Inventory of Innovations.

There are many forms of creativity and this entails types such as arts, sciences, genres, and many others. The organization should therefore find a suitable way to classify creativity for optimized innovation (Unsworth, 2001). However, it should be duly noted that creativity management goes hand in hand with knowledge management.

Organizational Structure

In organizations, there are different administrative structures. The structures are significantly integral and formalized. It is plausible that a lot of these structures have a big impact when it comes to innovation (Hao et al., 2012). However, an international study shows the contrary. It is revealed by results that it may well be an imperfect thought. This is often why within the organization, it's necessary to understand that any structure that has been verified Dedahanov et al. (2017), is proof that organisational structures, solely create minor changes over the years which are necessary because the aim is to perform in innovation.

Conclusion

Innovation is seen from the research found to be very wide and dynamic. This study has examined a mediating model of the relationship between structure input and organizational capability for innovation and innovation performance articulated in three hypotheses. The two hypotheses were supported by the empirical information within which there have been significant relationships between input and capability, capacity, and innovation performance outcomes. The results didn't support the direct relationship between input and performance, suggesting that innovative capability is the needed intermediary.

References

Anderson, N., Potocnik, K., & Zhou, J. (2014). Innovation and Creativity in Organizations. Journal Of Management, 40(5), 1297-1333. https://doi.org/10.1177/0149206314527128Audenaert, M., Decramer, A., George, B., Verschuere, B., & Van Waeyenberg, T. (2016).

When employee performance management affects individual innovation in public organizations: the role of consistency and LMX. The International Journal Of Human Resource Management, 30(5), 815-834. https://doi.org/10.1080/09585192.2016.1239220

Carneiro, A. (2000). How does knowledge management influence innovation and competitiveness?. Journal Of Knowledge Management, 4(2), 87-98. https://doi.org/10.1108/13673270010372242

Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal Of Knowledge Management, 9(3), 101-115. https://doi.org/10.1108/13673270510602809

Dedahanov, A., Rhee, C., & Yoon, J. (2017). Organizational structure and innovation performance. Career Development International, 22(4), 334-350. https://doi.org/10.1108/cdi-12-2016-0234

Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive advantage. Kasetsart Journal Of Social Sciences. https://doi.org/10.1016/j.kjss.2018.07.009

Elenkov, D., & Manev, I. (2005). Top Management Leadership and Influence on Innovation: The Role of Sociocultural Context. Journal Of Management, 31(3), 381-402. https://doi.org/10.1177/0149206304272151

Hao, Q., Kasper, H., & Muehlbacher, J. (2012). How does organizational structure influence performance through learning and innovation in Austria and China. Chinese Management Studies, 6(1), 36-52. https://doi.org/10.1108/17506141211213717

Prajogo, D.I., and Ahmed, P.K. (2006). Relationships between innovation stimulus, innovation capacity and innovation performance. R&D Management, 36(5), 499-515.

Unsworth, K. (2001). Unpacking Creativity. Academy of Management Review, 26(2), 289-297. https://doi.org/10.5465/amr.2001.4378025

Yan, B., Maladzhi, W., & Makinde, O. (2012). Creating innovation culture through visionary leadership in small medium enterprises. 2012 IEEE International Conference On Industrial Engineering And Engineering Management. https://doi.org/10.1109/ieem.2012.6837927