Organization culture and Innovation

Does organization culture promote innovation

Hurley, R., & Hult, T. (1998). Innovation, market orientation, and organizational learning: an integration and empirical examination. Journal of marketing, 1 (62), 42-54.

The authors display a conceptual framework using a sample of 9648 employees obtained from 56 organizations from U.S. federal government.. the findings indicated that a culture of innovation in a firm offers greater capacity for adaptation and innovation.Hurley & Hult (1998) asserts that cultures developed in organizations promote workplace innovations. Companies with a culture of sourcing ideas from external businesses, form a habit of innovation in their projects to compete with others in the market. Employees research on obtained ideas depending on their status. Through positive collaboration and support from other members and their top executives, they improve their projects and increase on sales and profits. Companies wishing to innovate must focus on power sharing; build enough tolerance in their risk taking activities through effective communication.

Innovative companies source useful information from external businesses and use them to generate their own ideas in innovating existing projects. Moreover, external focus encourages research and self development as well as conducting training and benchmarking activities which facilitate innovation. Employees who are motivated on self development will consider adding their education which opens ways of gathering extra ideas on innovation.

Share of power reduces boundaries of status, turf and politics which negatively affect innovation. Communication promotes innovation of different ideas to firm projects. The authors recommend incorporation of constructs associated with innovation into researching orientation in the market and organiational learning.

Lichtenthaler, U., Hoegl, M., & Muethel, M.(2011). Is your company ready for open innovation? MIT Sloan management review, 1 (53), 45-48.

The study was a systematic review from 29 emphirical articles on open innovation process. The findings indicated that transfer of technology stimulates innovation. Lichtenthaler, Hoegl and Muethel (2011) assert that companies having cultures of transferring technology through innovation practices have an opportunity to innovate. Companies grouped among technology brokers, pursue inbound and outbound open innovation. Employees in these companies realize benefits of opening to innovation processes and experience positive impacts of initiatives in open innovation. A culture of incorporating technology in organisations assists in outsourcing ideas and combination of ideas which transfers and improves technology. Innovation is on the increase in such companies eliminating factors such as biasness of some employees. Conduction of benchmarking activities, provision of incentives such as materials and funds as well as support from employers improves the nature of the Company through innovation.

Companies with this culture have highest level of return on their sales due to their implementation on open innovation. They engage their employees in inbound and outbound open innovation facilitating transfer of technology.  These companies derive more benefits from interviews and additional opportunities in open outbound innovation thus strengthening the approaches. . Managers and top executives act as champions and innovation promoters.

Firms with a tradition of establishing incentive systems for internal innovation, such as patenting technologies developed internally and invention of monetary and non-monetary mechanisms of innovation, support transfer of technology and technology. Companies with personal organisational structures experience open innovation. The authors recommend use of advanced technology for technological innovation.

Goncalo,J.,& Staw,B. (2004). Individualism-collectivism and group creativity. Organisational behaviour and human decision processes, 100, 96-109.

The authors manipulated an individualistic vs. Collectivistic approach and employed their creativity through specific instructions. The study was conducted among 204 students from an American University in three phases.surveys were completed and generation of ideas in phases was considered.  The findings indicated that individualistic groups are extra creative than collectivisim groups.Goncalo & Staw (2004) state that innovation is affected by a culture of collectivism or individualism.  Individualism culture established in organisations makes employees feel independent and unique from other employees. Collectivism culture makes employees interdependent with the group and organisations in which they belong. Innovation is established in organizations with collectivism cultures since they promote the interest of group members and not personal interests. Collectivism culture improves members self esteem by accepting contributions from each person abilities. As a result innovation takes root in collectivism cultures who concentrate on well-being of the whole group through conducting beneficial researches and benchmarking activities.  Collectivism cultures lead employees towards understanding various norms of the organisation that lead to reaching the set targets of the organisation. Firms that concentrate on collectivism lay special emphasis on larger objectives of the group and puts effort in promoting cooperation of employees to assist in meeting their collective goals.

Innovation requires great creativity realized from collectivism groups who come up with collective ideas that are useful and novel to the organisation. Firms employing collectivism as their culture encourage innovation through making use of their personal attributes such as autonomy, self-confidence and good personal judgement. In collectivism firms, employees are free to express their ideas since they are appreciated and corrected by their colleagues. Intertwining creativity and conformity some people become more creative compared to their counterparts and get fully involved in innovation practices which improves the business.  Authors assert that conducting group researches accumulates more ideas and comments on innovation practices.

Discussion

            Collectivism cultures lead to conforming to pressures in the group thus promoting harmony and interdependence in the firm. However, individualist culture encourages independence in the group, retaining of positive ideas and views, and hence are not suitable where innovation is required(Hurley & Hult, 1998). . However, firms accommodating individualism cultures may carry out innovation practices better than collectivism firms. Group dynamics that make members follow instructions during innovation may turn out negatively on members (Lichtenthaler, Hoegl and Muethel, 2011). Group members are rewarding from their observations and also punishing and may avoid supporting ideas from a certain person gifted in innovation and thus kill innovation spirit in the organisation.

Tolerance for conflict and risk taking cultures help in solving impersonal Conflicts and encourage search of extra information and ideas to look for solutions (Goncalo & Staw , 2004). In the process employees, get new ideas to employ in their innovation processes. Conduction of benchmarking activities, provision of incentives such as materials and funds as well as support from employers improves the nature of the Company through innovation (Lichtenthaler, Hoegl and Muethel, 2011).

 

 

 

References

Goncalo, J., & Staw, B.(2004).Individualism-collectivism and group creativity. Organisational     behaviour and human decision processes, 100,96-109.

Hurley, R., & Hult, T. (1998). Innovation, market orientation, and organizational learning: an        integration and empirical examination. Journal of marketing, 1 (62), 42-54.

Lichtenthaler, U., Hoegl, M., & Muethel, M. (2011). Is your company ready for open innovation? MIT Sloan management review, 1 (53), 45-48.