Management, Innovation and Organisation Performance

Management, Innovation and Organisation Performance
Management, Innovation and Organisation Performance

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Management, Innovation and Organisation Performance

Introduction

Innovation is a process that involves bringing of new products in a more modern way to impress the customers and capture the market accordingly. The people who benefit from this process tend to benefit a lot and it is in such a situation that design thinking is embraced by customers. Innovation in an organisation will tend to focus on the needs of the existing and new customers in place as well as encourage amendmends of the organisation structures.

Analysis of innovation process

Building of change

In designing of organisations that are bound to change, managing of talents is embraced accordingly. Poor fit for any organisation gives the job description that will be bound to update from time to time. In most cases, an organisation that is geared to make more innovations will employ individuals who are quick learners and interested in matters of change. These individuals will work to ensure that the organisation innovation activities are attained accordingly due to their interest in acquiring new changes in their working environments (Ernst, Chrobot-Mason, 2011).

Paying their workers well will make them participate in the change process that will bring innovations in the organisation and make it more competitive in the market (Day, 2006). Also, organisations that advocates for a work environment with the allocation of best task to an individual will facilitate change and innovation to take place in their premises effectively.  Allocation of tasks in accordance with individual capability is a better approach to acquiring innovations in the market accordingly (Ernst and Chrobot-Mason, 2011).

The right skills and knowledge ought to be employed for use under operations of the best talent to facilitate innovations to take place accordingly. Rewarding workers for their good job that they have done makes them be more creative towards advocating for change in their workplaces (Edmondson, 2011). The performance will be improved and change, innovation in the company will be very effected in such situations. Any bad behaviour from the employees that could have interfered with the change process will be terminated immediately; since, they are not ready and willing to temper with their jobs that give them means of survival (Hoehl & Parboteeah, 2006).

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The organisation structure of a company that wants to be more innovative must be checked and rectified where possible to avoid any interference in the innovation process. The structure of the organisation ought to be close to the market and define all the competitive activities that are taking place in conjunction with their innovation activities (Worley & Lawler, 2006). The organisational structure must connect its employees with the outside world to ensure that they learn more innovative methods to be used in the company.

The employees ought to be connected with the external environment for a smoother working and encourage more innovations to take place for the benefit of the organisation (Nonaka, 2007). Any organisational structure that is ready and willing to connect its employees to the outside world must bring all the critical information’s about trends taking place, encourage opportunities and issues of concern accordingly to their workers.

They ought to ensure that their workers don’t get tired with their roles that they are doing and also make it possible for them to connect with regulators across the globe (Andreeva & Kianto, 2011). Once they succed in connecting their employees with the external market, they will acquire more customers and make more progress under a well-planned innovations (Ciabuschi, Forsgren & Martín, 2011).

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Leaders and information

Information as well as decision process has to be well sought to ensure that all activities are well conducted. All the information given has to be transparent to ensure that activities transacted are transparent as well to the benefit of the company. Its profits govern business units that it has incurred or any loss experienced over a given time. Shared leadership is advantageous, implying that there is the best distribution of hierarchical duties, and they can be done more effectively.

The organisation will tend to respond to all information given whenever; there is shared knowledge that comes as a result of shared leadership in the organisation. Leaders in an organisation are attributed with the role of getting everyone moving in a new and a better direction that will be to the benefit of all (Corniani, 2012). Leaders also have to share the knowledge that they have for the benefit of the organisation and get their workers more informed on how they should handle their customers.

The building of talents in an organisation will be facilitated under a reputable leadership that is also shared among many people (Giedraityte & Raipa, 2012). Leaders, will be able to nurture their skills and each one’s talent will be improved. Improving of leadership talents guarantees better innovations in the organisation because; they are focused on making their functionalities better. Leadership talents include; making good decisions under all circumstances to make sure that all persons benefit from the decisions made.

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The views of the workers should be sought under innovations process management as a way of making them feel recognised and appreciated for who they are and for what they do. Shared leadership also calls for shared ideas of the company and ways of making innovations is of greater benefit to the organisation. Leaders working together with all the stakeholders of the organisation make a good decision related to their customers and how they can better their services and products.

Understanding both the internal capabilities and external environment is very useful under shared leaderships since; it helps in matters of corporate change (Hennala, Parjanen, & Uotila, 2011). Change is what contributes to organisations becoming more innovative and productive in its operations and will work better under shared leadership. Leaders who are focused on getting to higher heights will advocate for continuous change in their operations as a way of becoming more innovative and matching the customer’s needs (Kong, 2010).

The customer will tend to be associated with a business that are more innovate and focused on bettering their service. Innovations that come as a result of continuous change mean that customers will get impressed with them and want to buy their product and services. It is clear to state that services and products from the innovative organisation will be liked by many and their products will be improved accordingly (Schuurman, De Marez & Ballon, 2013).

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Aligning operations with the market                    

Most of the companies are pulling their organisational strategy to align it with the market for the sake of responding to the competitive pressure and become more innovative to get new customers. Teaming makes an individual be more innovative; since, they can share knowledge and help one another with different ideas that they know and in whatever they do rather than when one is working alone.

Their knowledge becomes broader and more applicable for use in the innovation process which is very useful in the company progress. Good interpersonal skills are also bound to be developed and this is also good in encouraging better networking in the innovation process. There are serious challenges that are evolving from teamwork and if not well managed can cause a lot of chaos and disorientate functionality of the group.

The embracing of several projects management helps employees in an organisation to learn how to carry several activities assigned to them. Networking comes as a result of better teaming in organisations members and for the stable teams that have learned to work together end up achieving their ultimate goal accordingly.

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Knowledge creation               

Knowledge creation is another innovation theory that had been employed for use to ensure that the best strategies are entertained to attain the required aim of the company. Making the personal knowledge available to others was a central activity that was employed for use in making sure that the best is attained in the innovation process. Knowledge availability takes place at all times in the company, and it means that knowledge creation is as much as ideal as it is about ideas.

There was the use of tacit to tacit knowledge, which is very personal and hard to personalise as well as difficult to communicate to others (Ernst, Chrobot-Mason, 2011). There is a limitation of knowledge creation that takes place when socialisation is in the process and this ouht to e limited very much. Use of knowledge model ensures that managers challenge their employees to take working seriously for the sake of making good and reputable innovations. Creation of actual model is a process in knowledge that can be used to guarantee good working and better results of innovation.   

Efforts of the group work

The group identified four practices that enable boundary spanning of leadership, buffering, mobilising others and transforming as well as the weaving of others as strategies of achieving its desired goal. The group ensured that interrelated strategies were included in the team working to attain the managing innovation process working. Various efforts were laid aside to attain the desired working of the group (Akhavan, Reza Zahedi & Hosein Hosein, 2014). Also, efforts were laid aside for the members to feel protected in the group to increase collaborations between boundaries.    

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The group work worked to have efforts in shared identity where all members could feel as part and parcel of the group. Having a typical objective was an exertion that the group needed to be encouraged in ensuring that they accomplish the achievement. The team worked to ensure that they had interdependence whereby; all the team members were active, and none of them was dormant.

Teamwork should always encourage personal interaction where people can share different ideas and views required in attaining their goal set aside. The group had endeavours to guarantee that there was a common impact among its individuals, and working was better and smoother. All the activities that are needed were listed down, and a grant chart of all activities that are bound to take place was included.

There were various efforts that had to be employed for use in making the team function as required to attain the set goal. The group had high efforts of advocating for the right person to lead the team in the desired direction (Akhavan & Zahedi, 2014). The act of choosing the right leader proved to be an effective one; since, he made those capable of any bad act to be accountable for their evil actions.

The group was saved from the danger that could have taken over and disorientate its functioning. The group had efforts of ensuring that the team leader attained more training session to improve his leadership skills and learn how to manage the group work to achieve its desired goals. Having the right team leaders was an effort from the team proving any person who know what is expected of his team members, will guide them in the right manner.   

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Lesson about team working

Novel insight can be generated from knowledge creation, and where there is a limitation of social capital, teamwork is bound to face a lot of challenges. There are many knowledge boundaries that interfere with knowledge sharing in a team and have to be avoided at any cost. Generation of the idea in teamwork can interfere with pressure from a very powerful leader. Any teamwork requires a lot of trusts to encourage knowledge sharing among each person in the group (Jafari, Rezaeenour, Mohammad & Hooshmandi, 2011).

It was prudent to learn that any successful teamwork does not require confrontation to one another, rather it requires an understanding of one another and listening to each other’s views. There is need of integrating which involves the synthesizing to create new possibilities of brainstorming where one can reason on their own. All the conflicts of the group and its failure have to be checked and worked upon accordingly to avoid any conflict that might disorganise the teamwork (Patton, 2007).

The team is required to think and understand different methods of reacting on the organisational roles that will contribute to their achievement in the innovation process. There was a need to capture, and access softer lessons for the team members to make learning smoother and facilitation of innovation process as reguired. Every one of the distinctions in a group must be settled in ensuring that working is better and more viable.

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            During group work, one could easily learn that choosing the right members to work with was the only way out to ensure that innovation management process was facilitated. Each of the group members has to be allocated responsibilities for them to know what is required and do it with the aim to attain the right goal. Team working will work better under good and reputable allocations of duties where each person knows what is expected of him and does it accordingly. Innovation processes are well managed by a team working where duties are well allocated to each and every group member on his capability.  

One could learn that there existed different knowledge in different individuals and embracing it could help facilitate a smooth working environment. Knowledge generation is very important in any team work, and this helps the team to think on management innovation matters of the organisation. Anyone in the team will learn that working under one goal is very crucial because; this will help all members to understand the aim of attaining an innovation.

One could learn that sacrifice was very prudent where each and every member was required to sacrifice all his personal views that could be of high help to the group towards achieving its goal (Strohmaier & Lindstaedt, 2007). Through doing this, the team working could be a more effective activity and managing innovation processes could be made better. 

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Another lesson learnt from the teamwork was that commitment to a team is very crucial in achieving its success which is the ultimate goal. Any member who proves not to be committed to achieving success in managing innovation process, will be a great stumbling block to the team. Commitment encourages any team member to be devoted to attaining the set goal as well as make contributions that will help the team move ahead in its operations (Yun, Shin, Kim, & Lee, 2011).

From the new organisational forms that supported knowledge work in the group, one could learn that knowledge work in innovation matters is supported by different forms of organisation in existence. All the knowledge workers who manage innovation process were very distinctive and forms of control as well as the required rewards.

The knowledge work is very useful in managing innovation process; hence, rewards are necessary to be given to the leaders for developing useful competencies required for use in the future. Whenever organisation grow in large size, it becomes hard to sustain adhocracies and also hard to manage the innovation process taking place within their premises.

Conclusion

This paper gives an explanation of the analysis of innovation processes and how they were experienced under different activities. All the group efforts that were evident are also elaborated as well as the lessons learnt about teamwork.

Appendix

(Group leaders) – He was determined in achieving a specific leadership, goal that was managing the innovation process of the team. The group leader was entitled to plan and control all the activities that were required by the team in making sure that all its activities towards managing the innovation process were attained accordingly.

Evans (group organiser) –    Evans was entitled to the role of organising the group meetings and time as well as venues where they could be taking place. He was additionally the one to start another task for the gathering to handle and also guaranteeing that every one of the ventures met the required due date. Evans was in charge of making sure that every group member knew his role and played it effectively.  

Mary (specialist) – Mary was in charge of ensuring that the product of the project was done in a more professional manner as required.

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Joseph (Peace Keeper) – Joseph was entitled to the role of keeping peace and making sure that all activities were taking place as required. Joseph ensured that once a conflict occurred, it was solved with an immediate effect to avoid disorientating the functionality of the group.

John (Editor) – All the work of the group members was edited by John and he ensured that there was no repetition that could make working slow and adamant. Everyone’s writing was made sufficient and in a more professional way under the guidance of John

Other members – The rest of the group members were entitled with the task of participating in the project, communicating, and submitting their assigned work upon deadlines. Group members are entitled with the role of ensuring that they do their duties as required to avoid failure of the groups.       

References

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Akhavan, P., Reza Zahedi, M. & Hosein Hosein, S. 2014, “A conceptual framework to address barriers to knowledge management in project-based organizations”, Education, Business and Society: Contemporary Middle Eastern Issues, vol. 7, no. 2, pp. 98.

Andreeva, T. & Kianto, A. 2011, “Knowledge processes, knowledge-intensity and innovation: a moderated mediation analysis“, Journal of Knowledge Management, vol. 15, no. 6, pp. 1016-1034.

Ciabuschi, F., Forsgren, M. & Martín, O.M. 2011, “Rationality vs ignorance: The role of MNE headquarters in subsidiaries’ innovation processes”, Journal of International Business Studies, vol. 42, no. 7, pp. 958-970.

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Ernst, C., Chrobot-Mason, D. 2011. Flat World, Hard Boundaries-How To Lead Across Them. MITSloan Management Review.

Giedraityte, V. & Raipa, A. 2012, “Risk Management in the Public Sector Innovation Processes”, Viesoji Politika ir Administravimas, vol. 11, no. 4.

Hennala, L., Parjanen, S. & Uotila, T. 2011, “Challenges of multi-actor involvement in the public sector front-end innovation processes”, European Journal of Innovation Management, vol. 14, no. 3, pp. 364-387.

Hoehl, M., & Parboteeah, P. 2006.Autonomy and Teamwork in Innovative Project. Human Resource Management, Vol. 45, No. 1, Pp. 67–79

Jafari, M., Rezaeenour, J., Mohammad, M.M. & Hooshmandi, A. 2011, “Development and evaluation of a knowledge risk management model for project-based organizations”, Management Decision, vol. 49, no. 3, pp. 309-329.

Kong, E. 2010, “Innovation processes in social enterprises: an IC perspective”, Journal of Intellectual Capital, vol. 11, no. 2, pp. 158-178.

Kosala, M. 2015, “Innovation Processes as a Stimulant of Internationalisation Process of Firms”, Entrepreneurial Business and Economics Review, vol. 3, no. 2, pp. 65-84.

Nonaka, I. 2007.The Knowledge-Creating Company. Harvard Business Review

Patton, J.R. 2007, “Metrics for Knowledge-Based Project Organizations”, S.A.M.Advanced Management Journal, vol. 72, no. 1, pp. 33-43,2.

Schuurman, D., De Marez, L. & Ballon, P. 2013, “Open Innovation Processes in Living Lab Innovation Systems: Insights from the LeYLab”, Technology Innovation Management Review, vol. 3, no. 11, pp. 28-36.

Strohmaier, M. & Lindstaedt, S. 2007, “Rapid knowledge work visualization for organizations”, Journal of Knowledge Management, vol. 11, no. 4, pp. 97-111.

Worley, C., & Lawler, E. 2006. Designing Organizations That Are Built to Change. Mit Sloan Management Review

Yun, G., Shin, D., Kim, H. & Lee, S. 2011, “Knowledge-mapping model for construction project organizations”, Journal of Knowledge Management, vol. 15, no. 3, pp. 528-548.

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Innovative Capabilities Research Paper

Innovative Capabilities
Innovative Capabilities

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Innovative Capabilities

City, State

Globalization has led to expanded markets for business enterprises. However, the level of competition has increased making it challenging for the organization to exist in the market without developing strategies to gain competitive advantage (Rothaermel, 2015). Innovation is among the important aspects that enable a company to develop superior products and services thus creating a competitive advantage.

Innovative capabilities is developed through the creation of enabling environment for innovation development based on culture development, availing of resources, competencies and use of inter-organization networks to build an innovative organization (Thompson et al., 2013).

Innovation is creation of customer values by coming up with new ways of doing things to meet new, undefined or existing market demands in unique ways. Innovation may result in the development of new or more effective merchandise, services, processes, ideas or technologies that are made available to different stakeholders.

Competitive advantage refers to the advantage a company has over other key players in the industry. Competitive advantage leads to the generation of greater sales or more customers compared to the firm’s competitors. A competitive advantage comes from the firm’s cost structure, good customer support, distribution networks, and product offerings among others (Schilke, 2014).

It is hard for competitors to neutralize competitive advantage if such advantage is sustainable. Competitive advantage can either be a comparative or differential advantage. Comparative advantage occurs when a firm can produce a product or services at a lower cost as compared to its competitors. In so doing the firm will be able to sell the product at a low price. These way customers will tend to purchase such price thus creating a larger margin on sales.

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Innovation Capabilities

Innovation is a critical aspect that leads to the creation of sustainable competitive advantages (Johnson et al., 2013). Innovation enables all the stakeholders to see things from a new angle, take risks, seeing the bigger picture and become more flexible. Therefore, management should develop an enabling environment necessary for innovation to take place. Innovation necessitates that organization should address four key innovation capabilities; technology development, operations, management and transaction capabilities. These capabilities enable a firm to achieve what is termed as Schumpeterian profits.

A firm is viewed as a hub for resources and utilized to produce products through the price mechanism. Different firms produce such products and services through different processes. Based on coordination based approach to firm development, a firm is considered to be an agent of planning and coordination of production and transaction process through the administration of a manager (Lew & Sinkovics, 2013). The management key role is to organize and allocate resources to achieve efficiency and growth.

On the other hand, capabilities approach to firm development describes things that a firm can do, and how a firm seeks to change and innovation to gain business sustainability. According to Schumpeter, an entrepreneur is a change agent and success of a firm is through utilization of different sources of knowledge used in business enterprises so as to deliver goods and services (As cited Camisón & Monfort-Mir, 2012). These goals are attained by utilizing the firm’s capabilities to develop new products and manufacture them for commercial purposes.

Each organization is built based on technological synthesis that enables a firm to build business relations. An organization depends on technological and business driver to be in a position to produce a good and transact in the market. A technological driver refers to those aspects that enable an organization to develop a new product and their consequent production (Camisón, C., & Villar-López, 2014). The technological driver is dependent upon operations and development capability. Organizations that can develop and sustain these capabilities can gain competitive advantages.

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On the other hand, the business driver enables a firm to integrate the different parts of the firm and move the produced goods from the firm to the market for transaction purpose. It is through management capability that a firm can achieve integration of different parts of the company (Kindström et al., 2013). The firm depends on the four innovation capabilities to become innovative and gain competitive advantage.

Development Capability (DC), this type of capability, encompasses of creating a new product, service, or solution to be offered for sale on the market (Alegre et al., 2013). Development capabilities assist in the technological development process and encompass the conscious application of knowledge to solve different problems in the market. Technological capabilities help create, adapt and develop new technologies that give a firm competitive advantage. Examples of technological resources include patents, licenses, knowledge, and skilled manpower among others.

Operations Capability

Coming up with new innovative products are key practices a firm should do from time to time to survive in the market. Nevertheless, it is required that a firm turns the technological outcome of innovation into a set of operation so as to produce goods to be sold in the market.  All these is attained by means of operations capabilities (OC).

Operation capabilities refer to a firm’s ability to come up with products that are of high quality and reliable at a competitive cost (Williamson et al., 2013). Operation capabilities give decisions on production, planning, and control. Some of the aspects of quality include quality, efficiency, cost, delivery, flexibility, and responsibility.

Development capacity area of concern is changing technologies. On the other hand, operation capacity focuses on routines, efficiency, stability and standardization. The aspects of Operation capacity mainly focus on features that are necessary to manufacture a product. Operation capability is very important for generating technical change.

Management Capability

Apart from operation capacity and development capacity, a firm requires a set of skills to enable it to integrate all internal capabilities in an efficient manner. It is through management capability that a firm is able to plan, manage and coordinate business activities to attain efficiency and growth. Management Capability assists a firm to efficiently coordinate and integrate different activities within the organization resulting in economies of scale and scope requisite for a firm to compete in the market.

Managerial Capabilities are borne out of human capital, as well as cognitive and social management (Verganti, 2013). Managers are able to develop, integrate and engineer both tangible and intangible resources to gain competitive advantage. Management requires a lot of abilities and leadership skills in order to apply in problem-solving.

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Transaction Capabilities

Transaction capabilities feature the firm’s set routines, knowledge, and abilities that a company comes up with the aim of reducing marketing cost, logistics, distribution, and trading among others. Transaction cost acts as a bridge between the firm and its external environment (Wang & Wang, 2012). Transaction capability is important for analyzing the market for new opportunities, and changes in order to offer products that satisfy customer needs and expectation.

Transaction capability enables a firm to understand demands for customers and transact at the lowest possible cost. On the same note, the firm will be able to come up with new products and services that are economically feasible.

How innovative capabilities are developed

There are many ways a corporation can create innovative capacity. An organization can either improve on its technological drivers or business drivers to attain the much desired competitive advantage through the creation of innovative goods and services.

Training and development: Organizations create an innovative and dynamic environment by training and talent development of its employees. When employees are hired, they go through rigorous training aimed at imparting the necessary skills for the employee to perform duties efficiently. The management should also identify and retain skilled workers who are innovative and perform their duties exceptionally (Li & Liu, 2014). Training and employee development help to create competencies which are responsible for quite some new goods and services that a firm develops to sell in the market.

Acquisitions: Organizations can also create innovative capability through acquisition. Firms may decide to use acquisition instead of developing innovative capabilities from scratch. Through the acquisition, a company is able to own the rights and all the resources, technology, employees and market position belonging to the acquired company. If the acquired firm is bestowed with processes and values that are a source of competitive advantage, the acquiring firms should not integrate the company into the new parent firm because it may lose these processes and values.

Instead, the acquiring firm should rather let the business exist on its own but instead, provide additional information to the acquired firm and to take advantage of the acquired company’s processes and values (Reed et al., 2012). However, if the goal were to acquire the firm’s resources, then it should be integrated with the parent firm. This implies that the acquired employees, products, services, customers, and technology be integrated into the parent’s existing innovative capabilities.

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Creating New Capabilities Internally

Firms can also develop new capabilities within the firm’s different units. Firms can develop new capabilities by changing organization processes, look for individuals with new skills. Raise capitals, develop organization brand and licensing the technology to create innovative capabilities and sustained competitive advantage.

However, creating change within the organization may be hard. There are organization boundaries that may hinder the creation of new processes. However, managers should come up with ways to address different challenges and develop new team boundaries that facilitate implementation of new work patterns and new capabilities requisite to transform raw materials into finished products.

Creation of innovation capabilities through Spin-Out process

Organization will be able to create new capabilities by looking at the current trends and adopt new technology in the production (Davenport, 2013). This can be achieved by spawning capabilities within spin-out ventures. Rarely do large firms whose cost structured is developed in such a way to compete in high-end markets work well in the low-end market. Such firms should develop a cost structure that is competitive and profitable.

The spin-out operation is necessary when the current size of the new opportunity is small compared to the growth demand of the mainstream firm. The firm should run the old business strategy while looking out for new value-based business processes

Ways in which Competitive Advantage can be constructed through building capabilities

Sustainable competitive advantage is becoming more dynamic because of globalization and increased competition. In the past, competitive advantage was created through strategic positioning, first-order capabilities, production scale and delivery and customer care (Wang & Wang, 2012). These factors are still important today. However, these factors alone are not able to provide sustainable competitive advantage.

Thus, things have changed, and organizations are constantly looking for new organizational capabilities that can result in rapid adaptation to new changes. Firms are required to be good at learning how to do new things in a better and innovative manner. Organizations with sustainable competitive advantage are able to act quickly to change. Such organizations engage in Research & Development and have learned how to experiment faster, economically and frequently (Davenport, 2013). Such firms research not only on the production of goods and services but also on strategies, processes and business models.

A good example of an organization that is able to read and act quickly based on signals is Google Company. This company is able to do dynamic research on the changes in the external environment. On the same note, the firm can rapidly act on the information to re-invent its business model and produce information that is necessary to meet customer demands.

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Organization capabilities enable a firm to create new and innovative products that give them a competitive advantage over its competitors. For example, Apple Incorporation can constantly develop revolutionary smartphones through innovation and resource capability. Apple Inc. possesses unique resources and human capital and other technological drivers that enable them to develop unique products that suit customer needs. The firm also engages in extensive research and development as well as consumer analysis to spot trends and provide goods that suit customer needs and demands.

Innovation capabilities also enable a firm to produce products at a lower production cost and thus create a competitive advantage (Reed et al., 2012). Innovation capabilities enable a firm to develop new ways of production that are efficient and cost effective. Through innovation capabilities, firms are able to reduce production cost significantly.

This way, the firm will able to sell it products and services at a lower cost compared to other competitors and thus able to gain sustainable competitive advantage. Another example of a firm that has gained a sustainable competitive advantage through low pricing is Wal-Mart. Through innovation capabilities, Wal-Mart is able to utilize strong pricing strategy to gain competitive advantage

Similarly, innovation capabilities enable a firm to develop unique processes that cannot be easily imitated by other competitors (Alegre et al., 2013). A good example is Coca-Cola company sustained competitive advantage. Coca-Cola Company can gain a sustained competitive advantage because of the unique formula for creating cola products. All of its competitors are not able to copy or use this formula in creating their products, therefore, giving Coca-Cola a competitive edge over other key players in the drinks and refreshments industry.

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Innovation capabilities also enable a firm to create superior database management and data processing capabilities and thus creating sustainable competitive advantage. A good example is Google Inc. The firm possesses superior data analysis, processing, and management making the company market leader.

Innovation capabilities also enable a firm to develop strategic assets such as patents that lead to sustained competitive advantage (Johnson et al., 2013). Such assets are not easily acquired because they are protected by patents and other legal rights. A good example of a firm that is able to obtain sustained competitive advantage is General Electric. The company has several patents that help to protect its strategic assets making the firm very powerful.

Creation of Brand Value: innovative capabilities enable a firm to create brand equity. Brand equity enables a brand to gain customers because of its reputation for producing products that are unique, innovative and easily recognized in the market. Examples of companies that are able to gain brand equity include Coca-Cola and Apple. Coca-Cola company products are well known all over the world. People prefer taking Coca-Cola drinks more than Pepsi and other brands of Soda.

In conclusion, innovation is very important for a firm’s business success and sustainable competitive advantages. Therefore, business organizations should focus on developing innovative capabilities that add to the firm’s innovation performance. These capabilities include development capabilities, operations capabilities, management capabilities and transaction capabilities. By developing these different aspects of innovative capabilities, a firm is able to create sustained competitive advantage through the development of new products, strategic assets, f brand equity, and superior database management among others.

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Williamson, P. J., Ramamurti, R., Fleury, A., & Fleury, M. T. L. (Eds.). (2013). The competitive advantage of emerging market multinationals. Cambridge University Press.

Verganti, R. (2013). Design driven innovation: changing the rules of competition by radically innovating what things mean. Harvard Business Press.

Wang, Z., & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert systems with applications39(10), 8899-8908.

Camisón, C., & Monfort-Mir, V. M. (2012). Measuring innovation in tourism from the Schumpeterian and the dynamic-capabilities perspectives. Tourism management33(4), 776-789.

Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research67(1), 2793-2799.

Reed, R., Storrud-Barnes, S., & Jessup, L. (2012). How open innovation affects the drivers of competitive advantage: Trading the benefits of IP creation and ownership for free invention. Management Decision50(1), 58-73.

Davenport, T. H. (2013). Process innovation: reengineering work through information technology. Harvard Business Press.

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How Organizational Structures Support or Impede Innovation

Organizational Structures
Organizational Structures

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How Organizational Structures Support or Impede Innovation

Organizational structures acts as the main guideline of how to run activities like supervision, coordination and task allocation. Also, it defines the flow of information in diverse levels of management (Swan, 2007, P. 177). On the other hand, innovation entails changing the organization’s processes or coming up with new ideas to improve the company’s performance.

Therefore, for change to take place, the organizational structures should be active to avoid confusion. Moreover, the management should have a positive attitude to embrace changes which occur as a result of the transformation process. Innovation depends on the employee’s flexibility, adequate information and communication systems and proper project management.

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For change to be effective, people should have knowledge about various matters. According to the epistemology of possession, knowledge is a personal property of an individual, who interprets the meaning of data according to perceptions, experiences, and previous understanding. Various people with different past experiences are likely to draw different conclusions from the same information. Since knowledge is based on an person, what individuals agree on as true is driven by those in power since their justifications often have a lot of weight.

For instance, in western medicine, clinicians who claim about the best treatments, basing their knowledge on scientific research override the competing claims which come from less powerful groups applying alternate therapies (Newell et al., 2009, P. 15). The sales persons can use support innovation by sharing ideas from customers because they are in a position to understand the customers’ needs. These thoughts help the organization to come up with better products to suit the market’s needs.

Additionally, the firm tries hard to maintain a fairly flat organizational structures to avoid many rules and regulations. Moreover, the firm did not have a human resource department, and would employ its workers formally through the word of mouth. These features help in recruiting the most competent workers because recruitment considers a person’s ability to apply his knowledge in diverse areas. Moreover, the organization ensures that there are adequate resources for implementing in all technologies to facilitate project implementation.

Organizations use ICT to carry out knowledge work. However, the human agency, physical properties of some ICTs and institution within which the people make their work influence the effect of ICT on education. Research shows that technology determines the type of organizational structure.

The organizational structures have the ability to support or impede innovation in some ways. Change starts with the management of awareness that different people possess. If workers conduct the improvements appropriately, people will learn to embrace and apply the change correctly (Camison & Villar-Lopez,204, P. 100).

References

Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1), pp.2891-2902.

Swan, J., 2007. Managing knowledge for innovation. In Rethinking knowledge management (pp. 147-169). Springer Berlin Heidelberg.

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Data Security: Analysis of Effect of Cloud Computing

Data Security
Data Security

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Data Security: Analysis of Effect of Cloud Computing

Cloud Computing: Security, New Opportunities and Challenges

Section 1: Topic Endorsements

Cloud computing has been a very successful invention. It has created new opportunities for businesses in terms of storage spaces, access to software and other facilities. Additionally, many businesses have stated that they feel that their data is more secure if it is held in a cloud (Pearson and Yee, 2013). However, just as many businesses and experts have stated that cloud computing exposes data and makes businesses vulnerable in terms of data security (Ali, Khan and Vasilakos, 2015).

For computer scientists, understanding security issues as they relate to cloud computing is important for several reasons (Ali et al., 2015). The first and most important is the fact that in the future, any establishment will likely, partly or entirely, depend on cloud computing for storage of data (Mahmood, 2014). As a computer specialist, a computer scientist will be relied upon to monitor data, ensure security and make necessary adjustments where they are required (Verma and Kaushal, 2011).

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Section 2: Research Overview

The research literature on cloud computing indicates that we know cloud computing, even though safer than botnets, has created unexpected side channels because it is a shared resource (Verma and Kaushal, 2011). We also know that security incidences related to data computing are not unique, just different (Flinn, 2012). However, we do not know exact ways on how to improve data security within oud computing. However, several measures such as passwords, can be used to improve security (Pearson and Yee, 2013).

Cloud computing means that the devices used to provide required computing services do not belong to the end users (Krutz and Vines, 2010). As a result, users do not have control over how these devices are operated or who has access to them (Zhu, Hill and Trovati, 2015). Research regarding cloud computing has been extensive over the last decade as the service has continued to become more common among businesses and individuals. With each security development made, new ways to breach security come up as well (Samani, Honan, Reavis, Jirasek and CSA, 2015).

The basic research question is whether cloud computing has led to the increase or decrease of data security in enterprises, since it has become a business necessity (Nepal, Pathan and SpringerLink, 2014). The purpose of the study is to provide insight on cloud computing and how best to ensure data security. The methodology suggested for this research is equation methodology. Similarly, Moustakas- transcendental phenemonology is the suggested research model. With this in mind, the dissertation title becomes; Cloud Computing: Security, New opportunities and challenges (Schwarzkopf, Schmidt, Strack, Martin and Freisleben, 2012).

References

Ali, M., Khan, S. U., & Vasilakos, A. V. (June 01, 2015). Security in cloud computing:     Opportunities and challenges. Information Sciences, 305, 1, 357-383.

Flinn, J. (2012). Cyber foraging: Bridging mobile and cloud computing. San Rafael, Calif.: Morgan & Claypool.

Samani, R., Honan, B., Reavis, J., In Jirasek, V., & CSA (Organization),. (2015). CSA guide to cloud computing: Implementing cloud privacy and security. Waltham, MA: Syngress

Krutz, R. L., & Vines, R. D. (2010). Cloud security: A comprehensive guide to secure cloud computing. Indianapolis, Ind: Wiley Pub.

In Zhu, S. Y., In Hill, R., & In Trovati, M. (2015). Guide to security assurance for cloud computing.

In Mahmood, Z. (2014). Cloud computing: Challenges, limitations and R & D solutions.

Pearson, S., & Yee, G. (2013). Privacy and security for cloud computing. London: Springer.

In Nepal, S., In Pathan, M., & SpringerLink (Online service). (2014). Security, Privacy and Trust  in Cloud Systems. Berlin, Heidelberg: Springer Berlin Heidelberg.

Verma, A., & Kaushal, S. (January 01, 2011). Cloud Computing Security Issues and Challenges:  A Survey.

Schwarzkopf, Roland, Schmidt, Matthias, Strack, Christian, Martin, Simon, & Freisleben, Bernd. (2012). Increasing virtual machine security in cloud environments. (BioMed Central Ltd.) BioMed Central Ltd.

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Innovation: Case Study of Huawei

Innovation: Case Study of Huawei
Innovation: Case Study of Huawei

An In-depth Innovation Report of Huawei Company

1. Introduction: Huawei and the Business case for Innovation

Huawei, a company that initially started as a private start-up in China is rapidly becoming a competent innovative and encompassing company. Through competitive advantage, the company has found its way inside countries where competent companies exist, like the United States, Europe, and Japan. With staffs spread worldwide, the company allows employees to hold stocks, thereby becoming an employee-owned company, allowing the company to quickly spread across the world (Tao & Chunbo, 2014).

Historically founded in 1987 by Ren Zhengfei, Huawei has undergone extraordinary transformation since its foundation (Cremer & Tao, 2015a). Zhengfei started the company selling Private Branch Exchange (PBX) in 1987. By 1993, he had built research and development (R &D) team, and the company was developing its own digital PBX (Zhu & Jones, 2014). Rapid expansion through innovation and leadership made the company to enter overseas market by 1995, and since millennium, the company has its presence across 170 countries.

Transforming from one man sales to international telecommunication giant, speaks about the innovative business management undertaking that Huawei embodies. The company mainly deals with selling optical transmission equipment that generates voice data and video services (Cremer & Tao, 2015a; Zhu & Jones, 2014). Some innovative products such as the Softswitch products, which is a used in VoIP network and Public Stitched Telephone Networks (PSTN) and VoIP networks are made available through this company.

Other products of Huawei that provides edge over other company includes the Next Generation Network (NGN) that give solutions to multimedia networks in cell phone (GSM and CDMA), land lines, and television (Abbott Foster & Reinsch, 2010). Collaboration and partnership with strong company like IBM and Neuf Telecom has also allowed the company to quickly build on their business set-up (Bell, 2008; Cremer & Tao, 2015b).

All these factors put together is making Huawei to offer good price-value-offer in the market, and allow cheaper and better technologies of China to compete and match with the Occidental ones. In short, Huawei is the upcoming company to watch and compete in terms of business innovation.

2. Prioritising Innovation in Huawei

Through transparent media desensitization, the company is able to show that company based in China is worthy of respect, and that it is ready to play their part in international field (Tian et al., 2016). Huawei has unique management and business systems, different culture and systems, different approach towards innovation and reform, and rapid adaptation to evolving strategies and leadership systems that allow the company to climb towards innovative leadership board. Given such advancement, Huawei has become one of the most cited companies in terms of their business programs across the world (Tian et al., 2016).

During the 90s, R&D was all about internationalization, corporate entrepreneurship, and information-integration, but the turn of millennium is taking R&D towards becoming a technological maverick, which the Chinese company like Huawei is emphasizing. Huawei has simply become the classic example of technological prowess from emerging power country that is China (Boutellier et al., 2008). In China, Huawei is known as the B2B-brand, and the Chinese consider it as the largest manufacturer of telecommunication equipment  (Bell, 2008).

Within China and beyond, the success of the Huawei is attributed towards its excellent R&D, where they  engage in investing 10% of its revenue every year, holding thousands of patents, and cooperating with global players like IBM, Intel, Motorola, Oracle, and TI  (Bell, 2008; Tian et al., 2016). With research centers in information technology centers of the world like India, Russia, Sweden, and the United States, the Company works toward garnering customer’s requirements, thereby becoming a leader and innovator in technology world.

Their business innovation comes in terms of creating several digital technologies that will help link PCs, TVs, stereos, and other devices to the internet, thereby making the company to get easy access to the competitive platform, and in establishing itself as one of the leader in innovation (Bell, 2008). Again, since there are many fourth generation networks operating commercially across contemporary world, the relatively new system is suddenly becoming obsolete again.

Huawei’s R&D is therefore working to develop fifth generation or 5G network system that will give innovative and leadership edge in the telecom world. With hundreds of engineers working on 5G networks, excellent airwaves or spectrum is expected to be released by Huawei by 2010  (Hu, 2013). This network will allow Huawei to introduce 5G network, which will accelerate the speed to 10 Gigabytes, which is 100 times faster that 4G network.

The company also believes in diversity as part of its business innovative skills, and such emphasis has been able to garner revenue sales for the company. Diversity has been able to build the company’s sales and revenue, allowing employees and stockholders to build their own business and interest. Study by Cremer and Tao (HBR) shows that in the initial period, when Zhengfei designed the Employee Stock Ownership Plan (ESOP), he came to realize that not owning the company’s total share capital will not harm his company.

He therefore makes employees to have their own share, and he himself holds only 1.4% of the company’s total share capital. Such profit allowance to employees and stockholders is an innovative step of the Company, yet unapplied in other competing companies. Confucian values of equality and harmony, and the idea of building the company on equity are making Huawei to rapidly expand their businesses. Bridging wealth gap, but getting paid for what people contribute balanced out the business growth and entrepreneurial set-up of the company.

3. Leadership and Innovative challenges

3.1. Theoretical Framework

Smith, Fressoli and Thomas (2014) in “Grassroots Innovation Movements: Challenges and Contributions” shows that innovative challenges in technological world mainly encompasses some grassroots issues like attending the needs of distinctive local requirement-specificities, and company like Huawei faces such challenges in penetrating local markets. For Edquist (2009), innovation challenges mainly takes the form of global innovative challenges where many competent markets are there in the market for consumers to affiliate themselves with. West and Gallagher (2006) present in “Challenges of Open Innovation:

The Paradox of Firm Investment in Open-Source Software” also present a theoretical framework that innovation challenges and becoming a leader in the market often involves finding creative ways to compete with other brand; understanding internal and external needs of the companies; and keeping up with the need for innovations that will fulfill customers across its market. Will R&D solve such issues? Since Huawei invest vehemently in R&D, this alone may not be the solution, but business strategies and management, innovative product development, and selling complements will also speed up the process.

3.2. Leadership and Innovative Challenges within Huawei Company

Huawei is no doubt a leading Information and Communications Technology (ICT) solutions provider, and the leadership of Huawei is demonstrated through its capacity to surpass Sweden’s Ericson in 2012, thereby proving that it is an upcoming world’s largest telecom equipment maker and provider (Zhu & Jones, 2014).

However, given the fast changing environment and relentless international competition, Huawei like any other company now face innovative and leadership challenges in the telecom market. Huawei strategy so far concerns developing proprietary standards, and making technologies available at a low cost that will help the company to become the number one telecom company in the world (Abbott Foster & Reinsch, 2010), but Chinese companies are always regarded as copier of technologies, and not a world leader in terms of innovative revolution, and Huawei comes under this category.

In terms of leadership challenges, the company continues to compete with other telecom companies like Cisco, Lucent, and Alcatel (Bell, 2008; Boutellier et al., 2008). Since they remain as the world leading equipment manufacturers, Huawei faces strong competitions to their leadership stand.  

In China, Huawei faces strongest competition against their leadership and innovative spirit from UTStarcom, where the latter has branded Huawei as a ‘follower’ and not an ‘innovator’  (Bell, 2008). The work of Huawei is regarded as doing thing which others have already done and made.

This only manifests the company as imitating company, where research studies and building products are based on other companies’ working mechanisms and products. Thus, Huawei as a total B2B-brand is also not considered as consumer’s brands like Haier and Lenovo; instead, it is only regarded as a company that could or could not become a consumer brand someday.

Innovative challenges are seen even while creating equal access to stock opportunities by Huawei, since the company to not promote distribution outcomes. This equal access of ESOP however remains inaccessible to non-Chinese employees owing to legal constraints, thereby making the innovation business management and practices to possess its own limitations.

Attempt to solve the issue through long-term incentive plan known as Time-based Unit Plan (TUP) has not borne much success for the company (Tian et al., 2016). Huawei also basically remains as private company in terms of leadership and business management, and the fact that company has no plans to go public continues curtails innovation and growth of high value within the company.

According to Cremer and Tao (2015b), Huawei’s rotating CEO system that drives any profit organization also remains re-examination. The company should appoint competent strong CEO, since this position is the embodiment of the company in terms of promoting sales, profit and creating shareholder value in general.

Huawei aims to become the leader of smart phones and smart-device suppliers in the world in the coming four or five years, but such leadership target comes with all forms of internal and external challenges (Yu, 2016). Among technological giant countries, Huawei is only making rapid headway in China and Europe, but slower in the United States, Japan, and India. Penetrating rapidly in these countries will allow the company to grow in their leadership prowess, although breaking technological giants prominent in these countries remain challenging.

4. CONCLUSION: Practical Measures to Overcome Challenges

Huawei operates in a challenging environment, and although the company is regarded as an imitator, rather than a leader, the company can transform itself as a leader through the process of re-orientation, adaption, management strategies, and better business innovation through R&D.

The company can solve its leadership and innovation challenges mainly through R&D activities that will help design and transform the telecom and propel its position in becoming a global innovative ICT leader. To meet leadership and innovative challenges, Huawei should invest more time in R &D that meet the needs of customers and channel partners within and outside Chinese employee stockholders. 

In recent years, Huawei has been launching products that encompass progressive technologies like cloud computing, ISP, IOT, and all other vertical solutions that will provide better business platform for the company (PTI, 2015). Such innovation will provide the company to leverage with global experience and expertise to become the leader in telecom and information technology world.

The company should also come up with distinctive products for all non-Chinese markets, depending on the needs of the consumers in different countries. The fact that the company has been expanding overseas since 1997, but remained little known outside China shows its weak business management strategies and weak innovative skills (Witzel & Goswami, 2012).

Globalized strategies along with its heavy R&D investment will help the company overcome innovation and leadership challenges. Consumers always want better product and the company that can come up with their requirements to succeed in the competitive market, and although success depends on the customers to decide their affiliation with the most advanced telecommunication capabilities that fulfill their needs company’s innovative and leadership prowess can make Huawei the leading ICT brand in the market.

References

Abbott Foster, W. & Reinsch, R.C. (2010). Huawei’s leadership role in IMS standards development and in its own proprietary Softswitch R. Tiong (ed.). Chinese Management Studies. [Online]. 4 (4). p.pp. 297–304. Available from: http://www.emeraldinsight.com/doi/10.1108/17506141011094109. [Accessed: 3 March 2017].

Bell, S. (2008). International brand management of Chinese companies : case studies on the Chinese household appliances and consumer electronics industry entering US and Western European markets. Physica-Verlag.

Boutellier, R., Gassmann, O. & Zedtwitz, M. von (2008). Managing Global Innovation: Uncovering the Secrets of Future Competitiveness. London: Springer.

Cremer, D. De & Tao, T. (2015a). Huawei: A Case Study of When Profit Sharing Works. Harvard Business Review. 24 (September). p.pp. 1–2.

Cremer, D. De & Tao, T. (2015b). Leadership Innovation: Huawei’s rotating CEO system. The European Review. 15 November.

Edquist, C. (2009). African Journal of Science, Technology, Innovation and Development. [Online]. Adonis & Abbey Publishers. Available from: https://journals.co.za/content/aa_ajstid/2/3/EJC10560. [Accessed: 5 March 2017].

Hu, K. (2013). Huawei’s CEO: The Innovation Journey To 5G And Beyond. Forbes. 26 August.

PTI (2015). Huawei launches innovation solution-demo centre in B’luru. Free Press Journal.

Smith, A., Fressoli, M. & Thomas, H. (2014). Grassroots Innovation Movements: Challenges and Contributions. Journal of Cleaner Production. [Online]. 63. p.pp. 114–124. Available from: http://linkinghub.elsevier.com/retrieve/pii/S0959652612006786. [Accessed: 5 March 2017].

Tao, T. & Chunbo, W. (2014). The Huawei Story. New Delhi: SAGE Publications India.

Tian, T., De Cremer, D. & Wu, C. (2016). Huawei: Leadership, Culture, and Connectivity. New Delhi: SAGE Publications India.

West, J. & Gallagher, S. (2006). Challenges of Open Innovation: The Paradox of Firm Investment in Open-Source Software. R and D Management. [Online]. 36 (3). p.pp. 319–331. Available from: http://doi.wiley.com/10.1111/j.1467-9310.2006.00436.x. [Accessed: 5 March 2017].

Witzel, M. & Goswami, T. (2012). The Case Study: Huawei’s Entry to India. Financial Times. 17 September.

Yu, R. (2016). Huawei’s Big Plan: No. 1 in Smartphones Globally – WSJ. Wall Street Journal. 8 July.

Zhu, H.D. & Jones, M. (2014). Huawei: An Exemplar for Organizational Change in a Modern Environment. Journal of Information Technology Education:Discussion Cases. 3 (1).  pp. 1–13.

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Managing Innovation

Managing Innovation
Managing Innovation

Explain the five factors that influence the adoption and diffusion of an innovation

According to Karakaya, Hidalgo, & Nuur, (2014), the adoption and diffusion of innovation is impacted by the cultural, socioeconomic, legal and technological factors. Individual variables also come into play like the demographics, and psychological. The term diffusion from a marketers’ perspective refers to the possibility that the identified customer segment will be able to accept a new or modified product and service that is being delivered to them.

Contrariwise, the term adoption focuses on the rate that the customers will accept the product and service. The process of diffusion and adoption of innovation is dynamic as it alters from one product and service to another (p. 393).

There are five factors that influence the process of adoption and diffusion of innovation; they are relative advantage, compatibility, complexity, trialability and observability. Relative advantage refers to the degree to which an innovation is perceived to be better than a similar existing product or service by the users. The greater the level of perceived value, the higher the rate of adoption.

The relative advantage of a product can result from a lower price, accessibility and enhancement of the features of the product or services.  The 4P’s of marketing play an important part in the relative advantage when it comes to innovation adoption price, place, promotion, but most customers concentrate on the productive-based advantages (Oldenburg & Glanz, 2008, p. 314).

An example of relative advantage that has managed to penetrate different parts of the globe is the ATM teller machines that are slowly replacing the bank teller counters. The introduction of the ATM teller machines reduced the long queues in the banking halls in different places of the globe.

Compatibility of the innovation

The second aspect is the compatibility that focuses on how closely the product and service does relate to the past experiences, values, culture and the needs of the potential adopters. The greater the compatibility to factors that the customer can relate to the higher the rate of adoption and vice versa. Incessant and dynamic innovations have a higher compatibility level than the discontinuous innovations when it comes to the diffusion and adoption as more customers can relate with them (Robinson, 2009, p. 2).

A good example is the introduction of fast food restaurants in Asia and Africa took a longer period to record higher returns when compared to the Europeans. The reason being that most of the people grew up eating traditional foods and the culture in the two continents encouraged home cooked meals shared by the entire family.

The third factor is a complexity that focuses on the ease of comprehension, purchase and use of the product and service. When customers understand the importance of the innovation and ways to use it, the level of adoption increases than in areas where they need to acquire new skills and knowledge to operate it. In the adoption of innovation, the complexity of technology often does act as a hurdle to its diffusion.

The notion of complexity when it comes to technology is based on the age group, the youths are more tech savvy when compared to the older generations, hence have a higher adoption rate (Ballard, 2015).  A good example is the mobile phone industry, there are two models the complex one and the simpler one for texting, calling and sending SMS.

The fourth factor is trialability, which focuses on the rate at which the innovation is experimented with on a limited basis, increases its rate of diffusion. The notion of tried and tested in various products does appeal to the end customer and endear the innovation to them. Providing the customers with free samples, test-runs, and demos increases their confidence in the product, hence increasing the adoption rate. When it comes to electronic products the introduction of warranty and guaranty does increase the diffusion rate of the customers. An innovation that is trialable has minimal risk and has a high rate of diffusion among the customers (Karakaya et al., 2014, p. 395).

The final aspect is observability, the easier it is for people to see the result of the innovation the greater the likelihood for them to adopt it. Individuals are more attuned to accept things that they can see. It does reduce their rate of uncertainty instilling confidence in the innovation. New innovations that are likely to be diffused at a greater rate have the following properties in them they are tangible, social visible; benefits can easily be viewed within a short period of time. Observability does stimulate peer discussion, which in the end does propagate the diffusion of the innovation to target market (Robinson, 2009, p.2).

Question 4

What are the differences between organizational climate and culture?

Based on Schneider, Ehrhart, & Macey, (2013), organizational climate refers to the perceptions that are shared by the employees with respect to the practices, procedures and policies that guide their daily routines. On the other hand, organizational culture does refer to the shared orientations that glue the organization together based on beliefs, norms, values, and assumptions. They tend to shape the behaviour of the employees when they are working within their operations (p.381).

Secondly, organizational climate is centred on the micro image of the organization while organizational culture concerned with the macro vision of the organization. The macro aspect of culture is centred on the fact that the behaviour is ingrained in employees and is quite difficult to alter unlike organizational climate. Culture refers to the personality of the organization and does unite the members. The micro organizational aspect is centred on the way that the individuals within experience the culture of the organization and it does change quite frequently (Agafonovas & Alonderiene, 2013).

Thirdly, there are four types of organizational culture and climate. In organizational culture we have clan, market oriented, adhocracy and hierarchical culture while in the organizational climate, we have rule, goal, innovation, and people oriented.  Fourthly, the management and external forces on the other hand the organizational culture is rarely altered can easily alter organizational climate and it is influenced by all the employees within the organization (Differencebetween.com, 2014).

Organizational culture is more static as it takes a longer time for it to be altered while organizational climate is dynamic and changes more rapidly. Lastly, organizational climate can easily be measured unlike the organization culture that is more based on peoples’ behaviour and perceptions making it difficult to quantify. Organizational culture has its roots in the fields of sociology and anthropology while organizational climate focuses on the psychology sector. On the culture perspective, it does focus on stories, rituals, and physical artefacts while climate focuses on the factors that influence behaviour (Differencebetween.com, 2014).

Discuss five climate factors that influence innovation.

The five climate factors that influence innovations are risk-taking, freedom and autonomy, ideal time and support, challenge and involvement and trust and openness. Risk taking refers to engaging in activities that have a lot of uncertainties with respect to the expected outcome. Innovation and risk are synonymous in the organizational climate. Organizations that are risk takers have a higher chance of investing in progressive unlike risk averse organizations. Risk averse climate often does stall innovation and turns organizations into followers of organizations that have adopted the climate of risk (Bolton, Mehran, & Shapiro, 2011, p.456).

Risk is influenced by a number of factors that are conscious, affective and subconscious. The conscious factors are based on manageability, proximity, severity of the impact to the organization and the society. On the other hand, subconscious factors are heuristics in nature and involve availability, representatives, lure of choice et cetera. Lastly, affective factors focus on the intelligence, fatalism and optimism bias (Crenshaw & Yoder-Wise, 2013, p. 26).

The second aspect is freedom and autonomy, which does focus on the creating a climate that gives the employees in the organization the independence to come up with innovations. The employees have the creative freedom to exploit the resources that are within the organization to come up with new driven products and services. In the spirit of freedom, the management often does create policies that make the innovative process flexible as long as it is in line with the goals and objectives of the organization (Acemoglu, Akcigit, & Celik, 2014).

The third factor focuses on ideal time and support from the organization. An innovative climate often does begin from top management where the employees are given full control of the resources that they need to come up with creative products and services. The organizational structure is often decentralized, hence creating a seamless flow of communication, policies and procedures (Acemoglu et al., 2014).

On the time perspective, most of the procedures are integrated to ensure that there is an easy coordination within the organization that is channelled to facilitate the research and development department. The support also does come from external partners like suppliers, investors, and higher institutions of learning among others. The entrance of partners does provide the organization with financial and academic knowledge that plays an integral role in shaping the innovations that will lead to the creation of new products and services (Zennouche, Zhang, & Wang, 2014).

The fourth factor focuses on challenge and involvement, innovation process does face a large number of hurdles that arise from both the internal and external climate. The internal challenges often deal with limited finances that often do incapacitate the progress of innovation. Innovative climate does require a continuous flow of innovation to ensure that the employees in an organization can formulate products and services.

The second challenge is constant failures in the innovative process that does demoralize the employees in the creation of innovative products and services. Another perspective is that the challenges that individuals face can easily create an innovative climate. Challenges trigger human beings to think analytically in ways they can resolve them resulting in the creation of creative and innovative products (Zennouche et al., 2014). The laptops for example were created to enable human beings to deal with the portability challenges posed by the computers.

On the other hand, the involvement factor does focus on the interpersonal exchange between the employees in the organization. The employees work together to foster an amicable and creative climate that does foster innovation. The employees are willing to share their knowledge and skills in different departments to foster the creation of innovative products that will enhance the competitive advantage of the organization (Axelsson & Sardari, 2011, p. 31). 

A good example is the Apple Incorporation; the company has created a climate that enables the employees to willingly share their ideas, hence the increase in the number of innovative technological products coming from the organization.

The last aspect deals with trust and openness that refers to the environment where the employees know each other and have developed a deep relationship. A trust environment goes further to inspire the employees to willingly share their intellectual property with their fellow employees. Additionally, the environment enables the employees to formulate clear, distinctive strategies that are vital in chartering the innovative process (Henry, 2001, p. 35).

Moreover, it does enable the formulation of a common long-term goal that inspires the creation of innovative products and services within the organization. An open climate enables the members in the organization, especially top management to accept the failures that arise in the creation of innovative products and services. The acceptance encourages the employees to overcome their failures and create progressive products (Henry, 2001, p.35).

REFERENCE

Acemoglu, D., Akcigit, U. and Celik, M.A. (2014). Young, restles and creative: Openness to disruption and creative innovations (No. w19894). National Bureau of Economic Research

Agafonovas, A. and Alonderiene, R., 2013. Value creation in innovations crowdsourcing: example of creative agencies.

Axelsson, P., and Sardari, N. (2011). A framework to assess organizational creative climate. Division of management of organizational Renewal and entrepreneurship.

Ballard, J. A. 2015. Decoding the workplace: 50 keys to understanding people in organizations. Santa Barbara, CA: Praeger.

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