Factors promoting organisational innovation
Research has shown that 3 main factors
influence organisational innovation:
-
Behaviour of individuals
-
Internal characteristics of organisation
-
Extra-organisational factors (external market factors)
Behaviour of individuals
There is significant evidence a participative
and interactive leadership style promotes innovation
Availability of change agents promotes
innovation - internal or external individuals willing and able to
drive innovation. This factor is particularly important if
your organisation positively encourages such behaviour
Willingness to change - tolerance of
ambiguity and uncertainty in the business environment ensures your
organisation is receptive to innovation. Conversely, "Selective
perception" - the tendency to respond to possibilities within
an established outlook will inhibit innovation.
Internal characteristics
of organisation
Centralisation inhibits initiation of
innovation but may help implementation of innovation. Formalisation
generally inhibits innovation, although a formal mandate to innovate
may stimulate innovation.
Complex structure is positively related
to initiation of innovation, but negatively related to implementation
of innovation.
Investment inertia: "sunk costs"
can inhibit innovation, "too much invested to quit"
Positive organisational culture
encompassing participation, freedom of expression and demanding
performance standards promotes innovation. A pro-innovation
culture emphasises performance rather than style and status differences
within the organisation
Organisational strategy
Clearly defined vision and climate of excellence -
promotes quality of innovation
Culture fostering perception of safety by individuals,
(i.e. expectation and/or acceptability to challenge status quo)
Established norms for innovation - promotes quantity of innovation
Established norms for innovation - promotes quantity of innovation
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