Innovation Culture

10 Key excerpts on "Innovation Culture"

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  Leading and Transforming Organizations

  Navigating the Future

  • Kumaran Rajaram(Author)
  • 2023(Publication Date)
  • Routledge

    (Publisher)

  Chapter 2 Value Creation Innovative Culture DOI: 10.4324/9781003286288-3 Organizations must advocate, and ingrain values that shapes an innovative culture with an outcome-based approach. They need to recruit talents that have such intrinsic motivation and values, but beyond that to comprehend the nuances to create the eco system and operational structure that inspires them to create the recurring value-creation effect. Kumaran Rajaram, PhD 2.1 Introduction Organizations pursue varying different forms and types of innovations. These innovations could be with regard to their products or services, internal processes, and business models, among other aspects (Purcell, 2019). Innovations remain essential for organizations today that exist in highly volatile environments. If companies do not embrace innovation and change, they will struggle to stay afloat with the rapidly changing and VUCA (volatility, uncertainty, complexity, and ambiguity) external environments. Convincingly, innovation brings plenty of benefits to the organization. The innovations serve as a means of growth, keep organizations relevant, and provide ways for them to differentiate themselves. Hence, an innovatively rooted culture is vital for organizations to build on. Innovation Culture is defined as a multi-dimensional context that includes the intention to be innovative, the infrastructure to support innovation, operational level behaviors necessary to influence a market and value orientation, and the environment to implement innovation (Dobni, 2008). Successful organizations have the capacity to incorporate innovation, its practices into the organizational culture and management processes of the organization. In a nutshell, an Innovation Culture could potentially bring about varying benefits for an organization. 2.2 Innovative Culture Further to that, an innovative culture drives an outcome-based approach to value creation

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  Building an Innovation Powerhouse

  Maximising People Potential to Grow Your Business

  • Andy Wynn, Jim Hick(Authors)
  • 2022(Publication Date)
  • Routledge

    (Publisher)

  But culture is also a living thing, just like the people that create it, it develops, it grows and it evolves as new employees start, or people leave, as new strategies are announced, new organisational structures are rolled out and new projects and initiatives are started. All of these things change the nature of the people that form the culture and change the context within which the culture exists. And in just the same way that the development of a person can be shaped, influenced and directed by training, role modelling and suggestion, whether positively or negatively, so a company’s culture can be developed and directed, by reorganising reporting structures, terms and conditions of employment, incentives, and a thousand other things. Yet without a clear sense of where you are as a business and where you want to be, and without a plan of action to guide culture in the direction that will contribute positively to the future, all your actions as management will only serve to push and pull the culture in different directions, however well-meaning the decisions you make and act upon, leading to ambiguity and confusion for many employees in your business.

  So given this context of what culture means in terms of business, an Innovation Culture therefore describes the specific facet of the overall culture that is focused on promoting innovation within a company. Though I refer you back to the importance of first defining what innovation means to your business to avoid ambiguity and misinterpretation. If you have taken note of the previous two books in this series, then you should appreciate that for a business to grow through innovation, it needs an end-to-end innovation process in place that involves all departments, and an organisation that brings all functions into play to deliver on the processes, and therefore the Innovation Culture should truly span right across the organisation in a way that shapes and influences all those attitudes, behaviours and ways of working together that are woven into the culture, such that all employees want to contribute positively. This is critical for success because whilst the innovation processes give people the tools and the organisation sets the right environment it is the culture that makes people want to take part and deliver.

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  Contemporary Issues with Multidisciplinary Perspectives on Social Science

  • Yusuf KADERLI, Engin ÇAKIR(Authors)
  • 2021(Publication Date)
  • Peter Lang Group

    (Publisher)

  In individuality, the situation is the opposite. It should be high in the initial phase and low in the application phase. However, because it is unthinkable that all cultural features have a relation- ship with innovation, another concept emerges. This is the Innovation Culture that can be defined as the sum of cultural characteristics that affect innovation as a sub-dimension of culture. 154 Kezban Talak 4 Innovation Culture The term “Innovation Culture” is also difficult to define because it is a versatile term. According to Wieland (2004), Innovation Culture constitutes the inno- vation culture, the way the actors in an innovation process perceive economic and technical difficulties and the struggle strategies they have developed in the context of norms and values against these difficulties (Wieland, 2004). Dobni is one of the researchers defining the Innovation Culture. Dobni (2008) describes the Innovation Culture; defined as a multidimensional context that includes an organization’s intention to innovate, the infrastructure that supports innovation, the operational-level behaviors required to influence a market and drive value, and an environment to implement innovation (Dobni, 2008). Nagesh (2016) defines the phenomenon of Innovation Culture as a core value shared in the organizational structure that supports innovations in the struc- ture of the organization and supports perceived practices towards innovation (Nagesh, 2016). In a study in which O’Reilly examined the norms that develop innova- tion, it was observed that he frequently emphasized the factors of risk taking, rewarding change and being open to innovation (O’Reilly, 1989). According to Prabhu, focusing on the future, the competitive environment within the enterprise, supporting all employees for innovation, going beyond existing successful products and turning to new products are among the factors that affect the Innovation Culture (Prabhu, 2010).

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  Organizational Culture

  • Jolita Vveinhardt(Author)
  • 2018(Publication Date)
  • IntechOpen

    (Publisher)

  Introduction In a competitive global market, innovation is the source of a sustainable competitive advan-tage and has a significant impact on organizational results [ 1, 2]. Additionally, it is considered the basis for economic development and higher-than-average profits in the sector [ 3]. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. High R&D investment is insufficient to foster innovation. There must also be a culture present which motivates innovation, as well as an atmosphere which favors creativity, and eliminates obstacles to its success [ 12, 25]. The relevance of culture in innovation is explained by its individual characteristics, including uncertainty, high levels of risk, and unpredictability in innovation [ 4]. It has been documented that an appropriate culture stimulates product innovation [ 5–7] as much as process and marketing innovation [ 3, 8]. Similarly, it can stimulate incremental inno-vation as well as radical or ambidextrous innovation [ 9, 10]. Consequently, given the significant influence of organizational culture on a company’s pro -pensity to innovate [ 11], and considering that it may become either a facilitator or inhibitor, organizational effort cannot be limited to the generation of new products or processes but rather should focus on the promotion of an innovative culture, which helps to institutionalize innovation [ 12]. Organizational culture is the set of meanings, basic presumptions, values, and beliefs which are shared by the members of an organization [ 13, 14] and is the way that things are done here [ 9 ].

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  Best Practice

  • Mohamed Zairi, Richard Duggan(Authors)
  • 2010(Publication Date)
  • Routledge

    (Publisher)

  Chapter 3 , section ‘From idea to implementation’). Most large companies deploy some variation of a structured methodology. The third stage is commercialization, where the idea becomes operational. In others words, the product is produced so as to allow extraction of value from all that has been created in the earlier phases.

  Although innovation cannot be smelt, touched, heard, tasted or seen, it can be sensed. It is probably best described as a pervasive attitude that allows a business to see beyond the present and create the future. Innovation is the engine of change and in today's fiercely competitive environment, resisting change is dangerous. Companies cannot protect themselves from change regardless of their excellence or the vastness of their current resource basin. While change brings uncertainty and risk, it also creates opportunity and the key driver of the organization's ability to change is innovation. However, simply deciding that the organization has to be innovative is not sufficient; that decision must be backed by actions that create an environment in which people are so comfortable with innovation that they create it.

  Culture is a primary determinant of innovation. The possession of positive cultural characteristics provides the organization with the necessary ingredients to innovate. Culture has multiple elements that can serve to enhance or inhibit the tendency to innovate. Moreover the culture of innovation needs to be matched against the appropriate organizational context. To examine culture in isolation is a mistake, and to simply identify one type of culture and propose it as the panacea to an organization's lack of innovation is to compound that mistake.

  Innovation Cultures and innovation climates

  Visiting organizations such as 3M, Hewlett Packard, Sony, Honda and The Body Shop leaves one with a feeling not often encountered in ordinary companies. This ‘feeling’ often defies definition, yet despite its intangibility, contains organizational concreteness as real as the machinery on the shop floor. This feeling is usually found rooted in the prevailing psyche of each organization. A company such as 3M feels dynamic, while some of its counterparts feel rather staid and unexciting. The feel of the organization reflects both its climate and culture.

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  Entrepreneurial Challenges in the 21st Century

  Creating Stakeholder Value Co-Creation

  • S M Riad Shams, Hans Kaufmann(Authors)
  • 2016(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  An enterprising culture is a basic prerequisite for developing conditions that would lead to serial entrepreneurship and foster entrepreneurial capabilities, which ensure constructive economic performance for an organization. Although related empirical research is very limited and the link is understudied, Hogan and Coote (2014) state that an enterprising culture favors firm performance by fostering innovative behaviors; through favoring the development of innovative products and services and the generation of novel solutions, it brings about positive performance outcomes (Storey and Kahn, 2010; Ettlie and Rosenthal, 2011). It facilitates the acquisition of certain entrepreneurial skills required by the modern workplace: creative and innovative problem solving, readiness for change, open-mindedness, opportunity recognition and utilization, risk-taking and self-confidence (Kwong et al., 2012). An enterprising culture favors the creation of a working environment in which personal advancement and business growth are pursued through regular generation, diffusion and utilization of new knowledge and creative ideas as well as through systematic environmental scanning, opportunity seeking and the implementation of change. It is inseparably linked with alertness and strong motivation, networking and customer orientation, global thinking and experimentation (Dimitratos et al., 2010). An enterprising culture develops employee capacity for regular team learning and collective action to achieve organizational objectives and realize organizational vision. It promotes internal collaboration based on mutual trust and respect, a free flow of knowledge, an open exchange of information and transparent communication. It encourages openness to new ideas, welcomes difference, opinion diversity and disagreement, stimulates experimentation, risk-taking and innovation.

  Kaufmann et al. (2012) underline the fact that the creation of the appropriate corporate culture is a critical condition for successful innovation and sustainable entrepreneurship to be triggered and flourish. Innate talent and abilities may be under-utilized or totally “mutilated” in the case when individuals are not offered the opportunities required for detecting, cultivating and exploiting their abilities. In less affluent countries with below average economic performance and living standards, a lower tendency for innovation and entrepreneurial action has been identified (Hundley and Hansen, 2012). According to the GEDI Index 2014 (Global Entrepreneurship & Development Institute, 2014), the United States is ranked first of 121 countries in developing effective entrepreneurial attitudes, aspirations and activity, while Chad and Bangladesh rank last. This could lead someone to wonder what would have happened if Bill Gates, Michael Dell or Mark Zuckerberg had been born in Chad or Bangladesh instead of the United States. Hence, it seems that although talent is universal, stimulating opportunities are not.

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  Exploring Management

  • John R. Schermerhorn, Jr., Daniel G. Bachrach(Authors)
  • 2021(Publication Date)
  • Wiley

    (Publisher)

  Learning Objective 9.1 Explain the Nature of Organizational Culture 169 170 CHAPTER 9 Organizational Cultures, Innovation, and Change Learning Objective 9.2 Discuss How Organizations Support and Achieve Innovation. Things to Remember • Organizations pursue process, product, and business model innovations. • Green innovations advance sustainability goals. • Social innovations seek solutions to important societal problems. • Commercializing innovation turns new ideas into salable products. • Disruptive innovation uses new technologies to displace existing practices. • Innovative organizations share many common characteristics. The iPad, Kindle, Post-it Note, Super Soaker Water Gun, ATM, streaming movie and video game rentals, overnight package delivery, and more. Name your favorites! These examples are all brought to us through innovation, the process of developing new ideas and putting them into practice. 18 The late management consultant Peter Drucker called innovation “an effort to create purposeful, focused change in an enterprise’s economic or social potential.” 19 Today’s organizations and entrepreneurs thrive on cultures of innovation. Organizations Pursue Process, Product, and Business Model Innovations. Innovation takes different forms. Process innovations create better ways of doing things. Product innovations create new or improved goods and services. Business model innova- tions create new ways of making money. 20 Consider these examples: • Process innovation—Southwest Airlines streamlines operations to fit its low-cost business strategy; IKEA sells furniture and fixtures in assemble-it-yourself kits; Amazon’s “one-click” option makes online shopping easy; Nike lets customers design their own sneakers.

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  Beyond Bad Apples

  Risk Culture in Business

  • Michelle Tuveson, Daniel Ralph, Kern Alexander(Authors)
  • 2020(Publication Date)
  • Cambridge University Press

    (Publisher)

  can lead these processes effectively?’ These questions are not arising out of sheer academic curiosity; they point to key complementary organisational dimensions that need to be defined and aligned to the processes in order for companies to systematically achieve their innovation goals. In other words, these questions seek to delineate the appropriate cultures that lead to innovation. Within the context of our discussion, we employ the term ‘culture’ as follows: the set of norms, beliefs, structures and routines (processes) that define operational patterns that social groups learn as they solve problems of external adaptation and internal integration. Under the assumption that these patterns have worked well enough to be considered valid, they are further disseminated to new members as the ‘correct’ way to perceive, think and feel in relation to the originally defined problems (Schein, 1992). Culture serves in meeting unforeseen contingencies as they arise, and it is the product of evolution inside any organisation; thus it is influenced by the organisational history (Hermalin, 2012). Culture has such a pervasive influence because it can reduce or even eliminate differences in objectives and thus mitigate the agency prob- lem (Van den Steen, 2010). Based on our definition of culture, and the previous discussion on different types of innovation and their respective processes, we posit that the successful development of incremental or radical innov- ation would require different cultures. Moreover, it remains an open question whether these different cultures can coexist under the same organisational hood. The coexistence of different processes and organ- isational rules under the common objective of innovation has been studied (Tushman & O’Reilly, 1996), and the value of coexistence of such incremental (exploitative) and radical (explorative) Innovation Cultures has been empirically validated (He & Wong, 2004).

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  Leading and Managing Health Services

  An Australasian Perspective

  • Gary E. Day, Sandra G. Leggat(Authors)
  • 2015(Publication Date)
  • Cambridge University Press

    (Publisher)

  284 Part 5 Drives Innovation Definitions Workplace culture (also called organisational or corporate culture) has been well defined in the literature. Culture has often been described as the particular beliefs or val- ues of an organisation that distinguish it from other similar organisations. Local definitions include ‘the way we do things around here’ and ‘our corporate DNA’. These descriptions of workplace culture hold true and describe the unique and often hard-to-define ‘feel’ of an organisation. Scott, Mannion, Davies and Marshall ( 2003, p. 925) describe workplace culture as ‘a wide range of social phenomena, including an organization’s customary dress, language, behaviour, beliefs, values, assumptions, symbols of status and authority, myths, ceremonies, and modes of deference and subversion; all of which help to define an organization’s character and norms’. While we may talk about a single defining culture, the truth is that in larger organisa- tions there may be several cultures or subcultures. Manley, Sanders, Cardiff and Webster ( 2011, p. 4) state that ‘organisational culture in the past has been assumed to be singu- lar and pervasive, monolithic and integrative, but all organisations have multiple cul- tures usually associated with different functional groupings or geographical locations’. Subcultures can be routinely seen in large hospitals, where individual departments may have cultures that are slightly different from but aligned with that of the organisation overall. Subcultures are commonplace and contribute to the overall feel, function and direction of an organisation. On the other hand, countercultures – a form of organisational incivility – work at odds with the organisation and can be quite disruptive or destructive to its overall functioning.

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  Exploring Management

  • John R. Schermerhorn, Jr., Daniel G. Bachrach(Authors)
  • 2017(Publication Date)
  • Wiley

    (Publisher)

  In highly innovative organizations, leadership drives innovation. Sometimes leadership support for innovation is policy driven. Google, for example, gives engineers freedom to spend 20% of their time on projects of their own choosing. Other times, this support is style driven. Innovation leaders not only encourage new ideas, but they also tolerate criticism and differences of opinion. They know that success doesn’t always come in a straight line and admit that mistakes are part of the innovation process. When talking about the firm’s innovative electronic reader, the Kindle, Amazon’s CEO Jeff Bezos said, “Our willingness to be misunderstood, our long-term orientation and our willingness to repeatedly fail are the three parts of our culture that make doing this kind of thing possible.” 35 Study Guide Takeaway 9.2 How Do Organizations Support and Achieve Innovation? Terms to Define Business model innovation Commercializing innovation Disruptive innovation Green innovation Innovation Process innovations Product innovations Reverse innovation Skunkworks Social entrepreneurs Social innovation Sustainable innovation Rapid Review • Innovation is a process that turns creative ideas into products or processes that benefit organizations and their customers. • Organizations pursue process, product, and business model innovations. • Organizations pursue green innovations that support sustainability. • Organizations pursue social business innovations to tackle important societal problems. • The process of commercializing innovation turns new ideas into useful applications. • Highly innovative organizations tend to have supportive cultures, strategies, structures, staffing, and top management. Questions for Discussion 1. Are there any potential downsides to making organizational commitments to green innovation? 2. What are the biggest trouble points in a large organization that might prevent a great idea from be- coming a commercialized innovation? 3.

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