Assessment of Factors Influencing Innovation in Organizations

This literature review examines the assessment of different factors like workforce capabilities, networking abilities, financial strength, and process effectiveness in influencing innovation in organizations.

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LITERATURE REVIEW
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Introduction
Innovations play a major role in improving the business position in the markets.
However, different innovations in businesses are based on the assessment of manpower skills,
process effectiveness, financial elements and networking capabilities. Jackson et al. (2016) stated
that the product innovations are planned by the organisations with the objective of gaining a
competitive edge. In this relation, the assessment of different capabilities of the organisation
relating to the human workforce and the financial sources permits businesses in developing
effective innovation processes. Again, the different modifications in the organisational
innovation based capabilities are related to the internal capabilities of the business. The
assessment of the different factors enables an organisation in identifying the feasibility of
initiating the innovation. The assessment of the internal factors also supports an organisation in
optimizing the operations as per the changing demand (Karna, Richter and Riesenkampff 2016).
Workforce capabilities
The strategic alliance of the employees with managers influence inter-trust relationship
between the hierarchy and the workforce, facilitating an organisation in empowering the
innovativeness. Lopes et al. (2017) noted in a study that the assessment of the skill of the
workforce permits an organisation in improvising the process design. On the other hand, Roscoe,
Cousins and Lamming (2016) argued that the change readiness among the employees forms a
crucial part for an organisation while improving an innovation. The modifications that are
planned by the organisation s are often empowered through the change readiness and indulgence
of the stakeholders, specifically the employees. Malecki (2018) stated that change readiness
among the employees and the active participation of the workforce in the innovation process
enables a business in empowering innovativeness of the processes.

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The compatibility of the workforce and the knowledge of the employees to the innovative
plans of the venture would enable the organisation in improving the operational processes. On
the other hand, Asrar-ul-Haq and Anwar (2016) opined that the assessment of skills of the
employees enables an organisation in identifying the feasibility of the innovation process. The
skilled employees contribute to the innovation processes through their prior experience and
knowledge on the innovation. Karna, Richter and Riesenkampff (2016) stated that increased
skill of the employees empowers innovativeness for contributing to the uninterrupted functioning
of the different processes that are planned by the organisation . On the other hand, the increased
engagement of the workforce in the change or innovative mind-sets of the organisation would
encourage the improvements in the process design and the structures for achieving the
sustainable goals.
The shared aspects of knowledge in the organisational systems and the collaborative
functioning of the workforce enables an organisation in improving the scope of innovativeness.
Miremadi, Saboohi and Jacobsson (2018) noted that the knowledge of the workforce and their
collaboration with the management contributes to the smooth functioning of the different
systems as per the needs of the organisation. Therefore, every organisation examines the skills
and amount of change readiness among the workforce with the objective of increasing the
efficiency of the innovative processes.
Process effectiveness and innovation in organisations
The processes form the major part of the innovative procedure that are being planned by
the organisations. The efficiency of the process design and the compatibility of the same with the
organisational model supports innovation in a business. Eniola and Entebang (2016) stated that
process design is specifically based on the nature of innovation that is being planned by an

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organisation and the manner in which it corresponds to the values and culture of the business.
Moreover, Baker, Grinstein and Harmancioglu (2016) added that the effectiveness of the
process design enables an organisation in gaining insight of the different activities to implement
the innovation. The processes are developed by the organisations based on the assessment of
needs for supplementing the innovation. Adams et al. (2016) stated that compatibility of the
processes that are designed by the organisations, with the values and corporate culture supports
an innovation process. The process development in an organisation marks the efficiency of the
business operations towards implanting the innovation in the business model or the propositions.
On the other hand, the processes that are devised by the organisation must also have a strong
correlation with the innovation through aims, objectives and outcome. In this relation, Lins,
Servaes and Tamayo (2017) stated that an organisation assesses the efficiency of the process
design while synchronizing with the objectives of the innovation project for improving the
success factors. Therefore, process design and improvements in the existing processes is
developed though thorough assessment of the organisational position and the manner in which
the same correlates with the organisational standards.
Networking and innovation
The efficient networking capabilities of an organisation enables the same in increasing
the effectiveness of the innovation processes that are being planned by the same. Effective
networking of an organisation with the supporting industries enables the same in developing
relations based on outsourcing and offshoring activities. In this relation, Santoro et al. (2018)
noted that the different changes that efficient networking and collaborations with external agents
like suppliers, dealers, customers and the like permits an organisation in strengthening the
innovation processes. On the other hand, the outsourcing and offshoring facilities being available

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to the organisations enables the same in minimizing the risks that are associated with the
innovation process. Karna, Richter and Riesenkampff (2016) stated that efficient interactions
and networking of the organisation with the different stakeholders enables the same in
developing coherent understanding of the features that are associated with the process design. On
the other hand, the social and economic ties that are held by the organisations enables the same
in gathering knowledge and skills on a particular innovation that the organisation is planning to
implement. Asrar-ul-Haq and Anwar (2016) stated that the efficiency of business networking
enables an organisation in enhancing their knowledge on the innovation and thereby develop
efficient collaborations among the existing managers and the external experts.
The changes in the organisational performance relies on the effective design of the
processes and the manner in which the same might be held accountable with the values and
culture of the business. Again, Malecki (2018) opined that interactions and consultation through
networking permits an organisation in transferring knowledge while maximizing collaborations
among the different external and internal stakeholders, including the business partners. On the
other hand, Lopes et al. (2017) noted that efficient networking allows an organisation in gaining
insight on the feasibility of the innovation and the manner in which it would provide the business
with long term sustenance. In this relation, the networking acts as an efficient tool for the
organisations in taking decision on the innovation process. On the other hand, Eniola and
Entebang (2016) opined that efficient networking of an organisation enables the same in
developing an idea on the costs that might be incurred by the same while developing the
innovation. Therefore, the assessment of the efficiency of business networking would enable
the organisation in maintaining the efficiency of the innovation process while aligning with the
current corporate level goals of the same.

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Financial assessment in organisations while undertaking innovation
The financial strength of an organisation portrays the capability of reducing risks relating
to cost overruns while improving the scope of uninterrupted functioning towards innovation.
Adams et al. (2016) opined that financial accounting is perhaps most important part for an
organisation while assessing the capabilities of the same while undertaking innovation. The
assessment of the costs that might be incurred by the organisation during the innovation process
is an important standpoint as it critically examine the areas where the organisation must focus
for successful implementation of the innovation. Lopes et al. (2017) stated that cost overruns
affects the capabilities of the organisations in upholding the uninterrupted functioning related
goals of the same. The financial capabilities of the organisation encourages the improvements in
the innovation project while developing an idea of the different cost expenditures that might be
incurred by the business during the process. Santoro et al. (2018) stated that the assessment of
the financial strength of an organization provides the same with an idea on the type of innovation
that might be afforded by the same. The major aspects of change in the organisational operations
are specifically based on the needs of improving the rate of operation as per the needs of the
ventures. Therefore, financial accounting supports an organisation in developing an idea of the
costs that might be incurred by the same and the manner in which he same might be managed
throughout the innovation project for sustenance.

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Workforce capabilities
Process effectiveness
Networking
Financial assessment
Product innovation
Conceptual framework
Figure 1: Conceptual framework
Conclusion
Therefore, from the above analysis it might be stated that the assessment of the different
factors like workforce capabilities, networking abilities of the organisation, financial strength of
the venture and the process effectiveness critically examines the success of an innovation project.
The integration of the above factors enables an organisation in developing a clear understanding
of the different changes that might be initiated by the same while operating on an innovation.
Therefore, the review critically examined the contribution of the factors towards the innovation
related goals of an organisation.

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References
Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D. and Overy, P., 2016. Sustainability‐oriented
innovation: A systematic review. International Journal of Management Reviews, 18(2), pp.180-
205.
Asrar-ul-Haq, M. and Anwar, S., 2016. A systematic review of knowledge management and
knowledge sharing: Trends, issues, and challenges. Cogent Business & Management, 3(1),
p.1127744.
Baker, W.E., Grinstein, A. and Harmancioglu, N., 2016. Whose innovation performance benefits
more from external networks: entrepreneurial or conservative firms?. Journal of Product
Innovation Management, 33(1), pp.104-120.
Eniola, A.A. and Entebang, H., 2016. Financial literacy and SME firm
performance. International Journal of Research Studies in Management, 5(1), pp.31-43.
Jackson, S.A., Gopalakrishna-Remani, V., Mishra, R. and Napier, R., 2016. Examining the
impact of design for environment and the mediating effect of quality management innovation on
firm performance. International Journal of Production Economics, 173, pp.142-152.
Karna, A., Richter, A. and Riesenkampff, E., 2016. Revisiting the role of the environment in the
capabilities–financial performance relationship: A meta‐analysis. Strategic Management
Journal, 37(6), pp.1154-1173.
Lins, K.V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4),
pp.1785-1824.

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Lopes, C.M., Scavarda, A., Hofmeister, L.F., Thomé, A.M.T. and Vaccaro, G.L.R., 2017. An
analysis of the interplay between organisation al sustainability, knowledge management, and
open innovation. Journal of Cleaner Production, 142, pp.476-488.
Malecki, E.J., 2018. Entrepreneurs, networks, and economic development: A review of recent
research. In Reflections and extensions on key papers of the first twenty-five years of
advances (pp. 71-116). Emerald Publishing Limited.
Miremadi, I., Saboohi, Y. and Jacobsson, S., 2018. Assessing the performance of energy
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science, 40, pp.159-176.
Roscoe, S., Cousins, P.D. and Lamming, R.C., 2016. Developing eco-innovations: A three-stage
typology of supply networks. Journal of Cleaner Production, 112, pp.1948-1959.
Santoro, G., Ferraris, A., Giacosa, E. and Giovando, G., 2018. How SMEs engage in open
innovation: a survey. Journal of the Knowledge Economy, 9(2), pp.561-574.