Managing Innovations in Organizations

This document discusses the importance of managing innovations in organizations and explores the application of innovation in organizational contexts. It also highlights the challenges faced by organizations while adhering to innovativeness and provides commercially viable solutions. The document covers innovation related theories and their impact on organizational performance.

Running head: MANAGING INNOVATIONS IN ORGANIZATIONS
MANAGING INNOVATIONS IN ORGANIZATIONS
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MANAGING INNOVATIONS IN ORGANIZATIONS
Table of Contents
1. Introduction..................................................................................................................................2
2. A detailed methodology of the analytical approach....................................................................2
3. Findings.......................................................................................................................................4
3.1 Innovation related theories....................................................................................................4
3.2 Application of innovation in the organizational contexts......................................................7
3.3 Challenges faced by organizations while adhering to innovativeness.................................10
4. Conclusions and commercially viable solutions........................................................................12
4.1 Conclusion...........................................................................................................................12
4.2 Commercially viable solutions............................................................................................12
References......................................................................................................................................14

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1. Introduction
Innovations in organizations assist the same in developing the processes while adhering
to the market demand and changing trends. On the other hand, the development of diverse range
of innovative practices has assisted the organizations in developing a competitive edge while
ope4rating in diverse global economies. Wisdom et al. (2014) stated that the continuous
developments that are planned by the businesses are dependent on the frequent innovative
measures that are undertaken by the businesses with the purpose of gaining a competitive edge.
Therefore, the application of open innovation model and facilitation of a collaborative workforce
assists an organization in developing the innovative capabilities of the same.
However, it has been noted that there are different issues that are faced by organizations
while inducing innovativeness in the processes. Deng and Ji (2015) stated that the work
environment factors and the lack of change readiness among the employees might affect the
capabilities of organizations in upholding the efficiency of the innovative venture. On the other
hand, the lack of suitable financial capabilities of an organization might also affect the
capabilities of the same in adhering to the continuous innovativeness of the same. Therefore, the
identification of the different factors that might restrict the innovative capabilities of an
organization and development of strategies will support in enhancing the processes.
2. A detailed methodology of the analytical approach
The assessment of the different workforce related factors has assisted the organizations in
supporting the innovativeness of the same. The research will be undertaken through an
assessment of different available literatures from secondary sources and the company reports.

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The research conducted through an assessment of the different secondary sources will assist in
enriching the cognition of the different innovative measures that are facilitated by the
organizations and the challenges that are faced by the same. The innovativeness of the
organizations are dependent on the delineation of the urgencies that are faced by the same while
operating in diverse global economies. The assessment of the market needs and the changing
consumer trends has helped the organizations in supporting the continuous learning experiences
of the same. The methodology that is being adopted in this scenario will be assisting to identify
specific innovation related theories and the manner in which the organizations adopted the same
for developing continuous innovation in the processes.
The research will delineate the innovation related theories with the aim of understanding
the different aspects of innovations in the organizational context. The research will be
undertaken through application of explanatory design, which will assist in developing an insight
on the cause of the innovation in an organizational context and thereby examine its impact on the
organizational performance. The specific research design will also assist in delineating the issues
that are being faced by the organizations while implementing innovative processes and thereby
forecast recommended activities that might be considered by the ventures.
Doyle, Garrett and Currie (2014) stated that the innovativeness in an organizational
model is aimed at developing the processes in adherence to the changing trends in the markets or
the demand of the customers. Therefore, the research design will ensure the appropriate
understanding of the different issues that might be faced by the organizations while
implementing innovations and delineate different recommended activities for mitigation of
challenges. On the other hand, the research will be undertaken through the utilization of a
deductive approach, which will assist in deriving the available models and theories on innovation

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and their application on the organizational model. The utilization of the deductive approach in
the organizational model will support in upholding the efficiency of the operations of a business
in accordance to the changing trends.
3. Findings
3.1 Innovation related theories
The delineation of different Innovation based theories in an organizational operation
assists in maintaining the systematic flow of operations while adheri8ng to the demand of the
customers. In this relation, the Diffusion of Innovation (DOI) Theory by E.M. Rogers in 1962
has helped organizations in developing an insight on the different systematic steps through which
they might retain the continuous innovativeness. The theory clearly delineates the manner in
which an innovation is diffused and accepted by the society over time (Stieninger and Nedbal
2014). The theory enumerates the manner in which the society of population adopts an idea or
innovative proposition. The delineation of the diffusion of innovation theory has helped the
organizations in identifying the channels that might be utilized by organizations with the purpose
of popularizing the innovative idea and creating a trend.
The trendsetting approach of the organizations supported in retaining and empowering
the sustenance of the same while operating in different global economies. The diffusion of the
innovation and adoption of the same assists an organization in creating a benchmark for the
operations. The diverse range of innovations that are undertaken by the sectors has assisted the
same in anticipating the sustenance related challenges and thereby upholding the effectiveness of
the operations while adhering to the growth objectives of the same. Chesbrough and Bogers

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(2014) stated that the delineation of the diffusion theory has helped the organizations in
developing the innovativeness and setting a trend in the society. The theory of diffusion is
dependent on a diverse range of activities that are facilitated by the organizations with the aim of
developing resources in accordance to the needs of an organization.
Figure 1: Diffusion of Innovation
(Source: West and Bogers 2017)
The development of awareness and the urgency of the innovation assist an organization
in assigning an idea in accordance to the needs of gaining a sustainable and competitive edge.
The awareness of the innovative needs of an organization assists the same in designing the idea
and its applicability in the organizational model. Nambisan et al. (2017) stated that the different
changes that are undertaken by the organizations are dependent on the assimilation of the various
ideas relating to the innovation and the manner in which it might be implemented. On the
contrary, the interest of an organization, relating to the innovative idea, assists the same in
developing suitable resources for supporting the enhancements in the processes. The evaluation
of the idea is based on the feasibility of the same and the long term benefits that will be derived
by the organizations through the implementation of the idea. The assessment of the idea and t5he

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feasibility of its application in the organizational model assists the same in mai0ntaining the
efficiency of the operations. The trial and tests on the idea will justify the organizational needs
of maintaining the effectiveness of the operations in adherence to the growth related needs of the
same. Chesbrough (2017) stated that trialing the idea will assist an organization in developing
the operations while maintaining the efficiency of the operations while referring to the needs of
gaining a competitive edge. The adoption of the idea assists an organization in implementing the
innovative idea on the processes. The implementation of continuous innovation in the processes
assists an organization in developing the position of the same in different global markets.
On the other hand, the application of Von Hippel’s “Distributed Innovation” aimed at
emphasizing on the context of knowledge sharing based on the innovations. The application of
the theory in the organizational design assists the same in supporting the performance of the
same through the application of open innovation based practices and knowledge management.
The diversity in the propositions that are made by the organizations is dependent on the
knowledge of the current innovations that are adhered by the industry (Kornberger 2017). The
knowledge of the innovations that are undertaken by the organizations in an industry supports the
operations of a venture in enhancing the efficiency of the process design. The distributed
innovation related theories assist an organization in developing its knowledge based capabilities
to support the competitive edge of the same. Saebi and Foss (2015) stated that the wider
knowledge on the innovations that are undertaken by the organizations in an industry supports
the modifications in the internal processes. The developments in the knowledge based
capabilities of an organization supports the same in conceiving a clear idea of the innovation and
the manner in which it might be executed in order to facilitate the uninterrupted functioning of
the systems.

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3.2 Application of innovation in the organizational contexts
Innovations are undertaken by the organizations with the view of enhancing the process
flow and thereby enhance the propositions of the same. Anderson, Potočnik and Zhou (2014)
stated that the changing expectation of the audiences and the market trends has mandated
companies to secure continuous innovation processes for supporting the competitive advantage
of the same. Frequent innovations in organizations assist the same in developing the operations
and the propositions while adhering to the changing demand of the consumers. On the other
hand, the frequent innovations that are undertaken by the organizations assist in developing the
process design in synergy with the capabilities of the same.
Hon and Lui (2016) stated that frequent innovations that are facilitated by organizations
assists the same in improving the rate of sales and customer relations. Application of diverse
range of innovations in the line of offerings assists an organization in maximizing the rate of
sales through encouraging the customers and drawing the same towards the offering. The
development of the sales revenue assists an organization in gaining economic sustenance in the
competitive global markets. For an example, Samsung faced severe challenges with the supply
chain management (SCM) and inventory management initiatives, which drastically affected the
process flow while operating in diverse economies globally (Glor 2014). Therefore, in this
relation, the concerned organization aimed at combining the SCM initiatives with Six Sigma,
which assisted the organization in developing the operations while adhering to the sustenance
related needs of the same (Jarle Gressgård et al. 2014). Mendes et al. (2016) stated that the
innovativeness in the process design assists an organization in supporting the enhancement in
quality of the propositions. On the other hand, Camisón and Villar-López (2014) noted that the

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innovations in the line of process design aims at enhancing the productivity of the venture while
adhering to the increasing demand of the consumers in the market.
The different modifications that are facilitated by the organizations assist the same in
developing the resources and capabilities of the same while retaining the brand image in
competitive markets. Balland, Boschma and Frenken (2015) stated that organizations undertake
innovations with the aim of reducing the wastes from the processes. The reduction of the wastes
from the operating processes assists an organization in minimizing the operating cost of the same
while operating in diverse global markets. Cano-Kollmann, Hannigan and Mudambi (2018)
opined that the reduction of the wastes assist an organization in diminishing the costs that are
incurred by the same while manufacturing units. For an example, Toyota and some of the other
Western automobile manufacturers coined a set of lean principles and developed Toyota
Production Systems (TPS) and Just-In-Time (JIT) philosophy, which helped the same in
reducing the level of wastes that are generated through the overall process design (Zacher and
Rosing 2015).
Hogan and Coote (2014) stated that the innovativeness in the processes has helped
organizations in minimizing the costs of operations through avoidance of wastes. The reduction
of waste generation also assisted the concerned organization, Toyota, in reducing the amount of
wastes and thereby enhancing the quality of the propositions. Kornberger (2017) stated that the
innovativeness in the processes assists an organization in developing the market position of the
same. On the other hand, the concerned organization designed the concept of ‘Lean Thinking’,
which is being adopted by most of the companies later. The concept helped the organization in
gaining sustenance and a competitive advantage in the diverse markets (West and Bogers 2017).
The developments in the organizational processes have helped the concerned organization in

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adhering to the innovativeness and contributing to the shared knowledge in the industry while
maintaining their sustenance.
The development of innovative culture in organizations assists an organization in
developing the operations of the same while operating in diverse global economies. The different
innovations that are undertaken by the organizations are dependent on enhancing the market
position of the same. Doyle, Garrett and Currie (2014) stated that resource allocation in an
organization assists the same in enhancing the rate of returns. For an example, Google devised
70-20-10 rule, which assisted the same in allocating the resources systematically between “the
core”, “the adjacent” and “the innovative stuff” (Chesbrough and Bogers 2014). The delineation
of the phrases has helped the organizations in devising different strategic decisions in accordance
to the needs of the business. The appropriateness of the resource allocation philosophy assisted
the concerned organization in securing $87,000 in profits per employee by the end quarter of the
year (Saebi and Foss 2015). It also helped Google in gaining a competitive edge against IBM and
Goldman Sachs.
The innovativeness of the processes assists organizations in developing the operations in
accordance to the needs of the business. The implementation of the innovation in the
organizational model assisted the concerned organization in enhancing their relation with the
employees. Hon and Lui (2016) stated that the development of employee relation assist
businesses in developing the operations while operating in diverse global economies. The
development of the brand image is also dependent on the innovative culture that is followed by
the same while operating on diverse markets. For an example, the innovative culture followed by
Apple Inc. has assisted in developing and encouraging the involvement of the employees in the
processes. Mendes et al. (2016) stated that the engagement of the employees in the innovative

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processes assists an organization in developing the competitive edge of the same. In this relation,
the concerned organization was benefitted through the engagement of the employees in the
innovative processes that are designed by the management. On the other hand, the concerned
organization also developed a well- knit communication system, which has assisted the business
in encouraging the involvement of the employees in the processes.
Therefore, the diverse range of innovations that are undertaken by the organizations
assisted the same in gaining competitive advantage over the other players in the market. The
innovativeness of an organization also helped in reducing the wastes and operating costs. On the
other hand, continuous innovation assists an organization in developing its capabilities while
adhering to the changing market dynamics.
3.3 Challenges faced by organizations while adhering to innovativeness
The organizations might face a varied amount of challenges and restrictions, which might
affect the capabilities of the same in maintaining the efficiency of the operations. Challenges that
might be faced by an organization while managing innovativeness of the same are being
discussed in this section of the research.
 Lack of appropriate and clear innovative strategy- The lack of clear and appropriate
innovation based strategy might affect the capabilities of the organization in developing
the efficient operations. The lack of clear objectives for undertaking the innovation might
affect the capabilities of an organization in developing an appropriate culture. On the
other hand, the lack of suitable planning might affect the capabilities of the organizations
in developing innovative culture in the venture.

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 Lack of change readiness among employees- The lack of change readiness among the
employees might affect the capabilities of an organization in implementing suitable
strategies for growth and gaining a competitive advantage (Cano-Kollmann, Hannigan
and Mudambi 2018). On the other hand, the lack of employees training and
empowerment might affect the capabilities of the organizations in implementing suitable
innovation strategies.
 Lack of organizational resources- The lack of suitable amount of financial resources
might affect the capabilities of an organization in implementing the innovative strategies.
The lack of suitable financial resources might affect the capabilities of the organizations
in integrating technologies that might contribute to the competitive edge of the business.
The diverse range of changes that are undertaken by the organizations are backed by
suitable financial resources (Hogan and Coote 2014). Therefore, lack of financial sources
might affect the capabilities of organizations in developing innovative processes for
sustenance.
 Lack of suitable communication with the consumers- Lack of suitable communication
links with the consumers of a business might affect the capabilities of the same in
diagnosing the needs of the same. The consumer feedbacks on the products or services
assists an organization in developing ideas with the support of continuous innovation
based frameworks. Effective communication with the customers assists an organization
in developing the resources while adhering to the innovation based needs of the same.

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4. Conclusions and commercially viable solutions
4.1 Conclusion
Therefore, from the above analysis it might be stated that the innovations that are
undertaken by the organizations assist the same in developing the sustenance related
requirements of the same. The innovations that are undertaken by the organizations assisted the
same in developing the resources for growth and sustenance in diverse global economies. On the
other hand, the innovativeness of the venture assists the same in developing the competitive edge
while operating in diverse markets through enhancement of the existing processes. The
transformational aspect of the operations that are undertaken by the organizations are dependent
on the smooth functioning of the systems through an assessment of the needs of the business
while operating in competitive market scenario. However, the research also enumerated a list of
challenges that might be faced by the organizations while implementing innovation in the
processes and recommended activities for overcoming the challenges.
4.2 Commercially viable solutions
 Market research- The organizations might undertake a market assessment in orfer to
conceive an idea of the changes that are undertaken by the organizations and the issues
that are faced by the same. The assessment of the markets and the innovations that are
undertaken by the organizations in the industry will provide the organization with a brief
idea of the trends, which will assist the same in designing the innovation procedure that
might be undertaken by the businesses. Therefore, organizations must take steps to

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develop suitable market analysis for identifying the different aspects of innovation that
might be considered by the same.
 Development of lucid plans for the innovation process- The planning phase is one of
the major steps that might be considered by an organization with the aim of developing a
clear insight on the changes that might be undertaken by the same. The development of
the plans will be assisting the businesses in identifying the systematic steps that might be
undertaken by the same for developing resources.
 Employee empowerment and engagement in the change processes- The organizations
must take steps to empower the employees and engage the same in the innovative
processes for enabling the uninterrupted functioning. The empowerment of the
employees, through training and development programs, will also assist an organization
to facilitate change readiness among the same.

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