Innovation Management Essay: The Impact of Employees and Organizations

This argumentative essay examines the statement that organizational innovation and creativity are heavily reliant on individual employees, with organizations having limited impact. The essay disagrees with this statement, arguing that successful innovation stems from a collaborative effort between employees and top management. It analyzes various innovation theories, including disruptive and sustaining innovation, along with the Innovation Diffusion Theory. Real-world examples from companies like Amazon and Woolworths are used to illustrate how top management, with employee support, has successfully implemented innovative approaches. The discussion section highlights the importance of creativity, design thinking, and innovation, emphasizing the group effort required for organizational innovation. The essay concludes by reiterating that innovation and creativity are based on the joint efforts of employees and management, emphasizing the importance of transformational leadership and a supportive organizational culture for fostering innovation and achieving competitive advantage.

Running head: INNOVATION MANAGEMENT
Innovation Management
Name of the Student
Name of the University
Author note

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Introduction
The argumentative essay throws light in analysing the fact as well as critically
evaluate the fact that whether the organizational innovation along with creativity are
dependent on the individual employees and the organizations have very little impact in
improving effectiveness and strengthening creativity or vice-versa. I do not agree with the
respective statement as in generating creativity and strengthening the innovative capabilities,
it is the group effort of all the employees and the top management officials for achieving
success in a suitable manner.
The scope of the essay will be analyzed with the usage and implementation of the
different innovation theories which includes disruptive innovation along with sustaining
innovation models along with Innovation Diffusion Theory. There will be inclusion of real
world corporate examples such as of Amazon or Woolworths wherein the top management
has been successful in implementing the different innovation approaches along with
assistance of employees that resulted in the success due to the group effort.
The structure of the essay will be consisting of two major paragraphs wherein the first
paragraph will be inclusive of the importance of the creativity, design-thinking and
innovation. The different aspects of the innovation management need to be analyzed with the
help of different instances from different corporate sectors that will be effective in
understanding the fact that the innovation and creativity are based totally on the group efforts
of the different team members and higher management officials. Lastly, the conclusion will
be related to the brief summary of the findings in the essay that will be proving the fact that
innovation and creativity is based on the joint effort of the employees.
Discussion

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As commented by Akinola et al. (2019), innovation along with creativity are the two
different terms wherein creativity is the originality, inventiveness as well as imagination
which are brought through proper resourcefulness. On the other hand, innovation is the
aspect which refers to the modernization along with improvement over the existing data. As
commented by Amabile and Pratt (2016), the successful type of implementation of the
creative ideas within companies and leadership is the most aspect which affects the
innovation approach. The influence of the leaders on various organizational related
characteristics include the different aspects such as culture, systems related to reward along
with resources that can be leading towards innovation. Lastly, as opined by Chen and Hou
(2016), the design thinking process is considered to be the iterative aspect that helps in
understanding the users, redefine the different problems along with creating innovative
solutions for achieving the best.
In the recent era, the times are really challenging for living in and the competition
between the companies are increasing which has been caused due to the intense type of
globalization. For becoming competitive, the different multinational companies have
recognized the concept of innovation as well as creativity as the fundamental constituent for
their survival along with generating competitiveness in the entire competitive business
environment. As commented by Gazzaroli, Gozzoli and Sánchez-Gardey (2019), the
organizational innovation is considered to be the vibrant process wherein the new ideas are
generated and existing products are modified that results in change and innovative products
or services. Moreover, in generating and bringing innovation in the scenario, the group effort
is the critical element which should be implemented which will be delivering the suitable
results.
As described by Kandampully, Bilgihan and Zhang (2016), the organizational
innovation is when the different companies inclusive of employees and employers try in

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embracing the ideas as well as behaviours which are highly contemporary to the companies.
For instance- In Woolworths, the introduction of the innovative system that is the self-check
out system for the customers has been of huge success for the growth and generating high
level of profitability (Woolworths.com.au 2020). The entire change which was brought or the
modification which was implemented has been the design thinking process of the entire
organization that led to the utmost success which has been received by them. The entire
involvement of the employees and employers in the together manner has been effective in
achieving the suitable results and it has been capable of being competitive in comparison to
other competitors such as Tesco or Coles.
In case of Woolworths, previously, the company previously did not follow the modern
technique of providing the different customers with the most innovative technique of
delivering the different products and services. However, as commented by Meinel et al.
(2017), through introduction of the self-check-out system, the company was capable of
making dynamic prospects in the decision-making process of the business which led to the
successful outcome of the business. From the instance, it has been made clear that new
development of product is extremely useful for the company and it can be commercialized
easily. Through the proper planning and the cooperation between the employees and
employers, the innovation has been made capable of gaining competitive advantage in the
market successfully.
As discussed by Keenan, Henriksen and Deep-Play Research Group (2017), the other
novel approach can be infusing innovation within the corporate culture of the companies
which will be callable of encouraging participation of the different employees. In the
respective setting, the different individuals are highly incentivised through power for making
the different autonomous decisions as well as the cooperation for achieving the joint goal of
the future creation of value. In addition, as commented by Meinel et al. (2017), the culture of

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the company needs to incorporate and foster the comfort environment for the employees for
freely articulating their ideas which is regardless of the feasibility. The culture of the
innovation should be capable of enriching as well as shaping culture of innovation that will
be enhancing the effectiveness in managing the growth prospects of the companies and
improve their position in the market (Olsson et al. 2019).
The joint effort of the individuals is capable of achieving the success which will be
capable of growing beyond their capabilities. For instance- In case of Amazon, Jeff Bezos
previously tried to take the different decisions by himself and there was no involvement of
employees. It led to the high level of turnover among employees and it impacted the
profitability of the company as a whole. However, when Jeff Bezos understood the fact that
the innovations are failing and they are not being able to compete in the competitive market,
in that moment, Jeff Bezos tried to adopt the transformational or democratic style of
leadership wherein the involvement of the employees is the key criteria which will be helping
the company in attaining success (Amazon.com 2020).
Therefore, Jeff Bezos tried to include the opinions of the employees in managing the
decisions that led to the successful outcomes. During the introduction of Alexa, employees
and employers tried to jointly work in order to make the innovation successful as this helped
them in competing in the market in comparison to other competitors (Amazon.com 2020).
From the respective instance of Amazon, it can be inferred that internal support is the major
element through encouraging and acknowledging the individuals who will be able to provide
the best outcomes in the market in comparison to other competitor companies. Moreover, as
opined by Parmentier, Le loarne-lemaire and belkhouj (2017), disruptive innovation technique
helps in understanding the needs of the different customers and the job they are trying to
accomplish.

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In case of Amazon, the innovation technique or model which have been implemented
is related to the disruptive innovation model wherein they tried to create new market through
introduction of new products even if the same is revolutionary. As opined by Sözbilir (2018),
the most suitable example of the modern-day disruptive innovation is internet which has been
used by companies such as Amazon for significantly altering the ways the company did
business previously. Through implementing the disruptive innovative capabilities, Amazon
has been successful in making the products better, however, the same are not affordable or
accessible to the larger sections of the society as a whole. It has been effective in invading the
established markets wherein the other companies have been trying to establish such products
and services for attracting the larger section of the customer base.
On the other hand, as commented by Speckbacher (2017), the sustaining innovation
is considered to be the incremental innovation technique which sustains the existing products.
In case of Woolworths, the company has been successful in introducing the self-check-out
system which has been able to displace the previous aspect of the traditional technological
aspect. In such scenario, it can be commented that the company has been able to improve
their growth-related prospects through introducing the respective technology that has helped
the customers and it has been able to generate a new lot of customers in the company which
is the positive attribute of the company.
As opined by Thiruvenkadam and Kumar (2018), the transformational leadership is
the most effective approach which has been capable of inducing the innovation in company
through creating the vision which is exciting and can embrace the innovation in a successful
manner. Both the CEOs of the companies namely Woolworths and Amazon tried in watching
on the changing environmental trends as well as communicate them in the frequent manner
with the companies and encouraging the change agents which helps in cultivating the
organizational innovation. As described by Thompson (2018), the transformational leadership

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is the ultimate style for endorsing innovation and it will be effective for generating high
innovative capabilities that will be beneficial for the growth of the company.
Through the Innovation Diffusion Theory, it helps in analysing the fact that which
kind of new ideas as well as technologies will be impacting the performance of the company
in comparison to the other competitors. The innovation, itself along with channels of
communication are the most effective elements that will be appropriate for including the
innovation model appropriately. Jeff Bezos, the CEO of the company Amazon, tried to use
certain channels over the time that are successful and it impacts the effectiveness of the
model in a suitable manner (Amazon.com 2020). With the respective model, the different
customers have been showing positive response through the adoption of the new product or
service. Therefore, it led to the total success of the Amazon Company in comparison to other
competitors such as Alibaba.
Conclusion
Therefore, from the overall analysis of the essay, it has been inferred that the
innovation, design thinking along with creativity are based on the performance of different
employees and the employers who are the integral part in the process of achieving the desired
goals. The study has been successful in determining the fact that both external as well as
internal support relative conditions for innovations helps in influencing the outcome of the
transformational leadership on the innovation which helps in generating the effectiveness in
managing the growth prospects of the company. Innovation is essential part in growing the
business and the successful exploitation of the different new ideas is crucial part of the
business which generates efficiency and increases the sustainability and profitability of the
business thoroughly. Both creativity, innovation as well as design decision-thinking process

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are the viable options which should be implemented for the success generation of the
company.
The innovation in the business can be generated and implemented through the
inclusion of both employees and employers for the growth of the company as a whole. As
commented by the authors, it has been seen that when there is infusion of vision within the
company which will be leading towards the creative output. The transformational leadership
aspect is the key element that needs to helping in promoting innovation within the
organization. The followers are continuously encouraged as well as motivated by different
leaders for working ahead of the different expectations that will be boosting level of
motivation and their morale will be increased in attaining the goals successfully. The theories
of innovation such as Sustained and Diffusion Theories are the ones which are capable of
easy implementation of the different innovations in Amazon and Woolworths. There are
different other examples such as Google wherein they have been capable of introducing the
different techniques such as Volkswagen invented the eco-friendly cars which have been of
huge success in the market. It is considered to be the sustained innovation wherein the
company has been able to introduce a new product through understanding the minds of
customers and with the help of the other employees.

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