THE DETERMINANTS OF ORGANIZATIONAL INNOVATION MANAGEMENT EFFECTIVENESS IN THE THAI BANKING INDUSTRY
Keywords:
Innovation Management effectiveness, Innovation Strategy, Organizational Structure and Culture, Project Management, Team Cohesiveness, Strategic Leadership and Coordination and CommunicationAbstract
This study aimed to focus on the determinants of the seven contingency prediction factors behind innovation management effectiveness in an organization, namely Innovation Strategy, Organizational Structure, Organization Culture, Project Management, Team Cohesiveness, Strategic Leadership and Coordination and Communication. In addition, the research study attempted to employ the concept of organizational contingency theory and resource-based view theory to explain the determinants of the seven contingency prediction factors, The research examined whether the outputs of all these positive correlations impact innovation effectiveness and to test the model of the seven contingency prediction factors of innovation management effectiveness. In the research methodology, the researcher provided a literature review of documents from several sources and used the review to derive the conceptual framework and the hypotheses model. The primary data was collected through questionnaires from the non-probability sampling population and data analysis technique. The research employed quantitative methods and the quantitative data was also analyzed using SPSS and Structural Equation Model-AMOS program. The proposed theoretical and managerial models were developed to support and interpret the result of the research study. The construct of innovation strategy was found to have the main impact on conceptual innovation management effectiveness while organization culture, project management and team cohesiveness, strategic leadership as well as coordination and communication had a significant positive influence on innovation management effectiveness. Finally, the article also provided the limitations of the study in both the results and the area of study as well as recommendations of the critical importance of strategic leadership in leading change and the future directions of the causal variables on innovation management effectiveness.
References
Adams, R., Bessant, J. and Phelps, R. 2006. Innovation Management Measurement: A Review. International Journal of Management Reviews. 8(1): 21-47.
Ahmed, P.K. 1998. Culture and Climate for Innovation. European Journal of Innovation Management. 1 (1): 30-43.
Afuah, A. 2003. Innovation Management: Strategies, Implementation and Profits. New York : Oxford University Press.
Anderson, J.C. and Gerbing, D.W. 1988. Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin. 103 (3): 411-423.
Babbie,E.R. 1999. The Practice of Social Research. Belmont, California:Wadsworth.
Deborah Dougherty & Cynthia Hardy. 1996. Sustained Product Innovation in Large Mature Organizations: Overcoming innovation-to-organization Problems,.– 39 Academy of Management Journal 1120. (October1996).
Barney, J.B., 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management. 17: 99-120.
Brown, S.L. and Eisenhardt, K.M. 1997. The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations. Administrative Science Quarterly. 42: 1–34.
Burns, T.R. and Stalker, G.M. 1961. The Management of Innovation. London: Tavistock Publications: 103-108.
Carson, J.B., Tesluk, P.E., and Marrone, J.A. 2007. Shared Leadership in Teams: An Investigation of Antecedent Conditions and Performance. Academy of Management Journal. 50: 1217-1234.
Clark, K. and Wheelwright, S. 1992. Organizing and Leading “Heavyweight” Development Teams. California Management Review. Spring: 9-28.
Cebon, P. and Newton, P. 1999. Innovation in Firms: Towards a Framework for Indicator Development. Melbourne Business School Working Paper 99-9.
Damanpour, F. 1991. Organizational Innovation: A Meta-Analysis of Effects of Determinants and Moderators. Academy of Management Journal. 34:555-590.
Deborah Dougherty and Cynthia Hardy. 1996. Sustained Product Innovation in Large Mature Organizations: Overcoming innovation-to-organization Problems,. – 39 Academy of Management Journal 1120. (October 1996).
Dewar, R.D. and Dutton, J.E. 1986. The Adoption of Radical and Incremental Innovations: An Empirical Analysis. Management Science. 32(11): 1422-1433.
Deschamp, J.P. 2005. Different Leadership Skills for Different Innovation Strategies. Strategy and Leadership. 33(5): 31-38.
Foster, W.K. and Pryor, A.K. 1986. The Strategic Management of Innovation. Journal of Business Strategy. 7(1): 38-42.
Grant, R. M. 1996. Toward a Knowledge-based Theory of the Firm. Strategic Management Journal. 17: 109-122.
Globe, S., Levy, G.W. and Schwartz, C.M. 1973. Key Factors and Events in the Innovation Process. Research Management. 16: 8–15.
Guzzo, R.A., and Dickson, M.W. 1996. Teams in Organizations: Recent Research on Performance and Effectiveness. Annual Review of Psychology. 47: 307-338.
Halawi, L., Aronson, J., McCarthy, R. 2005. Resource-Based View of Knowledge Management for Competitive Advantage. The Electronic Journal of Knowledge Management. 3, 2: 75-86.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. and Tatham, R. L. 2006. Multivariate Data Analysis. 6th ed. Englewood Cliffs: Prentice Hall.
Halawi, L., Aronson, J., McCarthy, R. 2005. Resource-Based View of Knowledge Management for Competitive Advantage. The Electronic Journal of Knowledge Management. 3, 2: 75-86.
Henderson R. and Cockburn, H. 1994. Measuring Competence? Exploring Firm Effects on Pharmaceutical Research. Strategic Management Journal. 15: 63-84.
Hopkins, W.E., and Hopkins, S.A. 2002. Effects of Cultural Recomposition on Team Interaction Processes. Academy of Management Review. 27: 541-553.
Hornsby, J.S., Kuratko, D.F., Shaker, A. and Zahra, S.A. 2002. Middle Managers’ Perception of the Internal Environment for Corporate Entrepreneurship: Assessing a Measurement Scale. Journal of Business Venturing. 17(2002): 253-273.
Hu, L. and Bentler, P.M. 1999. Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives. Structural Equation Modeling: A Multidisciplinary Journal. 6 (1): 1-55.
Kanter, R.M. 1985. Supporting Innovation and Venture Development in Established Companies. Journal of Business Venturing. 1: 47-60.
Keegan, A. and Turner, J.R. 2002. The Management of Innovation in Project- Based Firms. Long Range Planning. 35(4): 367-388.
Kimberly J., Evanisko M., 1981. Organizational Innovation: The Influence of Individual, Organizational and Confextual Factors on Hospital Adoption of Technical and Administrative Innovations. Academy of Management Journal. 24: 689-713.
Klein, K.J., Conn, A.B. and Sorra, J S. 2001. Implementing Computerized Technology: An Organization Analysis. Journal of Applied Psychology. 86(5): 811-824.
Kostopoulos K., Spanos Y. and Prastacos G.P. 2001. The Resource-Based View of the Firm and Innovation: Identification of Critical Linkages. MSL WP 24/01.
Kurtzberg, T. R., and Amabile, T. M. 2001. From Guilford to Creative Synergy: Opening the Black Box of Team-Level Creativity. Creativity Research Journal. 13:285-294.
John P.Kotter. 1996. Leading Change. Hard Business School Press.
Jaruzelski, B., Dehoff, K. and Bordia, R. 2005. Money Isn’t Everything. Strategy + Business. Winter: 54-67.
Johnson, J.D., Donohue, W.A, Atkin, C.K. and Johnson, S. 2001. Communication, Involvement, and Perceived Innovativeness: Tests of a Model with two Contrasting Innovations. Group and Organization Management. 26: 24-42.
Langfred, C.W. 1998. Is Group Cohesiveness a Double-Edged Sword? An Investigation of the Effects of Cohesiveness on Performance. Small Group Research. 29(1): 124-143.
Lawrence, P.R. and Lorsch, J.W. 1967. Organization and Environment. Harvard, MA: Harvard University Press.
Leonard-Barton, D. 1995. Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation. Boston: Harvard Business School Press.
Lee, M., Son, B. and Lee, H. 1996. Measuring RandD Effectiveness in Korean Companies. Research-Technology Management. 39: 28–31.
Lin, X. and Germain, R. 2003. Product Quality Orientation and Its Performance Implications in Chinese State-Owned Enterprises. Journal of International Marketing. 11 (2): 59–78.
MacCallum, R.C. and Austin, J.T. 2000. Applications of Structural Equation Modeling in Psychological Research. Annual Review of Psychology. (51): 201-226.
MacCallum, R. C., Browne, M. W., & Sugawara, H. M. (1996). Power analysis and determination of sample size for covariance structure modeling. Psychological Methods, 1, 130-149.
Martins, E. and Martins. N. 2002. An Organizational Culture Model to Promote Creativity and Innovation. SA Journal of Industrial Psychology. 28 (4): 58-65.
SA Tydskrif vir Bedryfsielkunde. 28 (4):58-65.
Martins, E.C. and Terblanche, F. 2003. Building organizational culture that stimulates creativity and innovation. European Journal of Innovation Management. 6(1): 64-74.
Mintzberg, H. 1979. The Structuring of Organizations a Synthesis of the Research. Englewood Cliffs, N.J: Prentice-Hall.
Mphahlele, I. 2006. Developing an Innovation Strategy Scorecard. Master’s thesis, University of Pretoria.
Mullen, B. and Copper, C. 1994. The Relation between Group Cohesiveness and Performance: An Integration. Psychological Bulletin. 115(3): 210-227.
Nelson, R.R. and Winter, S.G. 1982. An Evolutionary Theory of Economic Change. Cambridge, MA: Harvard University Press.
Nermien, Al-Ali. 2003. Comprehensive Intellectual Capital Management: Step-by-Step. New York: John Wiley and Sons: 1-288.
Nile W. Hatch & David C.Mowery, 1988. Process Innovation and Learning by Doing in Seniconductor Manaufacturing, 44 Management Science 1461 (November 1988, Part 1).
Nile W. Hatch and David C.Mowery, 1988. Process Innovation and Learning by Doing in Seniconductor Manaufacturing, 44 Management Science 1461 (November 1988, Part 1).
Pinto M.B. and Pinto J.K. 1990. Project Team Communication and Cross-Functional Cooperation in New Program Development. Journal Product Innovation Management. 7(6): 200-212.
Russel, R.D. 1999. Developing a Process Model of Entrepreneurial Systems: A Cognitive Mapping Approach. Entrepreneurship: Theory and Practice. 23(3): 65-84.
Russel, R.D. and Russel, C.J. 1992. An Examination of the Effects of Organizational Norms, Organizational Structure, and Environmental Uncertainly on Entrepreneurial Strategy. Journal of Management. 18(4): 639-657.
Ramanujam, V. and Mensch, G.O. 1985. Improving the Strategy–Innovation Link. Journal of Product Innovation Management. 2: 213–223.
Roach, I. and Sager, C. 2000. Enabling Innovation: Leadership, Tasks and Tools, 54th Annual Quality Congress Proceedings. American Society for Quality.
Rothwell, R. 1992. Successful Industrial Innovation: Critical Factors for the 1990s. RandD Management. 22: 221–239.
Souitaris, V. 2002. Firm-Specific Competencies Determining Technological Innovation: A Survey in Greece. RandD Management. 32: 61–77.
Tim Craig., 1995. Achieving Innovation Through Bureaucracy: Lessons from the Japanese Brewing Industry. 38 California Management Review 8. (Fall 1995).
Vlok, A. 2005. Innovation: How Management Can Improve throughput by Understanding the Flow. Management Today. September 2005: 15-17.
Wernerfelt, B., 1984. A Resource-Based View of the Firm. Strategic Management Journal. 5: 171-180.
Wiio, O.A. 1979. Contingencies of Organizational Communication. The Helsinki School of Economics. B-30.
Downloads
Published
How to Cite
Issue
Section
License
Content and information of the article published at Suthiparithat Journal are based on the sole opinions and responsibility of author(s) only. Neither the editorial board involve in......
