This thesis aims at providing value to small and medium-sized enterprises (SME). In Switzerland these enterprises constitute 97% of all Swiss companies and employ 67% of the working population. These figures clearly demonstrate that SMEs are the backbone of the Swiss economy.
Although the type of companies studied varied considerably in size, the concrete measures surfaced in the research that stimulate creativity and innovation are mostly size irrelevant. The belief that large corporations’ ability to apply costly measures, would outplay SMEs proved to not necessarily hold true. This can be explained by the fact that organisational culture is predominantly about human interaction. It is about the people as they are the ones armed with great ideas.
This study further reveals that these creative thoughts and ideas are frequently developed in a friendly atmosphere where people from different divisions can come together and exchange ideas. Creative hunches often occur through informal exchanges where work and social interactions are encouraged in everyday life. Therefore, not only places for “doing” need to be provided, but places for “being” are equally important. This human-centric orientation must be further supported by employee empowerment, trust and the freedom to take actions on behalf of the company. These values have a powerful impact on individuals and make them engage by means of intrinsic motivation.
The synergy of these factors provides a lively melting pot where the communication culture promotes an honest exchange of opinions. This is considered as the most productive method in achieving great results. However, without the active role of management support, no such culture can be achieved. Impartially rewarding achievements, embracing uncertainty, allowing risk-taking and mistakes are prerequisites for innovation. Implementation of these factors may appear to be straightforward, however, it demands a high degree of letting go. These components must form an integral part of company strategies and are effective if they are not only clearly communicated throughout the entire workforce in a consistent manner, but also experienced and lived by employees in the daily operations and interactions. This clearly answers Drucker’s question - “how much of innovation is inspiration, how much is hard work?” - and shows the great degree of influence that is held by management support.
Table of Contents
1 INTRODUCTION
1.1 THE IMPORTANCE OF INNOVATION
1.1.1 Innovation trends in world economics
1.1.2 Swiss innovation support
1.1.3 Innovation in corporations
1.2 INITIAL SITUATION
1.2.1 Innovation – the engine of change
1.2.2 The drivers of innovation
1.2.3 Organisational culture – a spiritual force
1.2.4 The value of organisational culture on creativity and innovation
1.3 PROBLEM DEFINITION
1.3.1 Innovation – a buzzword
1.3.2 Reasons for innovation failure
1.3.3 The challenge of fragmented literature
1.4 OBJECTIVES & RESEARCH QUESTIONS
1.5 SCOPE OF THE STUDY
1.6 DOCUMENT STRUCTURE
2 METHODOLOGY
2.1 EMPIRICAL DESIGN
2.1.1 Research approach and methodology
2.1.2 Objectivity and transparency
2.1.3 Validity
2.1.4 Reliability
2.1.5 Strengths of the Empirical Design
2.1.6 Generalisation and Limitations of the Empirical Design
2.2 STRATEGIC SAMPLE
2.2.1 The interviewees
2.2.2 Limitations of the strategic sample
2.2.3 Pre-Test
2.3 CONDUCT OF INTERVIEWS
2.4 INTERVIEW OUTLINE
2.5 INTERVIEW ANALYSIS SCHEME
2.5.1 Categories for Themes
2.5.2 Results of the Pre-Test and Changes in the Method
3 DEFINITIONS
3.1 CREATIVITY
3.2 INVENTION, INNOVATION & INNOVATIVENESS
3.2.1 Invention
3.2.2 Innovation
3.2.3 Innovativeness
3.3 ORGANISATIONAL & INNOVATION CULTURE
4 THEORETICAL BACKGROUND
4.1 WORK OF SCHEIN
4.2 MODEL OF ORGANISATIONAL CULTURE BY TERBLANCHE & MARTINS
4.3 MODEL OF ORGANISATIONAL CULTURE BY MARTINS & MARTINS
4.3.1 The Culture dimensions
4.3.2 The importance of organisational culture
4.3.3 Strategy
4.3.4 Purposefulness
4.3.5 Trust relationship
4.3.6 Behaviour that encourages innovation
4.3.7 Working Environment
4.3.8 Customer Orientation
4.3.9 Management Support
4.3.10 Application of model
5 RESULTS
5.1 STRATEGY
5.2 PURPOSEFULNESS
5.2.1 The importance of purpose
5.2.2 Getting the vision, mission and objectives across
5.2.3 Involvement through co-creation
5.2.4 Involvement trough understanding employee’s needs
5.2.5 Involvement through employee’s organisational integration
5.2.6 Involvement through recruiting
5.2.7 Availability of standards
5.3 TRUST RELATIONSHIP
5.3.1 Trust motivates people
5.4 BEHAVIOUR THAT ENCOURAGES INNOVATION
5.4.1 Innovation drivers
5.5 WORKING ENVIRONMENT
5.5.1 Conflict handling
5.5.2 Cooperative teams
5.6 CUSTOMER ORIENTATION
5.7 MANAGEMENT SUPPORT
5.7.1 Mistake handling
5.7.2 Welcome ideas
5.7.3 Resources
5.8 MISSING ITEMS IN THE MODEL BY MARTINS & MARTINS (2002)
5.8.1 Human aspects
5.8.2 Physical Working Environment
5.8.3 Innovation sources & techniques
5.8.4 Diversity
5.8.5 Collaboration
5.8.6 Symbolism
5.9 CRITICAL REVIEW OF THE MODEL
5.9.1 Design
5.9.2 Interdependencies
5.9.3 Removal of dimension
5.9.4 Terminology
6 DISCUSSION
6.1 SUMMARY OF INTERVIEWEES CRITICAL ANALYSIS OF THE MARTINS & MARTINS (2002) 75
6.1.1 Areas of improvement and limitations
6.1.2 Omissions
6.1.3 Introduction of the newly developed framework
6.2 STRATEGY & PURPOSEFULNESS
6.2.1 Definition of visions, mission and core values
6.2.2 Purposefulness
6.2.3 Organisational-wide Alignment
6.2.4 Symbolism
6.3 OUTWARD ORIENTATION
6.3.1 Understanding of customer needs
6.3.2 Collaboration
6.4 MANAGEMENT SUPPORT
6.4.1 Open communication
6.4.2 Embrace uncertainty
6.4.3 Tolerance of mistakes
6.4.4 Availability of resources
6.4.5 Reward system
6.4.6 Recruiting
6.5 INDIVIDUALS
6.5.1 Empowerment
6.5.2 Trust
6.5.3 Involvement
6.6 WORK ENVIRONMENT – HUMAN CENTRIC ORIENTATION
6.6.1 Appreciation towards new ideas
6.6.2 Meeting culture
6.6.3 Creative groups
6.7 WORK ENVIRONMENT – PHYSICAL AND TECHNOLOGICAL
6.7.1 Optimal layout
6.7.2 Different areas
6.8 DRIVING FORCES OF CREATIVITY AND INNOVATION
6.8.1 Techniques
6.8.2 Celebrate success
7 CONCLUSION
7.1 ANSWERS TO THE RESEARCH QUESTIONS
7.2 LIMITATION OF THE STUDY
7.3 RECOMMENDATIONS FOR FURTHER RESEARCH
Research Objectives and Key Topics
The primary objective of this thesis is to provide a deeper understanding of organisational cultures and to develop a practical framework that helps companies foster an innovation-friendly environment. The research aims to identify how management support and specific cultural determinants can be implemented to effectively drive creativity and innovation, particularly within the context of small and medium-sized enterprises (SMEs).
- The influence of organisational culture on innovation performance.
- Key components of an innovation-driven culture such as leadership, strategy, and management support.
- Implementation strategies for creating an environment conducive to creativity and risk-taking.
- Practical models for measuring and enhancing innovation culture in SMEs.
- The role of human-centric orientation and individual empowerment in successful innovation.
Extract from the Book
1.2 Initial Situation
This is precisely what most companies now are choosing to do (Vangundy, 2007, p. 4). Innovation is the engine of change and in today’s fiercely competitive environment and not adapting to change can be detrimental. Companies cannot protect themselves from change regardless of their greatness or the vastness of their resource pool (Ahmed, 1998, p. 30). Thus, for most organisations change is inevitable (Martins & Martins, 2002, p. 58). Change, while it brings uncertainty and risk, it also creates opportunity (Ahmed, 1998, p. 31). When faced with change, openness and trust are two important interrelated influencing characteristics (Deal & Kennedy, 1982, p. 164). More predominantly though, creativity and innovation are the key drivers of an organisation’s ability to change (Ahmed, 1998, p. 30). Rapidly changing business environments cause problems that managers have not previously encountered. Tried and trusted methods of approaching problems may fail. Therefore, creativity in problem-solving is an essential ability in managerial skills for any organisation (Proctor, 2005, p. 223).
In sum, innovation is the precious currency of the new economy and creativity is the seed of all innovation (Hargadon & Sutton, 2000, p. 157; Amabile, Conti, Coon, Lazenby & Herron, 1996, p. 1155). Indeed, the topics of creativity and innovation are even a bit magical – it is very hard to be creative on the spot, but by having an open mind and creating the right atmosphere, the magic can appear (Kelley & Littman, 2001 in Heye, 2006, p. 253).
But what does it take to create such a magical atmosphere? Of course, simply deciding that the organisation has to be more creative and innovative is insufficient. That decision must be backed by actions that create an environment in which people feel inspired and comfortable with innovation to the point where they can actually live it (Ahmed, 1998, p. 31).
Summary of Chapters
1 INTRODUCTION: This chapter establishes the theoretical background and highlights the critical importance of innovation in a changing global landscape for both nations and corporations.
2 METHODOLOGY: This section details the qualitative research approach, including the empirical design and the selection of a strategic sample of experts to validate the innovation culture framework.
3 DEFINITIONS: This chapter provides necessary clarity on key terminology, specifically differentiating between creativity, invention, innovation, and innovativeness.
4 THEORETICAL BACKGROUND: This section explores existing models of organisational culture, focusing on the work of Schein and the influence of the Martins & Martins (2002) model.
5 RESULTS: This chapter presents the raw findings from the interviews with industry experts, categorised according to the seven core determinants identified in the research.
6 DISCUSSION: This section critically analyses the interview findings and introduces a newly developed, practical framework for implementing an innovation-driven culture.
7 CONCLUSION: The final chapter summarises the key findings, answers the research questions, and provides recommendations for further studies in this field.
Keywords
Organisational Culture, Innovation, Creativity, Strategy, Purposefulness, Management Support, SME, Empowerment, Knowledge Management, Risk Taking, Employee Involvement, Innovation Framework, Corporate Culture, Workplace Environment, Swiss SMEs
Frequently Asked Questions
What is the core focus of this master thesis?
The thesis focuses on how organisations can cultivate an internal culture that actively promotes creativity and innovation, with a specific practical application for Swiss small and medium-sized enterprises (SMEs).
What are the primary themes discussed in the research?
The central themes include the role of leadership, the impact of organisational strategy, the necessity of management support, employee empowerment, and the physical as well as psychological working environment.
What is the main research question of the work?
The research explores how components of an innovation-friendly culture can be identified and implemented through a practical, concrete framework that is applicable in everyday business operations.
Which scientific methodology was applied?
The study employs a qualitative research approach, combining literature review with semi-structured, in-depth interviews with executives and experts from various innovation-leading companies.
What does the main body of the thesis cover?
It covers the theoretical definitions of innovation, an analysis of the Martins & Martins (2002) culture model, the presentation of empirical results, and the development of an extended, practice-oriented framework.
What are the characterizing keywords of this study?
The study is characterised by terms such as Organisational Culture, Innovation, SME, Empowerment, Employee Involvement, and Management Support.
How does this document approach the challenge of 'innovation failure'?
The thesis identifies systemic inhibitors in management principles inherited from the industrial era and proposes replacing them with an innovation-friendly culture that encourages risk-taking and open dialogue.
What is the significance of the "Innovation Champion" mentioned in the results?
The Innovation Champion is a symbolic and structural role or reward mechanism used by companies to highlight successful innovative behaviour, provide recognition, and motivate employees to share and pursue new ideas.
How does the framework proposed in the study differ from previous academic models?
Unlike purely academic models that may be viewed as top-down or theoretical, the new framework developed in this thesis aims to be visually intuitive, process-driven, and applicable for executives by offering concrete measures and actions.
- Quote paper
- Amber Dubinsky (Author), 2013, Innovation. The Currency of the 21st Century, Munich, GRIN Verlag, https://www.grin.com/document/416065
