Organizational Innovativeness: A Theoretical Review and Integration

“

Researchers have made great efforts to understand the dynamics of various organizational elements that enhance innovativeness. They have identified certain organizational solutions in terms of structures, systems, and processes that contribute to innovations in organizations. Most of the existing research literature related to innovation has suggested designing sequential functions (Cooper, 1992; Marquis, 1969; Booz, Allen, and Hamilton, 1982), and/or changes in organization structural attributes as solutions to building innovative organization (Child, 1972; Covin and Slevin, 1988; Moch, 1976; Hage and Aiken, 1969; Burns and Stalker, 1969). The existing literature can be broadly classified into two categories namely, technically oriented 'process' approach and organizational design oriented 'structural' approach. But these 'process' and 'structural' approaches to innovativeness do not provide a complete answer to the problem and nor they are free from contradictions. Several researchers have identified the limitations of process approach (Wilemon and Millson, 1994) and there are classical debates centered around the structural solutions too (Gerwin, 1981; Normann, 1971; Daft, 1978). Recently, the cultural aspects of organization are receiving the serious attention, and developing the organization culture and climate that support innovation strategies is viewed as a primary task to enhance the innovative capabilities of organizations. Along the same vein, organizational researchers posit that cognition and knowledge serve as organizational DNA and meta-capabilities that shape the culture and climate required for innovation and creativity. This paper first reviews the existing literature on relationship between innovativeness and organization structure and culture, and technical process approaches, and identifies their limitations in building innovative capabilities. This paper further argues that certain organizational cultural attributes will provide better means for building an innovative organization. Next, this paper points out how knowledge management and organization culture can support the structural and process changes and create the climate required for successful implementation of innovation strategy.

”