Creating a Climate for Innovation Case Study Example | Topics and Well Written Essays - 1500 words

Creating a Climate for Innovation - Case Study Example These theories are; organizational integration from the stream of organizational design, the knowledge creating organization from the stream of collective cognition and learning, and a hybrid theory of team climate for innovation. All these theories concur that innovations in organizations occurs where collaborative work, common understanding of vision and norms, and shared learning among proximal groups are necessary conditions. The organizational theory relates the competitive advantage of the business enterprise to its structural strategy while the knowledge creating organizational theory involves activities of knowledge creation and discovery that takes place in the social context, where knowledge transfers require social interactions. Finally, the hybrid theory incorporates the concepts of both the organizational integration theory and the knowledge creating organizational theory. This theory assumes that innovation occurs within proximal work groups if particular conditions tha t are sufficient for their collective learning and shared understanding and coordinated performance occur. These theories fall short in describing all aspects which may influence an organizations ability to prosper in the future In order for the analysis of the innovation phenomenon in organizations to be made, a conceptual method was derived. The model was to be used in developing various hypotheses that would be verified through survey and other research methods. The three innovation theories were used to derive three constructs which would in turn lead to distinguished business performance. The three constructs are: â€Å"Leadership for Innovation† (LFI), â€Å"Organizational Culture for Innovation† (OCI), and â€Å"Team Climate for Innovation† (TCI). Although these same constructs were identified in the previous work of Panuwatwanich (2008). However, this constructs risk exposing the organization into losses because of their reliance on surveys. In event of a wrong survey, the implementation of construct methods may severely harm the organization. The factor analytic model was also used when the variables of theoretical interest cannot be easily identified in the organization, hence observable variables are used. The factor analysis uses two statistical approaches in the analysis, that is, exploratory factor analysis and confirmatory factor analysis. The exploratory approach focuses on grouping related variables together while the confirmatory approach focuses on analyzing data for inferential purposes and hypothetical testing. Though important, the factor analysis method is sometimes ineffective in the analysis of data which has no correlation. Finally, the preliminary findings also showed that, the climate of innovation in the UAE organizations is moderately strong, although it requires more practical support in terms of providing more resources for the skill base to further develop their skills and seek better ways of developing cre ative solutions. Another finding is that construction firms performed slightly better than non-construction firms in demonstrating an innovation-conducive atmosphere. This showed that the statistical methods used were accurate and reliable. Critical analysis of the conceptual model for innovation In order for a good climate for innovation to be created in a business environment, three main theories should be put into consideration. The theories include; the organizational integration theory from the broad stream of