Types Management Practices And Innovation Performance Business Essay Example
Types Management Practices And Innovation Performance Business Essay Example

Types Management Practices And Innovation Performance Business Essay Example

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  • Pages: 9 (2415 words)
  • Published: August 29, 2017
  • Type: Research Paper
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As the service sector continues to make a larger contribution to the GNP of developed countries, its significance in western economies is increasing. The innovation within this sector has resulted in substantial economic growth and development. Pakistan's service sector is attracting significant foreign investments due to its lucrative market, promising future, and ample growth prospects. Consequently, it is experiencing rapid expansion when compared to other economies in the region. Experts in economics are actively striving to shift the country's economy from agriculture towards industry and service-oriented sectors, aligning with developed nations.

The text emphasizes the significance of inventions in driving sustainable growth across all economic sectors, particularly the service sector. However, organizations in the country face diverse challenges including environmental, policy, structural, institutional, and cultural constraints that impede their ability to fully capitalize on globalization and innovatio

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n processes. This study aims to investigate various types of innovation, the extent of innovative patterns in different organizations, and their contribution to growth and development. Additionally, it seeks to examine the barriers and challenges associated with implementing innovation within the service sector. The primary objective is to analyze the relationship between innovation, company performance, and the pursuit of innovation within Pakistan's services sector. The research survey will involve 35 service organizations for data collection and analysis purposes. It will rely on input from invention directors as well as consider employee perspectives.

Literature Reappraisal

Radical, Incremental and Me-too Invention

The future of innovation in organizations is influenced by the participation of individuals in the development of advanced ideas and self-improvement, resulting in a range of inventions that can be radical, incremental, or derived from competitors within the corporate world

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ROBERT M. PRICE, 2007 ). These inventions, including ideas and methodologies, add value to the organization by supporting its overall strategy ( W.David, Chin Huat Ong, et.al.,2005 ). The need for innovation is driven by increased complexity in processes and global competition. Achieving organizational excellence involves continuous improvement in processes to maintain competitiveness in a constantly changing environment ( Pervaiz K.Ahmed, 1998 ).

In the past centuries, inventions based on scientific research have greatly benefited global society. There are three aspects to research on innovation, including observing the process and systems of innovation, critically analyzing innovation theory, and making decisions based on innovative skills. Innovation is currently in a developmental phase, resulting in the emergence of new types and forms of innovation topics as research contributes to theoretical and operational knowledge. (Ruud Smits, 2002)

Degree of Innovativeness

The clear understanding of the stages or facets of innovation in terms of their impact on organizational performance is crucial for effective and efficient benchmarking. This understanding reveals the true indicators that demonstrate the level of innovativeness and its influence on the organization's performance.

The effectiveness of the invention's impact on products and organizational processes is measured in terms of its responsiveness, indicating the efficiency of innovation in organizational performance (G. Tor and L. Kathryn, 1994). To maximize the benefits of innovation, strategic direction is crucial as it integrates innovation into the organization's strategy. The extent to which organizations recognize this strategic importance is reflected in the level of responsibility given to staff members and their placement within the organizational hierarchy (C. Angela, E. John, et al.)

According to Michael A. Allocca and Eric H. Kessler (2006), the current era is characterized by

information engineering and companies are evolving rapidly to stay competitive in the market. In order to succeed, companies need to establish a strong relationship between quality and productivity.

Innovation Direction Patterns

Research conducted on large corporations has shown that managing radical and incremental innovations requires different approaches.

Profitable extremist inventions are more prevalent in small to medium-sized enterprises (SMEs) than in large corporations. These types of inventions aim to improve procedures, products, and services in response to customer demands. (Oke A., Burke G.)

, et.al., 2007) The service industry has experienced the greatest degree of growth and vitality in economic activity over the past decade, thanks to innovation in services. Academic interest in the innovation management sector is growing as a result of the service sector's growth, driven by the introduction of advanced services and processes. The life cycle of innovation must be taken into account by applying a whole set of techniques to analyze the risks associated with changes in cost, value, product, and processes at the organizational level (Frederic Tomala and Olivier Senechal, 2004).

However, studies on innovations in the service sector have received little attention.
Research is gaining recognition for its exploration of the relationships between types of innovation, degree of innovativeness, innovation performance, and innovation management practices.

The public presentation of invention is centered around innovative merchandise and service development. Improvements to existing products and services are loosely connected to public presentation of invention. The creation of groundbreaking inventions is guided by studying the correlation between the innovativeness of products and services and the patterns of invention direction within organizations. The systems for managing invention processes are formulated by analyzing how invention activities are organized and directed.

(Tuominen. M,

et.al.,1999). Official recognition of incremental inventions is important for implementing these types of inventions. Service inventions are particularly noticeable in the transportation and retail sectors. (Oke A., 2007) Ineffective deployment processes hinder the management and utilization of innovations, and can prevent the full benefits of invention from being realized. Proper safeguarding of corporate strategies through patents and acknowledging the importance of innovation with support from top management is necessary in creating a culture of innovation within the company.

(Oke, Adegoke, 2004)

Innovation Public Presentation

Organizational Public Presentation ; Market Public Presentation

Innovation is the starting point for potential competition, which protects the legacy of services and serves as a tool to surpass the capabilities of rivals. Innovative individuals are seen as valuable assets to the company, and the competitive advantage of the organization is based on the generation of ideas and knowledge management within the organization in collaboration with professionals responsible for innovations. The core competence of the modern business world is innovation management because companies outperform each other based on their level of innovation in their processes, use of technology, and mechanisms for customer satisfaction (Y. Carol et.al.

, 2007). The successful presentation of inventions relies on strategic and visionary planning that emphasizes long-term development. This planning is crucial for both the organization and the products and services produced through innovative processes. It is essential to effectively communicate the vision and goals of innovation throughout the entire organization. Interdepartmental communication is vital in order to accelerate both innovations and innovative processes.

The focus of directors is being shifted from traditional attacks to innovation and knowledge management. This can be achieved by attracting, retaining, and motivating the skilled individuals. The management

strategies need to be aligned with corporate objectives regarding innovations. Innovation plays a critical role in gaining competitiveness for organizations by establishing a unique connection with the economic activities that reflect both the financial and non-financial performance of the organization (D. Keith Denton, 1999). Innovation serves as the core of the organizational strategy and is essential for potential growth that enhances competitiveness.

The text emphasizes the importance of a supportive environment, willingness to take risks, unification into larger units, and allowing for changes in procedures and organizational hierarchy. According to Bolko von Oetinger (2004), the performance of the organization and market is evaluated in the market place where advanced marketing techniques are used to convert good ideas and products into sales and revenue. In order to maintain sustainable growth and compete in the market, innovations are necessary due to increasing dynamism in customer demands and technological advancements in the global economy. Innovation management systems are implemented to effectively promote innovative processes and prove their efficiency by maximizing benefits through policy restructuring and communication channels.

Consistent performance is closely tied to innovation and enhances the value of processes and products. Evaluating the effectiveness of innovative activities involves considering their impact on organizational performance and value. Innovation entails capitalizing on ideas and converting them into marketable advantages. In today's competitive landscape, companies strive to differentiate themselves by introducing novel and enhanced products, services, processes, and business methods.

Research Methodology:

Purpose of the Research Study:

The aim of this paper is to analyze the impact of invention on the service industry in Pakistan. The main findings of this research consist of the relationship between

types of inventions, direction of inventions, and their impact on organizational performance.

Research Design:

The research design was finalized based on interviews conducted with executives from the IT and Banking sectors. A mail survey was adopted due to lack of time and resources.

Positive feedback was received from the target audience, particularly those in academic and executive positions. The inquiries were designed using simple language instead of technical terms.

Response Rate:

Data was collected from individuals responsible for advanced activities within the organization to ensure credibility. These individuals were instructed to complete the questionnaire based on prevailing conditions. Out of the 250 questionnaires distributed, only 145 were returned, resulting in an overall response rate of 58%. Statistical tools such as regression, correlation, and mean were used to analyze the collected data.

Research Model and Hypothesis

The research model being tested is represented by the following equations:

Equation1: Y = a + b1 ( x1 ) + b2 ( x2 ) + b3 ( x3 ) + e OP= a + b1 ( IT ) + b2 ( DOI ) + b3 ( IMP ) + e

Whereas:
A : X1 = IT = Innovation types
X2 = DOI = Degree of innovativeness
X3 = IMP = Innovation direction patterns

Equation 2: Y = a + b1 ( x1 ) + b2 ( x2 ) + b3 ( x3) + e MP= a+b1(IT)+b2(DOI)+b3(IMP)+e

Whereas:
A : X1 =IT= Innovation types
X2=DOI=Degree of innovativeness
X3=IMP=Innovation direction patterns

The hypothesis for this research are as follows:

  1. H1: There is a positive relationship between extremist inventions and organizational performance.
  2. H2: There is a positive relationship between extremist inventions and market performance of the organization.
  3. H3: There is a positive relationship between

incremental inventions and organizational performance.

  • H4: There is a positive relationship between incremental inventions and market performance.
  • H5: There is a positive relationship between me-too inventions and organizational performance.
  • H6: There is a positive relationship between me-too inventions and market performance.
  • H7: There is a positiv
    1. H9:The degree of innovativeness is positively related to organizational performance.
    2. H10:The relationship between the Degree of innovativeness and market performance is positive.

    Research Findings

    The correlation of all variables can be found in Table.1 and documented in Table.2.The independent variable (invention direction) has a correlation value of 0.82 with market performance and 0.86 with organizational performance.The average value of innovation management is 3.67, with a standard deviation of 0.74.

    The correlation between extremist invention and organizational performance as well as market performance is highest at 0.77. The mean of extremist invention is 3.66 with a standard deviation of 0.57.

    Mee-too invention has the least impact on innovation management, with a correlation of 0.68 with organizational performance, a mean of 3.18, and a standard deviation of 0.60.

    This indicates that extremist innovation significantly improves organizational performance and market performance.

    Incremental innovation has the lowest level of correlation with market performance at 0.60.

    After innovation management, the degree of innovation has the second most influential effect on organizational performance and market performance, with correlations of 0.81 and 0.75 respectively, and means of 3.55 and 0.70 accordingly.


    Table 2. Mean and Standard Deviation

    According to Table.2, the variable with the highest mean (3.67) is innovation direction practices (IM), indicating that it has the most significant impact. Mee-Too innovation (MT) has a mean of 3.18, suggesting that it has a minimal contribution to organizational performance.

    Table 3.

  • Regression

    The tables display the regression, p-values, and coefficients of the variables. Table 3 illustrates the relationship between organizational performance and other variables, while Table 4 indicates the relationship between market performance and other dependent variables.

    Table 3 provides an explanation that the addition of 1 unit in innovation direction results in 0.46 units of invention direction and shows no significance with a 0% value. It also states that innovation direction has the highest increase in units and the highest degree of significance. Additionally, incremental invention and Mee-too invention additions result in 0.10 units of organizational performance with significance values of 22% and 23% respectively when adding 1 unit. This implies that incremental invention and Me-too invention have the least positive impact on organizational performance.

    Table 4 demonstrates that the addition of 1 unit in innovation direction leads to an increase of 0.50 units with a significance value of 0%. On the other hand, a 1 unit increase in DOI results in an addition of 0.02 units with a significance of 84%. This indicates that DOI is the least influential variable in terms of market performance. The additions of 1 unit in RI and MT lead to an increase of 0.29 and 0.13 units respectively, with significance values approximately at 0% and 19%.

    Decision:

    The research has concluded that the variables known as innovation management practices and radical innovation have the highest impact on organizational performance and market performance. This is evident from the higher values in the tables of average, coefficients, and regression. Table 3 and Table 4 explain 0.77 and 0.69 percent of the variables, respectively, which represent the regression statistics

    of market performance (MP) and organizational performance (OP). Radical innovation is highly recognized by individuals and executives who are knowledgeable about the existing forms and level of innovation in the local market. The banking and IT sectors, chosen for sampling, are the most highly advanced and competitive sectors in the local economy.

    The relationship between different types of inventions, the level of innovation, and patterns of invention direction demonstrates that radical inventions and invention direction patterns play a significant role in bringing about changes in both organizational and market performance. Interviews conducted with executives revealed that there is still much to be accomplished in Pakistan. Approximately 80% of IT companies and 60% of banks have implemented forms of innovation, which are often not explicitly labeled as such. However, these processes fall within the definition of innovation due to their effects on corporate culture and organizational procedures, as demonstrated in various performance reports. The positive impacts of innovation have been confirmed through surveys and extensive analysis of existing literature.

    In addition to characterizing the strength, approach, risk management, and strategic and market value of ideas and process changes, innovation direction and grade of innovativeness also have a significant impact.

    Further Research:

    In the future, further research could take an organized and careful approach to establishing a framework that illustrates the relationship between innovation management systems and the competence of service-oriented companies.

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