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Article
Publication date: 25 April 2008

The role of trust in organisational innovativeness

Riikka Ellonen, Kirsimarja Blomqvist and Kaisu Puumalainen

The purpose of this paper is to analyse the effects of the dimensions of organisational trust on organisational innovativeness in a relatively large survey sample of the…

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Abstract

Purpose

The purpose of this paper is to analyse the effects of the dimensions of organisational trust on organisational innovativeness in a relatively large survey sample of the information and communication technology (ICT) and paper and pulp industries in Finland.

Design/methodology/approach

Organisational trust is deemed to consist of both interpersonal and impersonal types of trust. The empirical part of the study shows the relationship between various types of trust and dimensions of organisational innovativeness. Quantitative empirical analysis is based on a survey of 40 organisational units and 214 respondents within the ICT and paper and pulp industries.

Findings

The impact of different types of organisational trust on dimensions of organisational innovativeness was analyzed. The results imply that the impersonal form in particular, namely institutional trust, has an important role in determining organisational innovativeness.

Research implications

This study contributes both to the literature on organisational innovativeness, as well as to the emerging theory on trust, in its approach to trust as not only an interpersonal issue, but also as something with impersonal aspects.

Practical implications

It is suggested that managers should pay special attention to impersonal forms of trust, i.e. to the institutional dimension of organisational trust. Above all, institutional trust and its development could be seen as a strategic question for companies.

Originality/value

This study makes a significant theoretical contribution by examining the linkages between various dimensions of organisational trust and organisational innovativeness, which have previously been studied only to a very minor extent. It thus provides a richer understanding of the relationship between organisational trust and innovativeness.

Details

European Journal of Innovation Management, vol. 11 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/14601060810869848
ISSN: 1460-1060

Keywords

  • Trust
  • Innovation
  • Organizational performance
  • Job satisfaction

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Article
Publication date: 8 February 2016

HRM practices, impersonal trust and organizational innovativeness

Mika Vanhala and Paavo Ritala

Organizational processes that create conditions to facilitate employee innovativeness have become topical due to the constant demand for organizations to renew themselves…

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Abstract

Purpose

Organizational processes that create conditions to facilitate employee innovativeness have become topical due to the constant demand for organizations to renew themselves. Research shows that human resource management (HRM) practices can been used to create such conditions, but also the important complementary role of organizational trust has been highlighted in this context. In particular, earlier studies have mostly focused on the concept of interpersonal trust. However, impersonal trust (the individual employee’s expectations about the employer organization’s capability and fairness) has recently been suggested to be an equally or even more relevant facilitator supporting the effect of HRM practices on organizational innovativeness. The paper aims to discuss these issues.

Design/methodology/approach

The hypotheses were tested with two large-scale quantitative studies from the forestry and information and communication technology industries in Finland. Structural equation modelling (with LISREL) was used to test hypothesis.

Findings

This study shows that effective HRM practices indeed facilitate organizational innovativeness, and that this effect is partially mediated by impersonal trust in the organization. This result contributes to the existing literature and practice of HRM and the management of organizational innovativeness.

Research limitations/implications

Future studies could include also interpersonal trust in order to study trust-innovativeness linkage. The study also examined this phenomenon only in Finnish context and this sets some limitations to the generalizability of the results. In addition, single respondents were used to assess all the variables used in the study. Further studies could improve on this by utilizing more objective measures of organizational innovativeness.

Practical implications

The results suggest that organizations should pay attention to designing HRM practices so that they facilitate the building of impersonal organizational trust. In order to improve innovativeness through organizational trust, it is crucial to develop an organization-wide HRM system, since practices that are inconsistently used can lead to unwanted or inefficient results. Strategic and managerial actions related to HRM could increase employees’ trust in the organization and subsequent conditions for providing continuously innovative solutions.

Originality/value

The authors add to the literature by identifying the connection of HRM practices to contributing to behavioural, process and strategic innovativeness through the mediation of impersonal trust. To the best of the researchers’ knowledge, this is one of few studies and the first systematic large sample study that examines impersonal trust and its relationship between HRM practices and different types of organizational innovativeness.

Details

Journal of Managerial Psychology, vol. 31 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JMP-03-2013-0084
ISSN: 0268-3946

Keywords

  • Mediation
  • Innovativeness
  • Organizational trust
  • HRM practices
  • Impersonal trust

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Article
Publication date: 27 July 2012

The ethical culture of organisations and organisational innovativeness

Elina Riivari, Anna‐Maija Lämsä, Johanna Kujala and Erika Heiskanen

The purpose of this paper is to examine the relationship between the ethical culture of organisations and organisational innovativeness.

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Abstract

Purpose

The purpose of this paper is to examine the relationship between the ethical culture of organisations and organisational innovativeness.

Design/methodology/approach

A quantitative empirical analysis was conducted on the basis of a survey of 147 respondents within the public sector in Finland. A multivariate linear regression analysis was done to examine how the ethical culture of organisations is related to organisational innovativeness.

Findings

A positive link was found in the ethical culture of an organisation and organisational innovativeness: ethical culture was important to behavioural, strategic and process innovativeness. Within the ethical culture of an organisation, the dimension of the congruency of management in particular had an important role in organisational innovativeness.

Research limitations/implications

The data were collected from the public sector, and therefore, future studies from the private sector organisations are needed. The results lend support to previous research arguments for the positive effect of an ethical organisational culture on organisational outcomes, particularly the organisational innovativeness described in this paper.

Practical implications

It is suggested that congruency of management, discussability and supportability are the organisational virtues which can most effectively enhance organisational innovativeness, specifically behavioural, strategic and process innovativeness in practice.

Originality/value

The research paper provides empirical evidence on the interrelation between the ethical culture of organisations and organisational innovativeness; evidence which is scarce in existing literature on organisational innovativeness. Thus, the paper helps fill this gap in the literature in the field.

Details

European Journal of Innovation Management, vol. 15 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/14601061211243657
ISSN: 1460-1060

Keywords

  • Finland
  • Public sector organizations
  • Organizational culture
  • Ethics
  • Organizational innovation
  • Ethical culture of organizations

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Article
Publication date: 16 November 2010

Knowledge management and innovativeness: The role of organizational climate and structure

Chung‐Jen Chen, Jing‐Wen Huang and Yung‐Chang Hsiao

The purpose of this paper is to investigate the effects of organizational climate and structure on knowledge management and firm innovativeness from the social capital and…

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Abstract

Purpose

The purpose of this paper is to investigate the effects of organizational climate and structure on knowledge management and firm innovativeness from the social capital and social network perspectives.

Design/methodology/approach

The empirical study employed a questionnaire approach. The sample for this study was drawn from the population of the top 5,000 Taiwanese firms listed in the yearbook published by the China Credit Information Service Incorporation. Regression analysis was used to test the hypotheses in a sample of 146 Taiwanese firms.

Findings

The findings suggest that knowledge management is positively related to firm innovativeness. In addition, the effect of knowledge management on innovativeness is positively moderated by supportive climate and decentralized, integrated, and less formalized structure. The study also examines the effects of organizational climate and structure on knowledge management and the results indicate that innovative and supportive climate are positively related to knowledge management. When the organizational structure is less formalized, more decentralized and integrated, knowledge management is more enhanced.

Practical implications

Firms need to be aware of the critical role of organizational structure and climate in the transition process of knowledge management to innovative products or services.

Originality/value

This study contributes to the literature by investigating the relationships among organizational contexts of climate and structure, knowledge management, and firm innovativeness from the social capital and social network perspectives.

Details

International Journal of Manpower, vol. 31 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/01437721011088548
ISSN: 0143-7720

Keywords

  • Knowledge management
  • Innovation
  • Organizational structures
  • Social capital
  • Networking
  • Taiwan

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Article
Publication date: 5 August 2020

Organisation size, innovativeness, self-organisation and inter-organisational coordination

Henry Mutebi, Moses Muhwezi, Joseph Mpeera Ntayi and John C. Kigozi Munene

The purpose of this study is to examine how humanitarian organisation size affects inter-organisational coordination and further tested the mediating role of organisational…

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Abstract

Purpose

The purpose of this study is to examine how humanitarian organisation size affects inter-organisational coordination and further tested the mediating role of organisational innovativeness, self-organisation in the relationship between humanitarian organisation size and inter-organisational coordination among humanitarian organisations in Uganda.

Design/methodology/approach

The study is based on cross-sectional survey; data was collected from 101 humanitarian organisations. The analysis of the proposed hypotheses was done with the help of PLS-SEM using SmartPLS version 3.3.0 for professionals.

Findings

The results show that humanitarian organisation size significantly relates with inter-organisational coordination. In addition, self-organisation and organisational innovativeness play a complementary role between humanitarian organisation size and inter-organisational coordination.

Research limitations/implications

The findings of this research provide useful insights into the role of humanitarian organisation size in boosting inter-organisational coordination in humanitarian relief delivery. High levels of self-organisation and organisational innovativeness not only improve inter-organisational coordination in humanitarian relief delivery but also enhance the transformation of humanitarian organisation size benefits into inter-organisational coordination.

Originality/value

This research is one of the few studies that investigated the effect of humanitarian organisation size and inter-organisational coordination. It also brings into the limelight the mediating role of self-organisation and organisational innovativeness between humanitarian organisation size and inter-organisational ordination in humanitarian relief delivery.

Details

International Journal of Emergency Services, vol. 9 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IJES-05-2020-0024
ISSN: 2047-0894

Keywords

  • Humanitarian organisation
  • Humanitarian organisation size
  • Self-organisation
  • Humanitarian relief delivery
  • Organisational innovativeness
  • Inter-organisational coordination

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Article
Publication date: 4 July 2020

Bricolage as a path towards organizational innovativeness in times of market and technological turbulence

Leandro Lima dos Santos, Felipe Mendes Borini and Rafael Morais Pereira

Companies need guidance on how to operate in turbulent environments to improve their innovative performance. However, few studies have been done specifically about how to…

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Abstract

Purpose

Companies need guidance on how to operate in turbulent environments to improve their innovative performance. However, few studies have been done specifically about how to market and technological turbulence affects the innovative performance in emerging markets. This paper aims to propose model with market turbulence, technological turbulence and firm’s bricolage behavior as antecedents of organizational innovativeness.

Design/methodology/approach

Two conceptualizations of the role of environmental turbulence are examined as follows: that market turbulence and technological turbulence are established as direct antecedents to organizational innovativeness performance; and the model has a mediating effect through the bricolage behavior. In this sense, the strengths of the paths differ depending on the presence of bricolage. Data were collected from 215 firms operating in Brazil, analyzed using the partial least squares (PLS)-structural equation modeling (SEM) technique as a quantitative method to test the hypotheses.

Findings

The results indicate that the mediating effect evidenced by the bricolage behavior was supported. In other words, the path from market and technological turbulence to organizational innovativeness is significantly better when permeated by bricolage behavior in the organization.

Research limitations/implications

It can be suggested to conduct similar research with larger sample size and applying control variables such as the size of the company, as smaller companies have less access to resources and maybe the engagement in bricolage can be even more substantial for them to keep innovating and to remain competitive in times of turbulence.

Practical implications

Some managerial recommendations and implications are provided. Managers should recognize the possible improvements in the organizational innovativeness development by actively including the bricolage behavior among their companies’ activities.

Originality/value

The theoretical contribution to the academic knowledge lies in corroborating with previous studies, which pointed out that bricolage has an influence on a firm’s innovativeness and some studies, which address perspectives in the organizational learning field.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 13 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JEEE-02-2020-0039
ISSN: 2053-4604

Keywords

  • Emerging markets
  • Organizational innovativeness
  • Technological turbulence
  • Market turbulence
  • Bricolage behavior

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Article
Publication date: 13 February 2017

A contingency model of CEO characteristics and firm innovativeness: The moderating role of organizational size

Bhaskar Prasad and Paulina Junni

Ample evidence suggests that firm innovativeness is important for firm competitiveness. Despite the significance of the CEO for firm outcomes in general, the role of the…

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Abstract

Purpose

Ample evidence suggests that firm innovativeness is important for firm competitiveness. Despite the significance of the CEO for firm outcomes in general, the role of the CEO in firm innovativeness remains unclear. The purpose of this paper is to focus on the impact of two CEO characteristics – organizational identification and risk propensity – on firm innovativeness. The authors also adopt a contingency view to examine the moderating role of organizational size.

Design/methodology/approach

Using data from 159 information technology firms based in India, the authors hypothesize that CEO organizational identification and risk propensity will have a positive effect on firm innovativeness. The authors further hypothesize that smaller organizations will benefit more from the positive effects of CEO organizational identification and CEO risk propensity.

Findings

The empirical findings indicate that CEO organizational identification and risk propensity positively influence firm innovativeness. Also positive effects of CEO organizational identification and CEO risk propensity are more in smaller organizations.

Originality/value

This study highlights the role of CEO characteristics in the pursuit of firm innovativeness. Significantly, the study shows that both CEO organizational identification and risk propensity can enhance firm innovativeness. However, their effectiveness is contingent on organizational size.

Details

Management Decision, vol. 55 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MD-02-2016-0071
ISSN: 0025-1747

Keywords

  • Innovation
  • Leadership

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Article
Publication date: 14 November 2008

The innovativeness effect of market orientation and learning orientation on business performance

Chien‐Huang Lin, Ching‐Huai Peng and Danny T. Kao

The purpose of this paper is to provide a quantitative analysis, in which learning orientation, market orientation, entrepreneurial orientation, and innovativeness…

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Abstract

Purpose

The purpose of this paper is to provide a quantitative analysis, in which learning orientation, market orientation, entrepreneurial orientation, and innovativeness function as key success factors in technology‐intensive firms. The authors formulate a structural equation model to examine the relationship among these constructs.

Design/methodology/approach

A structural equation model was designed to examine the relationship. To test the model, the authors conducted covariance structural analyses of data collected from 333 venture companies, including innovation companies, in Taiwan.

Findings

The central finding is that learning orientation plays a full mediating role in the relationship between market orientation and innovativeness. The results indicate that organizational structure (formalization and decentralization) does not play a moderating role in the relationship between innovativeness and business performance; however, the extent of formalization of an organizational structure negatively correlates with business performance.

Practical implications

Market orientation can strengthen innovativeness via organizational learning. In the high‐tech industry, the market information obtained from customers and competitors helps firms to keep an eye on the market. For better competitive advantages and business performance, firms must have learning capabilities and employees' identity with corporate mission.

Originality/value

The research empirically examines the mediating role of learning orientation and the moderating role of organizational structure in the model. The findings indicate that firms should strengthen their learning orientation and innovativeness, and avoid interfering in the organizational structure to improve business performance.

Details

International Journal of Manpower, vol. 29 no. 8
Type: Research Article
DOI: https://doi.org/10.1108/01437720810919332
ISSN: 0143-7720

Keywords

  • Learning methods
  • Organizational structures
  • Innovation
  • Market orientation
  • Entrepreneurialism

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Article
Publication date: 15 December 2020

Building a fitting context for knowledge management and innovativeness

Ayşe Günsel, Serdar Bozkurt and Özge Mehtap

In the hyper-dynamic business world of today, innovation has become the lifeblood of organizations. Knowledge management (KM) is widely considered an essential antecedent…

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Abstract

Purpose

In the hyper-dynamic business world of today, innovation has become the lifeblood of organizations. Knowledge management (KM) is widely considered an essential antecedent of innovation. However, very little empirical research has specifically addressed how KM is nurtured as support for innovation from a behavioral point of view. This paper aims to operationalize the characteristics of a fitting context – in terms of top management support, organizational rewards and mutual trust – and to clarify the role of organizational context on knowledge management strategies (KMS) and ultimately on firm innovativeness.

Design/methodology/approach

By studying 98 surveys from 23 companies from Technology Fast 50 list, based on using the partial least squares method, the authors find that this organizational context has a significant impact on the formulation and implementation of KMS.

Findings

Organizational/behavioral context has significant effects on the formulation and implementation of KMS as well as firm innovativeness. The results also demonstrate that the tacit KMS has a crucial impact on firm innovativeness.

Originality/value

From a behavioral perspective, this study empirically examines the role of organizational context (top management support, organizational rewards and mutual trust), KMS and firm innovativeness in a holistic manner in Turkey, a developing country. To the best of the authors’ knowledge, no researcher has undergone those relationships in literature.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/K-11-2019-0732
ISSN: 0368-492X

Keywords

  • Organizational context
  • Partial least squares
  • Innovativeness
  • KM strategies

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Article
Publication date: 26 July 2013

Exploring the moderating influence of product innovativeness on the organizational integration‐new product market success relationship

Murray R. Millson

The purpose of this research is to investigate the moderating impact of product innovativeness on the new product market success‐organizational integration relationship…

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Abstract

Purpose

The purpose of this research is to investigate the moderating impact of product innovativeness on the new product market success‐organizational integration relationship. Design/methodology/approach – A mail survey research approach was used that gathered 131 completed survey instruments from NPD managers in the electrical products, medical devices, and the heavy construction equipment industries. Findings – This research confirmed that organizational integration during NPD processes and the innovativeness of new products are associated with new product market success. This study also discovered that product innovativeness does not moderate the organizational integration‐new product market success relationship.

Research limitations/implications

This study's findings may not be generalizable to industries beyond those studied, the studied relationships may change when new product projects are appended to one another, and it may be necessary to take into account several dimensions of product innovativeness to ascertain the relationship between product innovativeness and new product market success.

Practical implications

This study's results imply organizational integration can be increased to increase the market success of new products; new product developers should integrate marketing and R&D during NPD projects; and the innovativeness of new products can be increased without affecting the organizational integration‐new product market success relationship. Originality/value – The investigation of the following research questions contributes to NPD knowledge. How is new product market success related to NPD organizational integration? How is new product market success related to a product's innovativeness? To what extent does the innovativeness of new products moderate the relationship between new product market success and organizational integration?

Details

European Journal of Innovation Management, vol. 16 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/EJIM-09-2011-0072
ISSN: 1460-1060

Keywords

  • New product development
  • Organizational integration
  • Product innovativeness
  • New product market success

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