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Recognizing the impact of innovation on organizational performance, scholars from a number of disciplines have sought to identify the conditions that make innovation possible. Although these studies have served to identify a number of key variables, the relationship between these variables and innovation is complex. In this chapter, we argue that the apparent complexity of these relationships may be attributed to cross-level differences in the requirements for innovation and the existence of complex interactions among the phenomena operating at a given level of analysis. The implications of this multi-level perspective for understanding how innovation occurs in organizational settings are discussed.

Organizational creativity and innovation are inherently complex phenomena, and subject to a myriad of broad contextual and social influences. As the evidence grows for the link between innovation and organizational effectiveness and, ultimately, organizational survival, there is no doubting the need for theoretical and practical advances in our understanding. The complex nature of these constructs, however, requires that such efforts utilize a multi-level lens. This chapter discusses key aspects of creativity and innovation in organizations, including fundamental construct definition issues, which underscore the need for a multi-level perspective. It also reviews extant theoretical perspectives for their contributions to a multi-level understanding, and the research in two key areas of social influence – group factors and leadership – that have received substantial attention in the organizational literature. The review and discussion of these areas reveal not only numerous advances, but also substantial limitations that must be resolved through more complex and comprehensive (i.e., multi-level) approaches. The chapter concludes with several recommendations intended to guide and inform future work in the organizational creativity and innovation field.

The purpose of this chapter is to extend research and theory on learning and performance orientations to multiple levels of analysis. We begin by introducing a model describing the impact of individual learning and performance orientations on attentional focus, response to failure, experimentation, and motivation, and identify potential sources of these orientations. We then describe how learning and performance orientations are linked to incremental and profound change, and theoretically based propositions are presented to guide future research efforts. Leadership, organizational learning, and strategic human resource management are discussed in relation to the model, and implications of the framework for future research and practice are revealed.

This chapter attempts to overcome the lack of theory development in the human side of mergers and acquisitions by synthesising key climate, knowledge generation and leadership frameworks. The chapter aims to identify the key roles that climate plays during M&A and how leadership can positively influence climate in order to improve M&A organisational outcomes. The chapter establishes that climate could be a key ‘systems variable’ during different M&A stages and influences the generation and transfer of actionable integration knowledge among individuals. The role of leadership and its relationship to climate's impact on M&A are developed. The chapter uses the concept or vision of ‘making fire’ or ‘kindling the flame of fire’ to assist leaders to conceptualise their role and the underlying processes at play. Finally, propositions have been developed to assist future research.

This exploratory study investigates the relationship between affective climate and creativity as contributing factors to knowledge creation in organizations. Organizational creativity represents a source of new task-related ideas, implemented in the form of innovation. We argue that creativity is inherently linked to the process of knowledge creation embedded in the organizational context and related to social interaction. Our study identified several affective conditions that appear to be present when the professional environment supports creativity. These findings suggest that affective climate does influence the organizational setting, fostering or inhibiting organizational creativity.

Growing environmental challenge awareness among consumers is today's business reality that pushes for sustainable product development. Governments, industries, and consumers' attention are significantly moved from traditional products to eco-friendly product development. Green product development is the future for manufacturing businesses' survival in most markets. Green product development is an emerging phenomenon and, unfortunately, lacks theoretical and empirical research regarding effective organizational policies and practices for green product development. This study aims at filling research gaps towards green product development by highlighting green employee aspects influenced by leadership for sustainable business growth. The study hypothesized relations between the green effect of transformational leadership on green product development as an outcome through green behaviour, green climate, and green innovative creativity. Data was collected from small and medium enterprises (SMEs) of Karachi through a self-administered survey questionnaire. Results revealed significant support for hypothesized relations through the partial least square statistical tool. This study contributes theoretical and empirical advancement in past literature wherein leadership style influences employee behaviour that leads to predict product development from an environmental perspective. Study inferences suggest for visionary green leadership style for sustainable business growth. Limitations of this study regarding other variable inclusiveness, sampling, and geography are potential extensions for further scholarly investigation.

Over the past decade, the U.S. workforce has become increasingly diverse. In response, scholars and practitioners have sought to uncover ways to leverage this increasing diversity to enhance business performance. To date, research evidence has failed to provide consistent support for the value of diversity to organizational effectiveness. Accordingly, scholars have shifted their attention to diversity management as a means to fully realize the potential benefits of diversity in organizations. The principal aim of this chapter is to review the current wisdom on the study of diversity climate in organizations. Defined as the extent that employees view an organization as utilizing fair personnel practices and socially integrating all personnel into the work environment, diversity climate has been proposed as a catalyst for unlocking the full value of diversity in organizations. During our review, we discuss the existent individual- and aggregate-level research, describe the theoretical foundations of such work, summarize the key research findings and themes gleaned from work in each domain, and note the limitations of diversity climate research. Finally, we highlight the domains of uncertainty regarding diversity climate research, and offer recommendations for future work that can enhance knowledge of diversity climate effects on organizational outcomes.

This chapter defines a learning culture and discusses the relationship between knowledge and learning. The authors explain why learning is essential to bringing knowledge to life and incentivizing knowledge flows and use. The chapter addresses the interplay between knowledge and learning cultures. A key point in the chapter is the value of mistakes as learning opportunities. The authors explain how mistakes are viewed in the industrial economy and how this perspective impedes critical organizational learning. Specifically, we define mistakes, explain the double cognitive bias of mistakes, explain the tendency and impact of hiding mistakes, the side effects of double mistake bias, learn to learn from mistakes, and take on the challenge of reconciling mistake acceptance and avoidance. Finally, the chapter addresses the importance of cultivating a learning climate to realize your learning culture.

This chapter first describes the essential aspects of a currently changing world, which is characterised by digitalisation, globalisation and politically unstable situations. Based on this transformation context, key concepts such as leadership, innovation, innovation leadership and leadership competences are introduced, along with a new definition and framework for innovation leadership. The chapter discusses the distinction between innovation leadership and innovation management, and the connecting lines between these two concepts. The innovation leadership framework is described and related to the individual contributions of the authors in the book. The chapter frames these contributions along the dimensions of self-leadership, team leadership, organisational leadership and ecosystem leadership.