لخّصلي

Sci.Int.(Lahore),27(2),1551-1558,2015 ISSN 1013-5316; CODEN: SINTE 8 1551

ROLE OF INNOVATION IN ORGANIZATION MANAGEMENT SUCCESS
Hamid Saremi
Department of Accounting, Quchan Branch, Islamic Azad University, Quchan, Iran
Email: [email protected]
ABSTRACT : The sense of innovation is manifested creativity and has been practiced , in other words, the innovation means
creative thinking, innovation, namely is providing new product, process or service to market , innovation is utilization of
mental abilities to create a new idea or a concept. One of the great challenges and responsibilities of managers is to create a
support system for fostering innovation. Briefly "The management principles for innovation are as follows: separating people
from one another, assembling people together, monitoring and alerting and finally to reward those who play multiple roles.
The innovation means manifested creativity and has been practiced. Innovation in Management changes their goal setting
manner and their performance in order to improve their performance.
In this article while describing the concept of innovation it has been proceeding to its various dimensions in the theoretical
point of view considering the highly competitive in global markets, rapid globalization and quick growth technology it can
be said that the innovation considered as a unavoidable necessity for each organization
This paper studies the concepts and principles of innovation and creativity and provides the difference meaning of innovation
and then the innovation issue and its relation with creativity will be explained and its role on success of business' management
is discussed.
Key words: Innovation, Creativity, Organization, Management, Improvement

Given the highly competitive global markets, rapid
1.INTRODUCTION
With increasing advances in knowledge and technology and globalization and technology can be said innovation
the massive flow of information and technology, our society considered as an unavoidable essential for every
organization , Therefore, companies should not only be ,
today requires learning skills that help to keep pace and go
seeking to explore new opportunities in order to achieve
ahead along with the development of science and technology
.The goal should be nurture people to be able to creative success in market and consistency in competitive privilege
thought encounter a problem and could solve them. So that but also they focus on market and products development ,
people are able to communicate well with each other and with since the dynamics and change are most important
make of use from the collective knowledge and generate new characteristics of today's modern enterprises , So the retune
and survival of companies are realized when they improve
ideas solve the problems [10].
and develop themselves .
Nowadays our people need to be thought innovation
training that walk towards a prosperous society people with
With political, economic, social and
Synchronously
creating new ideas. Increasing growth of information, cause
environmental changes. which
everybody has the experience and knowledge of the
business that other may have the opportunity to determine it.
Its realization is difficult matter and it can be achieved only
So to information processing contains knowledge and
with new ideas and accepting and upbringing innovative and
experience of the people in today's world is one of the secrets
creativity talents. If there not be necessary innovation to
of success.
contrast with environmental changes and also mentality with
No one is capable of real information of everybody that is
needed complexity to solve problems in companies the
hided in his mind, this information when move on because of
productivity of firms will be wasted and the organization is
the strong incentives to leave it out of mind. At this stage,
eliminated of the competition area. The innovation process
people are sensitive to each other's fate and try to grow
is risky, but companies with identifying innovation stimulus
together, and finally causes the flow of knowledge and
respond to challenges, therefore managers need to assessment
experiences between them is now the same will be underlying
the constantly changing business environment to make in
innovation and creativity. One of the effective factors
their decision making properly.
involved in innovation in a community is bias making among
2.Innovation concept
humans for creating a culture in which everyone is trying to
The word innovation means invention, notation and
grow other and help society advancement by influencing on
modernity and in managerial and organizational term is the
each other.
process that leads to something new. Innovation is the
Innovation is a key concept that is remembered as business
application of better solutions that meet new requirements,
gains today in 21th Organizations, large and small, did
unarticulated needs, or existing market needs. This is
for reevaluation their products, services and operations
accomplished through more effective products,
have to create a culture of innovation. This reviewing
processes, services, technologies, or ideas that are readily
organizational objectives will be done, because up berining
available to markets, governments and society. The term
of innovation within the organization, is the best guarantee
innovation can be defined as something original and, as
that an organization is able to quickly go in peripheral
consequence, new that "breaks into" the market or society.
markets, persist. Fostering nurture of culture of innovation
One usually associates to new phenomena that are important
is also the best guarantee (although that anything does not
in some way. A definition of the term, in line with these
have guarantee) for long-term viability and sustainability of
aspects, would be the following: "An innovation is something
the knowledge economy is the current driver.
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original, new, and important—in whatever field—that breaks The process of innovation is often compared to the process of
in to (or obtains a foothold in) a market or society"[6] evolution as it is fundamentally a dynamic process of
While something novel is often described as an innovation, in improvement and adaptation which strengthens organizations'
economics, management science, and other fields of practice ability to survive and thrive. Despite its complexity and
and analysis it is generally considered a process that brings unpredictability, a successful innovation process is usually
together various novel ideas in a way that they have an seen as proactive rather than reactive, and can be said to
impact on society. include some or all of five key elements; [14]
Innovation differs from invention in that innovation refers to 1. Recognition of a specific problem, challenge, or
the use of a better and, as a result, novel idea or method, opportunity to be seized, in relation to the provision of
whereas invention refers more directly to the creation of the humanitarian aid.
idea or method itself. 2. Invention of a creative solution, or novel idea, which
Innovation differs from improvement in that innovation refers helps address a problem or size an opportunity.
to the notion of doing something different rather than doing 3. Development of an innovation by creating practical,
the same thing better. actionable plans and guidelines.
Rahi and colleagues state innovation as a main factor to the 4. Implementation of an innovation to produce real
success for competitive advantage of companies and believe examples of changed practice, testing the innovation to
that innovation in organizational 'perception means new see how it compares to existing solutions.
product and services providing in various working areas of 5. Diffusion of successful innovations - taking them to
organization . In other words innovation is result related to scale and leading to wider adoption outside the original
products, processes and services. Jimenez and his colleagues setting.
have also stated that the innovation is reception the ideas that
can be as a system, policy, programs and tool for process of
production and service. Live and Yu also expressed that the
innovation is a new products or services, new technology
process and new structure or executive plan.
Schumpeter defined the concept of innovation for first time,
in 1934, He believed that there is link between economic
The different grants types awarded by the HIF focus on
development and innovation and introduced it as new
different stages in this process. This five stage process is
combination of wealth productive resources. His work
useful for tracing the progress of innovations, but it should
included of five specific cases i.e.: introduction of new
not be taken to suggest that all innovations are linear
products, new production methods, identify new markets,
processes. Rather than clearly defined stages, these are broad
capture new sources of raw materials and facilities , and new
and overlapping phases through which many innovations
ways of organizing business. From then on, in the past forty
pass. In reality, progress is iterative and frequently non-linear
years, the concept of innovation has undergone enormous
– some innovations might never get past the early phases, and
changes. In separate studies of researchers in the 1950s, this
others might be discarded and later revived only after a
concept was considered as a separate and discrete
fortuitous event or different application. There is no set path
development .Today, innovative concept has not been
for innovation, and most innovation processes feature
adapted from the results of individual studies were not
moments of serendipity, randomness and good or bad fortune.
specified, but rather is defined by the following:
The successful exploitation of new ideas is crucial to a

1. A process or to be more precise a process of problem
   business being able to improve its processes, bring new and
   solving,
   improved products and services to market, increase its


2. An interactive process in business relationships with
   efficiency and, most importantly, improve its profitability.
   various actors,
   Marketplaces - whether local, regional, national or global -


3. A diverse learning process. This learning may be caused
   are becoming highly competitive. Competition has increased
   by different issues: learning by using, learning by doing
   as a result of wider access to new technologies and the
   or learning during cleavage,
   increased trading and knowledge-sharing opportunities


4. It is a process that involves the exchange of explicit and
   offered by the Internet.
   implicit knowledge.
   This guide explains how you can make innovation a key


5. A process of mutual learning and exchange in which
   business process and outlines the different approaches you
   creates independent of actors, or an innovative system
   can take. It gives you advice on planning for innovation and
   or form of innovation.
   creating the right business environment to develop your
   Innovation means is creativity manifest and reached to action
   ideas. It also outlines the help and support available to
   process in other words, innovation is creativity though.
   innovative businesses.
   Innovation is namely new product, process and services in
   Why is Innovation Important?
   to market .Innovation is use of mental abilities to create a
   In the past, many organizations have been able to survive
   new thought or concept .One of the most challenging and
   even with very limited amounts of innovation. They focus on
   critical task of managers is to create a support system to
   providing quality products and simply update them to a level
   foster innovation.
   that maintains their competitiveness in the market. This
   3.Innovation process

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method still applies to some products with long life cycles If organizations wish to be effective in later periods and to
and few opportunities for innovation [15]. achieve goals, successfully must turn to the process of
Recently, however, some trends have emerged that drive the innovation in organizations.
innovation process. Due to factors such as globalization and Generally the application and usage of innovation can be
outsourcing, there is an increased push to improve efficiency classified as follows:
and effectiveness of organizations. Organizations need more 1. Organizational process- In this method innovation,
than good products to survive; they require innovative creation ceases to do work optimally.
processes and management that can drive down costs and Innovation in manufacturing process causes that company to
improve productivity. achieve competitive Advantages on competitors by
Consumer expectations also drive the amount of innovation production process rapidly and manufacturing increasing in
in the market. Customers are used to products that continually flexibility capabilities from product to product.
improve and make their life easier. Modern consumers are 2. Product or service Innovation-- In this way also with
more informed and have more options in terms of what they innovation can determine new products or services that the
buy and who they buy it from. Essentially, customers won't organization is responsible for them or improve the
accept mediocrity because they know they can always go organizational products and services. Innovation in services is
somewhere else. one of the important issues in competition. Innovation in
Innovation is important as it is one of the primary ways to service delivery requires the development of expertise of
differentiate your product from the competition. If you can't employees in introducing and providing the appropriate
compete on price, you'll need innovative products and ideas technical product.
to make your business stand out from the crowd. 3. Institutional Innovation – This Innovation led to the
Innovation in your business can also be driven by the amount creation of new markets and grants to company a
of innovation your competitors are doing. Being first to technological superiority over competitors. And in the long
market with a new product can provide you with a significant run will lead to their sovereignty in the market. The
advantage in terms of building a customer base. It is difficult enterprise should do a heavy and continuous investment on
to compete if your products are seen as obsolete or out of employees' skills and equipment to achieve such position.
date. However, when investing in innovation, keep in mind 4. Innovation based on product performance
that many businesses survive by copying and adapting the development –When it comes to innovation in product
innovations of others, and can benefit from your hard work. companies is trying to make application of this new product.
In a broader sense, innovation is important to the The features like power, durability and flexibility, in
advancement of society around the world. New and application development of product is Effective.
innovative products can increase the standard of living and 5. Innovation based on technology structure -
provide people with opportunities to improve their lives. Restructuring Technology requires the import of raw material
Breakthroughs in medicine and technology have significantly or equipments from other area of industry for manufacturing
improved living standards around the world. Innovation has each new product that is fundamentally different with
also led to significant improvements in the way businesses application development of new product or reformulation.
operate and has closed the gaps between different markets.
6. Innovation regarding product name, its reputation for
4. Application of Innovation in Enterprises
in and product labels
Innovation is a multidimensional adventure. Mara Volakis Innovation in product labels, create a desire to buy a
has studied organizational innovation based on, product, and particular product. Researches show 24% of product sale will
process implementation innovations. Researchers found that be spent on its advertisement.
the majority of researches in area of innovation focus on 7. Innovation in the area of revising the formula - revised
product and service innovation, in enterprises from an formulation is similar to the change in product structure
organizational perspective, the real success of innovation without Physical Change in product details. The physical
happening in the market. Create innovative marketing metrics characteristics Change of product includes of this
is necessary to help in the transfer of ideas and good products classification. Innovation in fields of formulation renewal,
to sell and earn a suitable income, For innovation in inclusive further combine of current parts to deliver new
organizations, it is not enough just to have a creative and products, but different technologies, but it is different from
innovative managers and employees because of creative the appeal of making technology and a new combination will
thought and innovation in a bureaucratic organization with, be obtained from available material.
mechanical structure is not so effective even can be said it is 8. Innovation in Design - many companies overlooks
ineffective. In addition to having a creative and innovative innovation through design. One of the important issues in
manager and employees in the organization, structure, designing is flexibility, which means that product is
strategy, environment, technology, size and lifecycle of adjustable according to the market conditions and changes in
organizations, ability control of human resources as well as consumer preferences.
culture and owners power of innovation should support of 9. Packaging innovation - packaging changes typically
innovation [11]. cause a change in the amount of purchasing or using of
So continue and sustain of life in the organizations are subject product in duration of time and opening new market on it,
to the organization's innovation and in long-term follows better packaging leads to storing quality improvement and
success for the organization. help to product safety and ease of its transport that in
somehow is effective in extent of customer attraction.
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Innovation in packaging expenses is less as compared to administrative tasks are also implicated. If we review the
other Innovation Researches cost but does not create long- innovation with systematic approach, we reached to the
term competitive advantage for the company. conclusion that innovation and knowledge production are
produced in result of a variety of activities that most of these
6.Barriers to Innovation
There are a number of factors that prevent innovation from activities are outside the formal process area of research [4].
occurring. Being able to recognize and work through these So knowledge does not produce only in universities and
factors will help you to create an innovative culture in your research centers, but it will be formed in diverse areas of the
organization and help you to make your business successful economy that more important of all it can be indicated
[12]. To learning during production or doing work or learning at
The most common barrier to innovation in organizations is a time of using production in the current economy, mainly
leader or manager that is not open to new ideas. This growth should be done through productivity increase and
negatively impacts the team by discouraging creative increase of knowledge work and this efficiency increase is
thoughts. Employees won't be motivated to come up with the most important thing that a manager can do. The most
new ideas if nobody is going to bother listening to them. important of enterprises' assets is Knowledge Workers and
th
There are also managers who listen to ideas but are reluctant their productivity in the 21 century's. Increasingly
to take them any further, resulting in lost opportunities. knowledge-based organizations (KIOs) either are providing
Managers are also guilty of shooting down ideas before they services or producers enterprises with high technology must
are given a chance. If employees come up with new ideas, manage their innovation process, to increase the rate of
they should at least be given a chance to explain and justify return.
them, rather than have a manger who immediately says ‘no' Papadyvk & Cho have studied the knowledge producing and
based on past experiences or because an idea isn't directly in innovation with specifically systems approach in 2006 and
line with the business' regular operations. Just because evaluated the role of the market, architectural and
something hasn't been done before doesn't necessarily make it construction of knowledge and…. Also deals the options and
a bad idea. aspects of innovation (process, product, radical, fundamental
Time and resources are also significant barriers to innovation. or developmental), did a comparison between the two
Employees are often so busy with just doing their regular processes simultaneously (Science and Innovation).
work that there is insufficient time and incentive to generate Management of innovation requires a fundamental change in
new ideas. When ideas are generated, they are not taken any the strategic understanding of organization in comparison
further due to the potential risks associated with developing with traditional and mechanical management then following
the idea. management challenges need to be considered:
Generally, innovation is also seen to be too expensive for A) Managing the human and the individual merits in a
small businesses to get involved in. However, there are cost strategic vision. Modern management should buckle by
effective ways to generate new ideas and managers need to putting people to constant challenge at the helm of all
look at the potential benefits that come as a result of investing operations, and (administrators) should understand that an
in innovation. organization is a collection of different people.
Often, organizations lack direction in terms of innovation. B) Teamwork and networking with internal and external
Whilst people require freedom to be creative, some partners. People have different tendencies, different habits
boundaries or guidelines can help focus their efforts and and different professional background. Management should
motivate them to achieve outcomes. Without structures in focus on building an integrated network of formal and
place, the wrong ideas are be prioritized and time and informal relationships, both within and outside the company.
resources can be wasted. C) Establish consistent and interactive organizational
Organizations with the inability to implement and structures. If an enterprise wants to respond to external
commercialize new ideas are the biggest barrier to changes, a flexible organizational structure seems to be
innovation. After spending the time, resources and effort to necessary and appropriate.
develop an idea, they fail at the final step and the product is D) To create balance between order and chaos: Effectiveness
never successful in the market. It takes careful management increasing against destructive innovation. One can also
and planning, as well as commitment from an organization, to increase individual and group incentives by creating a
generate profitable returns from good, innovative ideas. strategic vision in terms of innovation.
Challenges of the knowledge economy - new stimulus can be
categorized into the following groups:
Impact of Knowledge Management on Innovation
The increasing importance of knowledge as a driver of A) Market New Features: The market is constantly changing.
economic has ample impact on management innovation that That is the market moves more towards global and
is considered a key factor in national and regional competitors merge together. In addition, the technologies will
competitiveness in the knowledge economy - globalization be more complex day to day, commodities cycle (useful life
driving . Involvement and presence of knowledge and in the of products) is being reducing and the position of knowledge,
field innovation will be realized to some extent by reducing as a constitutional matter, become stronger every day. All
transaction costs between companies and other actors, but market new features, needs to increase competition by
this presence will be more evident when the knowledge is companies
involved in the area of research and information, and B) Innovation New Types: Innovation can take various
purchase decision making, innovation policies and forms. It can be indicated in the field of technological
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innovation, innovation in business models and new ways of Innovation management techniques are widely associated
organizing works, innovation in design or marketing. with the market. In the research on those techniques that are
Innovation also can be in area of finding new applications consistent with the following parameters focus:
and new markets for available goods and services. One. Techniques that are well-developed, standardized and
C) Shareholders New Requirements of: Customers, Equity systematic methods employed are appropriate. In other
Owners, consider the value of an organization with the ability words, the profitability of these methods and techniques
to deliver superior and lucrative products to target market at commonly known in the market.
appropriate time increasingly 2. Techniques that focus on knowledge as the most important
D) A New Approach in the field of Innovation: Innovation factor in profitability, improve the competitive position of
management, including all the key areas that must be companies have targeted. Companies apply a variety of tools
controlled to produce appropriate goods and good services. and techniques to manage their daily use. In this research
The capacity of an organization to implement a management techniques were studied as part of the process of knowledge
innovation depends on the success of that company in facing innovation brought to account.
with two major challenges i.e.: 3. Techniques that are freely available on the market and
1.Grow profits, 2. Income productivity have not been under any license or copyright.
E) New skills of speech technology innovation: the rapid
Impact of Individual creativity on an organization
development of new technologies has prompted the company One of the most successful methods available to
to maintain its competitive position assess the most organizations in order to further innovation and creativity is
appropriate technology and operate them. their investment in employees in order to improve their
F) The need for new tools to manage innovation: the ability to be more creative. The organization that solely
development of knowledge-based innovation management moves on the basis of plans, drawings and the constant&
needs to capacity in which the technical tools of Certain behaviors, Nowadays, work has been more based on
communication can be used. Technical tools indicate to the knowledge and less Strict is a very vulnerable social system
acquisition and use of new information and communications in this field employees can help with performance, promotion
technologies. These tools at a competitive advantage, do not of the organization through their ability in the new ideas
create a priority because they are readily available to general. creation and use these ideas as building blocks to create new
To create a superiority of competitive situation, relying on products, services, newer and better working processes. Many
communication tools is done. Communication tools, professionals and academics confirmed this view that
including manner of business conduct, both inside and individual inventions and innovations are very effective to
outside the company's environment. . achieve success of organization [1].
.Creative team:
Innovation Management Techniques
In view of the above considerations, there is a deep Overall contribution to the organization and particularly
connection between innovation management and knowledge employees' thought is essential to achieve the goals of the
management. Coombs et al, in 1998"defined "Implementation organization, if the employees with creative and thinking
of Knowledge Management for Innovation" as something that owner for organization Excellence assist the organization of
"directly involved in the development and application of thought and innovation participation will be resolved in faster
knowledge." These authors observed, identify and determined ¬ comfortable of organization's issues types. Thought and
these tools with observing some R & D departments of innovation participation cause for the synergistic and
several companies. It is accordingly proposed that innovation innovation thinking of each of employees in organization.
management is reviewed holistic approach. Freeman & The Development necessity of this thinking is culture
whistles in 1997, include all activities that were encouraging making, reform of organizational and management culture in
the commercialization of new technologies also integrated in organization. Barriers such as lack of motivation and lack of
the innovation process [9]. trust, teamwork, lack of attention to employee feedback,
Innovation does not necessarily mean applying the latest critiques non-conservative work ¬ autocratic management are
technologies; but the company's focus are more on ways of considered as important obstacles of creative and thinking
thinking and finding creative solutions within the company to participation. Reengineering of organizational culture,
address the issue of technology. Hence the innovation Training and culture making, management systems re-
management techniques can be seen as a set of tools, engineering including the recommendation system,
techniques and methodologies to help companies to be strengthening teamwork and appreciation of the creative
coordinated with the various conditions and eliminate the employees, are of the most innovative participatory
challenges associated with the market with strategic methods. approaches to the development of culture in the organization
Development and growth of these techniques are result in [2].
new ways of thinking. This growth is not necessarily due to
Creation Group
technological reasons, but rather the company's capacity to The best solution to have is to have lots of ideas. After group
use knowledge to promote trade in and use of knowledge to idea processing i.e. To collect lot of idea from group of
improve relations with external actors, it depends. This is true people in a short time. This method hase been established
in relation to small and large companies, innovation for based on individual creative thinking habits that makes a
business survival in today's competitive and changing market, network of thinking and its other advantage is lack of quick
it is vital. decisions making about the ideas accuracy, and it emphasis
more on quantity of ideas and In this method employees in
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addition to raising their own ideas, assist others in improving 2 – Not Accepting Criticism and intolerance of
their idea or combine ideas to achieve a better idea [7]. contradiction in the system: if managers do not accept
any critical mass, so any attempt to achieve the consensus
The necessary actions for work creativity and innovation
agreement will be useless. Rejection or intolerance of tastes
group
Selection of creative people: According to the features that incredible and odds never lead a system to innovation and
creative people were introduced, they can be selected [2]. creative thinking group.
Encouragement and Synergy of Creative Team: The 3 -Conservative and Authoritarian Management: If Top
synergy helps to the built others' ideas and fertilizes them. If and even middle Managers be among pro-status quo and
many of the ideas in the mind of another be transferred and oppose any changes and developments, and on other hand is
planted in mind of others, it sprouts better than the mind that essentially despotic thinking rulers on organization does not.
has been grown. Intercepted of a creative thinking, group.
Team Training: Developing an innovative organization with
Innovations facilitate circumstance in organization:
a culture of creative group requires trained manpower and 1). Suitable Structure and organization suitable with purposes
these training should be in the area of techniques and thinking (machinery and biological construction or organic is
skills such as analysis, imagination, evaluation, mentality appropriate to innovation and creativity
performance circumstance. 2) Quick coordination with changing environmental
Information in the areas of innovation: giving employees conditions (enabling the flexibility and freedom of action
the opportunity to discuss the importance of new ideas to for members of parallel connections. Conducted affairs at
improve products, processes and reduce costs to speak. It the concern level, commitment to task objectives.
should also be clear criteria for the selection of ideas and Flattening of the organizational pyramid, close job and
creative individuals and creative groups to properly honor career relationships and technical cooperation, and
comes Innovative and creative groups to be properly support employees , practical communication Overall
celebrated. command and responsibility for the information and not a
referendum)
Principles of Management for innovation:
Management principles for innovation involves three main 3) Support and encourage people with creative ideas, the
principles as follows[3] ability to synchronize with the external changing
1 - Separating people from each other, with the Sorting environment, culture, creativity and innovation
individuals together management, creating the core of research and
2 - Monitoring and reminding innovation.
3 - Rewarding those who play multiple roles. 4) Set the specified purposes and to ensure they give
members freedom.
Conditions to Create the Creativity and Innovation:
1 - Creative Space: 5) Value for creative and diligent people (perfect for
Management must always be ready to hear new ideas from rewarding creativity).
everyone in the organization. In fact organization should 6) Stimulating creativity in the creation of space and always
looks for these type thoughts. Talent management system ready to hear your ideas and suggestions
Application is an effective tool in the organization. The 7) to give employees time for creativity.
Managers can properly predispose to develop skills by using 8). Recommendation system in the run.
this tool, you may encounter a lot of talented individuals you 9). Units for creativity in your organization
who are involved in the organization but they cannot produce Innovation is known to fuel organizational growth, to drive
significant results. This issue occurs due to the lack of future success, and is the engine that allows businesses to
suitable talent management system [2]. sustain their viability in a global economy. Both managers
2. – Time Giving For Creativity: Institutions for this and researchers regard innovation as a ‘life-and-death matter
purpose can provide certain conditions for employees. for a firm’, in which the constant need of fighting for survival
3. Recommendations System Establishment: One of and the threat of competition encourage firms to innovate.
encouraging creativity methods is to establish a Business and management research clearly indicate that
recommendation system , thus in this way a method will be organizations with innovative capacity can respond to
available for providing recommendations. environmental change quicker and can perform better than
4. To create a Special Unit of Creativity: Sometimes the non-innovative organizations. Innovation cannot be external
certain groups of employees are hired for innovation and to the organization. For companies to succeed by innovation,
creativity and in some organizations, this group is called it's not enough to come up with great ideas that can change
research and development unit. Such units spend their time or your market. The organization as a whole must be ready to
services to find new ideas for producing products, absorb innovation [13]
technologies, and some time do more research.
Role of Innovation in Organization Management Success
Innovation is known to fuel organizational growth, to drive
Barriers of group thinking and Creativity in organization
1 - Lack of motivation and lack of confidence: This issue is future success, and is the engine that allows businesses to
most important factor in non-developing of non-participation sustain their viability in a global economy. Both managers
culture. If there do not be an incentive to participate in a and researchers regard innovation as a ‘life-and-death matter
working group for providing different ideas and subsequent for a firm’, in which the constant need of fighting for survival
lack of confidence in the continuation is aggravating of this and the threat of competition encourage firms to innovate.
situation. Business and management research clearly indicate that
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organizations with innovative capacity can respond to
9.CONCLUSION
environmental change quicker and can perform better than In sum, innovation provides organizations a competitive
non-innovative organizations. Innovation cannot be external edge, which makes embedding innovation so important. A
to the organization. For companies to succeed by innovation,
few areas to consider are: ensure that a well-defined
it's not enough to come up with great ideas that can change
innovation process exists, create the conditions that support a
your market. The organization as a whole must be ready to climate for innovation, and build capability so that employees
absorb innovation. Organizational success can only be possess the skills and behaviors essential for innovation.
achieved by adopting innovative measures in all the diverse Innovation is not a quick-fix solution to the problems of an
facets of business. This can only be done with successful organization. While it is true, that organizations need to
partnering between the various
innovate to remain current and profitable, building an
Stakeholders and especially the management and the
innovation process requires time, commitment and
workforce. Indoor innovation as well as incremental shifts in the culture. Leaders need to be genuine
Outdoor innovation should be practiced. Both management in their attempts at driving innovation at all levels and be
and the employees are like two strands of a DNA structure, conscious of how their own behaviors and actions shape and
and they have an equivalent role and responsibility in influence innovation.
organizational success. These two strands have a very
Knowledge-based economy is the economy that is totally
intimate relationship, they are closely entwined and there
based on production, distribution and use of knowledge... In
exists a solemn [3]. such economies, there are broad links among involved factors
Bonding between the roles that they play. It is essential that and the vast amount of knowledge is used in all economic
initiative taken and efforts made by one is fully supported by activities we now pass from the knowledge-based economy
the other. The companies that have done the best over the to a knowledge economy - stimulating, it means that
long haul are those who are the most creative and innovative.
knowledge in our economy is considered more as the driving
These organizations don’t copy what others do; instead, they
engine. Innovation management theory evolution can be
may use innovative ideas from others as a springboard to described by appealing to the growing importance of the
come up with a unique application, product, or service for social element of innovation explanation (formerly) it was
themselves. They tend to distance themselves from the only on the basis of tangible capital. The initial ideas was that
competition rather than compete with them. If they see
innovation forms by research oriented technology -theory)
another company copying what they do, they create
and irregular interactions between firms and employees
something new and better. In other words, they are able to (theory of technological networks). Now we find that
leverage their creativity and their innovative capabilities to knowledge has a more fundamental role in creating and
attain long-term success. encouraging innovation. The increasing importance of
Implementing Innovation in Organizations Innovation is k knowledge as a factor of production and the determinants of
nown to fuel organizational growth, to drive future succe
innovation can be explained by the permanent accumulation
ss, and is the engine that allows businesses to sustain th
of technical knowledge over time or using communication
technology make knowledge assessable quickly in all over
eir viability in a global economy. Both -‐and-‐
the world, Innovation management techniques are very
which the constant need of fighting for survival and the
effective in increasing competition. These techniques can be
threat of competition encourage firms to innovate. Busi
considered as a set of tools, techniques and methodologies
ness and management research clearly indicates that orga
that support the innovation process in organizations and with
nizations with innovative capacity can respond to environ
a systematic approach help to them (companies) to take
mental change quicker and can perform better than non-‐
forward new challenges of the market. This study showed
innovative organizations. Optimal organizational innovatio
that the correct use of innovation management techniques
n requires translating a business strategy into an overall
increases the company's capabilities in introduction of
organizational strategy, with proper mechanisms to ensur
appropriate technologies in the area of goods and processes
e successful innovation performance when introducing ne
and facilitate the necessary changes in the organization. But
w commercialized products to the market. For impleme
most of the organizations do not have an appropriate
nting innovation in the organization, individuals in all le
innovation culture to initiate changes and most employees
vels should be encouraged by top managers to think ind
and managers sometimes show strong resistance against this
ependently and creatively, and share their personal knowl
matter. Also most of small and medium enterprises are
edge with others. To innovate, companies need to ensure
missing of qualified employees in the area of these
a culture that supports new ideas and encourages new
techniques and lacking of knowledge within an enterprise
efforts on optimal execution. Furthermore, the importance
regarding to the techniques and their use.
of innovation to organizational survival and longevity is
evidenced by innovation, or a derivative of it, appearing as a
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