DNA Global logo

Team Inspiration & Motivation

Transformational
Leadership

Factors promoting organisational innovation

Research has shown that 3 main factors influence organisational innovation:
  • Behaviour of individuals

  • Internal characteristics of organisation

  • Extra-organisational factors (external market factors)

     

Behaviour of individuals

There is significant evidence a participative and interactive leadership style promotes innovation

Availability of change agents promotes innovation - internal or external individuals willing and able to drive innovation.  This factor is particularly important if your organisation positively encourages such behaviour

Willingness to change - tolerance of ambiguity and uncertainty in the business environment ensures your organisation is receptive to innovation.  Conversely, "Selective perception" - the tendency to respond to possibilities within an established outlook will inhibit innovation.

 

Internal characteristics of organisation

Centralisation inhibits initiation of innovation but may help implementation of innovation.  Formalisation generally inhibits innovation, although a formal mandate to innovate may stimulate innovation.

Complex structure is positively related to initiation of innovation, but negatively related to implementation of innovation.

Investment inertia: "sunk costs" can inhibit innovation, "too much invested to quit"

Positive organisational culture encompassing participation, freedom of expression and demanding performance standards promotes innovation.  A pro-innovation culture emphasises performance rather than style and status differences within the organisation

 

Organisational strategy

Clearly defined vision and climate of excellence - promotes quality of innovation

Culture fostering perception of safety by individuals, (i.e. expectation and/or acceptability to challenge status quo)

Established norms for innovation - promotes quantity of innovation

 

Extra organisational factors

Research has shown that organisations experiencing competition and "Environmental turbulence" - instability and unpredictability are more likely to innovate

Contact Us

Search