Article: Corporate Culture Is Most Important Factor in Driving Innovation
Corporate culture is, above all, the most important factor in driving innovation. Firm level factors are more important than anything else even location in predicting radical innovation.
Corporate culture is, above all, the most important factor in driving innovation," said Rajesh Chandy, a professor of marketing at the University of Minnesota’s Carlson and a charter member of the U.S. Department of Commerce's Advisory Committee on Measuring Innovation in the 21st Century Economy.
The Pre-eminence of Corporate Culture, among traditional drivers of innovation such as government policy, labor, capital and culture at the country level, the strongest driver of radical innovation across nations is corporate culture. It is also find that the commercialization of radical innovations is a stronger indicator of financial performance than other popular measures such as patents
It is important to realize that all innovative companies look alike. They share a common culture no matter where they are located," states Chandy.
The corporate culture of innovative firms develops to overcome aspects of their home economies that would otherwise hinder them," the researcher added.
Looking at data from 759 firms across 17 countries the researchers found that location is not the determining factor in the degree to which any given firm is innovative; but rather, the innovative firms themselves share key internal cultural traits.
Monitor: Managers monitor the flow of information. All managers, to some degree, collect information from outside organizations and institutions. And Transmit necessary information to outsiders.
Disseminator: Managers then act as a conduit to transmit info to organizational members.
Managers initiate and design change. They allocate resources and negotiate on behalf of the organization. Here managers deal with various affairs such as, overseeing new projects, taking corrective measure in an unforeseen event and discuss issues and bargain with other units to gain advantages for their own unit.
These roles demand a deep understanding of human behavior in both individual and group forms, and so OB provides us with the means of tackling these issues with confidence. Understanding OB has never been more important for managers than it is today. In today’s world, the people of earth are much closer than before and managers need to deal with a vast array of diversities, such as,
• Higher demand of customer satisfaction
• Coping with rapid changes in technology
• Balancing Stress related lifestyle of the workers
• Ethical behavior
As a manager, the teachings of OB can significantly increase one’s personal sensibilities and outlook on these attributes;
1. Working with people from different cultures:
What might seem motivating to a