Innovation In A Global Environment Analysis

The success of an organization largely depends on its ability to innovate. Becoming a company whose culture develops and encourages innovation does not happen by chance (Mohanty & Kar, 2012). In order to perfect an innovation environment, it takes design and practice, supporting policies, and effective leadership (Mohanty & Kar, 2012). The ideal recipe includes proven strategies that cultivate cross-cultural relationships, leaders who understand the risks and challenges when evaluating innovation opportunities in a global environment, and individuals who are self-aware of conscious and unconscious factors, such as biases, that may affect decision-making. This essay discusses the elements that leaders should consider when developing an innovation …show more content…
However, new opportunities to globalize operations engender significant risks and challenges (Kooskora & Meel, 2003). The risks and challenges can affect individuals on a personal level, in addition to having implications on an organizational level. From an organizational perspective, the presence of more companies in the market makes it difficult to compete, especially being a smaller organization or a poorer country that cannot afford to enter or stay in the market (Awuah & Mohamed, 2011; Kooskora & Meel, 2003). Transportation, operational logistics, cultural differences, and the political climate present some challenges that companies face when operating in a global environment. Organizations wishing to compete in the global marketplace should have formal systems that assist in developing well thought out strategies, which include thorough risk assessment (Bonabeau, 2003) of these challenges, in order to determine the company’s feasibility of competing. From a personal perspective, individuals responsible for making innovation decisions must have an open mind toward risk taking (DiLiello & Houghton, 2006), as biases, left unbridled can hinder the decision making …show more content…
The cognitive process, discussed in various research studies (Carnevale et al., 2011; McKenzie et al., 2011) is the tool, unique to every individual, used to make sense of the circumstances surrounding the situation. However, as Mckenzie et al. (2011) fond, the cognitive process individuals employ may not take in to account every aspect necessary to make a good decision. The results from Mckenzie’s et al. (2011) study revealed that using a formal model to assess organizational decision-making skills, may expose unconscious factors, such as biases, that hinder judgment (McKenzie et al., 2011). The implication being that self-awareness allows for better analysis, which may lead to better exploitation of innovation