Innovation is generally recognized as an important element in a firm’s competitiveness (Galia and Legros, 2004; Tourigny and Le, 2004; Storey, 2000). It is especially so when it involves small-scale businesses, who rely on innovation to succeed. Studies have shown that small firms who adopt innovation into their business strategy have an increased productivity, survivability, and growth potential (Cefis and Marsili 2006; Heunks 1998; Geroski, Machin, and Van Reenen 1993). Innovation has also been defined as the changing or creating new processes, products, or services that would enhance the effectiveness of the business (Businnes.gov.au, n.d.). To put it simply, innovation can be seen as either a process or outcome (Amarakoon, Weerawardena
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Employee resistance to innovation is also an important playing factor to the firm’s advancements in the competitive market. Studies have accentuated the leading causes for employee resistance to factors such as poor communication, current corporate culture, the poor commitment of management, and a weak human resource (Zwick 2002; Osterman 2000; Kane, Crawford, and Grant, 1999). This is more evident in small business managers where the often than not, they do not have the right training and education needed to produce an effective strategy for innovation (Hausman, …show more content…
As asserted by James Ontra, CEO of Shufflrr, innovation usually disrupts routines and is perceived as a threat (Fallon, 2015). Typically, there are three resistances to this change, namely old habits, the fear of the unknown, and the scientific fact that the brain hates change (Simon, 2013). Baldwin and Lin (2002) have also determined that inadequate training and poor employee skills are also some resistances that result as a challenge for the organization. A good example of a company that failed to change is Blockbuster. Where the fear to change resulted in a failure to adapt to the then upcoming age of streaming videos, and insisted on retaining their old model of physical rentals even when Netflix proposed a partnership. Blockbuster filed for bankruptcy in 2010, and Netflix is now worth $28 billion (Satell, 2014). Showing the consequences of not conforming to change.
To overcome the lack of effective human resource practices (HRM), companies can adopt effective human resource management policies to address their constraints. By ensuring good top-down managerial commitment, the company would be at a better disposition to innovate (Freel, 2002). Some policies involve putting aside budgets to fund innovative projects, defining organizational values to relate and promote innovation, and to integrate innovation as a leadership competency, this will motivate employees to take more risks in innovation at the same time feel safer
Employee resistance to innovation is also an important playing factor to the firm’s advancements in the competitive market. Studies have accentuated the leading causes for employee resistance to factors such as poor communication, current corporate culture, the poor commitment of management, and a weak human resource (Zwick 2002; Osterman 2000; Kane, Crawford, and Grant, 1999). This is more evident in small business managers where the often than not, they do not have the right training and education needed to produce an effective strategy for innovation (Hausman, …show more content…
As asserted by James Ontra, CEO of Shufflrr, innovation usually disrupts routines and is perceived as a threat (Fallon, 2015). Typically, there are three resistances to this change, namely old habits, the fear of the unknown, and the scientific fact that the brain hates change (Simon, 2013). Baldwin and Lin (2002) have also determined that inadequate training and poor employee skills are also some resistances that result as a challenge for the organization. A good example of a company that failed to change is Blockbuster. Where the fear to change resulted in a failure to adapt to the then upcoming age of streaming videos, and insisted on retaining their old model of physical rentals even when Netflix proposed a partnership. Blockbuster filed for bankruptcy in 2010, and Netflix is now worth $28 billion (Satell, 2014). Showing the consequences of not conforming to change.
To overcome the lack of effective human resource practices (HRM), companies can adopt effective human resource management policies to address their constraints. By ensuring good top-down managerial commitment, the company would be at a better disposition to innovate (Freel, 2002). Some policies involve putting aside budgets to fund innovative projects, defining organizational values to relate and promote innovation, and to integrate innovation as a leadership competency, this will motivate employees to take more risks in innovation at the same time feel safer