The Importance Of Organizational Innovation

1677 Words 7 Pages
Many firm considered innovation to be ‘sine qua non’ for the business operation and success. At the same time, it’s the current “proliferation in the current competitive, complex and capricious environment” (Panuwatwanich, Stewart, & Mohamed, 2008). According to Eaton, Akbiyikli and Dickinson (2006) in an organisation innovation is required a source of competitive advantages in their operation therefore the business needs to adapt to the rapid changes in order to embodied that complex process and situations (Panuwatwanich et al., 2008). For an organisation like PayPal and NTT the analysis of company leadership, culture, structure and innovation climate and successfulness are particularly really important. According to Winch (1998) the level …show more content…
Organisational culture underlying behaviours are belief, customs, traditions and values that the organisation operating in. In an innovation point of view, the corporate or organisation should consider culture while managing change perspective. The culture of an organisation can be both as input or output. When organisation going for significant change in terms of innovation in their business by having positive and aligned culture would be benefit organisation in many ways. As a result, it will create high level of productivity and employee performance. When eBay split their parent company with PayPal the organisation culture didn’t affect by the change. This is because the CEO declared himself to be as a “Chief culture officer to emphasize his personal commitment to driving change” (Deloitte University Press, 2016). At that time for both PayPal and NTT the increasing need for innovation have impacted on organisational culture and sustainability. As a result, organisational culture guides the firm’s technological resources and capabilities. The organisational culture can be classified into many categories for both companies. For NTT the organisational culture factors are flexible working environment, adapts easily and quickly to new situations and Clear and stable network in the organisation and well …show more content…
Since the innovation has usually originated and subsequently been developed into an organisation. According to Arthur Porter the process of innovation is the” innovative point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dream” (McAlindon 2004). In an organisation the climate can open to innovation that depends on leadership, for it is the leadership that coordinate and implements innovation. That’s exactly what happen at NTT where president Kojima recognised change from telecommunication to multimedia company. From that points onwards NTT business started to grow in every aspect in the innovation sector. The similar situation happens at PayPal where CEO of eBay John Donahoe recognised there should be split between eBay and PayPal this is because in order to focus on economic factor, both businesses are different, operating in very different market, each companies have their own set of strategic priorities and to implement further innovation in their business operations. Therefore, when there is a relationship between strong leadership and innovation, then there should be motivator and to desire to understand more about the innovation climate in an

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