Fostering Innovation in Organisations

One of the economists, Schumpeter, considers innovation as an aspect of entrepreneurship and economic development that can appear in various forms (Tohidi and Jabbari 2011, p. For instance, it can be in the form of commercialization of new products through the application of the existing ones. Also, it can be the introduction of the new production process. On the other hand, Porter presupposes that firms need to innovate with the aim to gain a competitive advantage and that innovation comes in the form of new technologies that help to efficiently operate (Tohidi and Jabbari 2011, p. Endosamor defines innovation as a way of initiating new processes in the marketplace and innovative products (Tohidi and Jabbari 2011, p. Therefore, one part of the challenge presented by novelty to businesses is to know whether a firm’s activities can be considered creative or not.

In other words, researchers have not yet developed a unitary model of innovation as most of the definitions coined by scholars are many. It is also worth mentioning that besides the impact of innovation on the overall success of an organisation, it affects other aspects of a company. Some of them include knowledge management, total quality management, job satisfaction, adoption of information systems, and the production of new quality products (Tohidi and Jabbari 2011, p. With these facts, the lack of consensus on this concept of discussion cannot be avoided altogether; hence, there is a need to asses why it is essential to foster innovation in an organisation despite its confusing nature. It brings more benefits than the challenges. Speaking of the pros, it is essential for a business to innovate as it appears in various forms, such as market share, expanding product range, acquisition of new markets, replacing obsolete products and production of quality ones, as well as reducing the environmental hazards emanating from business activities.

The positive outcomes of innovation can be seen in the manufactured quality goods, ecological production activities, improved methods of workforce management, and enhanced models of the business management system (Dumitru and Ionescu 2015, p. Also, innovation is essential as it shortens production timelines. It speeds up the processes of producing new products, which helps to maintain market share and boost the profitability of a firm. It is driven by the rampant use of mobile technology across the UK. Nowadays consumers are increasingly using their phones to do shopping, which has enhanced a seamless buying experience between physical stores and online space (Emond 2016, p. Thus, it has to be Tesco has introduced the e-commerce idea with the aim to stay ahead of the increased use of iPhones, and I pad.

It is through this novelty that Tesco has experienced faster growth than other hypermarkets in the UK. Another company that has utilized innovations successfully is Barclays. There is a need to involve every level of management into the change and innovation process as each departmental manager has distinct responsibilities in conformance to a specific position (Kurato et al. 2014, p. Another action is the practical use of operating controls. There is a need to find a balance between factors that drive innovation in an organisation and those control it (Kurato et al. 2014, p. It is undoubted that when a manager advises his or her workforce to take the right direction, organisational success is bound to occur. In fact, most organisations fail because leaders do not encourage workers to create short-term sacrifices coupled with long-term implementation benefits.

It is acceptable that leaders who embrace innovation are needed in organisations now than ever before. Evidently, the innovative thinking process is a prerequisite for the success of a firm. Organisational culture is the set of beliefs, norms, myths, assumptions, and values that a given organisation accepts (Nguyen et al. However, the effect depends on how a culture influences employees and teams. The conventional knowledge is that cultural aspects of an organisation offer the necessary elements required to implement the innovation process. It is, therefore, prudent to ascertain that companies that have embraced innovation, such as Tesco and Barclays, need to nurture a culture of innovativeness. An excellent way of doing so is through the revision of mission statement, which induces innovation as a priority.

Therefore, the realisation of innovation depends on culture adaptability, which is regarded in the module as one of the flexible and external types of corporate culture (Andrews 2018, p. 2012, p. Change emanates from multiple sources including innovation and the interrelation between the two cannot be ignored. Conclusion The most critical and complex issue in contemporary business practice is innovation. It is a unique concept as its success depends on other elements of management such as change, leadership, diversity, and organisational culture. Its success in an organisation is determined by how well it is interlinked to them. (2014) Organisational culture oriented for innovation: Influencing variables, Polytechnic Institute of Beja, pp. Barclays Plc. (2016) Building the bank of the future, The Strategic Report, pp. Bruno, L.