Purpose -Academic and practitioner interest has focused on innovation as a method of competitive differentiation and as a way to create customer value. However, less attention has been devoted to developing a measure of innovation culture. The purpose of this paper is to develop an empirically-based comprehensive instrument for measuring an organization's innovation culture. Design/methodology -This paper describes a procedure which explicates the innovation culture construct, and proposes a multi-item measure of innovation culture predicated on exploratory factor analysis. These descriptors were derived from extant literature, key informant interviews, and a survey of over 282 employees from the financial services industry. Findings -Findings suggest that an innovation culture scale may best be represented through a structure that consists of seven factors identified as innovation propensity, organizational constituency, organizational learning, creativity and empowerment, market orientation, value orientation, and implementation context. Practical implications -The seven-factor model can be used both descriptively and diagnostically. Among other things, it presents a practical way to measure an organization's innovation culture, and could initially be used to establish a baseline level of innovation culture. From there, it could be used as a metric to chart the organization's efforts as it moves to engender innovation. Originality/value -More effort should be devoted to developing measures to assess innovation culture specifically. This model presents an innovation culture construct that is complimentary to work that has preceded it. The findings combined with the suggestions provide an alternative perspective as a measure of innovation and extends a basic framework for further investigation.
Strategy implementation and performance in organizations are influenced by its market orientation. Market orientation is the collective of employee behaviors that affects strategy implementation, how an organization interacts with its environment and adjusts to changes within that context. The relationship between market orientation, strategy implementation, and performance is robust across environmental contexts. This study identifies ideal behavioral profiles for organizations seeking to maximize performance by considering the scope and impact of market orientation on strategy implementation. This is accomplished by considering market orientation and strategy profiles in relation to performance in a holistic coalignment perspective, corresponding to competitive contexts characterized by varying degrees of market turbulence and competitive intensity. Important strategic and performance implications of this dynamic are revealed that should be considered by academics and practitioners alike.
The strategy chosen in organizations is related to several factors including the organization's mission, objectives, resources, and its innovation orientation. Using a sample of Canadian organizations, this study examines the relationships between an organization's innovation orientation and the types of competitive strategies they pursue.An innovation orientation describes how innovative an organization is and the results suggest that such an orientation provides a context for the implementation of proactive growth-based strategies. Organizations that possess high innovation orientations engage in value creation strategies such as market segmentation, developing new products/services for new markets, and product or service customisation. Those organizations possessing low innovation orientations generally practice less aggressive and internally focused strategies, de-emphasising such things as customer service, brand reputation, and co-operation based strategies such as joint ventures and alliances.
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