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There has been an increasing realization of the value of innovativeness, the
orientation toward innovation, for firms thriving to gain competitive edge. The US
forest products industry is no different in this respect and many companies have
active initiatives to bring about creativity from their own employees. At the same
time, academicians have devoted important resources to understand the
dynamics of the innovation phenomenon. This research effort has also happened
outside the domain of the forest products industry. However, most initiatives have
taken a rather limited approach, failing to integrate a comprehensive theoretical
model of innovation. Consequently, this study seeks to fill that gap in literature by
proposing and testing a theoretical model linking organizational climate,
innovativeness, and firm performance.
In the first article, using an in-depth study of three Oregon-based forest product
companies, I focus on the refinement of the scales to be used in the next stages
of the project. The administration of a questionnaire to a sample of floor
employees and management allowed the refinement of scales for the following
constructs: Climate for Innovation, Organizational Commitment, and Interest in
Innovation.
The second article presents an in-depth case study of the most innovative
company selected from the previous three. A questionnaire was administered to
70% of the employees and management, followed by qualitative interviews to a
sample of them. The aim was to acquire a better understanding of the dynamics
involved in the model. Findings validated the measurement properties of the
scales and the structure of the model, showing significant positive correlations
among Climate for Innovation, Job Satisfaction, and Organizational Commitment,
measured as identification and involvement. Having a capable and committed
management was found to be crucial in developing innovativeness within the
firm.
In the third article, the domain of interest is expanded to a nationwide study,
including the complete US forest products industry, with 219 responding firms
representing both primary and secondary manufacturers. General Managers and
executives answered the questionnaire allowing for the assessment of the full
theoretical model, including firm performance and Innovation Strategy. Results
supported the model, finding a positive and significant relationship among all
factors. Innovativeness is found to be affected by the organizational climate, with
five dimensions of climate fostering it. Similarly, Innovation Strategy acts is found
to act as an antecedent to Innovativeness. Innovativeness acts as a positive
mediator between Climate for Innovation and Firm Performance. This is
especially true for secondary manufacturers, who seem to be in a better position
to capitalize on having a pro-innovation orientation. Climate for Innovation is also
found to have a positive, direct effect on Firm Performance.
This study contributes to the literature on innovation by offering an integrative
theoretical framework, tested and analyzed with powerful techniques (structural
equation modeling). Results place Innovativeness as a cultural phenomenon that
can be directly affected by organizational dynamics of the work environment.
This has clear managerial implications, and it is shown how management can
foster Innovativeness by implementing an organic Innovation Strategy and by
facilitating a Climate for Innovation. This climate is characterized by high levels of
autonomy, supervisor encouragement, team cohesion, and openness to ideas and change. |
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