Exploring the role of innovation capabilities in fostering organisational performance in a state-owned enterprise: A qualitative research study

Abstract

State-owned entities (SOEs) are essential drivers of economic growth and social transformation in the South African economy, and they contribute significantly to the private sector. To address concerns around sustainability and performance, it is necessary to research and leverage the capabilities of SOEs. Innovation has been identified as a key attribute for increasing business performance, and to create and maintain sustainability, SOEs must understand and leverage their core competencies and capabilities through deliberate actions, processes, and outcomes of innovative capabilities. This study examines the current state of innovation and the capabilities that accompany it among middle and senior managers, as well as executives of a single case SOES organization. Qualitative research methods were used, and sixteen semi-structured interviews were conducted. The results of the study provide insights into the culture, mindset, and processes that either facilitate or hinder innovation capabilities. The managerial levels expressed concerns regarding cultural and employee aspects, technology adoption, innovation processes, and the need for a holistic understanding and interrelationships of levels within the organisation. The research highlights the importance of fostering a positive culture, streamlining operations, and enhancing cross-functional collaboration. The findings reveal that the case SOE embraces innovation in an informal manner. However, significant barriers that stifle innovation were cited both internally and externally across the managerial tiers. A summary of the contextual aspects is also provided that may be compared to other SOEs.