Investigating innovation : measurement, standardization and practical application

Abstract

Growing competition, globalisation and changing circumstances make innovation a prerequisite for the growth, success and survival of any private or public organisation. While innovation in technology, production, marketing and finance all remain essential, it is innovation in management that is most desperately in short supply. A literature study could not reveal the existence of any scale that measures all the factors and processes relevant to organisational innovation. A scale for managerial innovation was developed. This scale is based on the work of various researchers in the field of innovation. The major tasks in the process were connected to the structural arrangements and social patterns that facilitate the tasks are discussed. Innovation consists of a set of processes carried out at the micro-level, by individuals and groups of individuals, and these micro-processes are in turn stimulated, facilitated and enhanced - or the opposite - by a set of macro-structural conditions. A semantic differential scale was developed to measure managerial innovation. The scale consists of 88 items and was designed to reflect the major factors and processes of organisational innovation. Various statistical tests were used to evaluate the scale and data obtained through the scale. Five Factors were identified after the data was analysed using factor analysis. The five factors are Factor 1 (leadership and culture), Factor 2 (employee acquisition and development), Factor 3 (variables that facilitate problem solving and aid in innovation), Factor 4 (variables that impact negatively on innovation), and Factor 5 (variables external to the organisation that influence innovation). The Alpha Cronbach test for reliability showed a very high degree of reliability and the scale conformed to the criteria of content validity. Analysis Of Variance (ANOVA) was used to perform comparative analysis on the biographical variables. The relationships between age, gender, level of education, industry, length of service, and the combined effect of age and gender, age and length of service, gender and industry, and gender and length of service and the five factors were analysed. Age seems to play a significant role in Factor 1 and Factor 2 (i.e. leadership and culture as well as employee acquisition and development). For Factor 1 and Factor 2 average achievement in terms of innovation seems to increase with age. With regard to Factor 3, 4 and 5 age does not seem to impact on achievement significantly. The results of this study indicate that there are no significant relationship between gender and innovation. The results of this study indicate that there is a positive relationship between level of education and innovation for Factors 3, 4 and 5. It was found to differ significantly between the levels for two factors, namely Factor 1: leadership and culture, and Factor 2: employee acquisition and development. They seem to decline as the level of education increases. The results of this study indicate that for all five factors there seem to be a very significant difference in average achievement when individuals from different industries are compared. The results of this study indicate that there is not a significant relationship between length of service and innovation. The ANOVA results for combined variables indicate a significant difference in average achievement Factor 1 (leadership and culture) when the research participants are grouped based on both age and gender. In general, males of any age group tested equal to or higher than their female counterparts for Factor 1. Also apparent from the results is that generally the scores for Factor 1 seemed to increase with age. For Factor 2, 3, 4, and 5 there is no significant difference in achievement when participants are grouped according to age and gender. The results of the tests for difference in achievement when the research participants are grouped according to age and length of service, do not indicate that there is any significant difference in average achievement between the groups.