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What Kinds of Culture

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What kinds of culture and organizational structure are most favourable to innovation?

With grateful thanks to Gong Li

March 17, 2005

and the pre-sessional English module leader

Module Title: Managing Innovation and Change

Contents

Introduction 3

Innovation 4

Identifying Organizational Structure & Culture 5

Conclusion 11

References 12

Introduction

With the rapid development of society, the rate of change in people’s lives has increased in areas such as technology, market requirements and life cycle. These issues also surround organizations, and they have brought about an increase in competitiveness. In order to gain competitive advantage, organizations cannot afford to continue producing products, services or even maintain managerial style in the same way. Hence, Eaton (2005) has suggested that organizations have to acquire the ability to create new products/services and innovate new processes. These are essential skills in providing a sustainable form of competitive advantage. In other words, innovation plays a vital role for organizations in order to gain and maintain a competitive edge.
However, most managers and companies have found difficulties in exhorting their operating organizations to be more innovative and creative. Moreover, the increasing importance of



References: Buchanan, D. and Huczynski, A. (2001). Organizational behaviour: an introductory text (4th Ed.). London: Prentice Hall. Buhler, P.M.., Managing in the new millennium. Supervision, 00395854, Aug 2002, Vol. 63, Issue 8 Burns and Stalker (1961) Kanter, R.M.. (2000), A Culture of innovation. Executive Excellence, 87562308, Aug 2000, Vol. 17, Issue 8 Katz, R Schein, E.H. (2004). Organizational culture and leadership (3rd Ed). San Francisco: Jossey-Bass. Tidd, J., Bessant, J. and Pavitt, K. (1997). Managing innovation: integrating technological, market and organizational change. Chichester: Wiley. West, M. A. and Farr, J. L.(1990). Innovation and creativity at work: psychological and organizational strategies. Chichester: Wiley.

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