The role of transformational leadership in enhancing organizational innovation: Hypotheses and some preliminary findings

A wide range of factors has been found to affect organizational innovation. Of these, top managers' leadership style has been identified as being one of the most, if not the most, important. Yet, few studies have empirically examined the link between this factor and innovation at the organizational level. This study builds on the extant literature to propose four hypotheses about how top managers' leadership styles directly and indirectly (via empowerment and organizational climate) affect their companies' innovation. A multisource approach is used to collect survey data from 32 Taiwanese companies in the electronics/telecommunications industry. The findings support a direct and positive link between a style of leadership that has been labeled as “transformational” and organizational innovation. They also indicate that transformational leadership has significant and positive relations with both empowerment and an innovation-supporting organizational climate. The former is found to have a significant but negative relation with organizational innovation, while the latter has a significant and positive relationship. The implications of the findings and possible directions for future research are discussed.     

Propensity to adopt technological innovations: the impact of personal characteristics and organizational context

This study investigated how personal characteristics and organizational context are associated with strategic decision makers' intentions to adopt technological innovations. Positive significant relationships were found between hospital top managers' intentions to adopt potential innovations and risk propensity, self-efficacy, perceived organizational strategy, perceived information processing capacity, and perceived resource availability. The impact of personal and organizational factors on intentions to adopt, implications of our results, and future research directions are discussed.     

How Managers Talk about their Consumption of Popular Management Concepts: Identity,Rules and Situations

This paper analyses how top managers account for their consumption of popular management concepts. By ‘consumption’ we refer to managers acting as active users of popular management concepts within their organizations. After reviewing the relevant literature, we argue that the logic of appropriateness is a better theoretical perspective to view, understand and analyse managers' accounts of concept consumption than is the logic of consequence. We apply this perspective to extensive interviews we conducted with top managers in Germany. Based on the managers' own accounts of how they understand and apply popular management concepts, we identified four discourse categories: (1) learning from others' experiences, (2) controlling organizational change, (3) gaining external legitimacy and (4) collective sensemaking. We argue that these discourse categories all draw on the social norm of rationality central to managerial identity, while differing in socially defined rules about how rationality is realized in typical management situations. Our findings strongly encourage researchers, when investigating popular management concepts in the future, to take into account the situational nature of rationality that circumstantiates the consumption of concepts.     

Organizational Environments and Performance: A Linear or Nonlinear Relationship?

The external circumstances that organizations confront are an important influence upon their prospects of success. The resources available within the environment, the multiplicity of stakeholder demands to be addressed and the rates of change in these, each have serious implications for organizational functioning. Nevertheless, it remains conceivable that the effects of different dimensions of the environment are not straightforwardly positive or negative, but may follow nonlinear patterns posing very different challenges at different levels. To draw lessons for public organizations seeking to understand how best to respond the circumstances that they face, this paper examines linear and nonlinear effects of different dimensions of the organizational environment on the performance of over 500 organizations using both objective and subjective measures of the environment. Strong support is found for the presence of linear relationships between each environmental dimension and type of measure and performance, but no evidence of statistically significant nonlinear environmental effects. The theoretical and practical implications of the findings are discussed.     

Should knowledge be distorted? Managers' knowledge distortion strategies and organizational learning in different environments

Organizational learning provides a sustainable competitive advantage for an enterprise facing a highly volatile environment, and managers' knowledge sharing strategies are of vital importance to organizational learning. This study systematically evaluates the effects of managers' knowledge distortion types (i.e., misrepresentation and omission), distortion levels, and distortion preferences in a formal organizational context under various environments. Multi-agent simulation results demonstrate that a slight level of managers' knowledge misrepresentation and a high level of managers' knowledge omission are beneficial in a closed system. With increasing turnover rate, both misrepresentation and omission are detrimental. Moreover, in an open system with environmental turbulence, misrepresentation is valuable to performance, while omission is neutral. In general, misrepresentation plays a leading role in the simultaneous combination of two distortion strategies. Implications for future research and practice are discussed.     

Environmental regulatory influence and product innovation: the contingency effects of organizational characteristics

This paper examines the relationship between environmental regulatory influence and product innovation in a multi-industry sample of manufacturing organizations. Our theory argues that the influence of environmental regulation on the level of product innovation in a manufacturing organization is at least partially contingent on the organization's internal characteristics—in particular, its structural flexibility and production process flexibility. Hypotheses are derived from our theory and tested, and the results are consistent with the conclusion that structural flexibility and production process flexibility moderate the environmental regulatory influence–product innovation relationship. Whether environmental regulation inhibits or promotes product innovation seems to depend at least in part on certain internal features of an organization. We discuss implications of our results for future organization studies research on environmental regulation, and for research on other types of external constraints on organizational performance.     

Influence of Environmental Factors and Prior Changes on the Organizational Adoption of Changes in Products and in Technological and Administrative Processes

This research studies how organizational adoption of three different types of change – change in products, in technological processes and in administrative processes – is influenced by environmental factors such as industry regulation and market concentration and by the prior adoption of different types of change. We tested our hypotheses in the service sector, examining a sample of bank holding companies in the USA for the period 1975–1995. We found that (1) environmental factors influence rates of change in products, in technological processes and in administrative processes differently; (2) changes in products are followed by changes in both technological and administrative processes; and (3) the three types of change exhibit momentum, as firms are more likely to implement changes similar to those they have recently undertaken. We discuss the implications of our findings for the theory and management of change in organizations.     

The Effects of Transformational Leadership on Organizational Performance through Knowledge and Innovation*

Today's information and knowledge society requires new leaders who can confront a reality based on knowledge and foster innovation to achieve improvements in organizational performance. However, organizations sometimes fail to achieve sustainable competitive advantage due to their limited understanding of the relationships between these strategic variables. To date, very little research has analysed the direct and indirect relationships between these variables. Our study seeks to fill this research gap by analysing theoretically and empirically how the leader's perceptions of different intermediate strategic variables related to knowledge (knowledge slack, absorptive capacity, tacitness, organizational learning) and innovation influence the relation between transformational leadership and organizational performance. Based on the literature, we develop a theoretical model that shows the interrelations between these variables. We then test the model using data from 408 Spanish organizations, discuss the findings and provide several implications for business practitioners.     

创业导向与创新绩效：高管团队特征和市场动态性的影响

创业导向对创新绩效的提升具有重要的影响,但创业导向与创新绩效的关系还可能受高管团队特征和市场动态性的影响。根据基于注意力的观点,对创业导向、创新绩效、高管团队的异质性、高管团队的共同愿景和市场动态性的关系进行研究,探讨高管团队的异质性和共同愿景对创业导向与创新绩效关系的调节作用,并进一步研究这种调节作用是否受市场动态性的影响。利用在广东、江苏、山东、陕西和河南5地收集的264份调查问卷,采用多元线性回归和调节效应的检验方法对研究假设进行实证检验。研究结果表明,创业导向对创新绩效有正向促进作用,高管团队的异质性有助于加强创业导向与创新绩效的关系。在稳定的市场环境下,高管团队的异质性对创业导向与创新绩效关系的调节效应更强;在不考虑环境动态性和环境动态性较低的情况下,高管团队的共同愿景对创业导向与创新绩效关系的调节效应不显著,但在动态性较高的市场环境下,可以显著地正向调节创业导向与创新绩效的关系。     

Firm-level correlates of emergent green supply chain management practices in the Chinese context

Greening the supply chain is increasingly a concern for many business enterprises and a challenge for logistics management in the 21st century. Of particular concern is how to arouse organizational environmental awareness and put environmental activities into practice in the logistics activities of their supply chains. This paper investigates the correlation of two major factors, organizational learning and management support, with the extent of adoption of green supply chain management (GSCM) practices in Chinese manufacturing firms, where their inbound and outbound logistics activities are potential polluters to the environment. Organizational and operational learning was derived from the firm's experience with programs such as total quality management and environmental management systems. Management support included support for GSCM ideas and practices from top and middle-level management and cooperation across organizational functions. We find significant positive relationships between organizational learning mechanisms, organizational support and the adoption of GSCM practices, after controlling for a number of other influences including regulations, marketing, supplier, cost pressures, industry levels of the relevant practice and organizational size. Implications of our findings on logistics management are discussed.     

Beyond the Disciplinary Role of Governance: How Boards Add Value to Spanish Foundations

Due to the significant role of non‐profit organizations in the development of modern societies, these organizations must adjust their boardrooms. Since traditional theories of corporate governance appear to be limited in explaining the changing non‐profit world, we propose an extended model of governance that integrates the traditional arguments of agency theory with a cognitive dimension. Based on a sample of Spanish foundations, we present evidence on the effect of the board composition on foundations' organizational efficiency. We show that board size and independence do not have a definitive effect on the entity's efficiency. Instead, the knowledge diversity inside the boardroom and the active character of trustees have a positive influence on resource allocation. The cognitive dimension of the extended model of governance is critical to explaining how boards impact on organizational performance.     

Perceived Support and Women's Intentions to Stay at a Sport Organization

Women remain underrepresented in upper management within sport organizations and more broadly. This research examines organizational factors that may affect women's (and men's) likelihood of remaining with their sport organization, which would presumably affect their willingness and ability to step into leadership roles. The research examines the effects of equity human resource management practices, top management support for gender equity and gender‐related barriers on organizational commitment and intent to stay with their sport organization, as well as whether changes in perceived organizational support would mediate the relationships. Results from a survey of current employees in Australian sport organizations generally support the hypotheses. Perceived top management support for gender equity is a strong and consistent predictor of outcomes, and the effect is mediated by perceived organizational support. Implications for top management's role in implementing gender equity practices are discussed.     

The role of personal values in the charismatic leadership of corporate managers: A model and preliminary field study

This study used multi-source field data collected in five organizations to examine linkages among managers' personal value system (i.e., intensity of openness to change, traditional, collectivistic work, self-transcendent, and self-enhancement values), charismatic leadership of managers, and three outcome measures. Two-hundred and eighteen managers provided self-reports of their personal values and ratings of their followers' extra effort and organizational citizenship behavior (OCB). Nine-hundred and forty-five subordinates rated the focal managers' charismatic leadership. Superiors of the focal managers provided ratings of managerial performance 2 months after collecting the managers' and subordinates' ratings. Results indicated that traditional, collectivistic work, self-transcendent, and self-enhancement values related positively to charismatic leadership, which predicted managerial performance and followers' extra effort and OCB. Managerial performance moderated the relationships between leaders' values, charismatic leadership, and followers' outcomes.     

Process Innovation Costs in Supply Networks: A Synthesis

This paper provides a synthesis of the literature on the costs incurred by organizations that develop, adopt and use inter‐organizational process innovations in supply networks. A review of the literature in this area suggests that innovation costs influence the pattern of adoption. There is, however, a lack of consensus about what these innovation costs entail. Based on a review of innovation literature in the area of information systems, this paper develops an integrative framework of inter‐organizational process innovation costs. The framework identifies six broad categories of costs (both tangible and intangible) that map onto different stages of organizational innovation: development and initiation costs associated with the generation of an innovation; switching costs and the cost of capital associated with the acceptance stage; and implementation and relational costs associated with implementation. The framework serves not only to organize the existing literature but also to provide the impetus for future research into the role that different categories of costs play in shaping inter‐organizational process innovation in supply networks.     

11 The Effects of Governments on Management and Organization

Abstract

We review and integrate existing research from organization theory, strategy, organizational behavior, economics, sociology and political science on the effects of governments on organization and management, with a focus on how governing ideology and government capability influence independent organizations’ forms, strategies, and their participants’ behavior. When brought together these works suggest significant research opportunities in the fields of management and organization, as well as new perspectives on public policy challenges. Several avenues of potentially profitable empirical research include more attention to the influence of government on corporate strategies, more research on the strategies of pursuing corruption and government capture for competitive advantage, the role of government in fostering innovation and the growth of entrepreneurial organizations, and extra‐organizational contextual effects on managerial and employee organizational behavior. Possible public policy implications are illustrated with an application to the role of organizations in national wealth generation and dispersion.     

Organizational cloud service adoption: a scientometric and content-based literature analysis

This paper takes a scientometric research approach and undertakes a categorized literature analysis to provide a comprehensive and systemic overview of the current status of research on cloud services and their adoption by organizations. We review 52 journals and proceedings of the information systems field to identify and systematically categorize 36 articles on the topic. Our content-based analysis shows that the scarce theoretical and empirical work on organizational cloud service adoption has developed and explored factors that directly or indirectly drive organizations to adopt or inhibit them from adopting cloud services from different perspectives and dimensions. We classify these driving and inhibiting determinants based on the technology organization environment framework Tornatzky and Fleischer (The process of technological innovation. Lexington Books, Lexington, 1990) to provide a structured summary. Based on our analysis and recent cloud evolution in practice, we identify five new research areas, including theoretical and practical phenomena describing determinants and consequences of cloud service adoption in organizations: information technology (IT) related public threat appeals, trust in the technology versus trust in the vendor, bring your own cloud, transformation of organizational identity, and intelligent clusters of IT initiatives. For each phenomenon we provide relevant research questions, potential theoretical foundations, and methodologies to guide future research endeavors in this field.     

Determinants of intranet diffusion and infusion

Commercial interest in Internet technology has grown tremendously in the last decade. Until now, little research has been devoted to examining the internal deployment of Internet technology. The present study focuses on the implementation process of intranets by examining factors associated with its diffusion and infusion in organizations. Findings suggest that earliness of adoption, top management support, and organizational size are positively associated with intranet diffusion. Intranet infusion is positively associated with earliness of adoption, top management support, and IT infrastructure flexibility, and these effects are mediated by intranet diffusion. Implications for management and suggestions for further research are discussed.     

Perception of learning culture and concerns about the innovation on its use: a question of level of analysis.

The purpose of this study was to determine the relationship between organizational members' perception of learning culture and the concerns about the innovation, and the influence of these factors on the use of one innovation (ISO 9000) in the Malaysian public sector. This study was guided by the Concerns-Based Adoption Model (CBAM) (Hall and Hord 1987) and the dimensions of the learning organization (Watkins and Marsick 1993, 1996b). The study involved 628 people from eleven government agencies that had been using the new system for at least a year. The study provided a model for operationalizing the assertions and theories of both organizational development and learning organization scholars especially that a more adaptive learning-oriented culture would facilitate the implementation of change. The examination of learning culture facilitated the understanding of how members within the organization perceived their learning culture, and subsequently its relationship to their use of the innovation. The analysis of concerns illustrated the fit between the innovation and feelings and perceptions of the individual members about the innovation. On an individual organizational basis, the regression analyses showed that the model was able to explain the variance in use of innovation in each organization. However, a comparison of regression weights across the organizations told a very different story. The results showed that the combination of variables that explained the use of innovation varied radically from organization to organization. The findings raised questions about appropriate levels of analyses for such studies. The study suggests that theories that try to explain organizational innovation implementation be tested across organizations and take into account organizational context. Otherwise, they could lead to inaccurate conclusions.     

Strategic Influences of Technological Innovation in Greece

This exploratory paper analyses the ‘importance’ and ‘awareness’ of a set of established ‘strategic’ influences of technological innovation in the context of a European newly‐industrialized country. The author interviewed 105 Greek manufacturing firms (mainly SMEs) and measured their perceived innovation rate as well as 17 ‘strategic’ factors regarding top‐management practices and characteristics. Using correlation and regression analysis the initial group of factors was reduced to a subset of five ‘major importance’ influences of innovation, namely: incorporation of technology plans in the business strategy, managerial attitude towards risk, perceived intensity of competition and rate of change of customer needs, and finally status of the CEO (owner‐CEOs were associated with higher innovation rate than appointed CEOs). The ‘statistical’ results are exploratory and have to be treated with caution, as they are highly dependent on the accuracy of the respondents' perception of their company's innovation rate and top‐management practices and characteristics. The ‘statistical’ results were then compared with the managers' perception on the important factors determining innovation (also measured during the interviews). Overall the perceptual analysis confirmed the significance of the statistically important variables, with the exception of a disagreement in the direction of association between the status of the CEO and the rate of innovation. In general, top‐management characteristics proved more important ‘strategic’ influences of innovation for the Greek SMEs than corporate practices. The study also indicated that the important influences of innovation were generally scarce in the Greek institutional context. The highly innovative companies were the ones to overcome country‐specific innovation barriers such as the low supply of technology, the low level of competition and the risk‐averse national culture.     

A model of the adoption of radio frequency identification technology: The case of logistics service firms

Globalization and advances in information technology represent both realities and opportunities for enterprises in the 21st century. This paper aims to broaden understanding of service innovation as a critical organizational capability through which the adoption of information technology influences firm performance. This study examines how the adoption of radio frequency identification (RFID) technology influences the operational performance of logistics service firms. We develop the RFID adoption model based on the interorganizational information systems (IOS) view of the firm that integrates the various strands of research into the framework. The study draws from the related information technology and interorganizational information systems literatures to explore organizational factors associated with the adoption of RFID. A model of the associations between information technology and interorganizational information systems use, social support, power structure, organizational readiness, procedural flexibility, and top management support is developed, and hypotheses are advanced about the relationships among these constructs. An empirical survey was conducted among 500 logistics service firms in Taiwan. A total of 131 valid observations were analyzed using the partial least squares technique. Results showed that RFID adoption has positive effects on business practices, which in turn improves operational performance. We address the value of certain interactive firm behaviors in RFID adoption and identify related constructs of RFID adoption in terms of their efficiency and value for logistics service firms. These results have implications for both education and practice.