SOCIAL BEHAVIOR AND PERSONALITY, 2011, 39(2), 265-274

© Society for Personality Research (Inc.)

DOI 10.2224/sbp.2011.39.2.265

INNOVATION STRATEGIES FOR ORGANIZATIONAL

CHANGE IN A TEA RESTAURANT CULTURE:
A SOCIAL BEHAVIOR PERSPECTIVE

JEOU-SHYAN HORNG
De Lin Institute of Technology, Taipei, Taiwan, ROC
MENG-LEI (MONICA) HU
Jinwen University of Science and Technology, Taipei, Taiwan, ROC
JON-CHAO HONG
National Taiwan Normal University, Taipei, Taiwan, ROC
YI-CHIA LIN
Yuda High School, Taiwan, ROC

The researchers aimed to clarify the innovation mechanism for organizational change using
the perspectives of social behavior and personality in a study of the Cha for TEA multiconcept
tea chain restaurants, which is the biggest tea company in Taiwan. Innovation and creativity
theories and Rhodes’ (1961) 4P (person, process, product, and place) theory were adopted
as a guideline for developing an in-depth interview. A case-based and qualitative research
approach was used to facilitate the investigation of mechanisms associated with the behavior
and personality of creative individuals. The results of this study can be useful for enterprises
involved in establishing new service businesses.

Keywords: innovation, creativity, organization culture, motivation, personality.

Jeou-Shyan Horng, Professor, Department of Hospitality Management, President of the De Lin

Institute of Technology, Taipei, Taiwan, ROC; Meng-Lei (Monica) Hu, PhD, Associate Professor,
Department of Food and Beverage Management, Jinwen University of Science and Technology,
Taipei, Taiwan, ROC; Jon-Chao Hong, Professor, Department of Industrial Education, National
Taiwan Normal University, Taipei, Taiwan, ROC; Yi-Chia Lin, Teacher, Food and Beverage Institute,
Yuda High School, Taiwan, ROC.
Appreciation is due to anonymous reviewers.
Please address correspondence and reprint requests to: Meng-Lei (Monica) Hu, 1F, No. 2, Lane 2, Ru-
I Street, Hsintein City, Taipei, Taiwan 23156, ROC. Phone: 886-2-22145525; Fax: 886-2-82122669;
Email: e5267@ms25.hinet.net

265
266 INNOVATION IN A TEA RESTAURANT

When economic growth slows, the tourism and hospitality industry typically
suffers a major decline (Hu, Horng, & Sun, 2009; Kim, Chen, & Jang,
2006). Thus, in order to survive, restaurants and hotels need to implement
transformation strategies to allow them to react more swiftly to changes in the
economic environment (Eyster, 1993). The catch phrase “innovate or perish”
further underlines the fact that innovation is crucial to organizations being
able to maintain their vitality and competitiveness. Porter (1990) observed
that, theoretically, prosperity derives from competitiveness, and that the key
to improving competitiveness lies in innovativeness. In a general sense, entre-
preneurship involves actions intended to create newness or to renew existing
organizations. Effective creative practices allow for adaptation to change and this
requires an array of innovations such as strategic entrepreneurship or leadership
(Ireland & Webb, 2007). From an organizational development perspective,
changes in organizational beliefs, personality, attitude, or behavior facilitate
organizational innovation (Krause, 2004). The more positive motivation,
charisma, and professional knowledge a leader possesses, the greater will be
his/her willingness to share these qualities and abilities with staff and promote,
innovation and creativity in his/her team (Hu, Horng, & Sun, 2009). Furthermore,
although all leaders expect their companies to be innovative, few possess the
knowledge of how to increase organizational motivation and lead their company
to achieve optimal innovation results. To date, few researchers have examined
such issues. Based on findings in previous studies, this study was aimed at
exploring leaders’ personalities and changes in organizational motivation,
structure, transformation strategies, and innovation in the hospitality industry.
Thus, the main purpose of this study was to investigate creativity and innovation
strategies for promoting organizational change from a social behavior perspective
in a tea restaurant.

ORGANIZATION CHANGE AND INNOVATIVE TRANSFORMATION FROM THE SOCIAL

BEHAVIOR PERSPECTIVE
Organizational reform and management, include organizational structure,
personnel, and technology. Organizational change and development can help
resolve tensions resulting from conflicts between organization culture and
motivations; innovation is seen not only as a reason for, or a driver of, change,
but also as an important outcome of successful development (Darling & Heller,
2009).
Visscher and Rip (2003) developed a typology of change agents, presenting
different ways of coping with the chaos caused by change processes. To
meet corporate objectives and achieve success in the ever-changing business
environment, firms require a robust culture to motivate staff to bring about
organizational change. Mangelsdorf (2009) found that companies looking to
 INNOVATION IN A TEA RESTAURANT 267
facilitate innovation should look for employees who are motivated not by job
security, but rather, by intellectual challenge. The contextual basis of workplace
culture and managerial style may affect employee creativity by either facilitating
or inhibiting various social-psychological factors including intrinsic motivation,
which according to Amabile (1996) is essential for creative and innovative
performance. According to Zhou (2003), high levels of intrinsic motivation may
be present, when an individual pursues a task for its own sake without regard for
obtaining monetary or social rewards. Based on the intrinsic motivation theory of
creativity, Amabile, Conti, Coon, Lazenby, and Herron (1996) noted that highly
creative employees enjoy, are challenged by, and find satisfaction in assignments
that capture their interest.

THEORY OF CREATIVITY AND INNOVATION

Based on the work of MacKinnon (1962), creativity is considered an attribute
of personality or a particular kind of response style. Amabile (1996) said that
creativity in the context of management related to new ideas about development
of products, practices, procedures, and ideas that are useful to the organization.
Over the past two decades, many researchers have defined creativity in the
management context in terms of the development of new ideas about products,
practices, services, or procedures, ideas that are potentially useful to the
organization in the short or long term (Amabile, 1996). Innovation has been
defined as the introduction and application, within a group, organization, or
wider society, of processes, products, or procedures new to the relevant unit
of adoption and intended to benefit those implementing them. By definition,
individual creativity is different from organization innovation in that the former
involves individual personal idea generation whereas that latter includes idea
generation and implementation throughout the organization (Amabile, 1988).
Thus, personal creativity often provides a starting point for organizational
innovation.
Rhodes (1961) studied the literature on creativity and used it as a basis for the
4P model of creativity: Person, Process, Product, and Place. Based on Rhodes’
conceptual framework, for this study we identified valuable reference points
and implications of research for organizational innovators. The 4P framework
can be used to identify the context that influences creativity and innovation.
Personality has been found to influence level of innovation (Martindale, 1989). A
creative process is a process that leads to innovative behavior, breakthrough, and
change. Creativity is often defined and represented by products (Amabile, 1983).
A creative environment facilitates the development of motives, personality,
and creative thinking ability, thus increasing creativity (Amabile, 1988).
Furthermore, innovation brings about the development of new businesses within
existing organizations. Business innovation can be considered a process by which
268 INNOVATION IN A TEA RESTAURANT

inventions are transformed into marketable or value-adding products, processes,

services, or organizational changes (Chuang, 2007).

CREATIVITY AND INNOVATION IN THE RESTAURANT INDUSTRY

Numerous researchers have indicated the importance of creativity and
innovation directly or indirectly in sustainable restaurant development (Kooser,
2003). Balazs (2002) found that restaurant operators usually develop unique and
creative operation strategies. Specifically, restaurant operators constantly work
on new strategies: new menus, decor, and ways to improve services. Additionally,
chefs need to play multiple roles as restaurant operators, leaders, entrepreneurs,
businesspeople, hosts, and cultural ambassadors.
Ottenbacher and Gnoth (2005) found that numerous organization-related
dimensions relating to top management, and including motivation, empowerment,
marketing synergy, and strategic human resource management, can be used to
predict successful hospitality service innovation. James, Clark, and Cropanzano
(1999), Rice (2006) and other researchers have developed a framework of the
individual creativity mechanism of business innovation. Within this framework,
individual creativity is a product of individual creative characteristics and the
role of individuals in the organization. Furthermore, individual knowledge and
values influence individual thinking. Consequently, it is worth investigating how
an organization can be changed by competent top managers, as well as the types
of processes, products, and businesses that can be influenced by organizational
innovation.

METHOD

RESEARCH SUBJECT
The Ten Ren Tea Corporation is the largest of its kind in Taiwan. In 1993, as
a result of a venture into the securities brokerage business, Ten Red suffered
a collapse and General Manager, Chen Liang Yuan, was assigned the task of
revitalizing the business by establishing the Cha for TEA multiconcept chain
1999. In 2004, Cha for TEA’s new restaurant was named as a creative life
industry by the Taiwanese Ministry of Economic Affairs. Subsequently, the Cha
for Tea restaurant chain was recognized as a 2006-2009 Creative Life Industry
by the Industrial Development Bureau of the Ministry of Economic Affairs for
creating a unique tea culture and embedding this concept in their food and décor.
Cha for TEA now has international franchises in America, Australia, and Japan.
Cha for TEA’s new multi-concept restaurant was the subject of this study.
 INNOVATION IN A TEA RESTAURANT 269
METHOD

RESEARCH PROCEDURE
We interviewed General Manager Chen Liang Yuan, who has been working at
the mother company of Cha for Tea, the Ten Ren Tea Corporation, for 30 years.
We conducted discussions and analyses using a combination of the above tools
with the 4Ps developed by Rhodes (1961). We began by designing an interview
framework, followed by using recording and analysis to produce a content
draft.
A case-based qualitative research approach was employed to extract design
concepts and deployment. Based on the interview content, the researchers
attempted to understand the innovative design conceptualization process of the
General Manager, specifically how they incorporate creativity into their dining
environments and how ideas drawn from society and natural environments
influence managers’ creative expression of individualism and the characteristics
of the surrounding environment whilst defining and giving depth to restaurants.
The research procedure included making video recordings and field notes to
observe and collect information through discussions with the interviewee.

RESULTS

PRIMARY INNOVATION MOTIVATION AND OWNER’S PERSONALITY

As previously stated, businesses unwilling to innovate perish. Commitment
to change, creativity, and innovation hold organizations together and ensure
business longevity. Cha for Tea multiconcept restaurants were introduced as one
tea-related concept after the collapse of the Ten Ren Tea Corporation. By giving
form to each organization culture, they hoped to express the essence and value
of tea.
Personality traits have frequently been related to creative achievement. We
found that the leaders of Ten Ren Tea Corporation have some personality traits
and motivation in common including willing acceptance of challenge, openness
to experience, sense of humor, positive attitude, willingness to take risks, strong
desire for knowledge, being passionate about ideals, and perseverance. These
results support those of studies by Amabile (1983), and Rudowicz and Yue
(2002) of creative leaders who possessed particular characteristics.
“The role of being a key man is very painful because you cannot turn down
a major mission… You have to show courage to deal with it (RA1034).”
“In an enterprise that strives for improvement, your creativity needs to be
constantly affirmed and encouraged (RA1026).”
Many theorists have distinguished between intrinsic and extrinsic motivation and
have proposed that this distinction has an important influence on creativity (e.g.,
270 INNOVATION IN A TEA RESTAURANT

Amabile, Hill, Hennessey, & Tighe, 1994). The findings of this study support that
proposal and the findings of a study by Rice (2006) in that organization culture,
leaders’ personality traits, and intrinsic and extrinsic motivations influence an
organization’s creativity and innovation (Rice, 2006).

THE CHALLENGE OF ESTABLISHING A NEW BUSINESS

Problem solving should include idea generation. When General Manager
Chen was interviewed for this study he commented that the creative process in
planning a restaurant should be based on creative themes and ideas, followed
by the planning and management of the restaurant that would incorporate these
concepts and ideas, and finally, the restaurant design express the essence of these
ideas.
Although it is essentially a restaurant chain, each Cha for TEA restaurant is
individualized, contrasting starkly with the established notions of minimalism,
conforming to a formula, and standardization prevalent in chain restaurants.
The aim was to break away from the stereotypes of mainstream chain store
management, allowing guests to experience the different tea cultures represented
and interpreted in each creative tea restaurant. The restaurants’ original themes
of peace, gratitude, fragrance, nature, as well as the original managerial design
concepts combining tea, Chinese culture, and modernity are expressed in such a
natural way it seems uncontrived and unplanned.

IMPLEMENTING CREATIVE IDEAS TO CHANGE AN ORGANIZATION

Besides thinking of a creative concept, implementation is critical. The top
management of Cha for TEA instilled these creative ideas into the restaurant
design and in terms of the restaurant as a whole, a style and main theme were
designed in accordance with the original ideas.
To summarize, the course of the creative process for Cha for TEA can be
explained using the creative process stages for: 1) problem verification, 2)
preparation – collation and selection of appropriate information and sources, 3)
production of feedback – searching for and producing answers, and 4) effective
feedback and communication.
When Mr Chen began drawing up the Ten Ren restaurant remodeling plans,
it was decided that tea culture would comprise the core of the design. Upon
examination of the vast literature on tea, including ancient and modern works
and those from China and elsewhere, the top management of Ten Ren developed
a solid understanding of the very essence of tea culture. This information was
instrumental in helping each store develop a unique and original perspective on
tea culture and plan a creative high quality tea culture-themed restaurant in which
tea was the core focus.
 INNOVATION IN A TEA RESTAURANT 271
ESTABLISHING AN ENVIRONMENT CONDUCIVE TO CONTINUING INNOVATION
In terms of individual environment, a fully supportive environment may not
be optimal for stimulating personal creativity. In contrast, an environment that is
generally supportive but presents some obstacles is frequently more effective in
stimulating organizational change.
Exterior Environment In the past the business philosophy of Ten Ren was not
only traditional and conservative, but the corporation also suffered from serious
organizational development problems and gradually began to lose its business
edge. Its employees were relatively old and were unable to keep up with the
fierce competition that surrounded them, putting the survival of the business at
risk.
Businesses that fail to understand ideas such as benign competition are likely
to have problems. Businesses must now come to grips with the larger picture of
changes in consumer markets and engage in benign competition with their peers
as well as learn from one another to achieve mutual growth. Through continual
innovation, restaurants can explore methods of realizing a better future.
Internal Environment McCoy and Evans (2002) demonstrated that environment
is important to innovation, and found that some internal environmental
factors that benefit innovation are: freedom, challenge, resources, supervisors,
cooperation among team members, recognition, cooperation, and motivating and
supporting creativity.
Successful problem solving must be focused on and encouraged in an
organization at all times. Promoting problem solving requires the adoption
of a particular kind of thinking, involving continuous appraisal of individual
(personal) resources.
In managing a creative restaurant, the managers willingly put everything they
have into the business, earn the trust of their superiors that they can be relied on,
and are willing to support ideals and dreams of Ten Ren’s top management. In
the organizational culture of the past in the Ten Ren Corporation internal unity
and cooperation were emphasized and the environment did not encourage open
and benign competition. Employees were unable to compete in a manner that
encouraged learning. A new organizational culture has now evolved, propelling
the organization forward into a new world of innovation where competition goes
hand in hand with cooperation, providing an environment where innovation is
rewarded. The organization can thus maintain its impetus to innovate, research,
and develop new products and services, and as a result of the interaction between
new and old.
Benign competition within an organization provides employees with a platform
for internal competition and innovation. Consumer satisfaction determines
product value. The commercialization of innovative products is the final stage
in the process. Mr Chen emphasized the need for cooperative learning within
272 INNOVATION IN A TEA RESTAURANT

and across industries. The Cha for TEA management created an organizational
environment characterized by both cooperation and competition in, to innovate
in which workers are encouraged and are rewarded with real benefits, and where
conditions are conducive to business innovation and businesses and employees
maintain the flow of creativity together with support and encouragement from
management.

DISCUSSION

Cha for TEA restaurants emphasize organizational change and development

during business innovation and growth phases, and top managers employ the
creation of high quality tea culture and tea-related creative ideas in restaurant
concept and management, including promoting respect for tea culture and
creating an environment with a solid tea culture foundation.
In this study the researchers explored the innovative transformation strategy
of restaurants from a social behavior perspective. Analysis of the interviews
with Mr Chen, the General Manager reveal that manager personality traits and
motivations are crucial in business innovation, including passion for challenge,
high tolerance for risk, proactive thinking, obtaining approval, and so on. Our
findings in this study support the studies of personality, process, product, and
place of creativity and innovation conducted by Martindale (1989) and Amabile
(1996). The results of this study also support the findings of West (2002) that
creativity occurs primarily at the innovation processes stage and is followed by
innovation implementation.
Cha for TEA achieved successful organizational change in the service arena by
ensuring service quality and customer satisfaction.

REFERENCES

Amabile, T. M. (1983). The social psychology of creativity: A componential conceptualization.

Journal of Personality and Social Psychology, 45(2), 357-376.
Amabile, T. M. (1988). A model of creativity and innovation in organizations. In B. M. Staw & L.
L. Cummings (Eds.), Research in organizational behavior (pp. 123-167). Chicago, IL: Aldine
Publishing Company.
Amabile, T. M. (1996). The atmosphere of pure work: Creativity in research and development. In W.
R. Shadish & S. Fuller (Eds.), The social psychology of science. New York: Guilford Press.
Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work
environment for creativity. Academy of Management Journal, 39(5), 1154-1184.
Amabile, T. M., Hill, K. G., Hennessey, B. A., & Tighe, E. M. (1994). The Work Preference
Inventory: Assessing intrinsic and extrinsic motivational orientations. Journal of Personality and
Social Psychology, 66, 950-967.
Balazs, K. (2002). Take one entrepreneur: The recipe for success of France’s great chefs. European
Management Journal, 20, 247-259.
 INNOVATION IN A TEA RESTAURANT 273
Chuang, L. M. (2007). The social psychology of creativity and innovation: Process theory (PT)
perspective. Social Behavior and Personality: An international journal, 35(7), 875-888.
Darling, J. R., & Heller, V. L. (2009). Organization development in an era of socioeconomic change:
A focus on the key to successful management leadership. Organization Development Journal,
27(2), 9-26.
Eyster, J. J. (1993). The revolution in domestic hotel management contracts. Cornell Hotel and
Restaurant Administration Quarterly, 34(1), 16-26.
Hu, M. L., Horng, J. S., & Sun, Y. H. C. (2009). Hospitality teams: Knowledge sharing and service
innovation performance. Tourism Management, 30, 41-50.
Ireland, R. D., & Webb, J. W. (2007). Strategic entrepreneurship: Creating competitive advantage
through streams of innovation. Business Horizons, 50(1), 49-59.
James, K., Clark, K., & Cropanzano, R. (1999). Positive and negative creativity in groups,
institutions, and organizations: A model and theoretical extension. Creativity Research Journal,
12(3), 211-226.
Kim, H. L., Chen, M. H., & Jang, S. C. (2006). Tourism expansion and economic development: The
case of Taiwan. Tourism Management, 27, 925-933.
Kooser, R. (2003). Design for customers, not the designer. Food Management, 38(9), 22.
Krause, D. E. (2004). Influence-based leadership as a determinant of the inclination to innovate
and of innovation-related behavior: An empirical investigation. The Leadership Quarterly, 15,
79-102.
MacKinnon, D. W. (1962). The nature and nurture of creative talent. American Psychologist, 17,
484-495.
Mangelsdorf, M. E. (2009). Motivated to innovate. MIT Sloan Management Review, 50(3), 24-24.
Martindale, C. (1989). Personality, situation, and creativity. In J. A. Glover, R. R. Ronning, & C. R.
Reynolds (Eds.), Handbook of creativity. New York: Plenum Press.
McCoy, J. M., & Evans, G. W. (2002). The potential role of the physical environment in fostering
creativity. Creativity Research Journal, 14, 409-426.
Ottenbacher, M., & Gnoth, J. (2005). How to develop successful hospitality innovation. Cornell Hotel
and Restaurant Administration Quarterly, 46, 205-222.
Porter, M. E. (1990). The competitive advantage of nations. New York: The Free Press.
Rhodes, M. (1961). An analysis of creativity. In S. G. Isaksen (Ed.), Frontiers of creativity research.
New York: Bearly Limited.
Rice, G. (2006). Individual values, organizational context, and self-perceptions of employee
creativity: Evidence from Egyptian organizations. Journal of Business Research, 59, 233-241.
Rudowicz, E., & Yue, X. D. (2002). Compatibility of Chinese and creative personalities. Creativity
Research Journal, 14(3/4), 387-394.
Visscher, K., & Rip, A. (2003). Coping with chaos in change processes. Creativity and Innovation
Management, 12, 121-128.
West, M. A. (2002). Sparkling fountains or stagnant ponds: An integrative model of creativity and
innovation implementation in work groups. Applied Psychology: An International Review, 51,
355-387.
Zhou, J. (2003). When the presence of creative coworkers is related to creativity: Role of supervisor
close monitoring, development feedback and creative personality. Journal of Applied Psychology,
88(3), 413-422.
Copyright of Social Behavior & Personality: An International Journal is the property of Society for Personality
Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the
copyright holder's express written permission. However, users may print, download, or email articles for
individual use.