ADDIS ABABA UNIVERSITY

SCHOOL OF COMMERCE

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Management rs e of Technology
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and Innovation
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Article-Review: Determinants of Successful Organizational

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Innovation
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Group Members ID No
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1. Arsema Eyassu………………….GSR/0866/11
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2. Bisrat Zerihun…………………..GSR/4279/11
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3. Desta G/giorgis…………………GSR/9294/11
4. HIrut Kebede…………………….GSR/6961/11
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5. Rediet Lemma…………………..GSR/5915/11
6. Ermias Mulatu…………………..GSR/ /11
Section 1-Group 2

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 Submitted to:
1. Introduction

The article to be reviewed is titled “Determinants of Successful Organizational Innovation: A

Review of Current Research” written by Anthony Read in 2000 and published by journal of
management practice. The study utilized the method of a research review meaning research
articles were collected from relevant academic journals and are quantitatively and qualitatively
analyzed.

The research used an empirical research approach with a main purpose to examine the topic of
organizational innovation to help understand how organizations can successfully foster and

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develop innovation. The research stated three main objectives: first to understand the current

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state of research through analysis and synthesis of academic research papers; second to

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determine what the current research identifies as the main determinants of successful innovation;

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and third to determine what research evidence there is for positive effects on competitiveness and
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profitability from the development of innovation.

The nature of the article is a content study and tries to clarify its content by content. Research
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articles have been collected from relevant academic journals. Some of the sources used by the
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article include journals such as Academy of Management Review, Research Policy, and Journal
of Product Innovation Management. A minimum of twenty items of research was utilized for the
study.
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2. Research design/Methodology

The article used both qualitative and quantitative analysis. The paper used qualitative method
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because it’s useful for inductive and exploratory research, non-quantitative variables are present,
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the data sample is small (20 articles) so the reliability of statistical analysis would be low and it
will help to analyze and compare and contrast the main findings, directions, and shortcomings of
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the research.

The article also applied quantitative analysis used for the systematic numerical analysis of the
data in the form of tabling and graphs. This will assist to structure the analysis, allow more depth
in comparativeness, and help visually represent the information.

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 The article documented different researches for review by searching different databases and
selecting depending on four criteria’s ; the article Must have been published in the last 4 years,
Source must be a peer-reviewed publication, Must focus on innovation in organizations and Must
demonstrate qualitative and/or quantitative analysis.

3. Results and discussion

The article presented three major results based on the three objectives it aims to address. First,
the questionnaire/survey method are the most common and the researches reviewed are mostly
concerned with manufacturing firms new product development, also organizational innovation is
the type of innovation most frequently researched and other types of innovations were also
researched.

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The result showed the fact that organizational innovation is not being researched as much as the

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subject importance and there were no clearly identifiable theory throughout the examined

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researches and continued the shortcomings of past research. The author believes the main reason
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for this was the lack of a common theory base due to the infancy of innovation research.

Second, major determinants of successful innovation were identified they are; Management
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support for an innovative culture, Customer/market focus, Communication/networking, HR

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strategies that emphasize innovation, Team structures, Knowledge management, Leadership,

creative development, strategic posture, flexible structures, continuous improvement, and
technology adoption. The most important determinant identified was management support for
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innovation and an innovative culture.

The result of the study indicates balance of emphasis on each of these determinants is dependent
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on the context of the organization. Contingency variables differ with each firm and the concept
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of innovation and its determinants for success must be molded to fit each organization.

Finally, only three studies out of the twenty reviewed gave attention to the effect of
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innovativeness on performance. Only two of the studies found a positive innovativeness-

performance relationship. Research suggests that there is certainly a positive effect on
performance for innovative organizations, however, this is an area where few empirical studies

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 have been undertaken and, while a positive relationship has been identified, this area requires a
much higher degree of in-depth research.

4. Strength, weakness and conclusion

Finally, the article concluded on three major points. First, the theory of innovation is still in its
infancy although most researchers agree on a definition and progress is being made towards a
general theory. Second, that innovation is a management process that is context specific, though
the identified determinants for successful innovation are general principles that all organizations
must consider. Finally, few researchers have examined the effect of innovation interventions on
organizational performance. However, research has shown that there is a positive relationship
between innovative effort and increased performance so; researchers and organizations must

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devote more attention and resources to this vital diagnostic/feedback activity.

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The study tries to get strong points across in this regard the strength of the research is: it is first

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of its kind as it is a new area of inquiry into the area of organizational innovation. The analysis
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used different articles from different sources to perform its review. The article was well
structured, articulate and easy to understand.
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Even though it has ample of good arguments, it has also some limitations as to the data sources
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used to describe the effect of innovation on profitability and organizational performance was
very small.
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The article tried to put its argument on the table and from this argument as future project
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managers we have to take some points. The most important determinant of organizational
innovation was found to be management support. The encouragement of innovation is a
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management function and must be a ‘top-down’ effort to ensure the success of organizational
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innovation. Measurement of performance improvement after an innovation intervention is

important to gauge its success. Though there are different problems associated with accurate
measurement this should not be neglected. The other factor is Innovation research at the
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organizational level is very much in its infancy, but it has shown promise that it could affect
organizational performance. It is the responsibility of management to cultivate an innovative
culture, structures and processes and adopt innovation.

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