Successful Organizational Innovation and Key Driving Factors

Abstract: The aim of the thesis is to discuss the key driving factors influencing the success of innovation in high-tech firms based in Sweden. The thesis will discuss key determinant factors and how those factors are connecting with each other. Organizational innovation and Organizational culture relationship have been under research for many years. The success of organizational innovation can be captured by various factors. Similarly, the organizational culture can be captured by different factors. During the research process, we came across various theories and this thesis is based on Rao and Weintraub (2013) developed model. The model provides six building blocks with determinant factors as a foundation for the successful innovative organizational culture. The six major building blocks or factors are Values, Behaviours, Climate, Resources, Processes, and Success (Rao & Weintraub, 2013). The purpose of the study is to define the hypothetical relationship between some of the six major factors which drives the successful innovation in the organization. The authors have developed a model for successful organizational innovation based on their hypotheses. It will be a matter of great interest to reflect upon the employee's feedback regarding those factors that influence firm’s organizational culture and successful innovation. The model was analyzed using the results of the survey in which 230 employees participated from Swedish based high-tech firms, using Structural Equation Modelling (Hair et al, 2010). The research results reveal some of the key contributors towards the successful organizational innovation and the relation between the factors for the successful organizational innovation. The factor successful innovation is strongly dependent on the innovation processes factor and this is followed by some more relatively moderate contributing factors such as the leaders’ behaviours, and the organizational resources. The study reveals that there is a strong relation between the innovation success and the innovation processes. The innovation processes factor is positively connected to the organization values, the leaders’ behaviours, and the organization resources. The organization climate is weakly connected to the innovation processes as represented by the data sample collected which needs to be further investigated. The model identified in the thesis gives an understanding of how the six factors are connected to drive the successful organizational innovation.