Organisational Innovation in Indian Firms – A Multi Level Perspective Pawan Budhwar, Kishore Pillai and Smitha Nair 3 rd ESRC Seminar, Lancaster, 11 June 2013 Developing Leaders for Innovation and Change

Background, Rationale & Study  Research in innovation  Innovation in emerging markets  Organisational innovation  Operational framework  Research aims  Hypotheses  Methods  Initial findings  Implications

Research in Innovation  Schumpeter (1942)  Gained momentum in 1970s (Freeman, 1974; Nelson & Winter, 1982; Pavitt, 1984; Rosenberg, 1976, 1982)  Business & management (Miller, Kirton)  Traid vs. emerging markets  Emerging markets - India

What is Innovation? West & Farr (1990, p. 9)  “As the intentional introduction and application within a role, group or organization of ideas, processes or procedures, new to the relevant unit of adoption, designed to significantly benefit the individual, the group, organization or wider society”.

Innovation Research in India  National Knowledge Commission Survey on Innovation (2007)  Emerging global hub of innovation  R & D (Xerox), IT, software, animation, bio-tec, pharma  The universities for research and innovation Bill, 2012  Non profit research organisations (CRISP)  India-EU (and others) cooperation   Indigenous (Jugaad) innovation

Innovation Research in India  Jugaad - the uniquely Indian concept of low-cost, improvised innovation.  innovation-in-india  Radjou, Pradbu & Ahuja (2012) Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century. Random House.  The India Way (Harvard Publishing)

Determinants of Research Aims  Damanpour (1991)  Factors influencing organisational innovation  Scope of innovation  Stages of innovation  Critique in literature (Anderson et al., 2004)  Emerging markets - India

Research Aims  Analyse organisational innovation in India by adopting a multi-level perspective and focusing on R&D departments  Examine the effects of antecedents - individual, organisational/ team and environmental level factors on innovation.

Organizational Innovation Transformational Leadership Resource Availability Group Attributes -Support for innovation -Participative Safety Group Attributes -Support for innovation -Participative Safety R&D Manager (Individual Attributes) -Role Breadth Efficacy -Proactive Personality -Favoring Change -Job Satisfaction - Need for cognition - Regulatory focus R&D Manager (Individual Attributes) -Role Breadth Efficacy -Proactive Personality -Favoring Change -Job Satisfaction - Need for cognition - Regulatory focus Organizational Performance Environmental Turbulence -Market Turbulence -Technological Turbulence Environmental Turbulence -Market Turbulence -Technological Turbulence Control Variables -Size -Diversification -Industry -Age -Domestic/MNC -International Presence -R&D spend Control Variables -Size -Diversification -Industry -Age -Domestic/MNC -International Presence -R&D spend Operational Framework

Hypotheses ---  H1: A positive association exists between the R&D manager’s need for cognition and organisational innovation  H2a: A positive association exists between the R&D manager’s promotion focus and organisational innovation  H2b: A negative association exists between the R&D manager’s prevention focus and organisational innovation

Hypotheses ---  H3: A positive association exists between the participative safety within the team and organisational innovation  H4: A positive association exists between the transformational leadership provided and organisational innovation  H5b: A positive association exists between technological turbulence in the environment and organisational innovation

Methodology u Questionnaire survey u Respondents, sectors, sample u Contents of survey u Data analysis

Measures  OI – 9 item (7-point) scale by Garcia-Morales et al. (2012) (α =.935)  NfC – 18 item (7-point) scale by Cacioppo et al. (1984) (α =.705)  P&P Focus - 11 item (5-point) scale by Higgins et al. (2001) (α =.554 &.668 respectively)  TL – 4 item (7-point) scale by McColl-Kennedy & Anderson (2002) (α =.856)  PS – 9 item (5-point) scale by Anderson & West (1998)(α =.921)  TT – 3 item (7-point) scale by Jaworski & Kohli (1993) (α =.738)

Initial Results & Findings  Descriptives  No issue of multicollinearity  No significant correlations between organisational innovation and need for cognition & promotion focus  Negative correlation of organisational innovation with prevention focus

Support for Hypotheses  H1 = no  H2(a & b) = no & yes respectively  H3 = yes  H4 = yes  H5 = yes

Key Messages  Findings  Conclusions  Implications  Recommendations