What is the Impact of Innovation on the Revenue Making Capability of an Organization?

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What is the impact of innovation on the revenue making capability of an organization?

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“What is the Impact of Innovation on the Revenue Making Capability of an Organization?”

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The purpose of the research

The purpose of the research is to analyze the impact of innovation in the context of organizational culture, organizational hierarchy, internal competition and the authority and self-respect differences between employees at different designation.

Potential research outcomes

The research will highlight the factors of innovation which can contribute to the excellence in an organization, and for the purpose of measurement, financial instruments are to be used specifically. The survey strategy will help in meeting the objectives of the research and the results will be concluded from it.

Rationale for choice of research

The corporate culture has been changed significantly in the last 10 years, whereas the culture remained similar in the last 50 years. It is highly acceptable that these are the technological, economic, environmental changes have been brought by the passage of time, and this involves the evolution of technology and economy which has changed the things significantly. As the matter of fact, there are only few organizations which have changed themselves according to the changes of time with full potential. The management approaches, the organizational hierarchy, and the use of computer is almost 50 years old, although these corporate factors have received refinements, but the use of old methods is inconsistent. The process of innovation is required in the modern time. The innovation cannot definitely associate with the financial excellence of a company, but this is a prime source of financial breakthrough and successful.

Consideration of ethical issues

The ethical issues involved in conducting this research will be the use of resources for conducting the research. The research should be original and the importance of originality has been emerged with the passage of time. The academic honesty is required for all types of research because it generates the culture of pure development in any field.

Methodology to be used

The methodology that is going to be used in this study comprises both the use of secondary and primary sources of data. The data will be conducted using the survey, and Google Documents form will be used to record and formulate the results for the purpose of conclusion. The theoretical background for the research will be provided using the secondary source of data and this will incorporate the use of existing material which will involve the use of books and published journal articles.

Sequence and Time frame of the project activities

This Gantt chart shows the activities to be performed while conducting the research and there are set of activities which are required for the completion of research. The first stage is the planning of the research topic and selection. The nature of this task is strategic, and this requires less time as the work to be performed is less, therefore the time required is less. The methodology selection is another step to achieve the purpose of the research, and this will depend on the personal and institutional requirements. The empirical research has been carried out to support the objectives of the research.

Literature and theoretical review will analyze the relevant topics and the researches carried out in the past by other researches. The Literature and theoretical review will also clarify the scope of the research. The survey is the 4th step, but this is the main step for the research and this will incorporate the primary data, and this will be conducted by sending questionnaires to population and will be analyzed subsequently. The next step is the interpretation of the data, and at the least, the results will be concluded from the interpretation of the data. The research will be carried out under the given plan, but if any changes are required while doing the research, the changes will be made.

Literary and theoretical review

The increased globalization has resulted in the elimination of geographical boundaries, and the competition has been increased, it should be included in the strategic management agenda and it should not be administered on an ad hoc basis, 70% of the senior executives said that the innovation is one of the top three drivers (Barsh et al., 2008). The globalization has eliminated the geographical boundaries and the organizations are promoting the production of identical quality goods such as ISO and other technology standard organizations. The globalized product is of the identical quality, provided that the certification is achieved, and more than 200 countries are the member of ISO, therefore it can be concluded that the globalization has resulted in the production of quality products throughout the world.

The extent of the certified production has not been presented, as it is not under the scope of this study. For the purpose of innovation, the generation of ideas with impact is required and this is the show of organizational learning, this will include experimentation, uniqueness and competency acquisition, for the effective idea generation, experimentation, competency acquisition, benchmarking and continuous improvement is required (Yeung et al., 1998). The profit impact is the accounting tool to measure the consequences of innovation. Innovation is not a sequential or orderly process and for this, a culture of innovation is to be promoted, and the leadership behavior is very important for the purpose of innovation (Birchall & Tovstiga, 2005). The innovation is not a sequential process or disciplined process, therefore the innovation in the most organization has insularity and scattered-ness.

Data Collection

Which are you?

Male 15 65%
Female 8 35%

What is Your Age?

18-25 years old 6 26%
26-35 years old 10 43%
36-50 years old 5 22%
51-65 years old 2 9%
65 above years old 0 0%

Are you employed?

Yes 18 78%
No 5 22%

What is the size of your company?

Small (1-50 employees) 4 18%
Medium (50-500 employees) 13 59%
Large ( Above 500 employees) 5 23%

Does your organization’s leaders/CEO promote the innovation in your organization?

Yes 14 70%
No 6 30%

What is the purpose of innovation in your view?

Creation of competitive advantage 2 9%
To counter increasing globalization 15 68%
To serve the people through idea generation 4 18%
A Continuous improvement process 1 5%

For fostering competition in the given organization, which of the following is required?

Organizational Learning 5 22%
Experimentation 5 22%
Leaders’ interest 6 26%
Promotion of competitive culture in the company 7 30%

Does your organization foster research and development objectives?

Yes 18 78%
No 5 22%

How much Percentage of Profit is assigned to Research and Development?

1 % 4 19%
3% 7 33%
5% 9 43%
10% 0 0%
above 10% 1 5%

How much profit growth has been received in recent year as compared to previous year?

0 % growt 1 5%
1 % growth 1 5%
3 % growth 6 29%
5 % growth 5 24%
10 % growth 4 19%
10 % above growth 2 10%
Loss/ Negative Growth 2 10%

Summary of Findings and Conclusions

The questionnaires were sent to 30 people and 23 forms were received. The data were conducted using the Google Documents forms. The analysis of the data shows that most of the respondents were male and were of the age of 26-35% years old. The second most categories by age were 18-25 years old, whereas the least was above 65 years old, and most of the respondents were young i.e. of the age 18-35 years. Most of the respondents were employed and 78% of the respondents were employed, which cumulatively shows that most of the respondents were young and employed, therefore the data conducted is relevance for corporate purpose and it is likely to incorporate contemporary corporate practices, as most of the population is young, and of the age of 36, therefore if the age of employment is assumed 18, it can be concluded that most of the respondents started their jobs 17 years ago. The majority of the respondent’s organization size was medium. The medium size organization holds 50-500 employees (Mellor, 2008).Most of the respondents agreed that this is the CEO which is responsible for the promotion of innovation, there it can be cumulatively concluded that the respondents were young, employed, from the middle sized organization and are of the view that CEO has important role in the promotion innovation. Most of the respondents claimed that the purpose of innovation is to counter the increasing globalization.

The motive behind the imports and exports were to trade the things which were abundant in one country, and scarce in another country, however the globalization impact has resulted in the virtual removal of the boundaries, and this has immensely increased the competition among countries and the corporations. The trend for the innovativeness factor was mixed, and most of the respondents depicted it is the Promotion of a competitive culture in the company which could result in innovativeness and 30% of the respondents depicted that, whereas secondly it was leader’s interest which 25 % of the respondents depicted. The response for organizational learning and experimentation was same i.e. 22%. Most of the respondents depicted that their organization spend 5% of their profits on Research and development. 43% of the respondents showed that their organization spend 5% of their profits, whereas 33% depicted their organization spent 3% of profits, therefore more than 70% respondents (i.e. 78%) depicted that their organization spent 3-5% of the profits on R & D. The response to the profit growth was mixed, and 29% respondents told that there was 3% growth in profits, which was the highest. 24% of the respondents showed that the profit growth was a little high i.e. 5%, whereas 19 % respondents depicted profit growth was 10%, therefore profit growth response for 3-10% was more than 70% i.e. 72%. There is the conformance of the results here, and the relationship between the research and development expenditure, the innovation (which has been measured through profit impact results) as 3-5% R&D expenditure was reported by 78% and the profit increase of 3-10% from 72%.

 

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What is the impact of innovation on the revenue making capability of an organization?. (2017, Jun 26). Retrieved August 11, 2022 , from
https://studydriver.com/what-is-the-impact-of-innovation-on-the-revenue-making-capability-of-an-organization/

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