Academic journal article Review of Business & Finance Studies

The Components of the Innovative Organization: Evidence from Thailand

Academic journal article Review of Business & Finance Studies

The Components of the Innovative Organization: Evidence from Thailand

Article excerpt

ABSTRACT

This paper examines the components of the innovative organization in Thailand. The mixed method was used in gathering the data that can be categorized in two parts. Qualitative collection used focus group discussion in an R&D unit. The findings revealed that employees understood the innovation concept and the importance of innovation. This understanding could enable the company to compete in new business environments. In the quantitative element of the study, data were gathered from 152 employees by questionnaire. The results showed the means of innovative firm factors, company infrastructure, external confidence, clear objectives, team constitution, external influence, freedom, attitude toward risk, internal confidence, department growth and development, were not very different and the work period affected the perception of employees. The employees recommended that firms should create an innovative culture, set innovative behaviors as the work standard, and that communication among individuals, groups, and organizations would help employees create new ideas and implement their ideas.

JEL: M10, M12, M14

KEYWORDS: Innovation, Innovative Organization, Corporate Structure, Biotechnology, Strategy

INTRODUCTION

Biotechnology is the process of improving and utilizing the DNA of small cells, including the processes of genetically-modified organisms. It is used in important industries including the food industry, pharmaceutical industry, and energy industry. Each of these industries are related to the quality of people's lives. The governments of the United States, China, Japan, Singapore, Malaysia, and India have intensively invested in biotechnology research and development, and have allocated resources and set clear directional frameworks to obtain a world market share of biotechnology products as shown in Figure 1.

An examination of biotechnology products reveals that energy products represent the highest proportion, followed by food products, chemical products, agricultural products, health products, and mining. Moreover, a report of the National Science and Technology Development Agency found that the economic value of biotechnology products in the world in 1983 was about 5,400 million dollars and increased to 11,000 million dollars and 58,000 million dollars in 1994 and 2003, and will increase to 300,000 million dollars in 2020.

The Thai government has also realized the importance of biotechnology and has developed a biotechnology development policy framework. The goal of the framework is to increase the nation's competitiveness as well as to develop the health and well-being of the people. Further, the government expects to receive investment from both domestic and international companies, cooperation between local firms and large countries in technology development, and expanded local trade to neighboring countries (National Science and Technology Development Agency, 2003). For this reason most local biotechnology companies have changed their strategy to an innovative and compete in the new business environment.

Scholars have provided many definitions of innovation; however, in this paper the authors offer a simple definition. Innovation refers to new products or new processes that enable organizations to maximize the value of production, reduce costs, increase efficiency, and respond to the customer.

With innovative strategies, the organization would be wealthy and sustainable in the long run. However, successful innovation is not easy, it depends on several factors, such as marketing, funding, networking, and personnel and corporate management (Hawitt-dundas, 2006). Tidd & Bessant (2009) have noted that the challenges of modern management are to create an innovative organization. Executives should be a role model in changing and setting clear directions, preparing infrastructure, permitting employees to think and work on their own, and recognizing the employees' potential and developing their capabilities. …

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