A Review on the Role of Managerial Levers in Innovation Management Suriati Bt Zainal Abidin1 Sany Sanuri Bin Mokhtar2 Rushami Zien Bin Yusoff3 College of Business Universiti Utara Malaysia 06010 UUM Sintok, Kedah Darul Aman, MALAYSIA. 1, 2, 3
Managerial levers are essential elements to ensure the synchronization between people and system which would assist in implementing innovation in the organization. Based on the diverse literature, this paper reviews five types of managerial levers: strategy, organization structure, resource allocation, knowledge management and organizational learning and culture. Each lever has its beneficial function to be effectively assist innovation process. Despite the fact that innovation is a dynamic process and involved multi-dimensional factors, the role of managerial levers is considered fundamental building blocks that will shape innovation. This review indicates that managerial levers should be applied side by side in the innovation management in order to ensure that innovation is establish and managed efficiently. Keywords: Managerial Levers, Innovation Management, Innovation Process,
Levers are the basic structure of any organization and it must be linked consistently to maximize efficiency (Steward, 2010). It is claimed that seven managerial levers are needed in order to be a strong company: strategy, structure, leadership, information and decision processes, people, culture, reward and incentives (Steward, 2010). In a study of cultivating new mental space for business innovation, managerial levers act as a technique that enable organizations to find new opportunity by adapting to rapid changes (Leibold, Voelpel, & Tekie, 2004). While in a case study of 124 companies in USA, it has shown that structural and skill levers of strategy implementation is proven in building a capable organization (Crittenden & Crittenden, 2008). It has also emphasized that organization need to have a clear understanding of each lever role so that it could really bring impact on organization ability to succeed (Crittenden & Crittenden, 2008).
International Journal of Contemporary Business Studies Vol: 3, No: 6. June, 2012 pp.6-14 ©Academy of Knowledge Process
Managerial levers facilitate in creating new market or customer, product, service, value chain and capability space (Leibold, et al., 2004) According to Crossan and Apaydin (2010) managerial levers is a
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International Journal of Contemporary Business Studies Vol: 3, No: 6. June, 2012 ISSN 2156-7506 Available online at http://www.akpinsight.webs.com
meta-construct consolidating firm level variables that support innovation. Five types managerial levers used are strategy, structure, resource allocation, organizational learning and knowledge management tool and culture (Crossan & Apaydin, 2010). Innovative organization faced dilemmas such as structure and action, dilemma with opposition of persistence and change or repetition and novelty which appeared as tensions between different time horizons (Chanal, 2004). In this context, managerial levers is used to overcome the innovation dilemmas (Chanal, 2004). The following discussions will describe each of the managerial levers. 1.1Strategy The first managerial lever is strategy. Strategy has been perceived as a continuous management activities (Drejer, 2006; Li, Zhou, & Si, 2010). Indeed, it is an activity the most necessary form of and the foundation for innovation (Ian Steward & Peter Fenn, 2006). Strategy is needed in order to overcome managerial challenge which might arise from potential disruptive with existing resource endowments, capabilities and organizational routines (Blumentritt & Danis, 2006). Strategy is claimed to defined the gaps between the current and...