Empirical Study on the Relationships between Climate for Innovation and Business Performance Outcomes in Design Firms

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Title Empirical Study on the Relationships between Climate for Innovation and Business Performance Outcomes in Design Firms
Author Panuwatwanich, Kriengsak; Stewart, Rodney Anthony; Mohamed, Sherif Ali Mohtady
Publication Title Proceedings of the BuHu 8th International Postgraduate Research Conference
Editor Vian Ahmed, Martin Casensky, David Eaton, Monty Sutrisna
Year Published 2008
Publisher University of Salford
Abstract Innovation has been widely regarded as a determinant of a firm's business performance. This paper reports on a study of “climate for innovation”, which plays an important role in driving a firm's diffusion of innovation. Three major constructs underlying climate for innovation – organisational culture, leadership and team climate – are examined. A conceptual model was developed to study the relationships between such constructs and their effects on innovation diffusion outcomes, which can, in turn, influence business performance. Quantitatively, the model was assessed using Structural Equation Modelling (SEM) technique, based on the data collected from a survey of Australian Architecture and Engineering Design (AED) firms. The final model derived from the analysis indicates that leadership is a key predictor of innovation diffusion outcomes, functioning indirectly through team climate and organisational culture. More importantly, the outcomes of innovation diffusion were found to predict business performance, thus highlighting the benefits of design innovation in AED firms. Finally, the model was validated through explanatory case studies of two Australian design firms using pattern matching analysis.
Peer Reviewed No
Published Yes
Publisher URI http://www.salford.ac.uk/
Copyright Statement Copyright remains with the authors 2008. The attached file is posted here with permission of the copyright owners for your personal use only. No further distribution permitted. For information about this conference please refer to the publisher's website or contact the authors.
ISBN 978-80-01-04092-8
Conference name The BuHu 8th International Postgraduate Research Conference
Location Prague, Czech Republic
Date From 2008-06-26
Date To 2008-06-27
URI http://hdl.handle.net/10072/24109
Date Accessioned 2008-09-18
Language en_AU
Faculty Faculty of Science, Environment, Engineering and Technology
Subject PRE2009-Engineering and Technology
Publication Type Conference Publications (Full Written Paper - Non-Refereed)
Publication Type Code e2

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