¶ … administered to 50 respondents. The data obtained from these participants was credible for analysis since there were no substantive missing values. The questions were based on a Likert Scale that made it easier for participants to provide their responses and enhance reliability. Data obtained from this instrument was analyzed using descriptive statistics and measures. In this case, the researcher utilized Cross Tabulation analysis and Chi-Square analysis.
Participants' Demographics
This study had 50 respondents working in German and Swiss labor markets though the research was not restricted to participants from German or Swiss origins. Actually, the respondents were from different nationalities though they were working in German or Swiss labor markets as shown in the table below.
Table 1: Nationality of Respondents
Nationality
Number of Respondents
Percentage
German
14
28%
Swiss
6
12%
Italian
7
14%
Lebanese
2
4%
Indian
7
14%
English
2
4%
Spanish
3
6%
Polish
3
6%
Danish
2
4%
Georgian
2
4%
Salvadorean
1
2%
Lithuanian
1
2%
Source: Own Elaboration
The study respondents included C-level executives (CEOs, COOs, HR Managers, HR Advisors, Directors, Co-directors, Consultants, and Assistant Directors) who have worked in their respective companies for a period of between less than a year to more than five years. 72% of the respondents were males whereas 28% were females. On the other hand, 58% worked in German labor markets whereas 42% worked in Swiss labor markets.
Study Results in Relation to Research Objectives
The research objectives listed in the previous chapter were the basis for conducting this study and analyzing data collected from the respondents/participants. In this case, the researcher utilized the objectives as the premise for analytical comprehension of data obtained from the questionnaire that was administered to the 50 participants. Consequently, the research findings/results were grouped as follows:
Most Suitable Innovation Models
The research question that guided this study was the determination of the most suitable innovation model (closed or open) that helps in achievement of an organization's innovation goals and how they can be successfully implemented. As previously indicated, this research issue informed the study on the premise that there are complexities in understanding the most suitable model that is customized based on an organization's innovation goals (Sviokla & Wasden, 2010). In this case, the respondents in this study were working in companies or organizations that had implemented different innovation models for the business goals. 56% of the respondents are working in companies with closed innovation model whereas 44% were utilizing open innovation models as shown in Table 2 below.
Table 2: Innovation Models Adopted by the Companies
Innovation Model
Number of Companies
Percentage
Open Innovation Models
28
56%
Closed Innovation Models
22
44%
Source: Own Elaboration
On the question of which innovation models would be suitable for the organization's operations, success and sustainable growth, the responses were as shown in Table 3 below.
Table 3: Most Suitable Innovation Model
Recommended Innovation Models
Number of Respondents
Percentage
Open Innovation
33
66%
Closed Innovation
7
14%
Both
5
10%
Unsure (or Not Applicable)
5
10%
Source: Own Elaboration
As shown in Table 3 above, 66% of the respondents strongly believe that open innovation is a more suitable innovation model towards helping an organization achieve its innovation goals. This is followed by closed innovation model and a mixture of both closed and open innovation models and at 14% and 10% respectively. This implies that organizations should mostly consider adopting open innovation models across all business operations. If open innovation would be an unsuitable single innovation model for a company, a mixture of both closed and open innovation should first be considered before closed innovation.
The researcher examined whether these recommendations of the most suitable innovation model for organizational operations, success and sustainable growth are attributable to the respondents location. Using Cross Tabulation and Chi-Square analyses, an evaluation was carried out to determine the existence of any link between the country of operation and the suggested innovation model for organizational operations, success and sustainable growth. In essence, the researcher sought to determine whether the respondents' choice or suggestion of a suitable innovation model. This analysis would help in determining the generalization of the suggested innovation model for organizational operations, success, and sustainable growth. The use of Cross Tabulation and Chi-Square analyses in this process helps in testing the relationship between these variables. Additionally, these statistical analyses measures helps in enhancing the credibility and reliability of the recommended innovation models by this group of respondents. The results of the analysis were as shown in the tables below.
Table 4: Cross-tabulation for Link between Country of Operation and Innovation Model
Cross Tabulation Frequency Percent
Is closed or open innovation suitable for the organization's operations, success, and sustainable growth?
Closed Innovation
Open Innovation
Both
Unsure/Not Applicable
Row Totals
What country do you work in?
Germany
5
17
3
4
29
Row Percent
17.24%
58.62%
10.35%
13.79%
58%
Switzerland
2
16
2
1
21
Row Percent
9.52%
76.20%
9.52%
4.76%
42%
Column Totals
7
33
5
5
50
Column Percent
14%
66%
10%
10%
Row Percent = (Observed Value/Row Totals)*100
Row Percent for Row Totals = (Row Total/Column Totals)*100
Source: Own Elaboration
Table 5: Chi-Square Analysis for Link between Country and Innovation Model
Cross Tabulation Frequency Percent
Is closed or open innovation suitable for the organization's operations, success, and sustainable growth?
Closed Innovation
Open Innovation
Both
Unsure/Not Applicable
Row Totals
What country do you work in?
Germany
5
17
3
4
29
58%
Row Percent
17.24%
58.62%
10.35%
13.79%
Expected Value
4.06
19.14
2.9
2.9
Cell Chi-Square
0.26
0.24
0.003
0.42
Switzerland
2
16
2
1
21
42%
Row Percent
9.52%
76.20%
9.52%
4.76%
Expected Value
2.94
13.86
2.1
2.1
Cell Chi-Square
0.30
0.33
0.005
0.58
Column Totals
7
33
5
5
50
Column Percent
14%
66%
10%
10%
The Sum of all Chi-Square Values (Table Chi-Square) = 2.138
Degrees of Freedom (df) = (#Rows -1)*(#Columns-1)=(1*3)= 3
Cumulative Probability Value (P): P (X2 < CV) = 0.544263
Expected Value = (Row Total*Column Total)/Overall Total
Chi-Square = (Observed Value-Expected Value) ^2/Expected Value
The level of significance for this Chi-Square analysis is 0.05.
Source: Own Elaboration
Using a Chi-Square score of 2.138, Degree of Freedom (DF) of 3 and a level of significance of 0.05, the P-Value of 0.544263 was generated. This result is not significant at p < 0.05, which implies that the null hypothesis is rejected. Consequently, the country of operation was found to have no impact on the recommended innovation model for organizational operations, success and sustainable growth. The respondents recommendations of open innovation model as the most suitable followed by closed innovation model was not determined on the basis of where their organizations were located. Additionally, their recommendations were not necessarily based on the kind of innovation model adopted by their respective companies or organizations.
Key Success Factors for Adoption of Innovation Models
An analysis of the key success factors adopted by the organization in relation to innovation models was also conducted. This analysis was conducted based on two research objectives i.e. determining necessary success factors for effective implementation of innovation models and determine the concept and learning process of closed and open innovation. In this case, several factors were identified and included in the questionnaires administered to the 50 respondents. These factors include incorporating innovation in business strategy and operations, review of innovation models/processes towards continued success, and ensuring employees understand and implement innovation models. The other factors are establishing a corporate culture that promotes and enhances continued innovation and consideration of organizational processes/factors when choosing innovation models.
To determine whether these factors play a crucial role in the successful/effective implementation of innovation models, the researcher considered the respondents Likert Scale scores. A score of between 3 and 5 was considered high whereas a score of 1-2 was considered low in each of these factors. If the number of respondents with high scores was significantly high, the factor was considered crucial in adoption or implementation of innovation models and vice versa as shown in Figure 1 below.
Figure 1: Respondents' Scores in Key Success Factors
As shown in the Figure 1, there were high scores in each of the key success factors for implementation of innovation models. Consideration of organizational factor when choosing an innovation model, incorporating innovation in business, and implementing innovation throughout the organization had a high score of 86%, 82% and 82% respectively. Establishing a corporate culture that promotes innovation, ensuring employees understand and implement innovation, review and/or changing innovation models/processes, and ensuring innovation is at the frontline of operations had a high score of 78%, 72%, 76% and 74% respectively.
The responses on the Likert Scale for these factors are utilized to determine the link between these factors and successful implementation of innovation models in an organization, especially in relation to organizational operations, success, and sustainable growth. In this case, cross tabulation analysis is carried out on each of these factors based on respondents' high scores i.e. between 3 and 5. The results of the cross tabulation is in turn utilized in chi-square analysis or test, which helps in establishing the link between the two variables based on the level of significance of 0.05 as shown in the tables below.
Table 6: Cross Tabulation on the Link between Factors and Successful Implementation
Cross Tabulation Frequency Percent
Link between Key Factors and Successful Implementation of Innovation Models
Slightly (3)
Much (4)
Very Much (5)
Row Totals
Key Factors in Implementing Innovation Models
Innovation in Business Strategy
7
22
12
41
Row Percent
17.07%
53.66%
29.27%
14.91%
Innovation in the whole organization
16
18
7
41
Row Percent
39.03%
43.90%
17.07%
14.91%
Innovation at the Frontline
8
21
8
37
Row Percent
21.62%
56.76%
21.62%
13.45%
Review of Innovation Models
15
16
7
38
Row Percent
39.47%
42.11%
18.42%
13.82%
Employees Understand Innovation
11
20
5
36
Row Percent
30.56%
55.56%
13.88%
13.09%
Corporate Culture to Promote Innovation
8
19
12
39
Row Percent
20.51%
48.72%
30.77%
14.18%
Considering Organizational Processes
16
23
4
43
Row Percent
37.21%
53.49%
9.30%
15.64%
Column Totals
81
55
Column Percent
29.45%
50.45%
20%
Row Percent = (Observed Value/Row Totals)*100
Row Percent for Row Totals = (Row Total/Column Totals)*100
Source: Own Elaboration
The results of this cross tabulation are used in chi-square analysis in Table 7. The level of significance is 0.05, which is the normal level. To determine the cumulative probability value (P), the researcher utilizes a Chi-square calculator to calculate the Chi-square score and degree of freedom based on a significance level of 0.05. As shown in Table 7, the researcher determined the overall Chi-square score through adding the chi-square score for all items or factors analyzed in the cross tabulation analysis. The overall chi-square score is then used to calculate the cumulative probability value.
Table 7: Chi-Square Analysis for Link between Key Factors and Successful Implementation
Cross Tabulation Frequency Percent
Link between Key Factors and Successful Implementation of Innovation Models
Slightly (3)
Much (4)
Very Much (5)
Row Totals
Key Factors in Implementing Innovation Models
Innovation in Business Strategy
7
22
12
41
14.91%
Row Percent
17.07%
53.66%
29.27%
Expected Value
12.08
20.72
8.2
Cell Chi-Square
2.14
0.08
1.76
Innovation in the whole organization
16
18
7
41
14.91%
Row Percent
39.03%
43.90%
17.07%
Expected value
12.08
20.72
8.2
Cell Chi-Square
1.27
0.34
0.18
Innovation at the Frontline
8
21
8
37
13.45%
Row Percent
21.62%
56.76%
21.62%
Expected Value
10.90
18.70
7.4
Cell Chi-Square
0.77
0.28
0.05
Review of Innovation Models
15
16
7
38
13.82%
Row Percent
39.47%
42.11%
18.42%
Expected Value
11.19
19.21
7.6
Cell Chi-Square
1.30
0.54
0.05
Employees Understand Innovation
11
20
5
36
13.09%
Row Percent
30.56%
55.56%
13.88%
Expected Value
10.60
18.20
7.2
Cell Chi-Square
0.02
0.18
0.67
Corporate Culture to Promote Innovation
8
19
12
39
14.18%
Row Percent
20.51%
48.72%
30.77%
Expected Value
11.49
19.71
7.8
Cell Chi-Square
1.06
0.03
2.26
Considering Organizational Processes
16
23
4
43
15.64%
Row Percent
37.21%
53.49%
9.30%
Expected Value
12.67
21.73
8.6
Cell Chi-Square
0.86
0.07
2.46
Column Totals
81
55
Column Percent
29.45%
50.45%
20%
The Sum of all Chi-Square Values (Table Chi-Square) = 16.37
Degrees of Freedom (df) = (#Rows -1)*(#Columns-1)=(6*2)= 12
Cumulative Probability Value (P): P (X2 < CV) = 0.0175
As previously mentioned, the level of significance (alpha level) for this chi-square analysis is 0.05. Consequently, if the p-value (cumulative probability value) is less than or equal to the level of significance, the variables being tested are associated (Martz, 2012). On the other hand, if the p-value is greater than the level of significance (i.e. 0.05), then the variables are not linked and the null hypothesis can be rejected. In this case, the p-value from the chi-square analysis (0.0175) is less than the level of significance, which implies that the variables are associated. With Chi-Square: p = 0.0175), the overall results shows that there is a positive link between successful implementation of innovation models and the key success factors. Each of these key factors is crucial towards the successful and effective implementation of innovation models/processes in an organization.
Innovation and Organizational Growth Trajectories, Success and Profitability
This analysis was based on two research objectives i.e. the role of innovation models in influencing organizational growth trajectories and the significance of innovation in promoting and enhancing organizational success and profitability. The variables under evaluation in this category were the extent with which innovation contributes to organizational success, role of innovation in sustainable growth, and impact of innovation on organizational growth trajectories. The evaluation of these variables was based on high scores from the respondents i.e. between 3 and 5, which helped in cross-tabulation and chi-square analyses. Most respondents reported that innovation plays a key role in maintaining sustainable growth, organizational success, and growth trajectories at 78%, 88% and 94% respectively as shown in the table below.
Table 8: Innovation and Organizational Growth Trajectories, Success and Sustained Growth
Impact of Innovation
Cumulative Frequency
C.F. Percentage
Organizational growth trajectories
47
94%
Organizational success
44
88%
Organizational sustainable growth
39
78%
Table 9: Chi-Square Analysis of the Role or Impact of Innovation
Cross Tabulation Frequency Percent
Role or Impact of Innovation
Slightly (3)
Much (4)
Very Much (5)
Row Totals
Business Aspects Impacted by Innovation
Growth Trajectories
14
25
8
47
36.15%
Row Percent
29.79%
53.19%
17.02%
Expected Value
14.1
24.95
7.95
Cell Chi-Square
0.001
0.001
0.003
Success
14
22
8
44
33.85%
Row Percent
31.82%
50%
18.18%
Expected Value
13.2
23.35
7.45
Cell Chi-Square
0.05
0.08
0.04
Sustainable Growth
11
22
6
39
30%
Row Percent
28.21%
56.41%
15.38%
Expected Value
11.7
20.7
6.6
Cell Chi-Square
0.04
0.08
0.05
Column Totals
39
69
22
Column Percent
30%
53.08%
16.92%
The Sum of all Chi-Square Values = 0.345
Degrees of Freedom (df) = 4
Cumulative Probability Value (P): P (X2 < CV) = 0.01
The p-value generated in this analysis is 0.01, which is significantly less than the level of significance of 0.05. Therefore, the variables under investigation or analysis are associated. This implies that there is a significant link between innovation and an organization's success, sustainable growth, and growth trajectories.
Evaluation of Results
As stated by Dorothy & Kraus (1985), companies or business organizations are increasingly facing the need to practice, sustain and implement innovation models that are in line with their innovation goals and objectives. These results of this study show the various aspects relating to the development, implementation and maintenance of innovation models towards organization success, profitability, and sustainable growth. The results of these analyses can be understood based on the research objectives as follows...
Research Objective 1: The study shows that the most suitable innovation model that can be utilized by an organization to achieve its innovation goals is open innovation. Respondents in this study mostly preferred open innovation as the most suitable model for organizational operations, success, and sustainable growth. These findings were consistent with existing literature on the recent shift from closed innovation to open innovation (Felin & Zenger, 2014). The respondents' preference of open innovation is consistent with research evidence that open innovation fuels new paradigms on how organizations can obtain/generate benefits from innovation models and processes (Brunswicker & Ehrenmann, 2013). However, the suitability of open innovation is attributable to transformation of existing strategies, disregarding process limitations, and external output. This implies that open innovation is effective when incorporated in business strategy, processes, and operations. Additionally, open innovation should be part of continuous innovation processes towards enhancing value proposition (Marques, 2014).
Research Objective 2 and 3: The results postulate that some of the necessary success factors for effective implementation of innovation models include incorporating innovation in business strategy and operations and implementing innovation throughout the entire organization. The other factors include ensuring innovation is at the frontline of operations, establishing a corporate culture that promotes and enhances innovation, and consideration of organizational factors when choosing an innovation model. Additionally, the successful implementation of innovation models also requires ensuring employees understand and implement innovation and reviewing and/or changing innovation models and processes towards sustainable growth. These factors are consistent with existing literature on the development and implementation of suitable innovation models in an organization. These are crucial success factors for effective implementation of innovation models and processes in an organization because businesses are increasingly shifting towards new operational models outside of their conventional operational framework (Mina et al., 2014). As part of ensuring that the shift towards new operational framework is effective, the consideration of these key success factors is vital towards implementing innovation models and using processes that support new operations.
The success factors are also crucial in understanding the concept and learning of closed innovation and open innovation. An organization's ability to effectively understand and implement innovation models and processes requires considering innovation based on its internal and external environment. Each of the factors listed above help in understanding the concept of closed and innovation through examining the internal and external environment. During this process, factors in the internal and external environment are taken into consideration when designing and implementing an innovation model. The concept and learning of innovation models is based on the organization's business model, which is the framework for value creation (Maeyer & Bonne, 2015). In this case, the understanding is a by-product of these key factors as they relate to organizational strategies, processes, and operations.
Research Objective 3 and 4: The findings of this study show that innovation plays an important role in influencing organizational growth trajectories, success, and sustainable growth. Innovation influences these three business aspects through focusing on value creation and delivery, which is a common practice in the modern business environment (Aranha et al., 2015). Through innovation, organizations have the ability to integrate and re-structure their operations while responding to changes in the market in a rapid and effective manner (Aranha et al., 2015). As shown in this study, an organization achieves success and sustainable growth through innovation on the premise that innovation models and processes enable the business to safeguard its strategic resources and competitive advantage. In addition, innovation, especially open innovation provides an opportunity for the organization to engage excellent resources within and outside the organization's boundaries (Aas & Jorgensen, 2016). Some of the major ways through which innovation influences growth trajectories, success and sustainable growth is through enhanced production development and reduced costs of research and products. As pointed out by the respondents, innovation influences these major business aspects by focusing on enhanced value proposition. Through computerized production processes, innovation reduces the turn-around-time of production processes, which is crucial towards enhancing growth, success, and sustainability. These results are consistent with existing literature that innovation reduces systemic risk and enhances value creation and proposition (Curley & Salmen, 2013).
Limitations of the Study
Even though this research provides findings that are consistent with existing literature on the role of innovation models in a sustainable business, there are some limitations. First, the sample size is relatively small for a quantitative study, which hinders the generalization of the findings. Generally, quantitative studies usually require a large sample size in order to effectively examine research variables or test theories (Creswell, 2014). In this case, a sampling size of 50 respondents is considered relatively small to be an adequate representation of the target population, which is a major limitation of the study.
Secondly, validity and reliability issues associated with the research methodology and data analysis processes limited the breadth and depth of the study. Cross tabulation and chi-square tests have some validity and reliability issues, especially relating to the calculations and generated figures. These issues limited the scope, depth and breadth of the research since the analysis and research process was restricted to the methodologies.
The third limitation is the limited target population i.e. Germany and Swiss labor markets, which restricts the generalization of these findings. In this case, the researcher primarily focused on these labor markets and did not include respondents from other areas. This implies that these findings may not necessarily reflect the implementation of innovation models in businesses across different industries and markets. Finally, the researcher relied on the willingness and perceived honesty of the respondents when filling out the questionnaire. The credibility of these answers could not be ascertained since the researcher assumed that these responses were correct.
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