Evaluating Key Factors of Innovation as a Corporate Strategy

Abstract

This paper explores the role of innovation strategy in modern business by considering relevant literature. Each of the innovation components of organizational structure, organizational culture, and the role of human resources are evaluated in the context of innovation strategy. The gains through innovation highlights the gains in productivity, competitiveness, and sustainable competitive advantage achieved in modern business. Organizational structure must reinforce the innovation strategy by streamlining the chain of command to promote diffusion of ideas and information within the organization. The importance of organizational culture is a further critical factor for innovation, and is particularly dependent on the organizational process in handling failure of initiatives, and employee empowerment. Much of the success in developing an innovative culture and innovation practices depends on human resource policy. Remuneration systems must reflect the organizational commitment to innovation. The importance of technology as a key driver for innovation requires careful selection and continuous professional development of staff in order to possess necessary skills for future company needs. The main finding in the paper reveals the importance of new business models, business structures, and human resource policy which reflects today's dynamic business environment.