The Level of Influence on Innovation

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the incumbent CEO,DJ<joined the company in 1997 as the Marketing director mainly responsible for the strategic development of the business and all product and solution developments .in 2005,it became clear that the business needed to make adjustments to respond to the market more actively .in September 2005 the executive board suggested that DJ should take over as the CEO and direct the firm . therefore in term of tenure in position ,DJ has been CEO for three years . DJ had abundant industrial experience .Before joining Morris Motor Company , he had been in European and US software companies for nearly thirty years. He had a robust technical background and then moved in to consulting and business management position during his employment with an American company where he established the mid range systems division as managing Director and through acquisition worked in senior roles of French company in Paris, and lately IBM Europe. All these experiences in the Industry and enabled him to push forward innovative initiatives. Under his guidance , many strategic innovation transitions occurred. For instance . the launching of the new consulting service division in 2000, the extrapolation of the service from the manufacturing sector to new services sector in 2004, and the development of the java-based stimulation tool in 2005 -2006 . This evidence offers support to the conclusions of Kimberly and Evanisko (1981:53) and Damanpour and Schneider (2006:12).

Organizational - Level of Influence on Innovation

Within Morris Motor Company, there is an innovation team committed to help the executive board make decision on the incubation and development of innovation. Guided by the buisness growth 'roadmap' . the firm often incubates a number of idea at each development period . The innovation team is therefore selective and galvanises the firm to consider innovating relevant, achievable and high value added products and services . for the initiative stocks , the team normally impliments wide ranging justification research , taking into account factors such as market demand, originality of the initiative and resources required. The team then will scrutinize the firm's development capacity , availability of financial and human resources., delivery capability as well the plan of the business could support initiatives going forward. On average, every year the film invests about 20 per cent of the total turnover in innovation which is conductive to the development of the innovative products and services. This investment often covers the costs of market justification, product/services development and unforeseen risks. Nystrom et al. (2002) argue that iorganization with more resources are more likely to invest in innovation. This argument can find some empirical support from the current study. Morris motor company

Had a hierarchy structure its birth., with the time elapsing , it realised that the managerial hierarchy and bureaucratic culture shifted innovation because of the poor communication and the internal competition for limited resources. (Damanpour 1991:558)

They belive that an agile and flexible structure would be more appropriate hence started to remove the middle layer hirerachy. This is consistent with Miller (1988:58) and Lawrence and Lorsch's (1967:44) argument that organic and decentralised organisational structure which is

suitable for innovation . currently Morris Motor company has about 60 employees, lead by a small executive board. The management structure is flat. Due to the organisational structure change, ' this is the way it has to be done' was replace d by more interactive and participative ethos 'how do we get it done'. ' Selves rolled up' and 'making it happen ' turned out to be the new managerial behaviour code within the firm innovative initiatives are supported and staff members are encouraged to initiate and develop new products and procedures .in fact the management system because of the structure change became more innovation -oriented , informative and faster to respond to external and internal change . Morris Motor Company has monthly bulletins , quarterly company meetings and newsletters ,and so on disclosing both good news and bad news , especially those on innovation . (Damanpour 1991:558)

In the literature ,chandler et al.(2000:52) indicate that the top management support is beneficial to the creation of an innovation . this conclusion has solid underpinning in the current study. furthermore employees are embraced by the inclusive culture Morris Motor Company One culture which means one team .for each major innovative attempt there is a highly committed development team working on it Team members enjoy when progress in innovation is made and new achievements attained they take actions when matters go astray .Immersed in this innovation open and transparent working environment staff members develop a strong sense of affiliation and are highly motivated .


The simulation market that Morris Motor Company is dealing with is a high-tech domain with strong market dynamism . new products and services or new ways of developing simulation products continuously arise in the market . Under this condition according to Miller and Friesen (1982:98) the company needs to innovate no matter whether it is willing or not To achieve in depth insights of the market fluctuation and turbulence ,Morris Motor Company scans the market on a regular basis .Sometimes it resorts to external consulting companies such as Gartner and Forester to help them analyze the market and predict the future trend of simulation Alternatively , it makes use of customer forums as a platform to collect information and interact with clients . the information collected is then referred to when the company outlines software technology roadmaps and product /service development plans over a relatively long term or when the firm reviews these schemes on a annual basis to incorporate market changes the boundary of the battlefield Morris Motor Company is involved in is blurry, whereas the competitors the firm confronts are changing constantly .Along the consulting direction , the firm competes with large corporate firm and chains consulting firms .Current competitors include LogicaCMG Promodel Arena and a number of smaller sized ICT companies . Innovation therefore seems to become a strategy that the firm can rely on for its survival or prosperity . Indeed the years 2000 and 2004-2006 have seen significant innovation outcomes . this drives the firm to innovation on a regular basis and differentiate . Visual eyes and candiTV are representatives of recent innovation .

The above described case studies have demonstrated how small ICT business master their innovation practices . Readers may cast a glance at how a small company can survive and succeed in an increasingly competitive market through innovation venturing and also recognize what impact various factors can have on innovation . in light of the empirical evidence, we further discuss the implications as follows , aiming to perpetuate the development of both macro -economic and micro-economic and climates conducive to innovation (Damanpour 1991:558)


An innovation management gap often exists in small firms , which is a reflection of problems including failure to realize the benefits of innovation , lack of resilience to innovation ideas, poor assembly and analysis of information in relation to innovation ,lack of capability to manage innovation inability to allocate sufficient financial or human resources to execute innovation ,and so on sharpe (2004:441) shows that 28 per cent of the surveyed managers find difficulty in managing the innovation process . in the current study ,results indicate that one of the key success factors of the two firms is that both have an experienced top executive , who is open -minded and demonstrates superior innovation management capability and capacity therefore we suggest that government and those agencies aiming to support SME's development should consider delivering mentoring and advisory services to innovation - oriented firms. Training and education should be organised and delivered to improve and enhance entrepreneurs' competence in managing innovation. (Dhamanpour 1991:558)

Facilitating Financial Support for Innovation

Innovation can b risk taking journey. To subsidies development of new initiative where outcomes are unpredictable is problematic , specifically for smaller sized firms where financial resources are limited. The ICT Directory Servey reports that 58 per cent of West Midlands ICT

SME's believe finance and the risk and cost of launching new products are major barriers to innovation. The current study aligns with the finding arising from the survey, indicating that sufficient financial investment is the foundation of innovation success. Hence i suggest that the government should consider sketching financial supporting schemes, with the aim of offset financial risk that small firms experience during their development stage.


Companies A have commonality in terms of business structure , both in a flat and organic pattern . company A has a hierarchial structure at a early stage , due to its size. Never the less the optional practices thereafter prove that the mechanistic and hierachial arrangement could not satisfy the businesse's innovation requirement. Specifically , the quality of communication was poor . through restructuring , both accuracy and and speed of communication in company A improved. The top management also became more interactive and committed in innovation. Company B, in variation from company A , structure the business based on products. Staff members who have the similar interests and expertise are grouped together . one major advantage of this arrangement is the communication effectiveness. In this structure innovation can be more promptly initiated and implemented to respond to the market changes. In addition since he product based group focuses on certain products for a relatively long term , the experience and expertise develop through practices are more compromised and decentralised structure is conductive to innovation . The conclusion has pragmatic support from the from the two companies support from the two companies . Damanpour (1991:85) and Dewar and Dutton (1986:41) indicate the senior executives may influence innovation by creating a climate favourable towards innovation . Mumford (2000:2) suggest the senior that senior executive's favourable attitude to innovation can built up staff member's confidence and provide support to employees for proposing new ideas. Damanpour (1991:558) further argues that 'participatory work environment facilitates innovation by increasing organisational members' awareness , commitment and involvement' (Damanpour 1991:558)Company A's culture emphasised on participation in innovation. 'Sleevs Rolled Up' and 'making it happen'are the organisational behaviour code . Influenced by this culture the firm often has an overflow of innovation initiatives and needs to form an innovation team to filter them through . under the governance of three innovation - oriented directors the firm has a strong intention to innovate .within a relatively short period the company has developed a competitive mix of six products .this product landscape offers the firm leading edges .nonetheless the wide product range has also caused the concern that the firm is somewhat over stretched .


Research on small business innovation remains immature although the interest in the domain has continuously increased recently . Motivated by the belief that the empirical qualitative approach to innovation may result in advanced understanding and improved knowledge this study examines innovation and the complexity of innovation management through two case studies . the research although not suitable for widespread generalisation due to its intrinsic nature does shed light on innovation in the small business domain and highlights a number of factors that may infouence innovation outcomes future studies could be further implemented along a quantitative direction to validate the findings arising from the current study and other qualitative studies . indeed more work is warranted before one can hope to develop domain -specific theories pertaining to the small business innovation .