Perceived organizational support (POS)
Degree to which employees believe the organization values their contribution and
cares about their well-being
Emotional attachment to the organiza
Proactiveness refers to a firms efforts to seize new opportunities, and can be promoted by
o Introducing new products or technological capabilities ahead of the competition
o Continuously seeking out new product or service offerings
o Problems can include
Improves the efficiency of an organizational process
Improves materials utilization, shortens cycle time, increases quality
Common during later stages of an industrys lifecycle
Associated with overall cost leadership strategies
Real Options Analysis
o One way firms can minimize failure and avoid losses from pursuing faulty ideas
is to apply the logic of real options. Options exist when the owner of the option
has the right but not the obligation to engage in certain types of tra
Pacing Innovation at Amazon Example:
o Amazon is well-known for innovative ideas, but what about selling groceries online?
Webvan and others have failed.
o Amazon is using its recent acquisition of Kiva robotics & former Webvan executives to
o Often, innovative ideas emerge in the normal course of business and are brought forth
and become part of the way of doing business. Entrepreneurial champions are often
needed to take charge of internally generated ventures.
o Product c
Staffing to capture value from innovation
o Effective human resource management practices for innovation projects include
o Use experienced players from diverse areas
o Require employees serve in the new venture group as part of career development
"Samsung's culture is a culture of hierarchy, a culture that emphasizes efficiency, which
was great for enhancing competitiveness in manufacturing," said Song. "But for creative
innovation, it is important to have diversity, openness, fle
Risk taking refers to a firms willingness to act boldly without knowing the consequences, and
can be promoted by:
o Researching & assessing risk factors to minimize uncertainty
o Using techniques that have worked in other domains
o Problems can include
o Many of the best ideas for new corporate ventures, however, come from the bottom up.
Strategic leadership and culture together generate a strong impetus to innovate, take risks,
and seek out new venture opportunities.