An analytical approach to develop a strategic roadmap guiding a firm to become an innovative organization.

Abstract

Since organizations encounter fierce competition and high pressure to survive due to business uncertainty, innovation has become a key driver for the creation of sustainable organizational competitiveness under the business dynamic. An organization requires proper organizational systems and characteristics to organize and manage its innovation activities effectively. The term innovative organization was created to explain appropriate finn characteristics and processes for supporting and sustaining innovation activities. However, a systemic process for developing an organization into an innovative organization still needs to be explored. This research proposes an analytical approach along with a model for assessing an organization's level of innovativeness to instruct firms on how to become an innovative organization. The assessment model is constructed with the key dimensions influencing an innovative organization to analyse the current level of the organizational characteristics required to be innovative and to diagnose the strategic areas needed for improvement. Based on the results, management teams can determine the proper strategic direction along with the development of a strategic roadmap to guide their organization to become an innovative organization.