THE EFFECT OF EMPLOYEE ENGAGEMENT AND ORGANIZATION CULTURE ON COMPANY INNOVATION CAPABILITY

Mohamad Kohir Aman

Abstract


Innovation Capability is incredibly important for companies to survive and gain competitive advantages. Some researchers examined the influence of corporate culture on Innovation Capability and revealed that the culture of the adhocracy had a positive effect on the company's Innovation Capability (Ahmad, 1998; Barlow 1999). Besides, the ability of innovation was also influenced by how strong employee engagement in the company is (Gichohi, 2014). To see the influence of adhocracy organization culture and employee engagement towards innovation capability in Indonesia, research was conducted with State-Owned Enterprises (SOE) employees as the subjects, as their role in shifting the Indonesian economic sector. The research questionnaires were distributed to 300 SOE’s employees in some sectors with a rate of return of 69.3% or 208. Of the total questionnaires entered, 178 questionnaires were completed and could be processed. With 5% degree of accuracy and 95% significance level, the results of data processing showed that employee engagement has a positive effect on Innovation Capability proved to be significant with t count 6.942 at α = 0.001 while the research hypothesis of adhocracy culture had a positive effect on Innovation Capability was shown to be significant with t count 2.144 and α = 0.032.


Keywords


Employee Engagement, Organization Culture, Adhocracy, Innovation Capability

Full Text:

PDF

Article Metrics

Abstract views : 169| PDF views : 0

References


Abu-Jarad, I.S. Yusof, N, & Nikbin, D. (2010). A Review Paper on Organizational Culture and Organizational Performance, International Journal of Business and Social Science, 1(3): 26-46.

Akman, G & Yilmaz, C. (2008). Innovative Capability, Innovation Strategy And Market Orientation: An Empirical Analysis In Turkish Software Industry. International Journal of Innovation Management. Vol. 12, No. 01: pp. 69-111

Ahmad, P. K., (1998). Culture and climate for innovation, European Journal of Innovation Management, 1(1): 30 - 43.

Augustine, Yvonne & Robert Kristaung. (2013). Metodologi Penelitian Bisnis dan Akuntansi. Jakarta. Dian Rakyat.

Baark, E., Antonio., Lau, K.W, Lo, W & Sharif N. (2011). Innovation Source, Capabilities, and Competitiveness: Evidence from Hongkong Firm. Dynamic Institutions & Markets in Europe Final Conference. 6-8 April 2011. Maastrict.

Cameron, K & Quinn, R. E (2006). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco. Jossey-Bass A Wiley Imprint.

Dasanayaka, S.W.S.B. (2009). Implications of Organizational Culture on Innovation: An Exploratory Micro Study of Sri Lankan Gift and Decorative-ware Sector Firms.

Dernovsek D. (2008). Creating highly engaged and committed employee starts at the top and ends at the bottom line Credit Union Magazine, May 2008. Credit union National Association, Inc.

Edwards, R.W., Kumar, P. & Ranjan, R., (2002). Understanding Organisation Culture and Innovation: A Case Study Approach, Sixth International Research Conference on Quality, Innovation and Knowledge Management held in Malaysia in February

Dernovsek D. (2008). Creating highly engaged and committed employee starts at the top and ends at the bottom line Credit Union Magazine, May 2008. Credit union National Association, Inc.

Gichohi, P. Maku (2014). The Role of Employee Engagement in Revitalizing Creativity and Innovation at the Workplace: A Survey of Selected Libraries in Meru Country-Kenya.” Library Philosophy and Practice (e-journal). Paper 1171.

Hair, J., Black, W,. Babin B, & Anderson R. (2014). Multivariate Data Analysis, 7th ed. Pearson Education Limited: London, United Kingdom

Katz, D & Kahn. (1978). The social psychology of organizations. New York: Wiley, 1978. 838 p.

Kementerian Badan Usaha Milik Negera. (2016). Menteri BUMN Gelar Konferensi Pers. Available at http://www.bumn.go.id/berita/0-Menteri-BUMN-Gelar-Konferensi-Pers

Kim, L. (1997). Imitation to Innovation: The Dynamics of Korea’s Technological Learning. Harvard Business School Press, Boston.

Martins, E.C., & Terblanche, F. (2003)."Building organizational culture that stimulates creativity and innovation", European Journal of Innovation Management, 6 (1):64 – 74

Martins, E., & Martins, N. (2002). An Organisational Culture Model To Promote Creativity and Innovation. Journal of Industrial Psychology, 28(4): 58-65.

Perrin, T. (2003). Understanding What Drives Employee Engagement. The 2003 Towers Perrin Talent Report.

Robinson, D., Perryman, S. & Hayday, S. (2004). The drivers of employee engagement. Institute for Employment Studies (IES) Research Report 408. Brighton. Sussex.

Schein, E. H. (1990). Organizational Culture. American Psychologist. 45 (2), 109-19

Salaman, JG, & Storey, J. (2002). Managers' theories about the process of innovation, Journal of Management Studies, 39 (2):147-165.

Shan & Zhang. (2009). Extension theory and its application in the evaluation of independent innovation capability. Kybernetes., 38 (3/4) (2009), pp. 457–467

Supardi. (2013). Profil Badan Usaha Milik Negara Industri Strategis Di Indonesia. Proceeding Call for Papers dan Seminar Nasional Fakultas Ekonomi UNS, 30-31 Mei 2013.

Terziovski, M., (2007). Building innovation capability in organizations - an international cross-case perspective. Imperial College Press. pp:1-254.

Yesil, S & Kaya, Ahmet (2012). The role of organizational culture on innovation capability: an empirical study. International Journal of Information Technology and Business Management 29th October 2012. Vol.

Young, P. (2012). A Glance Into Organizational Culture, Ethical Workplace Climate,


Refbacks

  • There are currently no refbacks.