Bastian Kiewe genannt Knig Master Student of Industrial Engineering Student ID: 2010280223 P. L.

Patrick Rau, PhD Director, Institute of Human Factors and Ergonomics Professor, Department of Industrial Engineering Tsinghua University, Beijing 100084, China

Mini-Thesis

-Final Defense-

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Influence Factors of Innovation Orientation

2. 3. 4. 5.

Theoretical Premises Research Model Empirical Validation Conclusion

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Influence Factors of Innovation Orientation

 The ICT industry consists to the most dynamic market sectors in China and is the biggest in the world Total income of China's ICT industry in 2010 is about RMB 10 trillion Chinese ICT-industry is able to produce their own innovative products. But: These products are often designated as architectural innovations and the production takes place using technologies that come from Europe, North America or Japan Fast developments and short lifecycles in the ICT - branch An overall organization wide understanding of innovativeness is essential. The relatively new concept of Innovation Orientation (IO) is a key for reaching this goal

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Influence Factors of Innovation Orientation

Research Questions: What are the influence factors of Innovation Orientation? On which influence factors should Chinese companies focus?

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Influence Factors of Innovation Orientation

1. Motivation 3. Research Model 4. Empirical Validation 5. Conclusion

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Influence Factors of Innovation Orientation

Influence Factors of Innovation Orientation

Leadership Style Transformational Leadership Transactional Leadership Corporate Culture Consensual Orientation Entrepreneurial Orientation Bureaucratic Orientation Competitive Orientation National Culture Hofstede-Dimensions
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1. Motivation 2. Theoretical Premises 4. Empirical Validation 5. Conclusion

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Influence Factors of Innovation Orientation

2/11/2012

Influence Factors of Innovation Orientation

1. Motivation 2. Theoretical Premises 3. Research Model 5. Conclusion

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Influence Factors of Innovation Orientation

Collection and data base of the sample Online-based survey 942 invitations were sent from April 14th 2011 to June 6th 2011 A total of 201 employees filled out the questionnaire, at least partially From that amount, 81 questionnaires were filled out completely and were included as a sample in the data analysis.
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Organization Size in Number of Employeesl

< 100 30%
2%

Industry Structure
13% 19%

> 200 60% 100-200 10%

2% 1% 6%

13%

Position of Respondents
10%

13%

Employees 16%

Managing directors 29%

10%

11%

Manager 55%

Automobile Financial services Chemicals/ Pharmacy Construction/ Real estate Retail Other
Influence Factors of Innovation Orientation

Electrical industry IT/ Software/ Internet Engineering Energy/ Natural Foods

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Overview variables
Cronbachs Dimension Transformational Leadership Articulating a vision Providing an appropriate model Facilitating the acceptance of group goals Having high performance expectations Supportive leader behavior Intellectual stimulation Transactional Leadership Contingent reward behavior Conditional punishment behavior Consensual Orientation Entrepreneurial Orientation Bureaucratic Orientation Competitive Orientation Innovation Orientation Learning Philosophy Transfunctional Acclimatization Strategic Direction Depended n n n n n n n n n n n n n n y y y y Items 6 5 3 4 3 4 4 2 4 3 4 4 4 4 3 11 5 9 N Alpha 81 81 81 81 81 81 81 81 81 81 81 81 81 81 81 81 81 81 0,855 0,930 0,934 0,952 0,854 0,966 0,939 0,720 0,921 0,787 0,842 0,440 0,678 0,570 0,766 0,813 0,937 0,893

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 Cronbach s Alpha of Corporate Culture not optimal Variables are measured with different scales

Regression Model of Leadership style and Innovation Orientation

Correlation Analysis of Corporate Culture and Innovation Orientation

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Regression Model
Model Summary R 0,711 df Regression Residual Total 2 78 80 Beta Transformational Leadership Transactional Leadership
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R Square 0,506 Anova F 39,910

Adjusted R Square 0,493 Significance 0,000

Coefficients t 5,063 1,702 Significance 0,000 0,093

0,565 0,190

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Correlation Analysis
Correlations Consensu Entrepren Bureauc Compet al eurial ratic itive Pearson 1 Correlation ** Sig. (2-tailed) Pearson Entrepreneurial -0,304 1 Correlation Orientation Sig. (2-tailed) 0,006 Pearson Bureaucratic -0,604 -0,289 Correlation Orientation Sig. (2-tailed) 0,000 0,009 Pearson Competitive -0,704 -0,062 Correlation Orientation Sig. (2-tailed) 0,000 0,581 Pearson Innovation 0,261 0,181 Correlation Orientation Sig. (2-tailed) 0,019 0,105 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). Consensual Orientation ** ** Innov ation * Consensual ** 1 Entrepreneurial Bureaucratic Competitive 0,163 0,146 -0,078 0,488 -0,485 0,000 1 1 ** 115,59 90,00 105,73 88,68 56,47 30,02 36,95 35,60 Mean Standard deviation

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Results
Hypothesis H1a H1b H2a H2b H2c H2d Independent Variable Transformational Leadership Transactional Leadership Consensual Orientation Entrepreneurial Orientation Competitive Orientation Bureaucratic Orientation Influence to Empirical Innovation validation Orientation Positive Positive Positive Positive Negative Negative Confirmed Confirmed Confirmed Not confirmed Confirmed Not Confirmed

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1. 2. 3. 4.

Motivation Theoretical Premises Research Model Empirical Validation

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Criticism National culture considered only by theoretical interpretation

Comparison between Nations necessary

Dividing of statistics into two models

Corporate Culture only analyzed with Correlations Analysis Regression Model of Leadership explains only 50 % of the Influence factors of Innovation Orientation

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Contributions: Study on conceptualization of most accepted framework of Siguaw et. al.

a general contribution to the strengthening of a common understanding of Innovation Orientation

High relevance for companies in China

The high number of completed questionnaires for a research project Feedback of subjects

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Final conclusion Chinese companies which are managed by strong transformational or transactional leaders which have a strong consensual corporate culture have a higher level of Innovation Orientation.
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