Innovation Management Culture

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Contents

TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc133581308 \h 2

Summary PAGEREF _Toc133581309 \h 2

Background PAGEREF _Toc133581310 \h 3

Problem statement PAGEREF _Toc133581311 \h 4

Research Objective PAGEREF _Toc133581312 \h 6

Research Questions PAGEREF _Toc133581313 \h 6

Significance of Study PAGEREF _Toc133581314 \h 6

Thesis statement PAGEREF _Toc133581315 \h 7

Literature review PAGEREF _Toc133581316 \h 7

Innovation as a Culture among the SMEs PAGEREF _Toc133581317 \h 9

Theoretical Framework PAGEREF _Toc133581318 \h 9

Method PAGEREF _Toc133581319 \h 11

Ethical considerations PAGEREF _Toc133581320 \h 12

Conclusion PAGEREF _Toc133581321 \h 12

Works Cited PAGEREF _Toc133581322 \h 14

Innovation Management Culture

Abstract

Kuwait has been a renowned financial hub and a trade zone in the Middle East in the past few decades. It is among most of the top economies in the world. The oil industry dominates the overall economy of Kuwait. The company has an estimated 10B crude oil barrels. Massive technological advancements characterize the business environment in Kuwait, increased foreign investments, competition, and demand and supply for various products. The legal environment in Kuwait is characterized by effective tax legislation that promotes innovation, thus a perfect place for setting up a legal business environment. Therefore, innovation is the key driver that fuels the triumph and survival of business in the country. This research will explore, evaluate and analyze the factors that promote innovation culture in the Small and medium enterprises (SMEs) in Kuwait.

Introduction

Summary

The business environment is rapidly changing; therefore, the business must devise ways to adapt. In the current world, the trends of globalization, increased competition, and changing organizational structures are various factors happening briskly. This trend affects how organizations operate, meaning only innovative businesses can survive and succeed in the harsh business climate of the 21st century (Aboramadan et al.). Promoting an innovative culture in an organization helps fuel the company's economic growth. Innovation helps businesses achieve a competitive advantage, facilitate employee growth and development, open new horizons, and increased market growth.

Most successful organizations worldwide are known to incorporate innovation among the company’s core values. This stimulates the employees in various ways, like encouraging them to challenge themselves and develop ways to be better. Studies indicate that employees who are given the freedom to be creative and innovative are happier and have high morale in the workplace, thus a potential to work better. Several factors that promote innovation culture include management and leadership practices and style, organizational motivation, investments and encouragement of innovation, and availability of resources that support innovation culture (Dincer et al.). Innovative organizational culture shapes the trust between the management and the employees, influencing the positive culture of motivation and healthy competition, enabling the employees to portray and exhibit more innovative qualities that would have otherwise remained hidden (Zhang et al.). Promoting an innovation culture in the business helps boost entrepreneurship skills that translate to improved financial results, organization performance, and the ability to develop products and solutions per the customers' needs and demands.

Background

The economic growth of Kuwait SMEs is linked with the overall support of the Kuwaiti government. SMEs play a vital role in the growth and development of the country (Al Bazie and Braganza). However, the oil and gas industry is the major economic driver of the country, just like in other GCC countries like Qatar and Saudi Arabia. According to predictions, the oil and gas deposits continue to deplete, thus the need for organizations to adopt innovation to compete in the global markets. Reduction in the oil and gas production in the country that has been witnessed recently might cause revenue fluctuations, thus affecting the country's gross domestic product (GDP). Therefore, organizations in Kuwait must adopt and foster innovation management and culture as the critical success factor in the pursuit of the overall performance and maintenance of the competitive advantage of SMEs globally.

Fostering an innovation management culture among the SMEs in Kuwait involves the development of a new paradigm shift that will stimulate the general performance of the organizations, thus increasing competition and performance, thus an increasing share in the overall economic drivers of the country (Al Bazie and Braganza). Innovation management and culture is the key to improving the performance of SMEs in the GCC countries like Kuwait. The key dimensions of innovative management cultures include organizational leadership, employee motivation, organizational structure, and operations that directly influence the SME's overall performance.

Organizational culture is an essential element that hugely influences the growth and development of a firm. Culture is a set of beliefs, norms, and values that creates certain forces within an organization or among people (Nada Saleh Al-Muzaini). Successful organizations are said to have the right culture that guides and drives their innovations toward the positive side of the market share. Inculcating an innovation culture must be given priority in an organization. The various facets of an organization, like leadership and resources, are considered the primary drivers that hold the organization together (Zainal et al.). The factors influence how the employees relate and engage in fostering innovation. Promoting an innovation culture influences the growth and performance of the business.

Problem statement

Culture is the foundation of innovation in multiple aspects. Organizational innovation is usually faced with multiple hindrances. Research studies indicate that culture is among the top problems that might positively or negatively influence innovation (Zhang et al.). Most successful multinationals have invested deeply in fostering and developing a culture of innovation. Small-medium enterprises (SMEs) are important in a country's economic growth and development. In Kuwait, SMEs contribute to about 21% of employment, employment creation, diversification, and overall Gross domestic product (GDP) (Al Suwaidi et al.). The growth and survival of most SMEs are linked to the ability to develop new products and improve on the current process and services. Therefore, for organizations to remain competitive, they must produce new products using updated inventions and innovative techniques. This research focuses on understanding the factors that promote innovation culture in SMEs. In the country, most SMEs are ranked to have slow or stunted growth despite the rapid growth of the business environment.

Kuwait's SMEs face various challenges that hinder overall growth and development. The regulatory framework and environment are the key hindrances to the growth and development of SMEs in Kuwait. Moreover, the SMEs in Kuwait have limited access to finances and cash reserves, thus a slow growth despite their contribution to the country's overall economic growth. Moreover, SMEs face a shortage of skilled laborers, thus a lack of growth and increased market share (Arman et al.). Therefore, for the SME to develop and gain a competitive advantage in Kuwait, there is a need to adopt new innovative management culture (Alhammad and Bugawa). Innovation management culture in SMEs organization in Kuwaiti will help transform the economy from an oil-dependent economy to a knowledge-based economy. Therefore, understanding the key factors that promote an innovative culture in SMEs is essential in diving into innovative management organizations and the transformation of the key organizations in Kuwait.

Moreover, previous studies have explored the business variables like performance, finance, business environment, and productivity and their impact on the competitive advantage on the growth and development of the organization. Studies indicate that despite the huge implications of innovation culture in an organization, there is limited empirical research. Therefore, this research seeks to contribute to the limited knowledge of the factors that promote innovative culture in an organization as a way of maximizing innovation for the success of the organization. Moreover, the study will add new knowledge to the innovation capabilities in the context of SMEs in Kuwait.

Research Objective

This research explores the current state of innovation cultures in the SMEs in Kuwait, the connection between innovative culture, performance, and competitive advantage of the SMEs in Kuwait, and the key factors that hinder the development of innovative cultures in Kuwait.

Research Questions

The primary research question: which are the important factors that influence and shape the innovation culture in SMEs? This research study will focus on understanding how various factors like leadership style will influence the cultivation of innovative cultur