Key contextual success factors for employee innovative behavior: A study in a foreign manufacturing subsidiary in China

Figures & data

Table 1. Overview of contextual success factors for employee innovative behavior related to leadership

Cluster	Success factor	Description	Authors
Leadership	Autocratic leadership style	Leaders take decisions, give clear directions and monitor task accomplishment.	Jayasingam (2009), Leung (2012), Leung et al. (2014)
	Participative leadership style	Leaders consult and collaborate with employees in decision making.	Axtell et al. (2000), Jayasingam (2009)
	Transformational leadership style	Leaders motivate and challenge employees to identify problems proactively and question the status quo.	Aryee, Walumbwa, Zhou, and Hartnell (2012), Li, Zhao, and Begley (2014), Shin and Zhou (2003)
	Relationship between leader and employee	Leaders and employees have a relationship characterized by mutual trust, respect, and liking.	S. G. Scott and Bruce (1994), Yuan and Woodman (2010)
	Leadership support	Leaders provide practical support to the employee to solve problems and to introduce new ideas.	Axtell et al. (2000), De Jong and Den Hartog (2007)
	Leader as role model	The leader is an example of innovative behavior.	De Jong and Den Hartog (2007), Pan et al. (2015)
	Praise	The leader provides regular praise and encouragement to the employee.	Huhtala and Parzefall (2007)
	Criticism	The leader regularly shows areas for development and improvement to the employee.	Conţiu et al. (2012), Zhou and Su (2010)

Table 2. Overview of contextual success factors for employee innovative behavior related to job

Cluster	Success factor	Description	Authors
Job	Task	The job definition is broad and demanding. Employees are required to work their minds instead of doing routine work.	Ong et al. (2003), Parzefall et al. (2008)
	Job requirement	The job requests and expects employee innovative behavior.	Goepel et al. (2012), Yuan and Woodman (2010)
	Job autonomy	The job provides freedom for the employee to determine how the work is carried out and to engage in “trial and error”.	Parzefall et al. (2008), Ramamoorthy et al. (2005)
	Reward and pay	The job provides incentives, such as behavior-based rewards and pay for performance.	Ashok et al. (1993), Conţiu et al. (2012), Leung (2012), Ong et al. (2003), Ramamoorthy et al. (2005)
	Training	The job provides opportunities for learning and development processes targeted at behavioral, task, knowledge, and skill improvement.	Abdullah et al. (2014)
	Resources and time	Adequate material resources and enough time are provided to explore new ideas.	Huhtala and Parzefall (2007), Parzefall et al. (2008)

Table 3. Overview of contextual success factors for employee innovative behavior related to group and network

Cluster	Success factor	Description	Authors
Group and Network	Relationship with co-worker	Employees are well integrated into the functions they belong to and have trust in the team.	Axtell et al. (2000), Ong et al. (2003)
	Co-worker as role model	The co-workers are an example of innovative behavior.	Ong et al. (2003), Zhou and Su (2010)
	Guanxi	Employees have a broad guanxi network within the organization.	Shu et al. (2010)
	Group composition	Groups are diverse in skills, knowledge, and personality.	Bogers et al. (2018), Parzefall et al. (2008)

Table 4. Overview of contextual success factors for employee innovative behavior related to organization

Cluster	Success factor	Description	Authors
Organization	Company innovation strategy	The organization emphasizes the need for innovation.	Parzefall et al. (2008)
	Cross-functional cooperation	Within the organization, functional areas and management cooperate to facilitate new idea generation and implementation.	Goepel et al. (2012), Ong et al. (2003)
	Organizational structure	A corporate structure for innovation including defined responsibilities and processes exists.	Parzefall et al. (2008)
	Climate for innovation	The organization encourages innovation and provides an atmosphere of support for new ideas.	Leung et al. (2014), Übius, Alas, and Elenurm (2013)
	Communication structure	The organization has an integrated communication infrastructure among different departments that allows high connectedness and idea sharing.	Ong et al. (2003)
	Human resource management	The organization has a human resource system in place which values the individual and their work engagement and fosters work-life balance.	Abstein and Spieth (2014)

Table 5. Participants profile and information on innovation

Participants profile
Job level	Head of Department	12
	Group Leader	10
	Team Leader	4
	Project Leader	1
Nationality	Chinese	21
	Foreigner	6
Average years of leadership experience		7 years
Information on innovation
Average relevance of employee innovative behavior*		2
Type of innovation	Process innovation	73%
	Product innovation	25%
	Other	2%
Degree of innovation	Incremental innovation	88%
	New to the firm	12%
	New to the world	0%

Note: *Likert Scale 1 = very high relevance, 5 = no relevance.

Table 6. Results from Delphi round 1: success factors for employee innovative behavior that were considered important by >50% of the participants

Success factor	Description	% of participants that considered this factors to be important
Transformational Leadership Style	Leaders motivate and challenge employees to identify problems proactively and question the status quo.	54%
Relationship between leader and employee	Leaders and employees have a relationship characterized by mutual trust, respect, and liking.	54%
Leadership support	Leaders provide practical support to the employee to solve problems and to introduce new ideas.	58%
Praise	The leader provides regular praise and encouragement to the employee.	71%
Reward and pay	The job provides incentives, such as behavior-based rewards and pay for performance.	81%
Training	The job provides opportunities for learning and development processes targeted at behavioral, task, knowledge, and skill improvement.	75%
Resources and time	Adequate material resources and enough time are provided to explore new ideas.	58%
Group composition	Groups are diverse in skills, knowledge, and personality.	75%
Company innovation strategy	The organization emphasizes the need for innovation.	58%
Cross-functional cooperation	Within the organization, functional areas and management cooperate to facilitate new idea generation and implementation.	54%

Table 7. Results from Delphi round 2 and 3: ranking of key success factors for employee innovative behavior

	Round 2			Round 3
Success factor	Mean score of participant ranking*	Overall Rank	Agreement Level: % of participants that ranked this factor in the Top 3	Mean score of participant ranking*	Overall Rank	Agreement Level: % of participants that ranked this factor in the Top 3
Reward and Pay	4.64	1	44%	2.71	1	76%
Cross-functional cooperation	4.68	2	44%	3.14	2	71%
Company innovation strategy	4.80	3	44%	3.67	3	52%
Transformational Leadership style	5.36	4	36%	4.67	4	38%
Leadership support	5.40	5	24%	4.90	5	33%
Training	5.64	6	24%	6.19	6	14%
Relationship between leader and employee	5.76	7	24%	6.67	7	5%
Group composition	5.96	8	32%	6.95	8	5%
Resources and time	6.28	9	12%	7.52	9	0%
Praise	6.48	10	16%	8.57	10	5%

Note: *Ranking Scale of participants: 1 = most important; 10 = least important.

Table 8. Key success factors for employee innovative behavior: reason for importance and suggestion for ways of implementation

Key success factor	Reason for importance	Suggestion for ways of implementation	Supporting quotes
Reward and Pay	Standard and cost of living are increasing in China Idealistic bounding to the company is less in China Extra effort is required for the employee to generate and implement innovative ideas	Set up clear and transparent guideline for rewards Link rewards and pay to clear targets and performance and communicate openly and regularly Plan sufficient budget for rewards	“It is very important that employees are recognized for innovating. The reward shall encourage the employee both financially and morally”. (Group Manager; Logistic) “The strive for materialistic success comes from social pressure”. (Group Manager, Procurement) “Plan enough budget for rewards”. (Department Head, Logistic)
Cross-functional cooperation	Individual has limited capabilities to solve complex problems Mutual learning and collaboration among functions are necessary to achieve optimum for the company.	Establish process-thinking to optimize value chain instead of focusing on functional optimization Set up clear organizational responsibilities and authorities for cross-functional decision-making Encourage employees to cooperate cross-functionally and learn from others	“To innovate, it is important to collect different opinions for mutual benefit”. (Group Manager, Procurement) “It is important that employees understand the work content of related departments”. (Group Manager, Procurement)
Company innovation strategy	A defined innovation roadmap of the company is needed to align different functional departments to work on common goals All hierarchies need to set the focus on innovation Chinese employees are encouraged to express their ideas more openly	Set and align goals among departments Formulate, communicate and penetrate company innovation strategy among all hierarchies in the whole organization Demonstrate visible actions in line with strategy Show leadership focus for innovation	“Innovative behavior is mostly concerned with change. If the company wants to change, the organization needs to encourage this climate for change”. (Manager; Sales Project Management) “Company strategy is the prerequisite for innovation. With the strategic direction and a culture for innovation, the employee will be motivated to actually do it”. (Department Head, Human Resources)

Jayasingam, S. (2009). Leadership style and perception of effectiveness : Enlightening Malaysian managers. Asian Social Science, 5(2), 54–65. doi:10.5539/ass.v5n2p54

 Google Scholar

Leung, K. (2012). Theorizing about Chinese organizational behavior: The role of cultural and social forces. In H. Xu & M. H. B. Bond (Eds.), Handbook of Chinese organizational behavior – Integrating theory, research and practice (p. 560). Cheltenham: Edward Elgar Publishing.

 Google Scholar

Leung, K., Chen, Z., Zhou, F., & Lim, K. (2014). The role of relational orientation as measured by face and renqing in innovative behavior in China: An indigenous analysis. Asia Pacific Journal of Management, 31(1), 105–126. doi:10.1007/s10490-011-9277-1

 Web of Science ®Google Scholar

Axtell, C. M., Holman, D. J., Unsworth, K. L., Wall, T. D., Waterson, P. E., & Harrington, E. (2000). Shopfloor innovation: Facilitating the suggestion and implementation of ideas. Journal of Occupational and Organizational Psychology, 73, 265–285. doi:10.1348/096317900167029

 Web of Science ®Google Scholar

Aryee, S., Walumbwa, F. O., Zhou, Q., & Hartnell, C. A. (2012). Transformational leadership, innovative behavior, and task performance: Test of mediation and moderation processes. Human Performance, 25, 1–25. doi:10.1080/08959285.2011.631648

 Web of Science ®Google Scholar

Li, C., Zhao, H., & Begley, T. M. (2014). Transformational leadership dimensions and employee creativity in China: A cross-level analysis. Journal of Business Research, 68(6), 1149–1156. doi:10.1016/j.jbusres.2014.11.009

 Web of Science ®Google Scholar

Shin, S. J. A. E., & Zhou, J. (2003). Transformational leadership, conservation, and creativity: Evidence from Korea. Academy of Management Journal, 46(6), 703–714. doi:10.5465/30040662

 Web of Science ®Google Scholar

Scott, S. G., & Bruce, R. A. (1994). Determinants of innovative behavior: A path model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580–607. doi:10.2307/256701

 Web of Science ®Google Scholar

Yuan, F., & Woodman, R. (2010). Innovative behavior in the workplace: The role of performance and image outcome expectations. Academy of Management Journal, 53(2), 323–342. doi:10.5465/AMJ.2010.49388995

 Web of Science ®Google Scholar

De Jong, J. P. J., & Den Hartog, D. N. (2007). How leaders influence employees’ innovative behaviour. European Journal of Innovation Management, 10(1), 41–64. doi:10.1108/14601060710720546

 Google Scholar

Pan, J., Wu, Q., Zhou, W., & Lou, Y. (2015). When is the leader’s creativity related to the followers’ creativity? A cross-level examination in China. Innovation: Management, Policy and Practice, 17(3), 364–382. doi:10.1080/14479338.2015.1061897

 Web of Science ®Google Scholar

Huhtala, H., & Parzefall, M.-R. (2007). A review of employee well-being and innovativeness: An opportunity for a mutual benefit. Creativity and Innovation Management, 16(3), 299–306. doi:10.1111/j.1467-8691.2007.00442.x

 Google Scholar

Conţiu, L. C., Gabor, M. R., & Oltean, F. D. (2012). Employee’s motivation from a cultural perspective – A key element of the hospitality industry competitiveness. Procedia Economics and Finance, 3(12), 981–986. doi:10.1016/S2212-5671(12)00261-4

 Google Scholar

Zhou, J., & Su, Y. (2010). A missing piece of the puzzle: The organizational context in cultural patterns of creativity. Management and Organization Review, 6(3), 391–413. doi:10.1111/j.1740-8784.2010.00192.x

 Web of Science ®Google Scholar

Ong, C.-H., Wan, D., & Chng, S.-H. (2003). Factors affecting indivual innovation: An examination within a Japanese subsidiary in Singapore. Technovation, 23(7), 617–631. doi:10.1016/S0166-4972(02)00019-6

 Web of Science ®Google Scholar

Parzefall, M., Seeck, H., & Leppänen, A. (2008). Employee innovativeness in organizations: A review of the antecedencts. Finnish Journal of Business Economics, 2(8), 165–182.

 Google Scholar

Goepel, M., Hölzle, K., & zu Knyphausen-Aufseß, D. (2012). Individuals’ innovation response behaviour: A framework of antecedents and opportunities for future research. Creativity and Innovation Management, 21(4), 412–426. doi:10.1111/caim.12000

 Web of Science ®Google Scholar

Ramamoorthy, N., Flood, P. C., Slattery, T., & Sardessai, R. (2005). Determinants of innovative work behaviour: Development and test of an integrated model. Creativity and Innovation Management, 14(2), 142–150. doi:10.1111/j.1467-8691.2005.00334.x

 Google Scholar

Ashok, K., Gupta, A., & Singhal, A. (1993, January). Managing human resources for innovation and creativity. Research Technology Management, 36, 41. doi:10.1016/j.cell.2010.03.006

 Google Scholar

Abdullah, N. H., Lee Ping, L., Wahab, E., & Shamsuddin, A. (2014, September). Perception on training and employee innovativeness: An evidence from small firms. Paper presented at the ICMIT 2014 International Conference on Management of Innovation and Technology, Singapore. doi:10.1109/ICMIT.2014.6942404

 Google Scholar

Shu, C., Gao, S., Jiang, X., & Page, A. L. (2010, August). Managerial Guanxi ties, knowledge creation, and firm innovation: Evidence from China. Paper presented at the Academy of Management. Montréal, Canada. doi:10.5465/AMBPP.2010.54493609

 Google Scholar

Bogers, M., Foss, N. J., & Lyngsie, J. (2018). The “human side” of open innovation: The role of employee diversity in firm-level openness. Research Policy, 47(1), 218–231. doi:10.1016/j.respol.2017.10.012

 Web of Science ®Google Scholar

Übius, Ü., Alas, R., & Elenurm, T. (2013). Impact of innovation climate on individual and organisational level factors in Asia and Europe. Journal of Business Economics and Management, 14(1), 1–21. doi:10.3846/16111699.2011.642081

 Web of Science ®Google Scholar

Abstein, A., & Spieth, P. (2014). Exploring HRM meta-features that foster employees’ innovative work behaviour in times of increasing work-life conflict. Creativity and Innovation Management, 1–18. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/caim.12053/full

 Web of Science ®Google Scholar