INNOVATION AND ORGANIZATIONAL RESILIENCE IN SELECTED MANUFACTURING FIRMS IN ENUGU STATE, NIGERIA

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ABSTRACT

The study investigated the relationship between innovation and organizational resilience in selected manufacturing firms in Enugu state, Nigeria. The study aimed to achieve the following specific objectives: to determine the extent to which process innovation affect organizational response; to ascertain the effect of product innovation on business vulnerability; to determine the nature of theĀ  relationship between service innovation and adaptive capacity; and to ascertain the extent of the relationship between radical innovation and organizational recovery. The study was conducted using the survey design. The population of the study was 1400 employees from Nigeria Breweries Limited, Innoson Technical and Industrial Company Limited, Juhel Nigeria Limited. A sample of 302 respondents was drawn from the population using Stat Trekā€™s planning wizard tool. The sources of data were both primary and secondary. The primary data were collected through questionnaire and interview schedule while secondary data were sourced from relevant journals, textbooks and internet materials. Questionnaire as the instrument for data collection was designed on a five-point likert scale according to the objectives of the study. Content validity was used to ensure that the variables were adequately covered. The reliability of the instrument was done through the use of pilot study yielding a reliability index of 0.89 which indicated a high degree of items consistency. Regression analysis was used to test hypotheses one and two while Pearson Product Moment Correlation was used was used to test hypothesis three and four. The study found that process innovation affects organizational response to a great extent; product innovation significantly reduces business vulnerability; there existed a positive relationship between service innovation and adaptive capacity; there is a significant relationship between radical innovation and organizational recovery. The study concluded that when innovative activities are encouraged in organizations, it enhances the resilient stance and capacities of the organization. Based on the findings of the study, it was recommended that organizations through institutionalized policies can effectively manage their innovative tendencies and activities; organizations should create an enabling environment which encourages employee creativity and innovative capacities.

TABLE OF CONTENTS

Declaration                                                                                                                  ii

Approval                                                                                                                     iii

Dedication                                                                                                                  iv

Acknowledgements                                                                                                    v

Abstract                                                                                                                      vi

List of Tables                                                                                                              ix

List of Figures                                                                                                             xi

CHAPTER ONE: INTRODUCTION

1.1Ā Ā Ā Ā Ā Ā  Background of the StudyĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  1Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā 

Ā Ā Ā Ā Ā Ā  1.2 Ā Ā Ā Ā  Statement of the ProblemĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā 4Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā 

1.3       Objectives of the Study                                                                                  4

1.4       Research Questions                                                                                         5

1.5       Research Hypotheses                                                                                      5

1.6       Significance of the Study                                                                               5

1.7       Scope of the Study                                                                                         6

1.8       Limitation of the Study                                                                                  6

1.9Ā Ā Ā Ā Ā Ā  Operational Definition of key termsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  7

1.10     Profile of the selected Manufacturing Companies in Enugu State                 8

            References                                                                                                      12

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1Ā Ā Ā Ā Ā Ā  Conceptual frameworkĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  14

2.1.1Ā Ā Ā  Innovation.Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  16

2.1.2Ā Ā Ā  Dimensions of Organisational InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  20

2.1.3Ā Ā Ā  Product InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  22

2.1.4Ā Ā Ā  Process InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  23

2.1.5Ā Ā Ā  Service InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  25

2.1.6Ā Ā Ā  Drivers of InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  26

2.1.7Ā Ā Ā  Organizational ResilienceĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  27

  • Measures of Organizational Resilience Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  30

2.1.9Ā Ā Ā  Innovation Killers in Organization Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  49

2.1.10Ā  Models of InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  52

2.2Ā Ā Ā Ā Ā Ā  Theoretical FrameworkĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  56

2.21 Ā Ā Ā  Diffusion of Innovation TheoryĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  56

2.22Ā Ā Ā Ā  Theory of Economic InnovationĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  58

2.3Ā Ā Ā Ā Ā Ā  Empirical ReviewĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  58

2.3.2Ā Ā Ā  Activities Relating to Resilient OrganizationsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  60

2.4Ā Ā Ā Ā Ā Ā  Summary of Review Related LiteratureĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  62

        References                                                                                              63

CHAPTER THREE:  METHODOLOGY

3.1Ā Ā Ā Ā Ā Ā  Research DesignĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  68

3.2Ā Ā Ā Ā Ā Ā  Sources of DataĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  68

3.3Ā Ā Ā Ā Ā Ā  Population of the StudyĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  68

3.4Ā Ā Ā Ā Ā Ā  Sample Size Determination and Sampling TechniqueĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  69

3.5Ā Ā Ā Ā Ā Ā  Description of Research InstrumentĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  71

3.6Ā Ā Ā Ā Ā Ā  Validity of the Research InstrumentĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  72

3.7Ā Ā Ā Ā Ā Ā  Reliability of the Research InstrumentĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  72

3.8Ā Ā Ā Ā Ā Ā  Data Analysis TechniquesĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  74

3.9Ā Ā Ā Ā Ā Ā  Decision Rule Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  74

Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  ReferencesĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  75

CHAPTER FOUR

4.1 Ā Ā Ā Ā Ā  Presentation and Analysis of DataĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  76

4.2 Ā Ā Ā Ā Ā  Questionnaire AnalysisĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  76

4.3 Ā Ā Ā Ā Ā  Test of HypothesesĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  83

4.4 Ā Ā Ā Ā Ā  Discussion of ResultsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  93

References                                                                                                      95

CHAPTER FIVE: SUMMARY OF MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Ā Ā Ā Ā Ā  Summary of Major Findings.Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  96

5.2 Ā Ā Ā Ā Ā  ConclusionsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  96

5.3 Ā Ā Ā Ā Ā  RecommendationsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  96

5.4 Ā Ā Ā Ā Ā  Contribution to KnowledgeĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  97

5.5 Ā Ā Ā Ā Ā  Suggestions for further StudiesĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  97

Bibliography                                                                                      

Appendices                                                                                        

                                                            LIST OF TABLES

Table 3.1Ā Ā Ā Ā Ā Ā Ā Ā  Population DistributionĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  69

Table 3.2         Summary of the proportionate stratified sample drawn for the study           71

Table 3.3Ā Ā Ā Ā Ā Ā Ā Ā  Reliability Test using Test Retest MethodĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  73

Table 4.1Ā Ā Ā Ā Ā Ā Ā Ā  Questionnaire DistributionĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  76

Table 4.2Ā Ā Ā Ā Ā Ā Ā Ā  Investment of Fund and Development of New IdeasĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  76

Table 4.3Ā Ā Ā Ā Ā Ā Ā Ā  Investment of Time and Development of New IdeasĀ Ā Ā Ā Ā Ā Ā Ā Ā  77

Table 4.4Ā Ā Ā Ā Ā Ā Ā Ā  The Lead in the New Process of Doing ThingsĀ Ā Ā Ā  78

Table 4.5Ā Ā Ā Ā Ā Ā Ā Ā  Effective Communication and Enhancement of ProcessĀ Ā  78

Table 4.6         Modern Technology and Quick Response to Organizational Process            79

Table 4.7         Engagement of Employee and Development of Novel Ideas                                    80

Table 4.8         The Lead in Novel Products and Firms Sustainability                                   80

Table 4.9         Enabling Environment and Production of Novel Products                            81

Table 4.10Ā Ā Ā Ā Ā Ā  Good Funding and Production of Novel ProductsĀ Ā Ā Ā Ā Ā Ā Ā  82

Table 4.11Ā Ā Ā Ā Ā Ā  New Products and Protection in Crisis SituationĀ Ā Ā Ā Ā Ā Ā Ā  82

Table 4.12Ā Ā Ā Ā Ā Ā  New Ideas and Adaptability to Environmental ChallengesĀ 83

Table 4.13Ā Ā Ā Ā Ā Ā  Novel Products and Increase in Organizational FlexibilityĀ 84

Table 4.14Ā Ā Ā Ā Ā Ā  Improved Factory Production Time and Increase in Organizational Ā Ā Ā Ā Ā Ā Ā Ā AdaptabilityĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  84

Table 4.15Ā Ā Ā Ā Ā Ā  Alteration of Structure and RecoveryĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  85

Table 4.16Ā Ā Ā Ā Ā Ā  Incorporation of New Systems and Bouncing backĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  86

Table 4.17Ā Ā Ā Ā Ā Ā  Diversification of Product Line and RecoveryĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā  Ā Ā Ā Ā Ā Ā  86

Table 4.18 Ā Ā Ā Ā Ā  Horizon Scanning and Reduction of RiskĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  87

Table 4.19Ā Ā Ā Ā Ā Ā  Model SummaryĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  88

Table 4.20Ā Ā Ā Ā Ā Ā  AnovaĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  88

Table 4.21Ā Ā Ā Ā Ā Ā  CoefficientsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  89

Table 4.22Ā Ā Ā Ā Ā Ā  Model SummaryĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  90

Table 4.23Ā Ā Ā Ā Ā Ā  CorrelationsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  91

Table 4.24Ā Ā Ā Ā Ā Ā  Descriptive StatisticsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  91

Table 4.25Ā Ā Ā Ā Ā Ā  CorrelationsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  92

LIST OF FIGURES

Figure 2.1Ā Ā Ā Ā Ā Ā Ā  Tangibility and Customer ContactĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  21

Figure 2.2Ā Ā Ā Ā Ā Ā Ā  Sequential and Cumulative Antecedents to RentĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  55

Figure 2.3Ā Ā Ā Ā Ā Ā Ā  A Model of Antecedents to RentĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā  55

CHAPTER ONE

INTRODUCTION

  1. Background of the Study

In modern times where uncertainty is the order of the day, there are issues confronting the society and businesses existing in the society, and organizations that are proactive and innovative and takes the right decision  could be the organization that survives in this dynamic and ever changing business environment.

Innovation play a key role for the survival of firms; innovation ā€œstrikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very livesā€ (Schumpeter, 1942: 84). More recently this view has been stated by Baumol (2002): ā€œā€¦under capitalism, innovative activityā€¦becomes mandatory, a life-and-death matter for the firm and innovation has replaced price as the name of the game in a number of important industriesā€ (Baumol, 2002: 1). Innovation matters for all different types of firms, new as well as established firms. As Schumpeter emphasises, innovation is a powerful vehicle for new firms to successfully enter the market and undermine the established firms. As well, established organizations need innovating to maintain their competitive position in the face of new and emerging or ā€˜disruptiveā€™ technologies (Christensen, 1997).

 Innovation is a driver of economic growth. It is linked to increased welfare, the creation of new type of jobs and the destruction of old ones. For firms, innovation is important for a number of reasons including survival, growth and shareholder return (Banbury and Mitchel, 1995). In a recent book, Baumol noted that ā€œvirtually all of the economic growth that has occurred since the eighteenth century is ultimately attributable to innovation. The Economist Intelligence Unit undertook a survey in 2007 which noted that long-run economic growth depends on the creation and fostering of an environment that encourages innovation. It is argued that countries that generate innovation, create new technologies and encourage adoption of these new technologies grow faster than those that do not. Innovation Nation (2006) states that innovation is essential to the UKā€™s future economic prosperity and quality of life. To raise productivity, meet the challenges of Globalization and to live within environmental and demographic limits, the UK must excel at all types of innovation. There are a number of surveys that have recently been published which confirm the importance of innovation. For example, respondents to the Boston Consulting Group for their report ā€œInnovation 2010 – A Return to Prominence and the Emergence of New World Orderā€ ranked innovation as a strategic priority with 26% citing it as a top priority and a further 45% ranking it as a top three priority. Research undertaken by McKinsey during 2010 supports this with their survey reporting that ā€œ84 percent of executives say innovation is extremely or very important to their companiesā€™ growth strategy.ā€

To be resilient, organizations rely on strong leadership, their awareness and understanding of their operating environment, their ability to manage vulnerabilities and their ability to adapt in response to rapid change. Alastir (2010) asserts that as our society becomes more complex and independent, we are becoming more vulnerable to disruptive events from threats and hazard.

He further contends that the aim of building resilience is to remove or reduce the exposure of organizations to threats and hazards by developing protective measures which aim to reduce the likelihood and consequences of a disruptive event, by preventing when possible, responding effectively and efficiently when an event occurs, and by recovering as quickly and completely as possible. Seville et al. (2008) discuss organizational resilience as an organizationā€™s ā€œā€¦ ability to survive, and potentially even thrive, in times of crisisā€. Organizational resilience is a continuously moving target which contributes to performance during business-as-usual and crisis situations (Mitroff, 2005). It requires organizations to adapt and to be highly reliable (Weick and Sutcliffe, 2007), and enables them to manage disruptive challenges (Durodie, 2003).

In the past two decades, attention of business managers and scholars have continued to shift towards the importance of innovation in building organizational resilience. Innovation is one of the instruments that leverages a firm upon entering new and existing market, and provide the company with a competitive edge. Innovation opens new ground and opportunities in both local and international markets by offering new products and ideas to both local and foreign markets. As businesses operate over a period of time, they face different kinds of challenges in the environment; some of these challenges if an organization is not resilient could bring about the end of these organizations.

Plessis (2007) delineates innovation as a formation of new knowledge which helps the new business return, which has purpose to make organization internal business process and structure more sophisticated and produce the market acceptable product and services. The survival of an organization is to great deal associated with how resilient an organization can be to withstand these various challenges.

         In some cases people interchangeably use innovation and creativity without knowing the big difference between the two. Though innovation involves creativity Amabile et al(1996), it takes a lot more than creativity to bring about organizational innovation. Innovation is viewed by some professions as the introduction of a new good, to others it is the introduction of a new method of production while some consider it as creation or opening of new markets.

   In todayā€™s highly competitive and sensitive business environment, with the consistent and persistent change in customer taste and desires, and with firms struggling to remain in relevant positions in the industry, ideas are no longer centered on cost reduction and mass production with companies paying more attention to customer needs. Innovation has become a vital instrument for top firms to build competitive advantage above those that are less innovative. Current research has shown that companies that are usually market leaders are companies who have innovative competencies and use such competencies to satisfy variety of customers with different needs, thereby eliminating the chance of customers switching brands, while attracting competitorā€™s brands. Companies cannot survive through cost reduction and reengineering aloneā€¦ innovation is the key element in organizational resilience and for increasing bottom ā€“ line results (Davila, Epstein and Shelton2006). Organizations have identified the numerous advantages presented by innovation and have sought to explore it in every possible way, either to improve quality or create new market or sometimes in attempt to reduce labor cost.(Davila et al, 2006).

  1. Statement of the Problem

Resilience is a crucial characteristic in Nigerian unpredictable business environment. Trees can only survive storms if they can bend in the wind (Feather2011). The natural worldā€™s proclivity towards flexibility is also rewarded in humans, as resilient individuals can achieve greater level of success, in some cases after hundreds of attempts. At its core, resilience is the spark of determination that empowers us to get up and try again, no matter the circumstances.We have seen time and again that the most successful businesses are resilient enough to bounce back from any crisis. Many organizations have failed to recognize the importance of investing in innovative venturesand putting in place resilient plans that will help themrespond to unforeseen changes, and this has led to low profitability, poor return on investment and eventual death.

INNOVATION AND ORGANIZATIONAL RESILIENCE IN SELECTED MANUFACTURING FIRMS IN ENUGU STATE, NIGERIA