Review of Brand Affecting Organizational Innovation in Air Conditioning Industry (Case study: Conditioning Co.)

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Review of Brand Affecting Organizational Innovation in Air Conditioning Industry (Case study: Conditioning Co.)
Review of Brand Affecting Organizational Innovation in Air Conditioning Industry (Case
                               study: Conditioning Co.)
                             Sajjad Mostaghim Besarati1, Dr.Gholamreza Hashemzadeh*1
 1
     Department of Management and Accounting, Islamic Azad University, Tehran South Branch, Tehran South, Iran

                                                      ABSTRACT
Considering the passage if the societies from the industiral era to the information era, the importance of intellectual
capitals has been increased in the world of business. During the industrial era, the total cost of the assets, factories,
facilities and raw materials were necessary for a succesful business. But today, this effective use of intellectual
assets is effective in failure of success of a group (Gah, 2005). Now, knowledge and mental assets are the existed
intellectual capitals in the organization for maintaining the competetive advantage of the organization and also
development of the innovative capabilities in the organization are important for following the stable life in the
competetive environemny of today. In other words, management and controling the intekkectual capitals and also
the knwoledge assets in the organization provide the condition for transfering the knowledge and information among
the members of the organization which in trun would increase the innovative performance in the organization.
The business brands for companies are like an image and identity card which should be used in order to recognize
the qualities and offering it as a distinguished sign which is competetive. Importance and effect of the brand is so
that although at the beginiing the proper product and service introduce the brands in mind of the public but in the
middle term, continuing the presence in the markey, brand becomes the approval sign of the quality of the product
and services. Research variables include the brand effect, productive innovation, process innovation and official
innovation. Methodology of the present study is practical considering the objective and descriptive considering data
collection. Population of the study include 110 people and smaple in 86 people of the masters and managers of the
air condirioner company. Sicne the data base of the informatic company, books and magazines and interviews and
questionnaires are used for collecting the data, the Smirnov tetst and correlational test are used to analyze the data
and it is concluded that all the the hypotheses have been at 95 percent confodance level.

Key words: brand, innovation

INTRODUCTION                                                     The success of these companies is not limited to this
In classic literature of economy, work force, capital            time period and during the last seven years, their
and land (raw material) are three main elements of               share has been improved (Haupyly, 2010).
production and origins of producing wealth                       In our century, innovation is the main element and
(Ghafarian, p.2006). in traditional methods of                   cause and the key to success and the rally of the
industrial calsulation, in order to calculate the cost of        sucessful managers is "innovation or destruction".
selling, payments, rwa materials and overload is                 The advice of most of the scholars of economy and
calculated with a reasonable benefit. However, none              management is that " the spirit of enterpreneurship,
of these two pattern are able to answer how a product            innovation and creation". If creating innovation in
with same efficiency, quality and beauty can be sold             business is only the factor of benefit, a great mistake
with the cost three times more. New strategies of                is done (Mahmooudi Pati and colleagues, 2012).
succesful organizations call this phenomenon as
brand.                                                           Significane of the study
Five superior organization of the present study                  The organization which have been more successful in
include: Apple, Nokia, Google, Adidas and Riket                  management of innovation fail in managing the
Bekaser, all of which have different innovative but              innovation compared to their rivals and obtain a
significant performances and the cost of their share             towice growth in number of human forces and selling
between the years 2006 to 2007 has increased from                (Mason & et al, 2009). Organization have always
25 to 135 percent.                                               been inevitable to change what they offer in the
GMP Review, 2015; V16 (4)                                 Sajjad Mostaghim Besarati, Dr.Gholamreza Hashemzadeh

market for their survival and they have to think about         staff are considered inevitably and these innovative
changes in the market (Tafreshi and et al, 2010).              staff can create development in the organization. In
Brand can lead to creation of new ideas about the              our era, innovation was the main and key element of
product and the services of the organization. In fact          success in business.
the importance of brand is seen at the time of creating        In the world of today which is full of competition and
and following the group success. Brand is reflection           everyone tries to win over its rivals. The importance
of a relationship that an organization has with its            of innovative brands are more clear. The goal of the
customers and it is the realization of commitment of           brand is to maintain the share in the market and find
the organization which promises to do them. Having             some solutions and attract the talented staff who then
a powerful brand is helpful in success of the research         do innovations and imporve their value in face of the
and development activities and it is the realization of        shareholders.
the desires of the organization and harmonized the
attmepts of the staff inside the organization and their        Research Hypotheses
tastes and prefrences. If the staff of the organization        :
imaging themselves in such a role, the possiblity of           Research Area
approaches and new chance is more. Brand is the                Temporal area: includes first six months of the year
inspiring power of being goal oreinted and having              2014.
organizational commitment. Without this sense,                 Local area: is limited to the Air-conditioning
understanding and recognizing the chance is more               company
difficult and innovation is harder. When the                   Subject area: is related to brand and innovation
organziations are mentioned, the human source or the

       Research Model

        Production innovation
          Process innovation                                                        Brand
            Official innovation
                                     Figure 1.1: Research Model of Chen et al

Brand: the legal title of brand is the business sign.          Michael L.Tushman considered innovation as the
Brand is a collection of the practical, emotional,             field of success in business so that the managers are
reasonable and advantages that occupy the mind of              looking to recognize the cycle of innovation and
the market. Reflecting the meaning, linking the                creation and can help to do the changes in
images and signs are the advantages of the brand.              organizations for more privileges (Rezaieennejad,
These advantages or benefits of brand became the               1999).
bases for decision making and this is what is the
audience realizes in his mind through seeing, hearing,         Idea: is a determined thought which are not analyzed
feeling or any kind of relationship in conceptual,             and are produced through our observation. Idea is a
visionary or verbal form.                                      mental concept.
Innovation: using the new ideas due to innovation is
in fact implementing the ideas due to creation which           Productive innovation: provides a tool for
is in form of a product or new services. Peter Drunker         production which points to development and offering
considered innovation as an activity which needs               the products and services (Ojaslou, 2008).
knowledge, attention and hard work of the staff. He
believes that which is common among the staff is not           Process innovation: is a tool for maintaining and
a special type of personality but it is the systematic         improving and saving the costs and includes the new
commitment to innovation (Rezaieenejad, 2001).                 methods or improving the findings of production,

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distribution or offering services (Jimenez and                 Descriptive methods: in this section the information
colleagues, 2008).                                             were analyzed through using descriptive analytical
                                                               methods and using the calculation of frequency,
Official innovation: points to the strategies, policies        percentage and drawing the bars and describing the
and organizational forms and includes the policies,            general condition of the research (responses).
resource specification and other factors related to the        Inferential methods: in this section, considering the
social construct (Deft, 1978).                                 questionnaires and their responses, the test of
                                                               Komolov-Smirnov was used to measure the
Research Method                                                normality and Spearman correlation coefficient was
The present research is practical based on the goal            used for measuring the significance of the hypotheses
and is correlation-descriptive based on the nature and         and following a description of the statistical methods
the method since it studies the presents and describe          was given.
what it is.                                                     Analysis of correlation coefficient is a statistical tool
                                                               for determining the type and relationship of a
Population                                                     qualitative variable with a quantitative variable and
Population of the present study include 110 experts            correlation coefficient is one of the factors used in
and managers of the air conditioning company                   determining the correlation. Correlation coefficient
(considering the importance of the questionnaires              shows the intensity of the relationship and type of the
only the people with bachelor's and master degrees             relationship (direct or reverse). This coefficient is
were considered as population).                                between 1 to -1 and of there is no relationship
                                                               between the variables it will be zero.
Sample
Sampling was done based on a combinational method              Spearman Coefficient: since the measurement
(random and clustering sampling) which is                      index of the variables is ordinal and qualitative, the
subdivision of probable sampling. The questionnaire            Spearman correlation test is used. Spearman
was distributed among 86 people considering Morgan             correlation is calculated as:
chart.
                                                                                       2
Technical features of measurement tools                                   6       d   i
Validity: in order to measure the validity, the                rs  1         2
measurement tool should measure what it is intended                       n(n  1)
to measure. In order to answer this question and
                                                               Where
using the opinions of the experts and guides, the test
                                                               The difference of the same ranks of two adjectives =
questions were studied and ambiguities were
                                                               di
removed and it showed the acceptable content and
                                                               The number of ordered pairs in the sample= n….
face validity.
Reliability: using the data gathered from the
                                                               Research hypotheses:
questionnaire by the SPSS software, the degree of
                                                               The hypotheses discussed in this study include:
reliability coefficient of Alpha Cronbach was 92%
                                                               Main hypothesis:
which shows the internal consistency and reliability
                                                               There is a significant relationship between the brand
of the questionnaire. In order to calculate the alpha,
                                                               and innovation
first the variance of the scores of each sub section of
the questionnaire and then the overall variance have
                                                               Second hypotheses:
to be calculated (table are shown in appendix).
                                                               There is a significant relationship between brand and
Analysis method of the data was done in order to               production innovation
analyze the data and after ranking the choices from 1          There is a significant relationship between brand and
to 5 from completely disagree to completely agree,             prossess innovation
the data were analyzed by SPSS.
                                                               There is a significant relationship between brand and
                                                               official innovation

                                    Table 4-11: statistical results of hypothesis
                                                                                                      Rejected
     Number of                                                                     Correlation
                               component                       Sig.                                      or
     Hypothesis                                                                    coefficient
                                                                                                      approved
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           1              Productive innovation                0.000                0.824            approved
           2               Process innovation                  0.000                0.836            approved
           3               Official innovation                 0.000                0.913            approved

As it is seen in the table above, all the hypotheses           competitive advantage of the industries, skills,
have been approved.                                            experts and high experience of the staff in selling
                                                               affairs. Since the indices such as knowledge, skill,
Practical suggestions                                          expert and staff competency and human sources, the
Study and examination of the concepts, features and            experience of the expert staff and educated youth has
effective factors on organizational innovation showed          high importance and so , it can suggested that these
that innovation in organizations is one of the                 factors along with each other provide a higher quality
discussions that become more important by growth of            product and higher competitive advantage.
the organizations and complexity of the competitions           Suggestions based on the first hypothesis include:
among them. Based on the findings of the present               As a result of being pioneer in providing the services
study, the presence of brand and innovation names of           and new production, more benefit, increased credit of
Air Conditioning Company has created idea,                     the brand and increase of the goal market is provided
creativity and facilitating the behavior of the staff.         for Air Conditioning Company and more customers
So, as development of the brand in real term                   would be attracted.
facilitate the process of creating innovative                  Suggestions based on the second hypothesis include:
organizations and put them in a new condition, so in           There is no doubt that in order to meet the mentioned
this section based on the results of the data analysis         goals, changes in production process and services,
and statistical tests and considering the three factors        finding new ways for doing the tasks, advances in
of innovation in the organization and affecting by the         providing the methods and new ways of production,
brand, some suggestions are made:                              improving the micro process, redesigning the
The companies can be successful that are flexible and          process, redesigning the business and industrial value
improve their product quality with their services and          chain which its performances would be necessary.
can provide new services and products in the                    Suggestions based on the third hypothesis include:
competitive market of the day and accept the                   In order to get the complete success in this chain, an
competitive advantage. These types of the companies            infrastructure with an organized form is needed in
have to encourage the staff to be innovative and               which the innovation is hidden. Looking for new
provide the based for emergence of innovation and              official systems and advancement in using and
creativity and creating such condition is one of tasks         implementing these systems cause constructions and
of the brand. In fact, it can be said that innovative          the organizational relations which are followed by
attempts in the organization are results of correct            recognizing the new markets and new customers.
approach toward brand and investing on it. The                 This new official system created relationship with the
manager of the organization can create this                    customers and the byproduct of this innovations is
knowledge on the staff and provide the chance for              dynamism of the engineering section in task of
using this knowledge.                                          designing and producing the models, reengineering of
Today competitiveness of the organizations and                 the product and making the completely ordered
industries has less based on the traditional factors           product based on the customer’s needs.
(capital, land, and work force) and knowledge and              It can be concluded based on the main hypothesis
innovation has increasingly replaced these old                 that:
factors.                                                       The above mentioned descriptions are related to the
So, innovation is not only a source for competitive            indices of innovation in the organization including
advantage but as it was mentioned, it is the only              the production, process and official innovation which
source. In the modern organizations, using the                 is performing under the influence of the brand of Air
constructive capitals such as information technology,          Conditioning Company. in fact the strong way of
methods and practical plans (such as groupware,                production in this company is due to a strong brand.
databases, and internet and …). These factors give             Limitation and problems of the research
the organizations and industries the chance to provide         Generally, the limitations and obstacles of the present
better quality productions and so have a better                research are expressed as:
competitive advantage.                                         Due to short time for obtaining the information
There is no doubt that one of the most important               Development of the innovations and brand and their
factors in recent years has the best effect in the             mutual effects on each other
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Lack of research about the innovational factors                 Capferer, J, (2006) translated by Ghorbanlou, s.,
Lack of needed information                                      Strategic management of brand, 1st edition,
Not having access to the information of the company             Mobaleghan
which is due to the fact that the research was not              Catler, P., (2010), management of industrial brands,
from the official staffs.                                       translated by heydarzade, 1st edition, Cite
Lack of knowledge in the society since this research            Enos, J. (1962) Petroleum Progress and Profits; A
is a professional work in the field of brand effect             History of Process Innovation, MIT Press,
inside the organization and so the people who are               Cambridge, MA.
aware of the issue have to be used which is not                 Ettlie, J. (1999) Managing Innovation, John Wiley &
possible due to not having access to them.                      Sons, Inc.,NewYork.
Suggestion for future research                                  Figueredo, E (2001) Technological Learning and
Theories are the frameworks that are tools for                  Competitive       Performance,        Edward      Elgar,
thinking and maybe a science is not precise but                 Cheltenham.
considering the experiences, one can decide with less           Francis, D. and J. Bessant (2005) Targeting
errors and mistakes.                                            innovation and implications for capability
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noticed that designing and creating a strong brand              Gawer, A. and M. Cusumano (2002) Platform
and innovative one is necessary for strong rise of the          Leadership: How Intel, Microsoft, and Cisco Drive
organizations along with the agency in the                      Industuy, Harvard Business School Press, Boston,
competition of the changing market of the world                 MA.
today. In our country and other countries, researches           Gouharian, M, (2003), brands in Asia, Amir Kabir
and related issues with the foreign part of                     publication, 1st edition
organizations and agencies in face with brand,                  Hamel, G. (2000) Leading the Revolution, Harvard
customer loyalty, brand effect on customers form a              Business School Press, Boston, MA.
wide spread spectrum and since the previous                     Hamel, G. (2007) The Future of Management,
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and the internal sections of the organizations and              Hollander, S. (1966) The Sources of Increased
their mutual effects such as the effect of brand on             Efficiency: A Study of DuPont Rayon Plants, MIT
innovation in organization have not been significant,           Press, Cambridge, MA.
so the present researcher suggested following                   Imai, K. (1987) Kaizen, Random House, NewYork.
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need of the society                                             Management, 10(2), 175-96
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brands                                                          education and research center of Iran,
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