The determinants of organizational innovation management effectiveness in the Thai banking industry

Abstract

The purpose of this study was to develop and to test a theoretical framework for explaining the determinants of organizational innovation management effectiveness. The main objective was to explain the determinants of seven contingency prediction factors behind innovation management effectiveness in an organization, namely Innovation Strategy, Organizational Structure, Organization Culture, Project Management, Team Cohesiveness, Strategic Leadership and Coordination and Communication. In addition, the dissertation attempted to employ the concept of resource-based view theory organizational contingency theory to explain the determinants of the seven contingency prediction factors, which examines whether the outputs of all these positive alignments impact the innovative capacity and to test the model of the seven contingency prediction factors of innovation management effectiveness. In research methodology, the researcher provided a literature review of documents from several sources and used the review to derive at the conceptual framework and hypotheses model. Furthermore, the questionnaire was developed by operationalizing the constructs or variables from the literature review to test the hypotheses. The researcher also conducted a pre-and-test to test the reliability of the questionnaires as a result of high reliability efficiency. The primary data will be collected through questionnaires from the non-probability sampling population of the staff of both commercial banks (SCB and KBank) and state-owned banks (KTB and GHB). The research methodology is also considered critical to the success of this work. The research employed both quantitative and qualitative methods and the quantitative data was analyzed using SPSS and Structural Equation Model-AMOS program. A theoretical, managerial and policy models were developed and the constructs of innovation strategy and strategic leadership were found to be the main influence on conceptual innovation management effectiveness while organization culture, team cohesiveness and project management had a significant positive influence on innovation management effectiveness. Furthermore, there were no significant differences between commercial banks and state owned banks. Also, business policies which formulated the business strategy and process were the key drivers behind improving innovation management effectiveness. Finally, this dissertation provided the limitations of the study as well as recommendations regarding policy implications and the future directions of research study.