VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY -------------------- NGUYEN THI HUYEN IMPACT OF ORGANIZATIONAL CREATIVITY CLIMATE ON EMPLOYEE’S INNOVATIVE BEHAVIORS: EVIDENCE FROM VIETNAM MASTER’S THESIS BUSINESS ADMINISTRATION Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY NGUYEN THI HUYEN IMPACT OF ORGANIZATIONAL CREATIVITY CLIMATE ON EMPLOYEE’S INNOVATIVE BEHAVIORS: EVIDENCE FROM VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 60340102 RESEARCH SUPERVISORS: DR. TRAN BICH HANH PROF.DR KODO YOKOZAWA Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGMENTS This is my sincere thanks to Prof. Kodo Yokozawa and Dr. Tran Thi Bich Hanh, my supervisors, for their guidance, support and valuable recommendations to this work as well as their encouragement always.
Without their support, my thesis would remain incomplete. My special thanks go to my friends and participants who provided me with data for this thesis. My special thanks also extended to Ms. Huong-Assistant of MBA program and friends from MBA02 as they are my huge source of energy and motivations.
Besides, I want to express my gratitude to the Vietnam Japan University, and Yokohama National University for nurturing and giving me an excellent educational environment. Last but not least, I wish to express my deepest gratitude to my family who was sacrificed to my growth education, gave endless encouragement and support and provide spiritual strength for me. Nguyen Thi Huyen May 01st, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT Purpose: Innovation is the key for organizations to maintain their competitive advantages in the world of growing competition. The employees are individuals who creates and implements these innovations and innovative behaviors of employees have been asserted to have a significant impact on work outcomes and organizational innovation performance.
Interested in understanding effects of environmental factors on employee’s innovative behavior, this research adopted an 8-dimensional model from Amabile (1996) and 4-dimensional innovative behavior from De Jong and Den Hartog (2010) to test the relationship between them. Moreover, as there are very limited in innovative behavior are conducted in Vietnam, this research hopes to contribute to literature about creativity climate and innovative behavior in Vietnam Design/methodology/approach: There are 245 valid responses from employees working in an organization in Vietnam. The effect of each climate factor on each factor of employee’s innovative behavior Findings: Challenging work to have the strongest influence on both creativity oriented behaviors and implementation oriented behavior. Obstacle factors such as organizational impediments and workload pressure still present positive relationship with innovative behavior.
Research limitations: due to a small number of respondents and a large difference among genders, the results lack generalization. Self-report method and an online survey may make the result less objective. Contributions: Contribute to current literature about creativity climate in Vietnam Keywords: organizational climate, creativity climate, innovative behavior, creativity LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS CHAPTER 1: INTRODUCTION .1 Background of the study .2 Research objectives and research questions .3 Subject and scope of the study .4 Outline of the thesis. 4 CHAPTER 2: LITERATURE REVIEW.1 Organizational Creativity Climate .2 Employee innovative behavior .3 Hypothesis development and research framework .1 Organizational encouragement and employee’s innovative behavior .2 Managerial encouragement and employee’s innovative behavior .3 Workgroup support and employee’s innovative behavior .4 Freedom/Autonomy and employee’s innovative behavior .5 Sufficient resource and employee’s innovative behavior .6 Challenging work and employee’s innovative behavior .7 Organizational impediment and employee’s innovative behaviors .8 Workload pressure and employee’s innovative behavior.
Research model & scales. 19 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 3: RESEARCH METHODOLOGY. Data collection procedure. 23 CHAPTER 4: RESEARCH ANALYSIS AND RESULTS.
Exploratory factor analysis. Exploratory analysis of Organizational creativity climate scales. Exploratory factor analysis of employee’s innovative behavior scale. Revised research model.
DISCUSSION AND CONCLUSION. Impacts of creativity climate factors on creativity oriented behaviors. Impacts of creativity climate factors on implementation oriented behaviors41 5. 43 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.4 Limitations and future research direction.
52 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 2.1: Measures for assessing the climate for innovation. Summarized researches about organizational creativity climate .3 Summarized researches about innovative behavior .1: Summary of sample characteristics .2: Summarize Cronbach’s Alpha values .3: Exploratory factor analysis of Organizational creativity climate .4: Factor analysis for Organizational creativity climate scale – 2nd time .5: Exploratory factor analysis of employee’s innovative behavior .6 Reliability and Exploratory factor analysis of employee’s innovative behavior- 2nd time .8: Structural relationships and hypotheses testing. 37 LIST OF FIGURES Figure 2. Conceptual model of KEYS .1: Proposed research model .1: Revised research model.
35 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1.1 Background of the study Vietnam is now a developing country with remarkable speed in economic development. We are witnessing the rapidly changing in the business environment and increasing competition in Vietnam. According to the Ministry of Science and Technology (2010), innovation is a critical factor for Vietnam in order to achieve the target of becoming an industrial economy by 2020. At the organizational level, it is no argued that innovation is the key to maintain competitive advantages for companies.
France, Mott, and Wagner (2007) assert that innovation is the key for the organization to gain a competitive advantage. Meanwhile, all innovation comes from creative ideas (Scott & Bruce, 1994), the person who develops, promote, discuss, modify, and ultimately implement ideas are employees (Van de Ven, 1986). Therefore, employee’s innovative behaviors play an important role in achieving organizational effectiveness and maintain organization’s survival (Oldham & Cummings, 1996; Richter, & Shipton, 2004). Especially for companies in innovative industries such as IT, marketing, media, etc., the role of employee innovative behaviors become more critical.
Therefore, most organizations are striving to hire the highly creative people (Sternberg et al. However, research has shown that having creative people in the organization is not enough; the organization must create the environment that fosters and bring out the creativity within the employees (Amabile, Conti, Coon, Lazenby, & Herron, 1996). Therefore, it is critical to know how to create an organizational climate that actively develops innovation among employees (Patterson et al, 2004). Knowing what organizational climate factors promote employee’s innovative behaviors will help the organization adjust themselves to better foster innovative behaviors to enhance its competitiveness and business performance.
Moreover, currently, Vietnam is ranked 45th 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com in Global innovation index, among 127 economies and the country is making an effort to become an innovative economy. The government has taken many decisive actions to foster innovation such as launching Vietnam innovation network to connect Vietnamese scientist worldwide, provide an attractive policy to solicit talents overseas, provide technological innovation support for business, etc. Organizations themselves also take several initiatives to improve innovation. Thus, understanding employee’s innovative behaviors will contribute some implications to attain this goal at an individual level.
However, currently in Vietnam, the research on innovation is still rare and factors that affect innovative behaviors at the individual level are still not clearly explored. Until now, there have been very few academic publications on employee’s innovation in Vietnam. The research will provide some propositions on employee’s innovative behavior and to test these propositions through real data in Vietnam. As employees' innovative work behavior is assumed to have a positive contribution to innovation in the organization, many researchers have dedicated efforts in identifying potential factors that could develop innovative behaviors (Fairness et al., 2015; Janssen, Van De Vliert, & West, 2004; and Mumford, Scott, Gaddis, &Strange, 2002) According to J.
De Jong & Den Hartog (2010), although there is a positive relationship between innovative climate and innovation, most empirical research examined effects of organizational climate on innovation at the team level and organizational level.g Amabile, Conti, Coon, Lazenby, & Herron, 1996) at the organizational and team level have indicated that climate positively affected the innovation. However, there are still very limited empirical work study about the influences of climate on innovative behavior of the employee. Scott and Bruce (1994) found a positive but weak relationship between employee’s perceptions of organizational climate and their innovative behavior. Moreover, while most of the previous studies have investigated the link between organizational creativity climate and innovative work behavior in general, there are limited researches that provide understanding about the relationship between the 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
Furthermore, the current literature about the effects of organizational climate is mainly come from researches conducted in western countries and have not been tested widely in Asian settings (Sellgren, Ekvall & Thomas, 2008). Finally, a review by Amabile et al., (1996) suggested there is a bias toward creativity supportive factors that seem to enhance creativity while paying little attention to impediment factors. In order to provide a comprehensive understanding of creativity climate factors, this research will include both positive and negative climate factors that might be important for creativity. In addition, this research plan to fill these gaps by investigating the relationship between creativity climate and employee’s innovative behavior using the real data in Vietnam.
The cross-level relationship between dimensions of the two constructs will also be tested.2 Research objectives and research questions Research objectives: To test the effect of factors of organizational creativity climate on employee’s innovative behaviors. Based on the results, suggest useful managerial implications for companies in Vietnam. Research questions: Q1: Which factors of organizational creativity climate affect employee’s innovative behaviors? 1.3 Subject and scope of the study The subject of study are employees who are working in Vietnam and doing various types of jobs, including both high and low creativity intensive works. The scope of the study: The research is conducted in Vietnam, data collection is conducted from 5th Apr to 24Apr.
Respondents are employees who are working in companies in Vietnam. 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.4 Outline of the thesis Regardless of the Abstract, references, and appendices, the thesis has five main parts as follows: Chapter 1: Introduction: briefly introduce research background, research objective, research scope, and outline. Chapter 2: Literature review: presents the literature about organizational creativity climate and employee’s innovative behavior Chapter 3: Research Methodology: provide detail research method from preparing for collecting data to analyzing data Chapter 4: Research analysis and results: descriptive information about the sample characteristics are presented, results from SPSS software is shown. Chapter 5: Discussion conclusion: chapter gives answers to the research question on organizational creativity climate and relationship with employee innovative behavior.
Some suggestions for further improvement and study are also given. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 2: LITERATURE REVIEW This chapter presents the literature about organizational climate, creativity climate, employee’s innovative behavior and information about previous related researches.1 Organizational Creativity Climate “Studies on work-related environmental features have been brought together under the general heading of climate” (Patterson et al. “Climate has been defined as a set of shared views regarding individuals’ perceptions of organizational policies, practices, and procedures (Patterson et al. According to Litwin et al (1968), organizational climate is defined as “a set of measurable properties of the work environment, perceived directly or indirectly by the people who live and work in this environment and assumed to influence their motivation and behavior”.
Similarly, Denison (1996) pointed out that climate is defined as “the perceptions of environmental conditions that shape individuals’ beliefs about the work environment. For instance, this may include perceptions of outcomes, expected behaviors, interpersonal interactions, requirements, and contingencies”. Literature review shows that there are many researchers interested in specific types of organizational climate such as safety climate, ethical climate, service climate, procedural justice climate, etc. In the last 20 years, there has been an increasing interest in research about creativity climate (or the climate for innovation).
Creativity climate is a specific type of climate. Amabile (1996) refers to “climate for creativity as a stimulating working environment which elicits flows of creativity in organizations”.