An investigation of key factors determining innovation delivery in a South African FMCG company.

Abstract

Organisational theorists and managers have long shown interest in the role of innovation in organisations as innovation plays a crucial role in sustaining competitive advantage. A recent study revealed a gap between what leading corporations say about innovation and what they do. The gap is large: while 80 percent of companies acknowledged the importance of innovation in their business, only four percent were confident that they were good at it. The present study assessed innovation in a local FMCG organisation. An attempt to ascertain the factors determining innovation delivery in the company was made. The current investigation demonstrated that the overall perception on the company's innovation was high, notably the emphasis on the importance of innovation. Positive strong innovation capabilities have been demonstrated: high innovation commitment, a strategy that promotes innovation and that is clearly communicated and understood by all levels, adequate resources and facilities that keep the company competitive and, very important, an effective process. However, to sustain growth through innovation, the organisation needs to address a number of key issues such as unfavourable employee attitudes towards innovation, risk management, management creativity and the company structure.