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Workplace innovation: exploratory and confirmatory factor analysis for construct validation

Wipulanusat W., Panuwatwanich K., Stewart R. A.

Management and Production Engineering Review

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2017

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Vol. 8, No. 2

57--68

EN

Workplace innovation enables the development and improvement of products, processes and services leading simultaneously to improvement in organisational performance. This study has the purpose of examining the factor structure of workplace innovation. Survey data, extracted from the 2014 APS employee census, comprising 3,125 engineering professionals in the Commonwealth of Australia’s departments were analysed using exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). EFA returned a two-factor structure explaining 69.1% of the variance of the construct. CFA revealed that a two-factor structure was indicated as a validated model (GFI = 0.98, AGFI = 0.95, RMSEA = 0.08, RMR = 0.02, IFI = 0.98, NFI = 0.98, CFI = 0.98, and TLI = 0.96). Both factors showed good reliability of the scale (Individual creativity: α = 0.83, CR = 0.86, and AVE = 0.62; Team Innovation: α = 0.82, CR = 0.88, and AVE = 0.61). These results confirm that the two factors extracted for characterising workplace innovation included individual creativity and team innovation.

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Exploring leadership styles for innovation: an exploratory factor analysis

Wipulanusat W., Panuwatwanich K., Stewart R. A.

Engineering Management in Production and Services

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2017

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Vol. 9, no. 1

7--17

EN

Leadership plays a vital role in building the process, structures, and climate for an organisation to become innovative and to motivate team expectations toward innovations. This study explores the leadership styles that engineers regard as significant for innovation in the public sector. Exploratory factor analysis (EFA) was conducted to identify the principal leadership styles influencing innovation in the Australian Public Service (APS), using survey data extracted from the 2014 APS employee census comprising 3 125 engineering professionals in Commonwealth of Australia departments. EFA returned a two-factor structure explaining 77.6% of the variance of the leadership for innovation construct. In this study, the results from the EFA provided a clear estimation of the factor structure of the measures for leadership for innovation. From the results, the two factors extracted were transformational leadership and consideration leadership. In transformational leadership, a leader values organisational objectives, inspires subordinates to perform, and motivates followers beyond expected levels of work standards. Consideration leadership refers to the degree to which a leader shows concern and expressions of support for subordinates, takes care of their welfare, treats members as equals, and displays warmth and approachability. These findings highlight the role of leadership as the most critical predictor when considering the degree to which subordinates strive for creativity and innovation. Both transformational and consideration leadership styles are recommended to be incorporated into management training and development programs. This study also recommends that Commonwealth departments recruit supervisors who have both of these leadership styles before implementing innovative projects.

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Empirical study to identify the key business activities contributing to manufacturing business performance

Huang T. T., Stewart R. A., Chen L.

Journal of Achievements in Materials and Manufacturing Engineering

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2008

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Vol. 31, nr 2

747-755

EN

Purpose: Within the context of high global competitiveness, knowledge management (KM) has proven to be one of the major factors contributing to enhanced business outcomes. Furthermore, knowledge sharing (KS) is one of the most critical of all KM activities. From a manufacturing industry perspective, supply chain management (SCM) and product development process (PDP) activities, require a high proportion of company resources such as budget and manpower. Therefore, manufacturing companies are striving to strengthen SCM, PDP and KS activities in order to accelerate rates of manufacturing process improvement, ultimately resulting in higher levels of business performance (BP). A theoretical framework along with a number of hypotheses are proposed and empirically tested through correlation, factor and path analyses. Design/methodology/approach: A questionnaire survey was administered to a sample of electronic manufacturing companies operating in Taiwan to facilitate testing the proposed relationships. More than 170 respondents from 83 organisations responded to the survey. The study identified top management commitment and employee empowerment, supplier evaluation and selection, and design simplification and modular design as the key business activities that are strongly associated with the business performance. Findings: The empirical study supports that key manufacturing business activities (i.e., SCM, PDP, and KS) are positively associated with BP. The findings also revealed that some specific business activities such as SCMF1, PDPF2, and KSF1 have the strongest influencing power on particular business outcomes (i.e., BPF1 and BPF2) within the context of electronic manufacturing companies operating in Taiwan. Practical implications: The finding regarding the relationship between SCM and BP identified the essential role of supplier evaluation and selection in improving business competitiveness and long term performance. The process of forming knowledge in companies, such as creation, storage/retrieval, and transfer do not necessarily lead to enhanced business performance; only through effectively applying knowledge to the right person at the right time does. Originality/value: Based on this finding it is recommended that companies should involve suppliers in partnerships to continuously improve operations and enhance product design efforts, which would ultimately enhance business performance. Business performance depends more on an employee's ability to turn knowledge into effective action.