Building an innovation culture: a case of pharmaceutical industry in Jordan

The purpose of this research is to support organizations to sustain competitiveness by building an innovation culture and supportive climate which empower employees to provide new valuable creative ideas and achieve better performance. Studies into innovation are generally devoted to studying process innovation and/or new product introduction neglecting organizational culture as a major determinant of continuous innovation. The Innovation Culture Enhancing Model (The ICE Model) and guidelines developed in this research were based upon extensive literature survey and practical feedback. The ICE model was tested over a two-year period in a large pharmaceutical company in Jordan using an action research methodology in an in depth case study obtaining major improvements to the innovative capacity of the company involved. The intervention designed for the company was based upon the ICE model components and thorough culture and climate assessments and interviews with over 638 individuals representing all levels of the company's hierarchy. In the foundation stage, the intervention involved; a flexible structure and strategy devoted to innovation supported by full management commitment. In the culture change stage, the ICE Model Dimensions: (1) Leaders as change agents dimension, (2) Shared work values dimension and (3) Motivation dimension were used to create an innovation culture. Interventions were also introduced to Keys to creativity items: (1) organizational encouragement, (2) supervisory encouragement, (3) work group support, (4) freedom, (5) sufficient resources, (6) and challenging work. The significant change to the culture and climate inside the company assessed using established climate to creativity assessment instruments was associated with improved performance measured using Key Performance Indicators (KPIs), successful achievement in international audit and empowered motivated individuals. Based upon an extensive literature survey and the action research experience, the ICE Model was refined to include two main contexts: (1) an understanding of the national culture (social structure, religion, language, education, political and economic environments), and (2) organizational environment (technological development, economic environment, socio-cultural changes, political and legal environment). This research provided background information about the national culture in the Middle East and its implications on Organizational Development (OD) interventions and MNCs investments. The research also introduced a new approach for OD interventions; named the Change by Values approach in which spiritual values are utilized as motivators to enhance successful application of culture change interventions. The outcomes of this research are particularly valuable to companies involved in mergers/acquisitions or joint ventures, which are likely to face cultural integration difficulties that might place the new endeavour at risk due to cultural differences. The developed ICE model and guidelines are major contributions to the innovation culture literature presenting innovation as a core value and creating innovation as a continuous competitive edge in a changing businesses environment