The relationship between innovation and leadership in First National Bank of South Africa

This research investigates the relationship between innovation and leadership in First National Bank in South Africa. In an information age paradigm, innovation is a key driver of organisational success. Innovation allows an information age company to create a sustainable competitive advantage over its competitors. First National Bank (FNB) has recognised the need for innovation and measures the amount of innovation generated in each business unit on an annual basis. Leadership is a key factor influencing innovation in large, multi-segment organisations, particularly transformational leadership. Large multi-segment organisations often have multi-functional teams and transformational leadership of these teams more effectively promotes innovation. Large multi-segment organisations also often have complex decision making processes. Transformational leadership ensures optimal innovative decisions rather than adequate decisions are reached. FNB is a multi-segment organisation comprising ten business units each headed by a Chief Executive Officer (CEO). The relationship between the level of innovation being generated annually by each business unit and the leadership style of the business unit CEO formed the focus of this research. The Multifactor Leadership Questionnaire was used to gather information on the leadership style of each CEO's. Data on the level of innovation within each of these business units was supplied by First National Bank. Data was statistically analysed against the innovation generated by each business unit using correlation analysis. Most of the results testing the relationship between transformational and transactional leadership and innovation were found not to be significant. This contradicts the theory which suggests a positive relationship between transformational leadership and innovation

The relationship between innovation and leadership in First National Bank of South Africa

This research investigates the relationship between innovation and leadership in First National Bank in South Africa. In an information age paradigm, innovation is a key driver of organisational success. Innovation allows an information age company to create a sustainable competitive advantage over its competitors. First National Bank (FNB) has recognised the need for innovation and measures the amount of innovation generated in each business unit on an annual basis. Leadership is a key factor influencing innovation in large, multi-segment organisations, particularly transformational leadership. Large multi-segment organisations often have multi-functional teams and transformational leadership of these teams more effectively promotes innovation. Large multi-segment organisations also often have complex decision making processes. Transformational leadership ensures optimal innovative decisions rather than adequate decisions are reached. FNB is a multi-segment organisation comprising ten business units each headed by a Chief Executive Officer (CEO). The relationship between the level of innovation being generated annually by each business unit and the leadership style of the business unit CEO formed the focus of this research. The Multifactor Leadership Questionnaire was used to gather information on the leadership style of each CEO's. Data on the level of innovation within each of these business units was supplied by First National Bank. Data was statistically analysed against the innovation generated by each business unit using correlation analysis. Most of the results testing the relationship between transformational and transactional leadership and innovation were found not to be significant. This contradicts the theory which suggests a positive relationship between transformational leadership and innovation

Editor's Note

The term 'Digital Economy' was coined for the first time by Don Tapscott in 1995 in his best-seller The Digital Economy: Promise and Peril in the Age of Networked Intelligence. When he wrote the book 20 years ago, he announced how he thought the Internet would fully transform the nature of business and government. We have now extended the concept, illustrating how digital technologies are rapidly transforming business practices, the economy and societies. Technology, and its impact on business strategy and society, continues to rise in importance. The Digital Economy, sometimes also called “Digital Business” has become a philosophy for many top executive teams as they seek competitive advantages in a world of fast moving technological change. When we talk about digital technologies, we are not only talking about the internet, nor only ICT (Information and Communications Technology), but other concepts such as mobile, telecommunications or content. The digital economy is by no means an exclusively economic concept. Therefore, it might be more appropriate to speak of digital society or digital technology. What matters is that digital is a transverse concept that affects individuals, businesses and public administrations

PANEL 4 ORGANIZATIONAL TRANSFORMATION IN THE INFORMATION AGE

The issues addressed by this panel are complex but urgent. Large multinational companies and public agencies are reaching a limit of structural complexity but not of growth. This is evidenced by increases in layers of management and staff, administrative overhead, and more formal control and reporting systems. Redesign of organizations via information technologies offers the chance to create or restore organizational simplicity. Furthermore, information technologies can provide an opportunity for creating organizational structures that are more adaptive, responsive, and flexible. This will be essential for any organization to be able to deal with increasing environmental turbulence in terms of intense cost pressures, internationalization across industries, and the breaking down of traditional industry boundaries. This panel aims at answering the question How can information technologies be effectively used as a base for organizational redesign and reclustering? More specifically, the panel will focus on: Emerging New Organizational Forms New models are needed for organizational redesign and structuring aimed at achieving adaptability and responsiveness. These models must provide the freedom to respond to increasing complexity in a new business era. Business teams and interorganizational relationships represent examples of new organizational approaches. The panel focuses on the new approaches and the role of information technologies in their implementation. Role of Information Technologies as an Enabling or Inhibiting Factor This panel also addresses how an organization\u27s existing base of technology impacts the implementation of new organizational forms. Organizations must become more flexible to survive in today\u27s hostile business environment. This flexibility allows companies to respond to threats in a timely fashion and be proactive in business. Information technologies can play a key role in enabling the next generation of organizational structures by providing a flexible and responsive infrastructure, but, in fact, these infrastructures are often not flexible and have become a barrier to organizational change. New Paradigm for Study of Organizations in Action The traditional concept of an organization is no longer useful to managers or students of organizations. It is dominated by models of structure and physical identity. New distinctions to describe organizations in action are needed. The Panel discusses possibilities of implementing plans for organizational design that involve information technologies. This panel will enhance the attendees understanding of the issues and intricacies of organizational transformation in the information age

Team to Market (T2M): Creating High Performance Teams in the Digital Age

1. Teams are the essential means of product or service delivery and the fundamental building blocks of modern organisations. An effective team can produce results far outperforming a collection of even the most talented individuals when team members coalesce and jell into a single, well-functioning, fully-aligned organism. This report advances the notion of “Team to Market” (T2M) to help business leaders and knowledge workers understand, create and lead high performance teams in the digital age

Venture Capitalists' Evaluations of Start-up Teams: Trade-offs, Knock-out Criteria, and the Impact of VC Experience

The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as "What strength does it take to compensate for a weakness in characteristic A?" Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data was obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models. (author's abstract

Teamwork assessment in order to promote engineering students innovative attitude

This paper presents an outline of the evaluation of the active learning taking place in an engineering course1 in the Universidad de los Andes in Colombia. The course intends to contribute to the development of the innovative attitude of Systems and Computing Engineering and Industrial Engineering students (average age is 20), through the development of competences such as: - Engineering teamwork - Effective communication in engineering processes - Engineering systems design - Management of engineering projects Throughout the course the students work in interdisciplinary teams (5 students each). Each team has the following of the teachers (One Computing Engineering professor and one Industrial engineering professor) and one member of the entrepreneurs staff (ICT leaders). Each team should propose and develop an engineering project based on ICT innovation. This course is inspired on the CDIO proposal (Conceive, Design, Implement, Operate), with a particular emphasis in one additional first step: the Observe step. The OCDIO steps (observation, conception, design, implementation and operation) of the project are developed during two academic semesters. At the end of this process, the teams present their project in a fair that’s open for the business public and in a contest. The winners of the contest continue the next year with the implementation of the project [1]. So far, 20 groups have participated each semester and there have been 4 winning teams (20 students). We tried to assess the teamwork evolution along the process and its relation with the innovation attitude. In order to achieve this, we’ve had gathered information from the entrepreneurs, teachers and students who, through observation tools, have allowed us to define indicators related to teamwork. For the analysis we have relied on the different evaluation instances (oral presentations, papers, the fair, and the contest), the tools we have designed (surveys), and video recordings of different processes.Peer Reviewe

Economic liberalization and the antecedents of top management teams: evidence from Turkish 'big' business

There has been an increased interest in the last two decades in top management teams (TMTs) of business firms. Much of the research, however, has been US-based and concerned primarily with TMT effects on organizational outcomes. The present study aims to expand this literature by examining the antecedents of top team composition in the context of macro-level economic change in a late-industrializing country. The post-1980 trade and market reforms in Turkey provided the empirical setting. Drawing upon the literatures on TMT and chief executive characteristics together with punctuated equilibrium models of change and institutional theory, the article develops the argument that which firm-level factors affect which attributes of TMT formations varies across the early and late stages of economic liberalization. Results of the empirical investigation of 71 of the largest industrial firms in Turkey broadly supported the hypotheses derived from this premise. In the early stages of economic liberalization the average age and average organizational tenure of TMTs were related to the export orientation of firms, whereas in later stages, firm performance became a major predictor of these team attributes. Educational background characteristics of teams appeared to be under stronger institutional pressures, altering in different ways in the face of macro-level change

Diverse virtual social networks: Implications for remote software testing teams

This paper evaluates offshore outsourcing in the IT testing industry and determines what conditions determine its success. There is particular focus on the influence of diversity in teams on group relationships. Two studies are described: the first, investigated the perceptions of professional software testers on the critical factors of offshore outsourcing; and the second study looked at the ability for diverse teams to form close working relationships through virtual networks. We find that overt diversity factors inhibit interaction across nationality boundaries. The limitations of virtual networks for fostering personal communications is apparent in preventing group members from overcoming the initial aversion to mix with out-group members, which could be achieved with closer and more personal communications between members with different diversity factors in normal face to face communications. Where software testing teams are outsourced globaly, and must rely on virtual communications, there seems potential for significant difficulties in developing close working relationships, which on the one hand, can be negative for group cohesion, but one the other hand, can be positive for encouraging imparitality

A Cost-Benefit Analysis of Face-to-Face and Virtual Communication: Overcoming the Challenges

Virtual communication has become the norm for many organizations (Baltes, Dickson, Sherman, Bauer, & LaGanke, 2002; Bergiel, Bergiel, & Balsmeier, 2008; Hertel, Geister, & Konradt, 2005). As technology has evolved, time and distance barriers have dissolved, allowing for access to experts worldwide. The reality of business today demands the use of virtual communication for at least some work, and many professionals will sit on a virtual team at some point (Dewar, 2006). Although virtual communication offers many advantages, it is not without challenges. This article examines the costs and benefits associated with virtual and face-to-face communication, and identifies strategies to overcome virtual communication\u27s challenges