Introduction
The article discusses the current problems of the development of organizations through the generation and implementation of breakthrough technologies and radical innovations. These new approaches are reflected in modern approaches to managing organizations (talented employees) in the context of the improvement of a company. The vision of organizations’ innovative strategies and the format of business organizations’ management in the development model are presented. This is promoted by solving topical issues of managing a large company’s innovation culture by introducing the advantages of start-up culture as a way of thinking of management and employees. It is important to note that creativity has innovation potential and is a driver of business growth consequence of best management practices and leadership quality. Therefore, in the modern market situation in the field of business administration, the development of aspects of the uniqueness and creativity of the company plays an important role. They create the conditions for the organization’s growth and contribute to strengthening its position in the market.
Innovative Aspect of Business Administration
Modern reality is unique in its complexity. An uncertain future is an inherent characteristic of today’s history. The crisis associated with the pandemic and its consequences demonstrated the vulnerability of economies and businesses, put many companies on the brink of survival, and became a stress test for managers. At the same time, critical moments in the life of society, organizations, and people often act as a driver of development (Afuah, 2020). A necessary provision is that companies innovate in order to grow. Today, more than ever, the topic of the development of organizations is relevant. The practices of developing the best organizations in the world are attractive by their example but copying the experience of Apple or Google is a hopeless solution.
Organizations need to look for their approaches to solving development problems. The stimulating factor here is not only the personal ambitions of management but also the “invisible hand of the market,” competition (Singh & Gaur, 2018). No one is slowing down in the market; business participants genuinely want to neutralize their competitors. The leading companies (Amazon currently employs more than 550,000 employees worldwide) have not reduced their research and development budgets even during the crisis (Frishammar et al., 2019). Similar companies on the retention and development programs of promising employees maintained a relatively high innovative activity with a particular inventory of promising projects.
The tragic stories of once successful companies such as Xerox, Polaroid, Kodak, Nokia, AT&T, Yahoo, and others who failed to lead the revolutionary process and compete with new market players are also indicative. Their ideas decreased, organizational models were inertial and bureaucratic, and companies had not been tolerant of business risk (Riad Shams et al., 2018). In addition, they had outdated, inefficient systems for managing innovation processes, focusing excessively on rules, procedures, meetings, and management’s intolerance of significant failures. In connection with these stories, among other things, many companies have found that it makes no sense to develop independently based on their own innovations (Afuah, 2020). However, it is possible to acquire innovations by absorbing breakthrough start-ups. Creating an innovative enterprise from scratch is a challenging task to act without guaranteeing success. However, the task of maintaining and updating the innovative potential of an existing market player is even more difficult. In order to maintain their growth rate and lead breakthrough technologies, established companies need to create and intensify a continuous stream of innovations over time.
Considerable difficulty in modern business organizations is the problem of combining creative (developers) and routine processes (operators). It is worth noting that the creative process is born in chaos and disorder. At the same time, specialists engaged in routine tasks follow the formalized rules of the game and are generally deprived of opportunities to create, which is a sign of organizational discrimination (Afuah, 2020). However, this problem was solved by the leading companies of the world. Management develops organizational potential by making several interrelated decisions regarding people, processes, and structures. The ability to synthesize is inherent in people connecting different fields and spheres of activity (Singh & Gaur, 2018). This manifests itself in processes that allow experimentation and the acquisition of new knowledge and structures that facilitate rather than hinder the free flow of ideas from different sources (Riad Shams et al., 2018). All this directly depends on the general and personnel management of the organization. The company’s ability to be creative as a potential for innovation is not a consequence of scale but the quality of management.
Opposing Viewpoint
The main argument of supporters of development through the absorption of new and potentially successful companies and products is the example of many IT giants. This is reflected in the fact that such companies have significant financial resources that allow them to negotiate with start-ups easily (Singh & Gaur, 2018). However, in this case, it does not manifest itself in this way since this aspect has several features. The competitive advantage of modern organizations is based on the possession of unique and hardly reproducible (copied) knowledge and skills. Apple, Google, and Tesla have succeeded because they have become unique in essence and spirit (Frishammar et al., 2019). Innovation potential is a powerful source of competitive advantage precisely because it is challenging to create and maintain. Many companies, including direct competitors, can absorb and buy start-ups, so such decisions do not always lead to the shortest path to an effective innovation model.
A strategy is nothing more than following a set of consistent, interrelated approaches or actions aimed at achieving a specific goal. Although lately, it is becoming more and more relevant not to target strategy but the vector approach. It is essential not to achieve a specific goal but to follow the company’s strategic outline despite the circumstances, having many options for achieving success on different occasions (Singh & Gaur, 2018). The choice of an innovative strategy is not a privilege but a requirement and condition for the survival and long-term prospects of the life of a business organization. For many decades, Apple has launched various innovative products (iPod, iTunes, iPad, iPhone, AppStore). All of them are united by a common idea – to make the user experience simple and enjoyable. All of Amazon’s innovative solutions – from one-click ordering and user reviews of products to AmazonPrime and AmazonEcho – make digital retail a very convenient and safe shopping experience (Frishammar et al., 2019). In this series, a company with a rich historical biography of IKEA has firmly established itself as an example of survival and innovative success.
Conclusion
In order to live, organizations need to develop constantly. One of the ways to develop organizations is the introduction of innovations. This essay presents the vision of innovative strategies of organizations in the conditions of their development, the format of management of business organizations, and the solution to topical issues of innovation culture management. Business rapidly growing organizations with competitive advantages do not adhere to the widespread opinion that as a company grows and develops, they inevitably lose its innovative potential. The leaders of these organizations manage their business in a start-up culture and do not repeat the path of creative destruction. This can be traced through examples of how companies such as Apple and Amazon work.
The presented examples show that the solutions and products created by these organizations aim to promote and develop innovative potential. This allows these companies to exist in a constantly changing world. Therefore, for sustainable concrete development, the company and business administrators must look for ways to create a creative and innovative atmosphere. The organization’s ability to innovate is based on a system of solutions and methods in the field of general and HR management, processes, structures, and behaviors. Of particular note is the correction of the state of personnel management in organizations. It is personnel management (without detracting from the potential of other management hypostases), being the core of organizational management, aimed at transferring the organization’s management from the mode of functioning to the mode of development.
Managing a business organization during its development is primarily due to the need for constant generation of new ideas and their practical implementation. The entire management system at the stage of organizational development aims to solve this problem. Organizational structures and culture, activity aspects of management, corporate relations, and personnel management systems are changing under development. All components of the organization’s management system are dependent on each other. It is impossible to balance the system and use it effectively if such dependence is not traced.
References
Afuah, A. (2020). Innovation management: Strategies, implementation, and profits (2nd ed.). Oxford University Press.
Frishammar, J., Richtnér, A., Brattström, A., Magnusson, M., & Björk, J. (2019). Opportunities and challenges in the new innovation landscape: Implications for innovation auditing and innovation management. European Management Journal, 37(2), 151–164.
Riad Shams, S. M., Vrontis, D., Weber, Y., & Tsoukatos, E. (2018). Strategic innovation management: A cross-functional vision to be materialised. In S. M. Riad Shams (Ed.), Business Models for Strategic Innovation (pp. 1–10). Routledge.
Singh, S. K., & Gaur, S. S. (2018). Entrepreneurship and innovation management in emerging economies. Management Decision, 56(1), 2–5.