In this sub-chapter the key results are being discussed and how those contribute to previous literature. The literature and empirical findings of this study shows, that to understand how employee-driven innovation could be utilized in strategic planning, it is important to consider how it is being enabled in organisations in general. The other main discussion is the participation of employees in strategic planning, as it is evident that participation is crucial in contributing in the formulation of strategies. This study aimed to integrate these discussions to gain an overall view of how employees innovativeness could be utilized in the formulation of innovative strategies.
My main research question (MQ) and sub-research questions (SQ) were:
MQ: How employee-driven innovation could unfold in strategic planning in engineering industry companies by the view of middle managers?
SQ: How employee-driven innovation could be enabled in the case companies?
SQ: How employees could participate in strategic planning in the case companies?
I will present the key results of the research and illustrate the results with synthesis of the theory and empirical knowledge (Figure 2, p. 51)
5.2.1 Enabling factors of employee-driven innovation
In the literature review, participatory innovation was defined as an innovation, which emerges through participation of certain participants. Innovation could be seen as a multi-stage process, whereby organisations transform ideas into commercial use (Baregheh et al., 2009). The results of this study supports the process view of innovation, and that participation is central in innovation processes. The results show how innovations are being enabled in participation, and in this study especially through driven innovation. As previous research in employee-driven innovation suggests, employees have capabilities to think creatively and are able to contribute to innovation and change (Amundsen et al. 2014; Kesting & Ulhøi, 2010; Ford, 2001). The case companies recognized the importance of employee-driven innovation, and they were consciously attempting to utilize the innovativeness of their employees. However, the final decision-making concerning innovations was considered to be at the hands of managers.
In this study, it was found that the main benefits of employee-driven innovation were seen to be the development of operative work, processes and products. Previous literature although does not divide employee-driven innovation into strategical or operational, but it sees that employee-driven innovation may be operational but also strategical. This contradiction may be caused by the understanding of what is considered as operational or strategical. Kesting and Ulhøi (2010) argues that participating employees could increase employees engagement, which was supported by this study.
In their study, Saunila and Ukko (2012) suggested that there are factors that affect the present state of innovation capability, which could be seen important for enabling the emergence employee-driven innovation. In this study, almost all of the innovation capability factors were being found to be important in enabling employee-driven innovation. One of the main findings was, that the communication factor was seen to be the most important, and that all of the other factors are at least partly related to it. Decision-making processes and organizational structures are designed so, that the employees may have their ideas heard. Organisational culture was described to be development-centric, which was seen important in motivating employees. I also found through discourse that communality of innovation was considered as important factor, which could be included in the organisational culture factor. Also, individual creativity and know-how was seen crucial in enabling employee-driven innovation, and therefore the companies are educating their employees and attempting to transfer implicit knowledge. This study did not find evidence of the importance of external link factors. Work wellbeing, regeneration and employees’ individual activity were as well seen important by the interviewees.
Kesting and Ulhøi (2010) proposed that barriers such as time and resources might restrict the emergence of employee-driven innovation. In this study, these were as well found to be the most significant barriers, but also the fact that all ideas employees are having are not reasonable and dot not bring value for the organisation. Kesting and Ulhøi (2010) also suggests, that if innovative behaviour is not appreciated nor rewarded, employees may not have motivation to generate new ideas. The findings of this study slightly differs from this suggestion, as it was found that the main motivating factor may be the possibility to develop their own work by making it more convenient and effective. I also found through discourse that encouraging others and sharing common goals is important. Motivation and communality could be linked to employee engagement, which supports the view of the importance of employee engagement in employee-driven innovation.
5.2.2 Participation of employees in strategic planning
Literature of participation in strategy suggests that lack of participation easily leads to poorly developed strategies (for eg. Floyd & Woolridge, 2000). Despite previous literature has acknowledged the importance of participation and employees’ innovative capabilities, research
in how employees are participating in strategy is lacking. Therefore, it was needed to search for alternative approaches in how employees may enable their innovativeness for the strategic planning of organisations. Research in how employees participate in innovation processes provides beneficial understanding of how employees may have their ideas heard, and therefore participate in strategical issues as well. Tonnessen (2005) suggests that employees participation in innovation at all levels of organisation may be both directly and indirectly. He suggests that direct participation may take place in: (1) immediate work situations, (2) through proposing improvements through management, (3) planning of specific work, (4) improvement projects, (5) innovation team and (6) company-wide innovation arenas such as conferences. In this study, it was similarly found that employees may have their voices heard through those channels. Also, indirect participation through employee’s representatives was being found. It was found that employees had their ideas heard through those channels, but also participated in strategic planning indirectly by forming basis, which the company management may utilize in strategic planning.
Kesting and Ulhøi (2010) posits that employee-driven innovation is embedded in everyday critical and reflective experiences and work practices, which are triggered in social interaction and exchange. Similarly, it could be stated that employee participation in strategic planning may be embedded in the organisation, as it unfolds in direct organisational channels but undirectly relates to strategic planning. It is evident that all ideas employees may have are not strategical, as most of them are rather operational as operative work is their main responsibility.
But strategical ideas are those which may go forward in to the management level through those direct channels but indirectly. In addition, the finding that the middle managers saw that employees should not be included in strategic planning but that they are seen as innovative resources whose ideas are being widely utilized, supports the view of indirect participation in strategic planning.
Discourse analysis revealed similar findings, and in addition revealed how employees are considered as strategy implementors, who may interpret the strategies and conduct the ways they see the best. The middle managers see that employees expertise and capabilites are not enough for strategic planning, but still they are seen to enrich strategies by providing innovative and different views than the company management. Through discourse middle managers maintain the view that employee should not be included in strategic planning, although their innovativeness are seen to be adequate in participating to innovation.
5.2.3 Utilization of employee-driven innovation in strategic planning
Integrating the discussions of enabling factors of employee-driven innovation and employee participation in strategic planning provides understanding of how employee-driven innovation could unfold in strategic planning. It could be seen that enabling factors of employee-driven innovation are important in ensuring adequate level of innovation capability, which is seen as
’potential’. This potential makes it possible for the organisation to innovate and therefore enable employee-driven innovation. It could be argued that organisations may have different levels of innovation ’potential’, depending of the quality of the innovation capability factors. The enabling factors could be seen as a foundation, which serves as a backbone in enabling innovation. For employee-driven innovation and the innovation ’potential’ to unfold, participation from employees is being required, as the employees may participate directly or indirectly in decision-making and innovation processes. These participation channels may enable the innovative ideas from employees to be heard and considered. The innovative ideas employees may have could be divided into strategical and operational, and for those ideas to actualize they should pass certain barriers the organisation could be having. Those barriers could be seen to be resources, time or invaluable ideas, which restrict the further development of the idea. If the idea is operational and passes the barriers, it would not necessarily proceed to the management but it may be developed and utilized in the operational levels of the organisation. Whether the idea is considered as strategical and passes the barriers, it may proceed to the management level, where the management could take it into consideration in their strategic planning. Therefore, employees innovativeness may be possible to unfold indirectly in strategic planning.
Figure 2. Synthesis of the theory and empirical knowledge
The figure above illustrates the synthesis of theory and empirical knowledge, which forms the theoretical model of how employees’ innovativeness may unfold in organisations’ strategic planning. Enabling factors forms the basis for the ’potential’ of innovation. Communication links all the enabling factors, and it is seen as the most important factor. For the potential to actualize, direct and indirect channels of participation are required. Strategical ideas from the participation may proceed to the management level if they pass the restrictive barriers. The management may use the innovative and strategical ideas in their strategic planning.