Grassroots innovation success: The role of self-determination and leadership style

An increasing number of firms engage in grassroots innovation, i.e., the voluntary generation and development of innovations by any member of an organization, regardless of function or seniority. However, no empirical study to date identifies the determinants of success or failure of grassroots inno...

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Detalles Bibliográficos
Autores: Stremersch, S. (Stefan)|||/items/87cdb0b7-d1d7-4504-9d85-1544f561ea06, Camacho, N. (Nuno)|||/items/6458fd76-11c6-4ca6-8fdc-70c3b47b021a, Keko, E. (Elio)|||/items/fde1fccb-46fb-4026-9c90-51b48fa70e04, Wuyts, S. (Stefan)|||/items/3ab09998-85bb-47ee-893a-da480129232c
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universidad de Navarra
Repositorio:Dadun. Depósito Académico Digital de la Universidad de Navarra
Idioma:inglés
OAI Identifier:oai:dadun.unav.edu:10171/69245
Acceso en línea:https://hdl.handle.net/10171/69245
Access Level:acceso abierto
Palabra clave:Innovation
Grassroots innovation
Grassroots innovation process design
Self-determination
Leadership style
Market orientation
Descripción
Sumario:An increasing number of firms engage in grassroots innovation, i.e., the voluntary generation and development of innovations by any member of an organization, regardless of function or seniority. However, no empirical study to date identifies the determinants of success or failure of grassroots innovation initiatives. We execute a survey study among 3,728 managers in 14 countries, 2,353 of which (63.1%) had already engaged in grassroots innovation. We find that, on average, firms that adopt grassroots innovation outperform firms that do not. We also find that firms that enable (1) employee autonomy, (2) competence development, and (3) relatedness (i.e., helping employees establish mutually beneficial relationships with trusted colleagues) in their grassroots innovation initiatives outperform firms that do not. We document that such effects are contingent on a firm’s institutional environment (i.e., leadership style and market orientation). For instance, the lower the market orientation and the higher the hierarchical leadership of the firm, the higher the performance returns the firm obtains from fostering autonomy and relatedness in grassroots innovation. These findings encourage managers and firms to adopt (or persist in their) grassroots innovation initiatives, to infuse them with sufficient autonomy, competence, and relatedness and match them with the right leadership style.