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How to Increase Innovation in Organizations

Innovation and creative thinking in organizations is not only difficult to achieve, but also potentially risky, time consuming, and expensive. Is it worth the effort? Several studies suggest that indeed, higher organizational innovation affects overall performance quite strongly and is worth pursuing.

How, then, can innovation and creative thinking be increased in an organization? One important factor seems to be a strong learning orientation within the company.

Learning orientation (as defined in this body of research) consists of the following four components:

  1. commitment to learning,
  2. shared vision,
  3. open-mindedness, and 
  4. intra-organizational knowledge sharing.

Studies have shown that learning orientation not only influences firm innovativeness directly, but that it also moderates the impacts of risk-taking,

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