Literature Review Matrix & Paper Formatting
Role of First-Line Managers in Implementing Effective Innovation in Organizations
Introduction
Research Background
In the current age of rapid changes, businesses are under increased pressure to engage in innovative behaviors and practices to gain a competitive advantage in the market. Innovation enables firms to be more flexible and adaptable to ever-changing and advancing technologies and the unpredictable and uncertain business environment. However, for businesses to innovate they have to rely on their employees’ innovative behaviors to develop solutions to the problems facing an organization (Elidemir, Ozturen, & Bayighomog, 2020). It is critical to note that employees’ innovative behavior is frequently influenced by the climate in which they work (Theure, Tumasjan, & Welpe, 2020). Given that environment is defined as workers’ impressions of official and informal organizational rules, practices, and procedures, it is reasonable to anticipate that the roles of first line managers can impact the innovative behavior exhibited by employees (Theurer et al. 2020).
The current study will seek to offer insights into the impact of first-line managers’ roles on the employees’ innovative behavior in the organization. The research study will specifically, focus on the oil and gas sector in the United Arab Emirates (UAE) which in the last year has experienced upheavals driven by a considerable drop in oil prices (The National, 2021). The reducing oil prices as well as shifting demand for oil and gas driven by tightening emissions regulations across the world, the rise of electric vehicles, considerable demand growth being driven by countries outside the organization for economic co-operation and development (OECD) and the younger generation embracing the sharing economy thus reducing the demand for oil means that oil and gas companies have to embrace innovation (The National, 2021). Innovation in this case is in pursuit of new efficiencies such as cutting costs to maximize productivity and profits and to produce low hydrocarbon products (The National, 2021).
With the changing price and demand dynamics, a majority of the oil and gas companies in the UAE have responded with innovation initiatives. Abu Dhabi National Oil Company (ADNOC) for example putting in place a 2030 strategy whereby the company aims to transform its business and future success by delivering growth, value creation, and profitability by seeking new ways to suit the current world and the future needs (ADNOC, 2021). However, while it has not been difficult to introduce technology advances and innovations, putting them in place, maintaining them, and keeping them successful over time has proven challenging (Abuhejleh, Dulaimi, & Ellahham, 2016). To ensure successful implementation of technological innovation, there is a need to provide adequate organizational support to employees to ensure they exhibit positive energy and eagerness which motives them to go beyond their defined job responsibilities and exhibit innovative behaviour (Riaz, Xu, & Hussain, 2018). Therefore, this study will determine the impact of first line managers’ role on employee innovative behavior in the UAE oil companies.
In the ever dynamic and competitive contemporary business environment, businesses are always striving for competitive advantage with innovation being earmarked as one of the avenues to help organizations to achieve a larger market share (Alhammadi Tham, & Azam, 2020). Technological advancements, shifts in customer behavior, greater competition, limited resources, short product lifecycles, and changing business models are among the elements that have helped drive the need for innovation in businesses in recent times (Kozioł-Nadolna, 2020). Moreover, internal factors which affect employees’ innovative behavior and the subsequent competitiveness and productivity of the organization include material, intangible, and human resources (Kozioł-Nadolna, 2020). Internal factors role in organizational innovation is informed by the resource-based view (RBV) which implores organizations and management to focus internally and assess assets, capabilities and competencies that can help an organization generate and deliver competitive advantages (David & DeWitt, 2021; Kozioł-Nadolna, 2020).
Based on the RBV, employees are one of the most valuable internal resources to organizational innovation (Cruz & Haugan, 2019). Employees create and introduce new ideas and innovations with their attitudes towards innovation playing a crucial role in how an organization perceives problem finding and solutions and determining how effectively an organization can adopt and implement innovations (Paulikas, 2018). Hansen Amundsen, Aasen, and Gressgård (2017) further note that leaders and managers can influence employees’ attitudes towards innovation by being open to new ideas, making the employees aware of the impact of their innovative ideas on the organization, open communication and trusting employee to solve problems. First-line managers, in particular, are critical in influencing employees’ attitudes towards innovation, employee innovative behaviors and innovation implementation since they are the ones who are in constant contact with employees (Fader, 2014; Schultz, 2020). With leaders playing such a crucial role in implementing effective innovation in organizations, several studies have been undertaken to examine the role of managers and specifically line managers in organizational innovation.
A study by Fader (2014) indicated that the role of first-line managers in encouraging employee innovative behavior included recognition and encouragement of innovative behaviors, empowering employees in problem-solving and supporting innovation through participative decision making and openness to new ideas. The views by Fader (2014) showing the important role of first-line managers are supported by Kozioł-Nadolna (2020) who indicated that first-line managers stimulate innovation by incentivizing and rewarding innovative behaviors, openness to new ideas and new ways of doing things and inspiring employees by settings goals and open communication. Despite the above studies indicating that first-line managers have a crucial role to play in implementing innovation in an organization, the managers sometimes lack the necessary skills to achieve the goal. Specifically, Fader (2014) notes that line managers are often not trained and equipped with sufficient knowledge on how to stimulate and implement innovation. In UAE specifically, a survey undertaken by Abuhejleh et al. (2016) evaluating businesses that had participated in a UAE organized World Government summit indicated that only 26% of the participants have successfully generated and implemented innovations. Therefore, while first line managers can play a crucial role in stimulating and implementing innovation, they are usually hampered when it comes to the effective implementation of innovation in an organization. Therefore, this research will seek to solve the issue and research gap by examining the role of first-line manager in stimulating employee innovative behavior, thus helping organizations to better equip line managers with the relevant training and knowledge for effective innovation implementation.
Problem statement
Innovation implementation has proven a challenge to numerous businesses, especially in the UAE where 65% of the firms surveyed indicated that they were able to generate innovation but failed in implementing them (Abuhejleh et al. 2016). While organizations are aware and able to generate innovation, sustaining them in the long term and ensuring that they are effective in achieving the intended objective has proven a challenge. According to Rønningstad (2018), a key role of first-line managers entails passing innovative ideas proposed by employees to top management to shape decision making. In this respect, first-line managers need to exhibit openness to new ideas as well as open communication with employees to enable them understand employees’ perspectives on improving operations (Rønningstad, 2018). However, studies such as Alhadhrami (2013) have shown that in the UAE, the Arabic culture influences managers to not accept direct and open communication from their subordinates which makes it difficult for the managers to understand innovative ideas from employees. As a result, there is a gap in literature which this study will seek to address since it is realized that although open communication is crucial role of first line managers in promoting employee innovative behavior, it is disregarded in the UAE organizational setting.
At the same time, Hasnat and Philbin (2021) explained that employees’ attitudes affect their innovative behavior in which employees with positive attitudes are likely to make suggestions on how to improve the organization operations and increase profitability. However, research by Al-Ali (2018) showed that UAE employees exhibit negative attitudes towards their work since they do not regard their jobs as a source of satisfaction leading to high rates of absenteeism and turnover. In this regard, the gap on how employee attitudes in the UAE can be improved to promote innovative behavior is addressed in this study. One of the ways organizations can mitigate challenges affecting innovation is by involving first-line managers who play a crucial role in stimulating and implementing innovation through open communication, participative decision and settings goals (Kozioł-Nadolna, 2020). However, first-line managers rarely succeed in the effective implementation of innovation due to poor training, insufficient knowledge on how to stimulate and implement innovation and funding. Therefore, this research study will seek to offer insights to organizations on the critical role first-line managers play in the successful, effective and sustained implementation of innovation.
Purpose of the study
To examine the impact of first-line managers’ roles on employee innovative behavior in oil and gas organizations in the UAE.
Research objectives
• To determine trends of employee innovative behavior in oil and gas organizations in the UAE.
• To determine trends of first-line managers’ roles in oil and gas organizations in the UAE.
• To determine the correlation between first-line managers’ roles and employee innovative behavior in oil and gas organizations in the UAE.
Research Questions
• Is there a significant relationship between first-line managers’ roles and employee innovative behavior in oil and gas organizations in the UAE?
• What are the significant first-line managers’ roles that impact employee innovative behaviour?
