1.
Developing Innovative Work Behavior for
Sustainable Competitive Excellence in 4.0
Seta A. Wicaksana
Founder and CEO of
www.humanikaconsulting.com
and hipotest.co.id

2.
Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com
• Business Psychologist
• Pendiri dan Direktur Humanika Consulting dan hipotest.com
• Anggota Komite Nominasi dan Remunerasi Dewan Komisaris PT Askrindo
• Sekretaris Prodi MM Program Pasca Sarjana Universitas Pancasila
• Dosen Tetap dan Peneliti di Fakultas Psikologi Universitas Pancasila
• Pembina Yayasan Humanika Edukasi Indonesia
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Penulis Buku: Sobat Way (2016), Industri dan Organisasi: Pendekatan Integratif dalam
menghadapi Perubahan (2020), Human Faktor Engineering: Integratif Desain Manusia
dan Lingkungan Kerja (2021), Psikologi Industri dan Organisasi (2021), Psikologi Umum
(2021), Manajemen Pengembangan Talenta (2021), PIODiagnostik: Pengukuran Psikologi
di Lingkungan Kerja (2021), Transformasi Digital: Perspektif Organisasi, Talenta dan
Budaya Organisasi (2021), Psikologi Pelayanan (2021) dan Psikologi Konsumen (2021).
• Dosen Tidak Tetap di: Program Pasca Sarjana Ekonomi di Univ. Pancasila, STP TRISAKTI,
Fakultas Psikologi Universitas Mercu Buana, STIKOM IMA
• Certified of Assessor Talent Management
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Ilmu Ekonomi dan Manajemen (MSDM) S3 Universitas Pancasila
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• Sekolah ikatan dinas Akademi Sandi Negara

3.
Agenda
• Introduction: Fourth Industrial Revolution And Innovation
• Characteristics Of Successful Innovating Companies
• Definition of innovation
• OSLO Manual
• Degree Of Novelty
• Classification Of Innovations
• A Suggested Innovation Framework
• Definition of Innovative Work Behavior
• Principal Features In The Innovation Literature
• Innovative work behavior versus Employee creativity
• Creativity Process
• Six Tips To Help You Enhance Your Creativity
• Measures of Employee Innovative Work Behavior and Employee
Creativity
• Dimensions Of Innovative Work Behavior
• The Operationalization Of The IWB
• Antecedents of innovative work behavior
• External Antecedents of Individual Innovative Work Behavior
• internal Antecedents of Individual Innovative Work Behavior
• Impact Factors for Employee IWB in the public sector and the private
sector compared
• Practical Implications For Managers Desiring To Increase The
Innovativeness

4.
Fourth Industrial Revolution
And Innovation
• The appearance of the so-called fourth industrial revolution and its technological trends
have forced organizations to choose innovations to move forward or stagger and then
fall behind.
• In business today it is essential to innovate. Organizations need to continuously renew
and improve their offerings to secure long-term survival, profitability, and growth.
Organizations face many challenges and opportunities; the increasingly more
competitive world has created a continuous need for new ways of doing things. The rate
of technological, social, and institutional changes results in shorter life cycles of current
products, services, and business processes. As a consequence, innovation is no longer
reserved for those organizations and people doing scientific or technological work
(Smith, 2002).
• Any organization that is oblivious to this reality and does not innovate will become the
ultimate reason for the decline and demise of existing organizations (Drucker, 1989).
• One option for organizations to become more innovative is to encourage their
employees. Many practitioners and scientists now endorse the view that innovation by
individual employees is a means to foster organizational success (e.g. Van de Ven, 1986;
Smith, 2002), or as Katz (1964) already claimed ‘…an organization which depends solely
upon its blueprints of prescribed behavior is a very fragile social system’ (p.132). Work
has become more knowledge-based and less rigidly defined and specified. In this
context, employees are regarded as being important to realize innovations.
• Creativity is a basis point for innovation in which creative thinking leads to the
successful implementation of innovation. Generally, innovation is the key to raising
greater success either in an organization or a country.

5.
Characteristics Of
Successful
Innovating
Companies
• Systematic collection of all impulses
that could lead to innovation
• Creativity of employees
• Ability to evaluate the possibility of
the innovation idea
• Good teamwork
• Project-based approach and ability
to manage projects

6.
Characteristics Of Successful
Innovating Companies
• Cooperation with external experts (universities,
research laboratories…)
• Proper rate of risk-taking
• Employees’ motivation (the employees are willing to
improve the product and the operation of the whole
company)
• Continued education of employees
• Ability to finance the innovation activities

7.
Definition Of
Innovation
• “Technological innovations are defined as new products
and processes and major technological modifications to
products and processes. An innovation is considered
performed if it is introduced to the market (product
innovation) or implemented in the production process
(process innovation). Innovation includes many
research, technological, organizational, financial, and
commercial activities.
• R&D represents only one of these activities and can take
place during various stages of the innovation process. It
can play not only the role of the original source of the
innovation ideas but also the role of problem solution
framework, which can be turned to at any stage of the
implementation.„
• OECD, Frascati Manual 1992

8.
Oslo Manual
• Product innovation - A good or service that is new or significantly improved. This includes
significant improvements in technical specifications, components, materials, software in the
product, user-friendliness, or other functional characteristics.
• Process innovation – A new or significantly improved production or delivery method. This
includes significant changes in techniques, equipment, and/or software.
• Marketing innovation – A new marketing method involving significant changes in product
design or packaging, product placement, product promotion, or pricing.
• Organizational innovation – A new organizational method in business practices, workplace
organization, or external relations.
• Technological innovations – based on a specific technology, invention, discovery,
• Social innovations – in critical historic periods more important than technological ones (mail,
educational system, social system, health care, …)

9.
Degree Of
Novelty
• Incremental innovations
• Radical innovations
• Systemic innovations

10.
Classification
Of
Innovations
SYSTEM New series of
cars, planes,
computers, TV
New
generation
(MP3 and
download as
substitution of
CD)
Steam engine,
ICT,
biotechnology,
nanotechnology
COMPONENT
Improvement of
components
New
components
for existing
systems
Advanced
materials
improving
component
properties
INCREMENTAL
„do better what
we already do“
„new for the
company“
RADICAL
„new for the
world“

11.
A Suggested
Innovation
Framework Problem
and/or
Opportunity
Do not be afraid to fail
Take risks
Move your idea forward
Just Do
It
• Seek novelty in design
• Diversify
• Stop looking for the right answer; look for many right answers
Seek
Novelty
in Design
• Define clearly your goals and objectives
Set Goals and
Objectives
• Challenge all assumptions
• Seek opportunities to innovate
Identify Problems
and/or
Opportunities
• Open your mind
• Mental Floss
• Discover your creative rhythm
• Health Makes Wealth
Seek Opportunities
• Become an expert in a field you
love
• Become passionate about your
field
Find what you love to do

12.
Definition of Innovative Work
Behavior
• Kirton’s (1976) Adaption-Innovation Inventory measured two distinct cognitive styles ranging from
adaptors who solve problems within existing perceptual frames and innovators who restructure
them
• Hurt et al., (1977) described individual innovativeness as a generalized willingness to change.
• West’s (1987) measure of role innovation (that records how many changes individuals have initiated
in their jobs) and Bunce and West’s (1995) composite innovation score (multiplying the perceived
effectiveness of innovations by the number of innovations).
• Farr and Ford (1990) described IWB as an individual’s behavior that aims to achieve the initiation
and intentional introduction of new and useful ideas, products or procedures.
• innovation involves application; so just developing something new cannot be regarded as innovative
unless it is used (King & Anderson, 2002)
• Kleyson and Street (2002) defined innovative behavior as “all individual actions directed at the
generation, introduction and or application of beneficial novelty at the organizational level” and
argued that “such beneficial novelty might include the development of new product ideas or
technologies, changes in administrative procedures aimed at improving work relations or the
application of new ideas or new technologies to work processes intended to significantly enhance
their effectiveness and success”
• Yuan and Woodman (2010) conceptualized innovative behavior as both the generation and
introduction of new ideas and the realization or implementation of new ideas.
This Photo by Unknown Author is licensed under CC BY

13.
Definition of Innovative
Work Behavior
• all individual actions directed at the generation, processing
and application/implementation of new ideas regarding
ways of doing things, including new product ideas,
technologies, procedures or work processes with the goal of
increasing the effectiveness and success of organizational
processes.
• This behavior does not solely entails producing new ideas and
developing the desire and behaviors to implement them, but
also a general willingness to adopt other’s new ideas rather
than resisting them.
• An employee having adopted and integrated the IWB
philosophy automatically improves aspects of his or her
working environment whenever opportunities to do so are
spotted and is generally willing to adopt improvements posed
by colleagues or others outside the organization.

14.
Principal
Features In
The
Innovation
Literature

15.
Innovative work behavior
versus Employee creativity
• Employee creativity is usually defined as the production of new and
useful ideas for products, services, processes and procedures (Amabile,
1988; 1996).
• Zhou and George (2001) defined EC that is an idea to be considered a
creative idea that must contain both usefulness and novelty of the idea.
• Joo et al. (2013) noted the difference between “Big C” creativity and
“Little C” creativity is revealed (i.e., “Big C” creativity that is occurred a
big breakthrough to occur for products or services changes occasionally
and “Little C” creativity that is performed by us for minor addition or to
resolve the problem in our daily lives) (Gardner 1993).
• IWB captures employee behaviors intended to achieve the production
of novel products, services and/or work processes
• both concepts Employee Creativity (Zhou and George 2001), and
Innovative work behavior (Scott and Bruce 1994), are separately
disclosed which represented a sequence to convert a new idea into an
execution method (Van de Ven 1999, Woodman et al. 1993).

16.
Creativity Process
• Wallas (1926) proposed that creative ideas are
born in four phases: preparation – incubation –
illumination – verification
• Parnes, Noller and Biondi (1977) identified a
five-step process for creative problem solving
that ends with acceptance finding.
• Basadur (2004) distinguishes between problem
finding activity (sensing and anticipating
opportunities for change), problem
conceptualization, problem solving and
solution implementation.
• Mumford (2003) states that past creativity
research has focused mainly on ‘early cycle’
creative skills and circumstances: capacities
and characteristics that make it possible for
people to generate new ideas.

17.
Six Tips To Help You Enhance Your Creativity
Open Your Mind - Have one new
experience every day; no matter how
small. New experiences stimulate the
brain and help you make new and
original connections; critical for
boosting breakthroughs.
Diversify - Involve others in your
problem-solving efforts who bring a
different perspective or cultural
experience than yours.
Mental Floss – Relax; Stress,
exhaustion, boredom, and even pain
can block our pathways to creativity.
Stop Looking For the Right Answer -
Look for many right answers.
Discover Your Creative Rhythm - Start
paying attention when you get your
best ideas.
Health Makes Wealth - Regular
exercise not only benefits your body,
but it also boosts brain performance
as well.
From: Innovative Thinking: Six Simple Secrets by Padi Selwyn, M.A.

18.
Measures of
Employee
Innovative
Work Behavior
and Employee
Creativity

19.
Dimensions Of Innovative
Work Behavior
• To operationalize IWB as a
multidimensional construct, we
follow Scott and Bruce (1994) and
Janssen (2000) by proposing that
innovative work behaviors can be
linked to the phases in the
innovation process.
• Drawing on Kanter (1988) they
derive various behaviors including
the generation of ideas, coalition
building, and implementation.

20.
The Employee IWB
Process
• Creative behavior is generally described as one
aspect of IWB because innovative behavior not only
includes individual novel idea generation but also
adopting other’s ideas that can be described as
novel to the firm or work unit (Woodman et al.,
1993).
• creative behavior solely concerns new idea
generation, while IWB includes both the generation
and implementation of new ideas (Shalley; 2004,
Zhou; 2003).
• The same distinction is generally made between
invention and innovation, with invention
emphasizing the generation and construction of new
concepts or artifacts and innovation emphasizing
the commercialization or bringing into use of such
artifacts (Conway & Steward, 2009).

21.
Previous
Measures of
Innovative
Work
Behaviour

22.
The
Operationalization
Of The IWB
• Scott and Bruce (1994) distinguished between
idea generation, idea promotion and idea
realization
• de Jong and den Hartog (2010) concluded on
idea exploration, idea generation, idea
championing and idea implementation.
• Kleysen and Street (2002) concluded that the
process of IWB consists out of opportunity
exploration, generativity, formative
investigation, championing and application.
• implying that the IWB process can be described
as consisting out of the steps of Opportunity
exploration, idea generation, idea promotion
and idea realization

23.
The IWB Process
Opportunity Exploration
new begins with a person identifying opportunities (for instance Parnes et al.,
1977; Basadur, 2004).
not limited to business contacts but also informal contacts such as relatives
(Ozgen & Baron, 2007)
Idea Generation
Perceived work-related problems
incongruities and discontinuities
New emerging trends (Drucker, 1985; Janssen, 2004)
Idea Promotion
Coalition building (Galbrath, 1982)
Mobilizing resources (i.e. Staw, 1990; Howell and Higgins, 1990; Ford, 1996)
Challenging and risk-taking (i.e. Kanter, 1983; Amabile 1983)
Idea Realization
Producing a prototype/model to be applied (Janssen, 2004)
Implementing (i.e. Glynn, 1996; Kleyson and Street, 2002)
Modifying (Damanpour, 1991; Kanter 1983; Rogers 1983)
Routinizing (Kleyson and Street, 2002)

24.
Opportunity exploration
• Innovation usually starts with the detection of performance gaps - mismatches between
actual and potential performance. Literature shows that the realization of something new
begins with a person identifying opportunities (for instance Parnes et al., 1977; Basadur,
2004).
• Opportunities can be discovered in a variety of sources, not limited to business contacts but
also informal contacts such as relatives (Ozgen & Baron, 2007). Sources of opportunity, as
defined by Drucker (1985), relate to the factors that can initiate innovations:
• The unexpected (unexpected successes, failures, or outside events)
• Incongruities (gaps between ‘what is’ and ‘what should be’)
• Process needs (in reaction to identified problems or causes of failure)
• Changes in industrial- and/or market structures (changes in contemporary markets
like rapid growth, re-segmentation, the convergence of separate technologies, etc.)
• Demographics (changes in population features like birth rates, educational
attainment, and labor force composition)
• Changes in collective perceptions (manufacturing the pill for example was not a
sensible business case fifty years ago, but nowadays it is)
• New knowledge (scientific, technical or social, or combinations of the three).

25.
Idea generation
• A creative idea is a necessary condition for innovation as it precedes the
exploitation of opportunities.
• As Kanter (1988) states: ‘Awareness of a need (opportunity) is one element;
ability to construct new ways to address the need is a second’ (p. 175).
Mumford (2000) holds that ultimately individuals are the source of all ideas.
• Idea generation includes behaviors directed at generating concepts for the
purpose of improvement.
• The generation of ideas may relate to new products, services or processes, the
entry of new markets, improvements in current work processes, or in general
terms, solutions to identified problems (examples include Zaltman et al. 1973;
Van de Ven, 1986; Amabile, 1988).
• The key to idea generation appears to be the combination and reorganization of
information and existing concepts to solve problems and/or to improve
performance.

26.
Idea Promotion
• Once a creative idea has taken shape it must be ‘sold’. Although ideas can have
some legitimacy, especially when they fill a performance gap, it is uncertain if
ideas will result in successful new applications.
• Only if creative ideas are marginal (appear off the-field so they can slip in
unnoticed) or idiosyncratic (can be accepted by a few people without requiring
much additional support) they are easy to implement (Kanter, 1988).
• However, in most cases innovative ideas face resistance.
• Idea Promotion are the ones who put effort into creative ideas. They are
individuals in informal roles that push creative ideas beyond roadblocks in their
organizations (Shane, 1994).
• Idea Promotion includes behaviors related to finding support and building
coalitions, such as persuading and influencing other employees and pushing
and negotiating (e.g. Zaltman et al., 1973; Van de Ven, 1986; Howell & Higgins,
1990; King & Anderson, 2002).

27.
Idea Realization
• Idea Realization means doing what is needed to transform ideas into
reality. It includes behaviors such as developing new products or work
processes, and testing and modifying them (e.g. Van de Ven, 1986;
Kanter, 1988; West & Farr, 1990).
• To be an aspect of IWB, such behaviors need to be proactive, i.e. self-
starting (doing something without being told or without an explicit role
requirement) and persistent (overcoming barriers to bring about
change) (Parker et al., 2006).
• A characteristic that helps to get Idea Realization is self-efficacy. This
construct is defined as individuals’ self-perceptions about their ability
to produce and to regulate events in life (Bandura, 1982).
• Self-efficacy is related to individuals’ perception that change can be
successfully Idea Realization in a given situation (Farr & Ford, 1990).
• Strong perceptions of self-efficacy result in individuals’ approaching
tasks with enthusiasm, expending great amounts of effort on task
accomplishment, and persistence in the face of obstacles (Parker et al.,
2006).

28.
Antecedents
of innovative
work
behavior

29.
External Antecedents of Individual
Innovative Work Behavior
• Competitive pressures and IWB - It has been
generally agreed upon that competition creates an
incentive to perform well. For example, Nelson (1993)
argued that that market forces and competition in
particular, functions as a major motivator for
innovation, as failing to innovate can result in less
competitiveness and may endanger survival.
• Social-political pressures and IWB - Verhoest et al.,
(2007) found that, besides competitive pressures,
political pressures stemming from threats to the
legitimacy of the organization affect the need for
innovativeness.

30.
Internal
Antecedents of
Individual Innovative
Work Behavior
• Supervisor-subordinate
interactions, leadership style and
IWB
• Work group interactions and IWB
• Organizational Structure and IWB
• Organizational (empowerment)
practices and IWB
• Individual-level factors and IWB
• The total organizational package:
organizational climate and IWB

31.
Impact Factors for Employee IWB in the public sector and
the private sector compared
Impact Factors for Private Employee IWB Public Employee IWB
External Factors Influence of competitive pressures + social-political pressures on
IWB (i.e. Nelson, 1993; Powell & Dimaggio, 1991) (positive as
well as negative)
Little influence of competitive pressures on IWB, significant influence
of social-political pressures (positive / negative) on IWB (i.e. Verhoest
et al.,2007).
Internal Factors Positive relationship high-quality LMX relationships (i.e. Yuan &
Woodman, 2010), adequate communication of expectations (i.e.
Scott & Bruce, 1994) and participative leadership styles (i.e Basu
& Green 1997) and IWB
Positive relationship high-quality LMX relationships, adequate
communication of expectations & participative leadership and IWB
Effect of communication of expectations limited by goal ambiguity in
the public sector; crucial role of supervisor limited to idea-generation
& idea-championing.
Positive relationship high-quality TMX relationships (i.e. Scott
and Bruce (1994) & team environment for innovation (i.e. West,
1990) and IWB
Positive relationship high-quality TMX relationships & team
environment for innovation and IWB
Negative effect of complex, formalized organizational structure
on IWB (i.e. Burns & Stalker, 1961; Chandler, 1990 ;Miles et al.,
1978)
Negative effect of complex, formalized organizational structure (i.e.
Walsch, 1995) on idea-championing and idea-realization
Complex organizational structure forced upon public organizations (i.e.
Boyne & Walker, 2004)
Positive relationship between four empowerment practices and
IWB (i.e. Bowen and Lawler, 1992; Thomas & Venthouse, 1990)
Positive effect of granting freedom and discretion on IWB (i.e.
Fernandez & Moldogaziev, 2012) though limited by the presence of
rules & regulations in the public sector (i.e. Rainey & Bozeman, 2002)
Negative effect of lack of provision of information on goals on idea-
championing and-realization (no positive effect identified);
Strengthened by high degree of goal ambiguity in public sector
(Rainey, 2009)

32.
Impact Factors for Employee IWB in the public sector and
the private sector compared
Impact Factors for Private Employee IWB Public Employee IWB
Internal Factors Positive effect of reputational awards & appreciation rather than
monetary rewards on IWB
Negative effect of failing to provide access to job-related skills &
knowledge on idea-championing and idea-realization (no positive
effect identified)
Intuitive problem-solving style more simulative for IWB than
systematic style (i.e. Scott and Bruce, 1994),
Positive effect of Intuitive- & systematic problem-solving style on IWB;
no style preferred (Payne et al., 1990
Positive relationship perceived dissatisfaction with status-quo
and IWB (i.e. Yuan and Woodman, 2010)
Positive relationship perceived dissatisfaction with status-quo and IWB
(i.e. Yuan and Woodman, 2010)
+ Positive effect shared dissatisfaction with status quo on idea
generation & idea-championing
Positive relationship perceived image + performance gains,
negative relation-ship between perceived image threats (i.e.
Yuan & Woodman, 2010) and IWB
Positive effect of perceived performance gains on IWB; negative effect
of perceived image threats on IWB (no effect of low perceived
performance gains & perceived image gains identified)
Positive relationship considering IWB as part of official job
description and tasks and IWB (i.e. Scott & Bruce, 1994)
Positive effect of considering IWB as part of official job description,
tasks and responsibilities, no negative effect of not considering it as
such on IWB identified

33.
Impact Factors for Employee IWB in the public sector and
the private sector compared
Impact Factors for Private Employee IWB Public Employee IWB
Specific practices Positive effect of introducing competition within public firms on IWB
(i.e. Domberger et al., 1995)
Positive effect of introducing central steering, and facilitation on idea-
championing and idea-realization
Negative effect of the establishment of project groups and
collaborative networks on IWB
Negative effect of the instalment of R&D centers on IWB

34.
Practical Implications For Managers
Desiring To Increase The Innovativeness
• Managers may have to cope with challenges and problems arising from a generally
low perceived necessity and desire of organizational actors to Opportunity
exploration, idea generation, idea promotion, and idea realization efforts as a means
of survival.
• Managers may have to cope with several social-political forces restraining the
motivations and abilities of managers and employees to conduct in IWB.
• The role of the direct supervisor indicates that, in order to stimulate employee IWB,
managers are to ensure that all leaders and supervisors within their organization
adopt supportive and coaching leadership styles, establish high-quality relationships
with their subordinates, demonstrate a general openness towards newness and
innovation and clearly communicate their expectations with regard to employee IWB
in order to prevent goal ambiguity to arise.
• The findings on the role of the workgroup indicate that the presence of perceived
general support for innovation, newness, and change and a group environment that is
favorable towards change and in which creative ideas are fairly evaluated without
fear of retribution is essential for employee IWB to flourish.

35.
Practical Implications For
Managers Desiring To Increase
The Innovativeness
• The role of the organizational structure indicates that managers are to
prevent that complex, formalized, and mechanistic organizational
structures are adopted by their organization and that a high degree of
fixed procedures, regulations, and budgetary controls is implemented
• Organizational practices indicate that, in order to stimulate employees
to conduct in IWB, organization’s managers are recommended to
provide their subordinates with freedom and discretion, information on
organizational goals, reputational-based rewards, and rewards aimed
at demonstrating appreciation for innovative efforts.
• Individual characteristics indicate that, whenever employee IWB is to
be stimulated within organizations, managers are recommended to
stress the inefficiencies and flaws of the current working methods in
order to raise a general dissatisfaction with the status quo throughout
the organization and to create confidence among their subordinates
that the generation of innovative approaches is valued and likely to
lead to improved performance.
• it is recommended to managers declare Opportunity exploration, idea
generation, idea promotion, and idea realization approaches as part of
employees’ job description, tasks, and official responsibilities.

36.
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