Innovation Vs Organizational Innovation

Innovation is a powerful source of growth and an important element of competitive advantage for many organizations. To adopt innovation, it requires the organized effort of different people and integration of different knowledge areas, specialized functions and contexts of application. Therefore, a suitable structure for the organization is a fundamental element for the process of innovation. (Van de Ven et al 1999). The capacity of an organization to absorb innovation is prerequisite for the successful adaptation of new technologies and inventive resources. On the contrary, new technology often produces complex opportunities and exhibit several challenges for the organizations that leads to the adjustment in managerial practices and sometimes

According to Amabile (1998) creativity is the output of constructive and new ideas with in an organization, whereas, innovation is successfully recognition of innovative ideas. Cummings and Oldham (1996) linked creativity with the individual level and innovation with the organizational level. On the contrary, several theorist define organizational innovation rather aligned with individual knowledge, share and creativity that basically a main source of new idea (Redmond et al., 1993; Shalley and Gilson, 2004). They endorse their assertion by arguing that through creative employees new ideas can be shifted to other employees either at individual level or discussed in meetings and then highly appreciated within organizational level and finally headed towards the development of innovative

Due to lack of understanding and clarity among the managers dealing with the change regarding the plans and strategies for ascertaining the capability of organization, few theories deals with normalization and stability recommended some techniques and rules to enhance capability of organizational innovation. Although having broader theories on advance management, still no literature has presented the concrete theory (Wolfe, 1994). Several theoretical models to analysis organizational innovation have been proposed such as; market orientation, resource based view, cognitive theories, socio-technological approaches, transaction cost economies and institutional model but due to diversity in approaches each model added new puzzle in adapting innovation. No model completely propose the highlighted factors that needs to be focused properly while managing innovation. In industrial context, some theories focused on specific firms and others in general emphasize on management complications and structures of organizations. Two major theories related with innovation management are dynamic capability approach and resource based view (RBV). Teeceand Pisano (1994: 541) defines the dynamic capability theory as “subset of the competences/capabilities which allow the firm to create new products and processes and respond to