Importance of innovative management practice: solution for challenges in business environment and organization performance

68 2019, XXII, 4 Business Adminis a ion and Managemen DOI: 10.15240/ ul/001/2019-4-005 In oduc ion In he con empo a y business se ing, he implemen a ion o inno a i e managemen p ac ices is ecognized as a c ucial ac o (Damanpou , 2014) o s a egic change, o ganiza ional enewal and achie ing long- e m compe i i e ad an age (Walke , Chen, & A a ind, 2015). S ill, i is su p ising how li le esea ch is conduc ed on la gescale su eys acco ding o possible app oaches o measu e inno a i e managemen p ac ice which will lead o o ganiza ional inno a ions (A mb us e , Bik al i, Kinkel, & Lay, 2008). The p opo ion o his esea ch opic amoun s o only 8% among he inno a ion esea ch p ocess, while only 3% o esea ch s udies analyze his subjec (Mihalache, 2012, p. 2). In he pape , he basic esea ch objec i e is e l ec ed in he analysis o he deg ee o inno a i e managemen p ac ice impac on o ganiza ion’s pe o mance, and he analysis o he ela ionship be ween implemen a ion o inno a i e managemen p ac ice and dynamic business en i onmen . This opic has mos o en been esea ched on a sample o o ganiza ions om he de eloped coun ies, bu he end is sligh ly ans o ming o he p og essi e esea ch o managing inno a ions in de eloping coun ies (Ali, Ullah, & Khan, 2009). This iew imposes he need o explo e inno a i e managemen p ac ice in he con ex o ansi ion economies, whose p io i y is o inc ease inno a i e capaci y and pe o mance. We ha e limi ed he esea ch p oblem o he analysis o he need o inno a ion-o ien ed managemen p ac ices as a esponse o u bulen changes and he way o achie ing o ganiza ions’ highe p o i abili y in he ansi ional economy o Se bia. The de e minan s o inno a i e managemen p ac ices a e no comple ely iden i i ed and he e is no single cohe en amewo k (Če ne, Kaše, & Ške la aj, 2016). Till now, inno a ion in managemen p ac ice was analysed h ough new planning sys em, human esou ces de elopmen , new con ol sys em (Elenko & Mane , 2005); inno a ion s a egy, o ganiza ional s uc u e, inno a ion cul u e, echnological capabili y and cus ome and supplie ela ionships (Kalay & Lynn, 2015); inno a i e s a egy, o ganiza ional clima e and di e en kinds o inno a ions (Sánchez, Lago, Fe ás, & Ribe a, 2011). Based on he a o emen ione, in he s udy, we ha e de eloped a new amewo k o inno a i e managemen p ac ice. The esea ch space includes analyses o he wo sides o he coin o managemen p ac ices, namely inno a i e o ien ed unc ions o managemen (Fayol, 1949) and manage ial oles (Min zbe g, 1973) as he necessi y o unc ions’ eo ganiza ion and eloca ion, oge he wi h esponsibili ies, being a ype o managemen inno a ions (Lin, Su, & Higgins, 2016, p. 864). The possibili y o ela ing Fayol’s and Min zbe g’s esea ch a ises om he conclusion ha hese wo concep s o go e nance a e logically connec ed since Fayol has se he managemen concep as i should be, whe eas Min zbe g poin ed wha i is like in eali y (Lamond, 2004, p. 330). Thus a , he end o empi ical esea ch in his a ea om he pe spec i e o managemen unc ions has mos o en been ocussed on he analysis o ans o ma ional leade ship and i s IMPORTANCE OF INNOVATIVE MANAGEMENT PRACTICE: SOLUTION FOR CHALLENGES IN BUSINESS ENVIRONMENT AND PERFORMANCE IN LARGE ORGANIZATIONS IN SERBIA Božida Leko ić, Maja S uga Jelača, Slobodan Ma ić EM_4_2019.indd 68EM_4_2019.indd 68 25.11.2019 11:02:2025.11.2019 11:02:20 69 4, XXII, 2019 Business Adminis a ion and Managemen impac on highe pe o mance (Mo iano, Mole o, Tope, & Mangin, 2014; Vacca o, Jansen, Van Den Bosch, & Volbe da, 2012); he s a i ng unc ion and i s ela ion o he en e p ise’s inno a i e pe o mance (Jiang, Lepak, & Bae , 2012), whe e he ocus was a ewa ds, aining, and de elopmen as well as he p ocess o ec ui ing inno a i e alen s (S ock, To zaue , & Zacha ias, 2014). O he managemen unc ions a e sca cely elabo a ed, leading o pa ial imp o emen o manage ial p ac ice and he omission o syne ge ic e ec s o all unc ions a he o ganiza ion le el. The e o e, o add ess he de i ciency in ex an li e a u e he e is a need o be e sys ema iza ion o he s eps and s anda diza ion o ac i i ies leading o inno a i e manage ial p ac ice. Bea ing in mind he abo e men ioned gap he ollowing esea ch ques ions imposeed hemsel es: (1) Which inno a ion o ien ed managemen unc ions and manage ial oles s and ou as he essen ial de e minan s o o ganiza ion pe o mance such as g ow h, de elopmen and p o i abili y? (2) Does he implemen a ion o inno a ion o ien ed managemen p ac ices depend on he con ex o business en i onmen ? Fo he pu pose o he abo e men ioned esea ch, esea ch me hodology based on EFA, bina y and mul inomial logis ic eg ession and Spea man’s ank co ela ion coe i cien was applied. The sample comp ises 50 la ge o ganiza ional sys ems on he e i o y o he Republic o Se bia. This pape con ibu es o he li e a u e on managemen inno a ion in se e al ways. Fi s ly, by de eloping he new amewo k o inno a i e o ien ed managemen ac i i ies. Secondly, i o e s a i ne-g ained analysis o he e ec s o inno a ion-o ien ed managemen unc ions and oles on pe o mances in he u bulen ansi ional economy con ex . Thi dly, he empi ical e idence o he s udy b oadens he esea ching ho izon in his opic. The pape is s uc u ed as ollows. Fi s , we conduc ed an analysis o he heo e ical basis in he manne o he ela ion be ween inno a i e manage ial p ac ices and o ganiza ion pe o mance, and inno a i e managemen p ac ices and dynamic ex e nal and in e nal business en i onmen . Then we elabo a ed on esea ch me hodology and i nally discussed he ob ained empi ical esul s, highligh ing he p ac ical implica ions and limi a ions o he esea ch. 1. Inno a i e Managemen P ac ices and O ganiza ion Pe o mance A la ge numbe o au ho s poin ou he signi i cance and posi i e impac o inno a ion o ien ed ac i i ies on o ganiza ion pe o mance (Bi kinshaw & Mol, 2006; He as-Oli e , Ripoll- Sempe e, & Moll, 2016). Inno a ion in he a ea o managemen was mos o en iewed as de eloping new managemen p ac ices (Bi kinshaw & Mol, 2006; Damanpou , 2014) h ough changes in manage s’ scope and manne o wo k when se ing goals, making decisions, coo dina ing ac i i ies and mo i a ing s a (Van den Bosch, 2012). Since manage s a e, wi h hei manne o beha iou , he key in e nal agen s o de eloping inno a ion in he a ea o managemen , we analysed hem h ough he implemen a ion o inno a ion o ien ed managemen unc ions and manage ial oles. The i s managemen unc ion is obse ed h ough s a egic planning, because he ela ion be ween s a egic planning and inno a i e pe o mance is ine i able in a way ha s a egic planning is o ien ed o adequa e esou ce alloca ion o inno a i e ac i i ies en ailing a highe deg ee o isk (Eddles on, Kelle manns, & Sa a hy, 2008, p. 32) as well as be e chance o highe pe o mance. The impo ance o o ganiza ional s uc u e and i s eo ganiza ion as one dimension o inno a ion in he managemen a ea a e highligh ed by nume ous au ho s (Douglas, O e s ee , & Hazen, 2016; K aśnicka, Głód, & W onka- Pośpiech, 2016). Nowadays, he o ganiza ions ha e o be agile and capable o s a egic implemen a ion o exploi a ion and esea ch ac i i ies pa allel wi h hei in e dependence and balancing a ec s pe o mance posi i ely (Luba kin, Simsek, & Veiga, 2006). F om he s a i ng unc ion pe spec i e, a s udy by Jiang e al. (2012) iden i i es he exis ence o a di ec co ela ion be ween a new p ac ice o human esou ce managemen and i nancial esul s such as ROA, ROE and sales g ow h. I is deemed ha he e is an impac o HRM p ac ices on all he esul s o an o ganiza ion, by sequen ial p inciples, so ha i p ima ily a ec s s a pe o mance, ope a i e pe o mance, and i nally, he o ganiza ion’s i nancial esul s (Jiang e al., 2012, p. 1265). Wi hin ou s udy, we aim o analyse he inno a ion o ien ed s a i ng unc ion based on he heo y o human capi al, emphasizing he s a ’s skills, knowledge and abili ies as he EM_4_2019.indd 69EM_4_2019.indd 69 25.11.2019 11:02:2025.11.2019 11:02:20 70 2019, XXII, 4 Business Adminis a ion and Managemen cen al d i e o he o ganiza ion’s pe o mance (Ployha & Moli emo, 2011). Thus o ien ed s a i ng unc ion will enable he o ganiza ion o emain dynamic and achie e he desi ed imp o emen in he i eld o pe o mance (Ga cía-Mo ales, Jiménez-Ba ionue o, & Gu ié ez-Gu ié ez, 2012). F om he iewpoin o inno a ion o ien ed leade ship unc ion, op managemen should conduc idealized impac and inspi ing mo i a ion, which would s imula e s a o pa icipa e ac i ely in inno a ion ac i i ies (Elenko & Mane , 2005). This leade p o i le also conduc s ac i i ies aimed a in ellec ual s imula ion (Ga cía-Mo ales e al., 2012) owa ds p oblem-o ien ed hinking, inno a i e beha iou and ans o ma ion o old ways o business ope a ions in o he new ones, and he ac i i y o indi idual conside a ion, which e e s o he suppo and aining s a by leade s (Mo iano e al., 2014). The empi ical s udies exis ing so a poin o an es ablished pa e n o posi i e ela ionship be ween he implemen a ion o ans o ma ional leade ship s yle and enhancing he o ganiza ion’s pe o mance (Ga cía-Mo ales e al., 2012). Ve y li le is known abou he ype o con olling unc ion ha encou ages achie ing inno a i e pe o mance (Allen, Adomdza, & Meye , 2015). The esea ch conduc ed so a has been analysing he e ec o manage ial con olling unc ion on managemen pe o mance highligh ing he posi i e impac on sales manage s’ mo i a ion and hei beha iou pe o mance (Theodosiou & Ka sikea, 2007 p. 1269) on he one hand, and on he o he he ac ha con olling unc ion is a ba ie o implemen ing inno a i e s a beha iou (Huselid, 1995). Allen e al. (2015) a gue ha he con olling unc ion is a e y complex a iable, ha i is dependen on si ua ion and knowledge, and ha he e is no suppo o he opinion ha manage ial con ol esul s in lowe s a con i dence in managemen and hei lea ing he o ganiza ions, which was he subjec o analysis o he p e ious s udy (p. 376). We also ocus on he implemen a ion o Min zbe g’s classi i ca ion o manage ial oles in he unc ion o encou aging he s a ’s c ea i e and inno a i e hinking and beha iou , which enables achie emen o be e o ganiza ional pe o mance. S udies in o his opic we e conduc ed wi h he aim o analyse in e pe sonal beha iou be ween he managemen eam and ex e nal agen s which in l uence he adop ion o managemen inno a ions (Nie es & Sega a-Cip es, 2015, p. 53). I is impo an o analyse inno a ion o ien ed implemen a ion o manage s’ in o ma ional oles wi h he aim o o ming an in o ma ion basis by c ea ing social ne wo ks, which will esul in c ea ing new knowledge. Fu he mo e, he decision making oles inco po a ing subjec i e e alua ion and s a egic decision making o manage s a e c ucial in c ea ing change in managemen p ac ice (K aśnicka e al., 2016; Lin e al., 2016). Conside ing he inconsis ency o he me hodology o explo ing inno a i e managemen p ac ice, and he absence o any s udy ha has looked in o inno a i e manage ial p ac ices in combina ion wi h all inno a i ely-o ien ed manage ial unc ions and oles wi h explana ion o hei impo ance in achie ing g ea e o ganiza ional pe o mance in an unce ain en i onmen , we de eloped he hypo heses as ollows: Hypo hesis 1: The e is a posi i e associa ion be ween inno a i e managemen p ac ices, g ow h, de elopmen and he o e all le el o business pe o mance o la ge o ganiza ional sys ems. Hypo hesis 2: The e is a posi i e ela ion o implemen a ion o inno a i e managemen p ac ices and i nancial indica o s such as ROA and ROE measu ing he p o i abili y o an en e p ise. An analysis o he se o esea ch hypo heses will c ea e a comp ehensi e amewo k o analysing inno a i e managemen p ac ice. In ha amewo k an independen a iable is inno a i e managemen p ac ice composed om inno a i e o ien ed managemen unc ion as planning; o ganizing, s a i ng, leading and con olling om one angle. F om he o he , i inco po a es manage ial oles like in e pe sonal, in o ma ional and decisional oles which a e inno a i ely o ien ed. Besides hese componen s o inno a i e managemen p ac ice we analyzed i h ough o ganiza ional inno a i eness as he esul o implemen a ion o new managemen beha io and concep s. The dependen a iable is business pe o mance measu ed h ough g ow h, p o i abili y and he o al le el o business pe o mance. Conside ing ha he e is no single measu emen o inno a i e managemen p ac ices, i esul s in di e en s a emen s EM_4_2019.indd 70EM_4_2019.indd 70 25.11.2019 11:02:2025.11.2019 11:02:20 71 4, XXII, 2019 Business Adminis a ion and Managemen abou i s impac on o ganiza ional pe o mance. Some o he esea ch ha ocuses on he men ioned a iables indica e ha inno a i e manage ial p ac ice along wi h i s esul s, such as di e en ypes o inno a ions, explain sales g ow h bu no he imp o emen s in p o i pe employee and ROA (Sánchez e al., 2011); inno a i e managemen p ac ice analyzed h ough ope a ions, pe o mance and people managemen ha e posi i e associa ion wi h o ganiza ion’s inno a ions, bu he e is no associa ion wi h ROE (Aga wala, B owna, G eena, Randhawaa, & Tanb, 2014); inno a i ely o ien a ed leade ship and HR managemen as manage ial unc ions a e dis inguished om o he s and ha e dis inc e ec s on inno a i e pe o mance measu ed h ough p oduc p og am inno a i eness (S ock e al., 2014); an o ganiza ion ha implemen s inno a i e manage ial p ac ice h ough a se o di e en indica o s - among o he - he p ocess o decen aliza ion o planning and o ganiza ional s uc u e ha in ol es c oss-depa men al de elopmen eams and eamwo k do no dis inguish hemsel es acco ding o s a is ically signi i can di e ence in p oduc i i y (A mb us e e al., 2008). 2. Impo ance o Inno a i e Managemen P ac ices in Dynamic Business En i onmen Nowadays, mo e han e e , o ganiza ions a e unde he impac o equen u bulence, new compe i i e h ea s, echnological discon inui ies, new isks as well as new oppo uni ies (Ko e , 2014) o o ganiza ion g ow h. In ha con ex , i is impo an o analyse he ela ionship be ween dynamic business en i onmen and inno a i e managemen p ac ice, whe e mo e adical inno a ions a e p e e able in dynamic business en i onmen s, which con ibu e o highe objec i e pe o mance (Pé ez-Luño, Gopalak ishnan, & Cab e a, 2014). Bea ing in mind he unc ional manne o managing i s ela ion o dynamic en i onmen , i has been con i med ha a co ela ion exis s be ween decen alized, pa icipa i e way o implemen ing s a egic planning and g ow h o business pe o mance in a dynamic business en i onmen (Ande sen, 2004). In he con empo a y business se ing cha ac e ized by cons an changeabili y, o ganiza ion managemen should apply l exibly o ien ed s a egic planning based on he concep o s a egic hinking as well as si ua ion planning based on he concep o sys emic hinking, which akes in o conside a ion in ui ion and c ea i i y and s eps ou side he exis ing amewo k. Acco ding o o ganiza ional s uc u e, in he dynamic business en i onmen i is impo an o o m o ganiza ional uni s balancing be ween exploi a ion and explo a ion ac i i ies in o de o compe e in a dynamic business en i onmen (Jansen, Van den Bosch, & Volbe da, 2005). Mo eo e , he dynamic business en i onmen is cha ac e ized by implemen a ion o l exibly o ien ed s a i ng unc ion, p omo ing he de elopmen o a b oad spec um o new skills and knowledge (W igh & Snell, 1998, p. 758). Leade ship unc ion is mos o en analyzed h ough implemen a ion o ans o ma ional leade ship s yle, which is app op ia e in dynamic wo king en i onmen (Gunde sen, Hellesøy, & Raede , 2012). F om he iewpoin o manage ial oles, esea ch has so a placed emphasis on he analysis o equency o using indi idual manage ial oles depending on he in e nal and ex e nal con ex (Gibbs, 1994), whe eas o he au ho s analyse only he in e nal con ex h ough he impo ance o indi idual ypes o oles depending on he manage ’s hie a chical le el and unc ional a eas (Min zbe g, 1973; Paolillo, 1987). Summa y esea ch esul s indica e ha he mo emen o manage s up he hie a chical ladde inc eases he signi i cance and use o wo ypes o in e pe sonal oles, such as i gu ehead and liaison, hen all he ypes o in e pe sonal oles: moni o , dissemina o and spokespe son, and he wo ypes o decisional oles, such as en ep eneu and esou ce alloca o . Gibbs (1994) poin s ou ha , iewing he in e nal con ex , i is no enough o ake in o accoun only he manage ’s unc ional a eas, bu also he deg ee o he con olling unc ion ha hey implemen , o manage s wi h a highe deg ee o con ol mo e o en use in o ma ional and decisional oles and ice e sa, as well as he du a ion o he manage ’s wo k in he analyzed o ganiza ions, because he longe he employmen in an o ganiza ion, he highe he p obabili y o implemen a ion o in e pe sonal oles. In addi ion o he analysis o possible co ela ions be ween in e nal business con ex and he implemen a ion o manage ial oles, esea ch conduc ed by Gibbs (1994) indica es ha he dimensions o en i onmen should be EM_4_2019.indd 71EM_4_2019.indd 71 25.11.2019 11:02:2025.11.2019 11:02:20 72 2019, XXII, 4 Business Adminis a ion and Managemen aken in o conside a ion when u he analysing he heo ies o managemen p ac ices. The use o in e pe sonal oles is mo e in ensi e unde he in l uence o he complexi y o en i onmen , whe eas he use o decision making oles is mo e equen unde he in l uence o bo h complexi y and en i onmen al dynamism (Gibbs, 1994, p. 581). Au ho P e e (1977) highligh s he impac o he en i onmen on implemen a ion o in e pe sonal ole o i gu ehead, which is in di ec co ela ion o he deg ee o en i onmen al dynamism. Fu he mo e, ha in e pe sonal i gu ehead ole, which a ises om he powe ha he manage s ha e and based on which hey guide he o ganiza ion in o he di ec ion ha will enable he achie emen o posi i e business e ec s also depends on he deg ee o dynamics and complexi y o he en i onmen (Gibbs, 1994). Some au ho s deem ha bo h s able ex e nal and in e nal en i onmen h ough ou ine obliga ions and es ablished ules s i l e he managemen ’s need o highligh leade ship abili ies, inclusion in o he p ocess o gene a ing and p ocessing new in o ma ion, ha is, implemen a ion o in e pe sonal, in o ma ional and decisional oles (Gibbs, 1994). We can conclude ha he mo e dynamic he en i onmen , he mo e s imula ions he e a e o inno a i e leade ship o he o ganiza ion. On he o he hand, he su i al o o ganiza ions ope a ing in dynamic indus ies depends o a g ea ex en on he wo k o ce’s abili y o exchange and combine in o ma ion in a new way (G an , 1996), ha is, he implemen a ion o in o ma ional ole is necessa y. Manage s applying hese ypes o oles should iden i y ex e nal aci knowledge h ough he moni o ole, hen o ca y ou he assimila ion o knowledge and i s ans o ma ion in o explici knowledge (Nonaka & Takeuchi, 2007, p. 166), which is possible by applying he dissemina o and spokespe son oles. On his pa h, o ganiza ions may su i e o disappea om he ma ke , depending on he unde aken manage ial ac i i ies (Elenko & Mane , 2005, p. 383). Based on he elabo a ed heo e ical basis and up o da e empi ical esea ch a he men ioned opic, he ollowing hypo hesis was se : Hypo hesis 3: The implemen a ion o inno a ion-o ien ed managemen unc ions and manage ial oles is in posi i e co ela ion wi h he dynamic in e nal and ex e nal en i onmen . P e ious esea ch on his opic poin s o he need o op managemen o espond o changes om an ex e nal en i onmen such as echnological changes, changes in compe i i e en i onmen and consume p e e ences (Jawo ski & Kohli, 1993) by o e ing new manage ial p ac ice, which was analyzed wi hin he empi ical analysis o ou s udy. Also, he co ela ion be ween he men ioned a iables has been demons a ed by ocusing on he ollowing changes in manage ial p ac ice in a dynamic ex e nal en i onmen : he o ganiza ional unc ion should be based on a dual ope a ing sys em in ma u e o ganiza ions, which combines a ne wo k sys em wi h a adi ional hie a chical sys em o o ganiza ion as well as implemen a ion unc ions o leading on he p inciple o as much agili y, inno a ion and passion as possible (Ko e , 2014); in e pe sonal ela ionships should be implemen ed on he p inciple o empa hy wi h employees, while he decision- making ole should in ol e he inclusion o as many employees as possible (Ko e , 2014). 3. Resea ch Me hodology and Sample The su eyed sample comp ises he managemen o 50 la ge o ganiza ional sys ems on he e i o y o he Republic o Se bia co e ing all sec o s and all egions, and accoun o 4.73 % o he o al numbe o la ge legal en i ies. The necessi y o a su ey on he managemen o la ge o ganiza ional sys ems s ems om he i nding ha he size o he o ganiza ion is impo an because i has been con i med ha o ganiza ion’s size is posi i ely ela ed o be e managemen p ac ice (Aga wala e al., 2014; Nie es & Sega a- Cip es, 2015). Also, he need o in oduce inno a ion in he a ea o managemen is g ea e in la ge o ganiza ions (Mol & Bi kinshaw, 2009) due o: comp ehensi e knowledge, mo e a ailable unds, he possibili y o aking highe isks and di e si ying he cos s incu ed due o unce ain y. Fu he mo e, he au ho s Če ne e al. (2013) highligh he impo ance o la ge o ganiza ions and hei size as mode a o s in he ela ionship be ween knowledge exchange and managemen inno a ion on he one hand, bu also he dange on he o he because such o ganiza ions a e cha ac e ized by g ea e complexi y and can o en make i di i cul o inno a ion o be implemen ed. We ha e o EM_4_2019.indd 72EM_4_2019.indd 72 25.11.2019 11:02:2025.11.2019 11:02:20 73 4, XXII, 2019 Business Adminis a ion and Managemen men ion he e he need o in oduce inno a i e managemen p ac ice in Eas e n ansi ion economies. I ollows om he conclusion ha business en i onmen o he Wes e n coun ies is mo e inno a i e, leading o he conclusion ha manage s and leade s a e mo e ole an o he new managemen p ac ice, while in he Eas e n coun ies igid, adi ionally o ien ed managemen p ac ices based on au oc a ic s yle business a e mo e ep esen ed (S i as a a, 2016). The e o e, esul s o his esea ch can se e as a me hodology and benchma k o o he ansi ion economies ha ha e p oblema ic business en i onmen cha ac e ized by poo business models, poli ical ins abili y and go e nance condi ions (Ali e al., 2009). Fo mula ion o he su ey s uc u e was ca ied ou based on he 4 elemen s o in l uence (1) he i s elemen which was elabo a ed h ough ques ions wi hin he i s sec ion o he ques ionnai e e e s o incen i es om he en i onmen ha can in l uence managemen beha iou ; (2) he second elemen is explained h ough a se o ques ions abou he implemen a ion o managemen unc ions and indica es managemen p ac ices; (3) he hi d elemen is simul aneously ep esen ed h ough ques ions abou he use o Min zbe g’s manage ial oles and conside s a manage as an indi idual in a cogni i e p ocess, who has he ole o in e media y be ween incen i es and beha iou ; and (4) he ou h elemen poin s o possible consequences o such beha iou , which is analyzed h ough business pe o mance. Incen i es om en i onmen , being he i s elemen o esea ch amewo k which desc ibes en i onmen al dynamism as well as inno a ion o ien ed managemen p ac ice, ha u he ep esen s he second and he hi d elemen o he esea ch amewo k, we e all analyzed h ough Google su ey o ms. Each sec ion o he ques ionnai e, excep he ou h elemen o he esea ch amewo k, i nancial indica o s, consis s o ques ions in he o m o s a emen s o which he esponden s we e asked o gi e hei esponses, exp essing hei ag eemen wi h hese s a emen s acco ding o Like scale om 1 (I ag ee) o 5 (I do no ag ee). The ou elemen o he esea ch amewo k as business pe o mance was elabo a ed using objec i e da a on business pe o mance o he su eyed en e p ises, whe e i nancial epo s o 2012 and 2013 we e used o calcula ion. Be o e o mula ing he i nal e sion o he ques ionnai e, a p elimina y analysis o cla i y and app op ia eness o he se scale was conduc ed by consul ing en op manage s and i e academic expe s. They we e asked o a c i ical opinion abou all ques ions wi hin he su ey and indica ed unclea poin s. Based on he ecei ed c i ique, some ques ions we e elimina ed, some modi i ed o added. Google su eys we e sen o manage s o all le els in 100 andomly chosen la ge o ganiza ional sys ems. They we e accompanied by co e le e s explaining he goal o esea ch and he basic e hical p inciples o esea ch. To minimize possible desi abili y bias, he co e le e poin ed ou he con i den iali y o p o ided answe s, and he use o hese o he pu poses o he abo e men ioned esea ch. 3.1 Resea ch Ins umen , i s Validi y and Reliabili y The e is a lack o widely accep ed measu es o inno a i e managemen p ac ice (A mb us e e al., 2008) which leads o inabili y o compa e he esul s in his esea ch a ea (Damanpou , 2014). Fo he abo e eason, we ied o de elop he measu emen me hodology o o ganiza ions dealing wi h u bulen en i onmen o ansi ion economies. In he esea ch amewo k, independen a iable is en i onmen al dynamism composed o dynamic in e nal and ex e nal en i onmen scale. Dynamic in e nal en i onmen was measu ed h ough a scale composed o i e ques ions analyzing pe manen changes in he business p ocess, he echnology used and he engagemen o new quali i ca ion s uc u es. The dynamic ex e nal en i onmen scale was c ea ed acco ding o he s udy o Jawo ski and Kohli (1993) and includes ou ques ions abou changes in compe i o beha io and a i ude, changes in p e e ences o he consume as well as he endency o buy new p oduc s and echnology due o apid change in indus y. Second independen a iable is inno a i e managemen p ac ice. In he p e ious esea ch he e a e no unique cons uc s ha measu e inno a i e manage ial p ac ice, bu mos o he pape s ook in o accoun some o he manage ial ac i i ies wi hin he unc ions. Fo example, in he wo k o Kalay and Lynn (2015), hey ca ied ou esea ch in 66 o ganiza ions, including 132 manage s and hei inno a i e leade ship p ac ices by conside ing a iables such as: EM_4_2019.indd 73EM_4_2019.indd 73 25.11.2019 11:02:2125.11.2019 11:02:21 74 2019, XXII, 4 Business Adminis a ion and Managemen Inno a ion S a egy (IS), O ganiza ional S uc u e (OS), Inno a ion Cul u e (IC), Technological Capabili y (TC), Cus ome and Supplie Rela ionships (CSR). Fu he mo e, he au ho s Sánchez e al. (2011) conduc ed simila esea ch in Spain wi hin 91 o ganiza ions, while in he dimensions o inno a i e manage ial p ac ice hey included inno a i e s a egy, managemen sys em, managemen cul u e, p ojec managemen , c ea i i y, as well as di e en ypes o inno a ions ha ep esen he consequence o applying inno a i e manage ial p ac ice. In he pape , S ock e al. (2014), as a pa o an inno a i e manage ial p ac ice wo manage ial unc ions a e dis inguished: inno a i e leade ship and inno a ion-o ien ed HR managemen . Wi hin ou pape , inno a i e manage ial p ac ice includes inno a i e o ien ed managemen unc ions and oles. Inno a i e managemen unc ions a e measu ed h ough 14 ques ions: 5 ques ions abou inno a ion o ien ed planning as implemen a ion o s a egic and scena io planning which will esul in app op ia e inno a i e s a egy; 2 ques ions abou inno a i e o ganizing unc ion as a combina ion o exploi a ion and explo a ion ac i i ies; 3 ques ions abou inno a i e s a i ng h ough ewa ds, aining and de elopmen ; 3 ques ions abou he inno a i e leading unc ion ha e e s o he implemen a ion o ans o ma ional leade ship s yle h ough ansmi s o he o ganiza ion’s mission o all o he employees, hus inc easing employee’s le el o en husiasm and emphasizing he use o employee’s in elligence (Ga cía-Mo ales e al., 2012, p. 1048); 1 ques ion on inno a i e con ol unc ion h ough s a egic con ol. On he o he hand, manage ial oles such as in e pe sonal, in o ma ional and decision-making oles ha a e inno a i e o ien ed a e also aken in o accoun . F om he pe spec i e o in e pe sonal oles, bo h in e nal and ex e nal, he au ho s A mb us e e al. (2008), in he analysis o manu ac u ing companies in he e i o y o Ge many, poin ou ha inno a i e managemen p ac ices can be iewed, in e alia, h ough di e en in e pe sonal ela ionships, bo h be ween employees h ough decen aliza ion and he o ma ion o mul i unc ional eams as well as ex e nal pa icipan s h ough ou sou cing o alliances. Fu he mo e, in he pape by Če ne, Jaklič and Ške la aj (2013), which includes esea ch conduc ed wi hin 604 o ganiza ions on he e i o y o Slo enia, Spain and Sou h Ko ea hey highligh he impo ance o knowledge sha ing in implemen a ion o inno a i e manage ial p ac ice, which is he key o implemen ing an in o ma ion managemen ole. In ou s udy we used a sho ened scale o 17 ques ions ha we e modi i ed in o de o analyze he applica ion o h ee g oups o managemen oles, in e pe sonal, in o ma ion and decision- making oles adjus ed o he esea ch o McCall and Seg is (1980), who de eloped 54 ques ions desc ibing subg oups wi hin each ole. Fo he analysis o in e pe sonal oles, ques ions ha we e used a e ela ed o imp o emen o he ne wo k o pe sonal con ac s, good ela ions wi h employees, business pa ne s and use s, while p omo ing he o ganiza ion as an inno a i e o ien ed. In o ma ion oles we e analyzed h ough a da abase o in o ma ion c ea ed in coope a ion wi h supplie s, compe ing o ganiza ions and end-use s, as well as he ans e o in o ma ion ecei ed o a na owe and wide ci cle o employees. The ole o decision-making by manage s was analyzed based on he manage ’s posi ion ha ad oca es an agg essi e eac ion o he changes ha occu ed, wi h he emphasis on g ea e c ea i i y and inno a ion. In addi ion o examining inno a i e managemen beha io , some au ho s analyzed he esul s o hese ac i i ies as di e en ypes o inno a ions ha a e he consequence o applica ion o inno a i e manage ial p ac ice (Sánchez e al., 2011) as we also did wi hin ou su ey h ough he a iable O ganiza ional Inno a i eness. The men ioned a iable was measu ed by a ious ypes o inno a ions o e he las 5 yea s, aking in o accoun he classi i ca ion o inno a ions in he OECD s udy (2005). Fu he mo e, he dependen a iable - business pe o mance – was measu ed h ough g ow h, p o i abili y and he o al le el o business pe o mance. Abo e men ioned a iables we e desc ibed as ollows: he g ow h a iable was measu ed by he chain index o g ow h in he numbe o s a , e enue and asse s; he de elopmen a iable was analyzed h ough implemen ed in es men ; p o i abili y o he en e p ises was measu ed by business esul change indica o s as a e age alues o ROA and ROE. The eliabili y o su ey cons uc o s was analyzed by ac o analysis and calcula ing he C onbach’s Alpha coe i cien . The alue o his coe i cien is 0.880 o he i nal e sion o he EM_4_2019.indd 74EM_4_2019.indd 74 25.11.2019 11:02:2125.11.2019 11:02:21 75 4, XXII, 2019 Business Adminis a ion and Managemen ques ionnai e, which indica es good eliabili y o he scale. The pe o med ac o analysis shows ha Kaise -Meye -Olkin alue is highe han 0.6, which indica ed ha he alues in he ma ix we e app op ia e o conduc ac o analysis. Acco ding o Ba le ’s Sphe ical Tes , he s udy showed ha he da a o igina ed om a mul i a ia e no mal dis ibu ion and ha he scale was ound signi i can . P incipal componen analysis was used as a da a ex ac ion me hod. Va imax o a ion was conduc ed. A ac o loading o 0.50 is ega ded as p ac ically signi i can and has he e o e been used as he cu -o le el in his s udy. The Va imax e ical o a ion me hod a ies in a ange om 0.517 o 0.886 (Tab. 1). To es he in l uence and co ela ion be ween he abo e men ioned su ey cons uc o s, we conduc ed logis ic eg ession, bina y and mul inomial, and co ela ion analysis. 4. Resea ch Resul s Tab. 2 shows he esul s o bina y logis ic eg ession conduc ed in o de o es hypo heses H1 and H2. Rega ding he g ow h modelling, model pe o mance was i s es ed wi h Hosme - Lemeshow es , which shows ha he model is good (x2(8) = 6.843, p = .000), ha he model wi h all included a iables s a is ically signi i can ly p edic s o ganiza ional g ow h be e in compa ison o he model ha only has a cons an . Pe o mance o he p o i abili y model was es ed wi h he same Hosme - Lemeshow es , whose esul s show ha he model wi h all he p edic o s is s a is ically signi i can (x2(8) = 17.611, p = .000). O ganiza- io nal pe o mance was modelled wi hin model 3, whe e model pe o mance was es ed using Hosme -Lemeshow es , which also suppo s he hypo hesis ha he de eloped model is good (x2(8) = 3.578, p = .000). The comple ed logical eg ession shown in Tab. 2 indica es ha leading unc ion (x2(1) = 3.655, p = .056) s ands ou om o he managemen unc ions, which indica es ha o ganiza ions applying inno a ion o ien ed leading unc ion and con empo a y leade ship s yles, especially ans o ma ional leade ship s yle, ha e a highe likelihood o u u e g ow h and achie emen o he desi ed pe o mance le el compa ed o o ganiza ions applying adi ionally o ien ed leading unc ion, which poin s o pa ial con i ma ion o hypo hesis H1. The manage as he decision make (x2(1) = 4.660, p = .031) s ands ou as Sec ions o he ques ionnai e – a iables Sou ce o ques ions KMO and Ba le ’s Tes Fac o s/ dimensions Eigen alue To al a iance explained C onbach’s Alpha Sec ion I En i onmen al dynamism Gibbs, 1994 Jawo ski & Kohli, 1993 KMO .624 Chi Squa e 102.901 d 36 sig .000 1. Ex e nal en i onmen 2. In e nal en i onmen 2.570 1.707 47.515 0.626 Sec ion II Inno a ion- o ien ed managemen unc ions Fayol, 1949 Ga cía-Mo ales e al., 2012 KMO .647 Chi Squa e 215.857 d 91 sig .000 1. Planning 2. O ganizing 3. S a i ng 4. Leading 5. Con olling 3.116 2.486 1.352 1.332 1.234 67.997 0.745 Sec ion III Manage ial oles Min zbe g, 1973 McCall & Seg is , 1980 KMO .712 Chi Squa e 485.979 d 153 sig .000 1. In e pe sonal oles 2. In o ma ional oles 3. Decisional oles 4.351 3.281 2.411 55.799 0.825 Sec ion IV O ganiza ional inno a i eness OECD, 2005 KMO .632 Chi Squa e 35.739 d 6 sig .000 1. Types o inno a ion 2.061 51.516 0.670 Sou ce: own Tab. 1: I ems and eliabili y o each measu e EM_4_2019.indd 75EM_4_2019.indd 75 25.11.2019 11:02:2125.11.2019 11:02:21 76 2019, XXII, 4 Business Adminis a ion and Managemen a signi i can p edic o o he en e p ise’s p o i abili y, indica ing ha o ganiza ions whe e manage s apply decisional ole ha e a highe likelihood o p o i able ope a ion compa ed o o ganiza ions whose manage s do no ha e p ominen decisional ole. This pa ially con i ms hypo hesis H2. Mul inomial logis ic eg ession was applied in o de o examine he in l uence o inno a ion-o ien ed managemen p ac ices on o ganiza ional de elopmen (Tab. 3). The su eyed o ganiza ions we e classi i ed in o h ee di e en ca ego ies, whe e ca ego y 0 includes o ganiza ions whose alue o in es men was educed compa ed o he p e ious yea ; ca ego y 1 includes o ganiza ions whose alue o in es men inc eased compa ed o he p e ious yea ; ca ego y 2 includes o ganiza ions ha did no in es . Taking in o accoun his classi i ca ion, likelihoods o belonging o one o hese h ee de elopmen ca ego ies we e p ognos ica ed, whe e he g oup 2 was selec ed as he e e ence ca ego y. When compa ing ca ego ies 0 and 2, only con olling unc ion ea u es as a signi i can p edic o , ha is, o ganiza ions cha ac e ized by decline o in es men and implemen a ion o inno a ion o ien ed con olling unc ion ha e a highe likelihood o de elopmen compa ed wi h o ganiza ions cha ac e ized by adi ional con olling unc ion and no in es men alloca ed o de elopmen . On he o he hand, when compa ing ca ego ies 1 and 2, ha is, o ganiza ions whose in es men g ew in 2013 and hose ha did no in es a all, wha s ands ou is inno a ion o ien ed planning and o ganizing unc ion as well as he decisional ole. The ob ained esul s, oge he wi h he esul s o bina y logis ic eg ession wi hin models 1 and 2, indica e ull con i ma ion o hypo hesis H1. Tab. 4 poin s o he esul s o co ela ion analysis wi h he aim o de e mining he co ela ion be ween inno a ing manage ial ac i i ies in la ge o ganiza ional sys ems and dynamic business en i onmen , in o de o es hypo hesis H3. Model 1 – GROWTH Model 2 – PROFITABILITY Model 3 – TOTAL LEVEL OF PERFORMANCE Va iables in he equa ion B Sig. Exp(B) B Sig. Exp(B) B Sig. Exp(B) Planning .974 .156 2.647 .974 .306 2.071 4.035 .075 56.522 O ganizing -.287 .684 .750 -.287 .456 1.910 -1.935 .283 .144 S a i ng .174 .840 1.191 .174 .203 .281 -1.422 .508 .241 Leading -1.271 .056 .281 -1.271 .273 .507 -2.345 .049 .096 Con olling .648 .332 1.911 .648 .997 .998 .460 .717 1.584 In e pe sonal oles .048 .903 1.049 .048 .088 2.200 .643 .482 1.902 In o ma ional oles -.122 .668 .885 -.122 .993 .998 .224 .638 1.251 Decisional oles .244 .342 1.276 .244 .031 .563 -.186 .655 .830 O ganiza ional inno a i eness -.045 .745 .956 -.045 .455 1.137 .639 .246 1.894 Cons an -4.045 .354 .018 -4.045 .852 .455 -16.785 .106 .000 Tes o model Sig = .000 Sig = .000 Sig = .000 Summa y -2 Log likelihood = 55.019* Cox & Snell R = 0.192 Nagelke ke R = 0.260 -2 Log likelihood = 51.324* Cox & Snell R = 0.216 Nagelke ke R = 0.298 -2 Log likelihood = 22.581* Cox & Snell R = 0.302 Nagelke ke R = 0.539 Co ec p edic ions 73.5 71.4 91.8 Sou ce: own Tab. 2: Resul s o bina y logis ic eg ession EM_4_2019.indd 76EM_4_2019.indd 76 25.11.2019 11:02:2125.11.2019 11:02:21 83 4, XXII, 2019 Business Adminis a ion and Managemen o ien ed Leade ship and Human Resou ce P ac ices as D i ing Fo ces. Jou nal o P oduc Inno a ion Managemen , 31(5), 924-938. h ps://doi.o g/10.1111/jpim.12132. Theodosiou, M., & Ka sikea, E. (2007). How Managemen Con ol and Job- ela ed Cha ac e is ics In l uence he Pe o mance o Expo Sales Manage s. Jou nal o Business Resea ch, 60(12), 1261–1271. h ps://doi. o g/10.1016/j.jbus es.2007.05.003. Vacca o, I. G., Jansen, J. P. J., Van Den Bosch, F. A., & Volbe da, H. W. (2012). Managemen Inno a ion and Leade ship: The Mode a ing Role o O ganiza ional Size. Jou nal o Managemen S udies, 49(1), 28-51. h ps:// doi.o g/10.1111/j.1467-6486.2010.00976.x. Van Den Bosch, F. A. (2012). On he Necessi y and Scien i i c Challenges o Conduc ing Resea ch in o S a egic Value C ea ing Managemen Models. Ro e dam: E asmus Resea ch Ins i u e o Managemen . Walke , R. M., Chen, J., & A a ind, D. (2015). Managemen Inno a ion and Fi m Pe o mance: An In eg a ion o Resea ch Findings. Eu opean Managemen Jou nal, 33(5), 407-422. h ps://doi.o g/10.1016/j.emj.2015.07.001. W igh , P. M., & Snell, S. A. (1998). Towa d a Uni ying F amewo k o Explo ing Fi and Flexibili y in S a egic Human Resou ce Managemen . Academy o Managemen Re iew, 23(4), 756-772. h ps://doi. o g/10.2307/259061. Full P o esso - Re i ed Božida Leko ić, Ph.D. Uni e si y o No i Sad Facul y o Economics in Subo ica Depa men o Managemen Se bia [email p o ec ed] Assis an P o esso Maja S uga Jelača, Ph.D. Uni e si y o No i Sad Facul y o Economics in Subo ica Depa men o Managemen Se bia m.s uga [email p o ec ed] Assis an P o esso Slobodan Ma ić, Ph.D. Uni e si y o No i Sad Facul y o Economics in Subo ica Depa men o Managemen Se bia [email p o ec ed] EM_4_2019.indd 83EM_4_2019.indd 83 25.11.2019 11:02:2225.11.2019 11:02:22 84 2019, XXII, 4 Business Adminis a ion and Managemen Abs ac IMPORTANCE OF INNOVATIVE MANAGEMENT PRACTICE: SOLUTION FOR CHALLENGES IN BUSINESS ENVIRONMENT AND PERFORMANCE IN LARGE ORGANIZATIONS IN SERBIA Božida Leko ić, Maja S uga Jelača, Slobodan Ma ić The main esea ch p oblem in his pape is he de e mina ion o he main causes o he exis ing gap be ween managemen p ac ices and demands o business ope a ions. The iden i i ed p oblem is he consequence o complex business ci cums ances cons an ly se ing new asks be o e manage s. Manage s a e o ced o abandon he es ablished managemen p ac ices and he exis ing business amewo k so as o enhance o me ely main ain he a ained le el o o ganiza ional pe o mance. The main esea ch objec i e is o es ablish he deg ee o impac o inno a i e managemen p ac ices on he a ained o ganiza ional pe o mance. The second segmen o he esea ch in en ion is e l ec ed in he analysis o business en i onmen as he de e minan s o inno a i e aspi a ion wi hin he exis ing managemen ac i i ies. To his end, esea ch me hodology based on bina y and mul inomial logis ic eg ession and Spea man’s ank co ela ion coe i cien we e applied. The sample comp ises la ge en e p ises on he e i o y o he Republic o Se bia. The ob ained esea ch esul s poin ed o he sequen ial impac o inno a i e managemen ac i i ies on o ganiza ion pe o mance on he one hand and he connec ion be ween business en i onmen and inno a i e managemen p ac ices on he o he . The scien i i c con ibu ion o he pape is he choice o an insu i cien ly ep esen ed opic and esea ch p oblem ac oss all dimensions, which can be concluded obse ing he esea ch esul s ob ained so a . The scien i i c con ibu ion o he pape is also emphasized by he complexi y o de i ning and measu ing he esea ch a iables o he se esea ch p oblem. The ac ha all business achie emen s a e de e mined by he managemen ’s abili ies addi ionally poin s o he impo ance o he pape . Keywo ds: Inno a i e managemen p ac ices, managemen unc ions, manage ial oles, business pe o mance, dynamic en i onmen . JEL Classi i ca ion: L20, M21, O39, P47. DOI: 10.15240/ ul/001/2019-4-005. EM_4_2019.indd 84EM_4_2019.indd 84 25.11.2019 11:02:2225.11.2019 11:02:22