Organizational Innovation Traceability

Innovation is the soul of business survival and development, it’s a common development model used by modern enterprises to promote the development through innovating. With the rapid development of economic globalization and the advance of science and technology, enterprises are facing increasingly dynamic and complex living environment, they need to make a choice between consolidating existing technologies or markets and expanding new technologies or new markets according to environmental change and resource capacity, which will be a higher challenge for managers who have the decision-making authority, so as to get the organizational efficiency and competitive advantage. Thus, managers’ threat perception of environmental change will play an important role in organizational innovation decision-making. Some scholars believed that managers tend to recognize environmental change faced as threats or opportunities, and both cognitions can affect organizational innovation decisions, however threatens have a more significantly effect on organizational innovation decisions than opportunities. Therefore, the key moment choice of managers due to the environmental threat is particularly important for enterprises.Threats exist in the environment objectively, managers identify threats that have adverse effects on enterprises through scanning and coding, which will become stimulus of manager’s innovation decisions. Resource, as the necessary material basis for the implementation of innovation, will become an important situational factor in innovative decision-making. Therefore, this paper studies the formative mechanism of organizational innovation from cognitive perspective. Based on Prospect Theory and Threats Rigidity Theory, we believe that managers’ different threats perception on environment will affect innovative choice differently, thus we categorize the threat perception into control-reducing threat and threat of likely loss. Furthermore, we introduce the variable of organizational slack, and divide it into absorbed slack and unabsorbed slack to build a comprehensive model of organizational innovation.In this paper, we integrate case studies and survey research method to solve the research problem. Firstly, we take Chery Automobile Company for instance to explore how different environmental threat perceptions and organization slack affect organizational innovation using the methods of both text analysis and coding design, then we get four research inferences. Secondly, we design a questionnaire according to previous research, issue questionnaires to EMBA students in USTC and recover179questionnaires finally to test these research inferences. After statistical analysis of SPASS19.0, the final results showed that managers’threat perception of internal and external environmental change will affect the choice of organizational innovation strategy, and managers tend to take exploratory innovations under threat of likely loss, and take exploitative innovation under control-reducing threat. Meanwhile, absorbed slack can strengthen the relationship between control-reducing threat and exploitative innovation, unabsorbed slack can not only strengthen the relationship between threat of likely loss and exploratory innovation, but also strengthen the relationship between control-reducing threat and exploitative innovation.