Uncertainty and Managers’ skills in Industrial Innovation Processes

Abstract

In the manufacturing industry, there is a strive for innovative processes. This study puts the focus on the successful implementation of innovation projects in the manufacturing industry. The study identifies the interrelationships between two dimensions: management skills and change management of innovation projects implemented in an industrial organization and technological uncertainty. Innovation can be achieved through small steps (incremental innovation), i.e., minor improvements to current products, services, processes, and business models. The necessary skills for successful organizational change and how managers can acquire them are provided. The literature review dedicated to this subject emphasizes the relationship between an innovation project’s success and managers’ skills within the industrial organization. In this study, we have narrowed this dimension to the manager’s communication abilities. The data analysed were collected from Israel and Romania. We want to analyse the role human resources departments manage skills acquisition in the organisation, as well as the role of manager’s communication skills in innovative cases. The data from 275 Israeli project managers, mainly from innovative projects, was collected using a validated questionnaire. Data from Romanian 48 industrial companies was collected using questionnaires distributed to 67 managers from all hierarchical levels. We found that management skills are correlated with innovation and its success; communication skills are acquired through non-formal learning methods. The skills of managers are highly correlated with success, especially under high levels of technological uncertainty.