The paper “ How Institutional Theory Affects the Implementation of Service Excellence and Innovation in Firms - Approach of Top Management to Company’ s Slack” is an informative example of a research proposal on the management. Institutional framework and top management are interconnected in organizational outcomes and decision making with varying levels of organizational slack. Technology systems such as enterprise systems are being adopted continuously throughout the life cycle of organizations through institutional forces and the efforts of top management. Kim et al. (2014) argue that firms utilize slack resources such as unused capacity, unnecessary capital, and redundant employees so as to adapt to environmental changes, hence improving the capability of innovation.
Institutional forces through the theory on information technology innovation as organizations assimilate business innovation systems and organizational work processes (Coule & Patmore, 2013). However, Nohria and Gulati (1996) note that organizations may undermine their capacity to innovate when they attempt to eliminate slack despite being essential for the experimentation of innovative projects and new strategies. Liang et al. (2011) confirm that top management mediates institutional forces and organizational behavior required in driving an innovative culture.
The institutional forces under normative, coercive and mimetic forces are predicted in institutional theory and are known to integrate internal and expert external knowledge. Organizations that utilize information and knowledge are bound to have increased levels of effectiveness and efficiency (Vargo et al. 2015). Knowledge and information utilize innovation and organizational culture to increase service excellence and quality. Organizations with a history of continuous improvement are likely to make progress in developing a successful innovative culture (McAdam, 1998). The public sector is responding to changes in innovation as the top management support institutional outcomes that favor service excellence and quality services. 1.1 Objectives To examine the effect of institutional pressures on top management in enhancing public sector service innovation To assess the institutional logics that effect on service excellence in government To examine top management commitment to service quality and excellence To establish top management commitment to service innovation To examine how service quality and innovation are moderated by organizational slack 1.2 Hypotheses Proposition 1: Influence of institutional pressures on top management in service innovationH11: Mimetic forces affect top management commitment to service innovationH12: Normative forces affect top management commitment to service innovationH13: Coercive forces affect top management commitment to service innovation This proposition assumes the presence of isomorphic pressures on top management in firms triggers some level of internal creativity.
Based on the works of Liang et al. (2007), top management has the capability to mediate utility business innovative systems under the influence of external institutional pressures. Companies using Enterprise Resource Planning (ERP) systems provided survey data. An empirical study by these authors using partial squares analyses found that mimetic forces affected the beliefs of top management who in turn affected their levels of participation in assimilating the usage of ERP systems.
On normative forces, institutional pressures do not affect top management capability to engage in service innovation but affect the usage of innovations in firms. Coercive pressures also positively affect the participation of top management in innovation. These findings were consistent with those of Decramer et al. (2012) who observed that coercive pressures were significant in adopting innovative systems such as employee performance management systems. However, Wong et al. (2009) argue that firms that are open to both success and failure of information systems innovations can handle institutional pressures better than firms with top managers fixed to success.
Most of the authors above were concerned with technical and financial concerns of top management of private productive industries with little attention to institutional pressures on the top management of the public sector. Although related studies by Nurdin et al. (2012) show that institutional forces influence the adoption and implementation of e-government systems, the extent at which it leads to improvement in service performance and administration is yet to be understood.