Why the Authors Are Emphasizing the Role of Compatibility - Literature review Example

Journal article analysis Name Institutional Affiliation Why the authors are emphasizing the role of compatibility as a link between organizational culture and management innovations The authors are emphasizing on the compatibility link primarily because the values and the beliefs are critical to all the participants in an organization. Compatibility is also useful in organization culture because it is connected to the process of diffusion. Computability solves the conflict that may emanate out of the incorporation of particular beliefs and values to members who may not resonate well with them (Ax & Greve, 2017). When innovations within a company are fitted to the organizational culture, then it becomes easier for the members of a particular organization to accept the values and beliefs that are enshrined in a particular culture. The influence of the compatibility link is well illustrated through manufacturing techniques such as TQM, continuous improvement, customer focus and benchmarking. Ax & Greve (2017) asserted that the rates of adoption are influenced by the ability of an organization culture to accommodate the values and beliefs that have been put in place in the manufacturing process. The interaction in the dynamic process has also been seen as dynamic as a result of the incorporation of the compatibility link. Ax & Greve (2017) asserted that those organizations that adapt quickly are more likely to have a stronger organizational culture but the compatibility is expected to decrease over time. They further added that when there is an institutionalization of the innovation, then the influence of the compatibility on the decisions that are to be made by the organization regarding adoption will be eliminated slowly. In addition, they were quick to point out that a lowered compatibility influence can be joined with the theory process, the behavior that is meant to be used and innovation institutionalization. The idea of adoption is clearly stipulated in the relationship between the different characteristics of innovation and the culture of the organization and further through how the timing and adoptive motivation relates to the aforementioned relationship. Ax & Greve (2017) espoused that the relationship is more complex compared to the adoption that has been tested previously in the management and research of past accounting practices. This is primarily because of the fact that the relationship reveals a direct and static relationship which unravels the weak points in past accounting practices. The research above affirms that compatibility indeed contributes significantly to literature but there are still some questions that are raised through the diffusion process. The compatibility link model insinuates that how an organizational culture is compatible to the values and beliefs is mainly associated with how an innovation influences an organization to accept and use the innovation (Ax & Greve, 2017). The reason why this is so is mainly influenced by the notion that innovation should not conflict with the culture of an organization or firm. Nonetheless Ax & Greve (2017) asserted that the compatibility link model at times fails to explain why some innovation firms do reject innovations at the initial stages and others in the late stages. In addition, he also espoused that there are those innovations that are adopted by companies or firms while some are not supported. This is contrary to the tenets of the compatibility link model since the model tends to insinuate that firms generally accept diffusion innovation in a collective manner. The management homogeneity and convergence practices that are espoused by the compatibility model do not therefore hold ground at all times. There is therefore a need to carry out more research on the model in order to purge the doubts and the gaps that exist by comprehensively addressing the differences in the practices that are used or considered for management and also the heterogenic nature of management (Ax & Greve, 2017). The innovative roles played by economic and social considerations in adoption decision-making Innovation plays a critical role in the social and economic considerations because there is legitimacy in the substitution in order to provide efficiency as the main driver for adoption since adoption relies more heavily on motivations rather than assessments (Ax & Greve, 2017). The patterns of the model are however explained or illustrated in a way that seems conflicting including how education has impacted to the society. Recent research as espoused by Ax & Greve (2017) however reveals that the two-stage model provides the needed opportunities and further solves the problems and further changes the direction of the diffusion. The model has in fact been integral in an area where the scholars are new since it relates with both timing and the different motivations of adoption. The research carried out in this area has largely been borrowed from the field of psychology and micro-organizational behavior, which combines how different situations are interrelated with the different changes in an organization. The interpretation is mainly termed as a situation that provides an opportunity for a gain, loss or threat. Innovation also plays a critical role in coming up with an effective model that is mainly aimed at unraveling how the decision making process is influenced by the interpretations and also how the motivation is incorporated into the decisions of adoption (Ax & Greve, 2017). The incorporation of innovation provides an opportunity for making better decisions and thereby increasing the possibility of augmenting the success. The two-stage model does not only focus on achieving the economic gains but also on fostering the social gains. For instance, fostering an early adoption can be got by differentiating itself from the other firms and more so by providing a distinction with the other firms that they are competing with the market (Ax & Greve, 2017). Innovation is mainly incorporated by the early adopters in a bid to advance the progress of the process of diffusion and despite the risks that are presented by the incorporation of innovation; there are positive results that are presented out of the same. Some of the risks that are presented include the threat of losing competitiveness and also the loss of legitimacy. Nonetheless, innovation is used by the late adopters in a bid to avert the potential losses that may be got out of the failure to incorporate adoption. Innovation also enables companies to overcome the weaknesses that may be associated with the model for instance the separation of the social and economic intentions from the distinction of the incorporation of adoptive behavior (Ax & Greve, 2017). Innovation further makes it possible to avoid losses and further make gains. Innovation further makes it easier for businesses to augment their understanding on the process of diffusion. Economic and social considerations in adoption decision making also plays a critical role in fostering innovation by improving the social and economic conditions of the businesses and individuals and further making it possible for businesses and individuals to make prudent decision that are aimed at improving the consequent growth and success (Ax & Greve, 2017). The relevance of the proposed hypotheses in the study The proposed hypothesis is critical since it augments the recognition of the innovation process and further improves the contingency of the compatibility process. Hypothesis is important since it will improve the compatibility and further make it easier to improve the recognition process (Ax & Greve, 2017). The hypothesis makes it easier to detect the innovation at an early stage in the trajectory of the diffusion and further provides an opportunity to improve the gains. The hypothesis is therefore used to prove that innovation has the ability to improve the growth and to further improve the gains over a period of time. In addition, the hypothesis also makes it easier to detect an innovation at an early stage and at a later stage (Ax & Greve, 2017). The hypothesis is used to unravel that when an innovation is recognized at a later stage, then the losses will be avoided and to further ensure that the process will only be provided when there is likelihood that the innovation will help the decision makers. The hypothesis was also critical in affirming that compatible majority of the firms do incorporate the process of innovation at an earlier stage compared to the incompatible firms that incorporate the process of innovation at a later stage. The hypothesis is also critical in enabling firms to be compatible since it is only compatible firms that are able to discover the importance of innovation at an earlier stage when innovation has just emerged (Ax & Greve, 2017). The hypothesis is also critical for augmenting our understanding on absorptive capacity which improves the recognition and the assimilation process and further improves the value of the information. In addition, the hypothesis is also important in augmenting our understanding of how selective firms are consistent in their values and also their norms (Ax & Greve, 2017). In addition, they also enable organizations to interpret their realities and to further foster their success by putting in place the moat appropriate behaviors. Moreover, the hypothesis was also important in enabling us to understand how compatible firms are forced to adopt at an early stage since they are sure that the innovation will be successful and also because of the fact that they try to harmonize their beliefs and values with the innovation (Ax & Greve, 2017). The hypothesis was in fact more relevant for this study since it brought out or unraveled an effective distinction between the compatible firms and the incompatible firms. Many if not all the compatible firms have augmented the recognition that it is imperative to make the innovative decisions at an earlier stage and further unravels that the incompatible firms are not willing to take up innovation and they are also of the perception that new innovations may conflict with their cultures, values and beliefs and are therefore unwilling to adopt or incorporate them at an earlier stage (Ax & Greve, 2017). Furthermore, the hypothesis also enables us to understand that there is a strong relationship between the process of diffusion and compatibility and the relationship becomes strong or weak depending on whether the innovation is adopted at the early stages or the later stages. There is also sufficient proof that the incompatible firms adopt innovation only after there is intense pressure from the industry (Ax & Greve, 2017). The adoption pattern is therefore explicitly explained by the hypothesis which made it easier to conduct the study and further evaluate the roles of innovation. References Ax, C., & Greve, J. (2017). Adoption of management accounting innovations: Organizational culture compatibility and perceived outcomes. Management Accounting Research 34, 59-74. Read More