IDEA MANAGEMENT PROGRAMS AND INNOVATION: PRACTICES OF LARGE CORPORATIONS IN SOUTHERN BRAZIL

Abstract

Research on the situation of idea management initiatives in large companies in Southern Brazil, undertaken as an exploratory descriptive survey using a quantitative approach. The survey population comprised 85 companies, resulting on 41 valid responses. The data allowed the identification of company profile characteristics, idea management practices, their benefits and obstacles, and the determining factors for adopting the initiatives. The results show that 70 percent of the companies surveyed have structured programs to seek, stimulate, evaluate, implement and reward ideas from employees. The perceived benefits were: a greater ability to generate ideas and turn them into projects, increased participation, teamwork and motivation among employees. The main obstacles to the implementation of idea management programs are low levels of employee involvement, communication problems, and insufficient rewards for participation. Regarding the effectiveness of the initiatives, structural equation modeling with partial least squares estimation (PLS) supports the conclusion that, even though idea management practices have a positive effect on innovation results, the initiatives must be supported by aspects of organizational culture, behavior and processes that contribute to promote learning, knowledge absorption and sharing, and the consequent development of innovative activities. Lastly, there is perceived need for more detailed studies about the role of culture, behavior, managerial practices and processes associated with knowledge management and innovation, and their impacts on innovative capacity.