Review of Brand Affecting Organizational Innovation in Air Conditioning Industry (Case study: Conditioning Co.)
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Review of Brand Affecting Organizational Innovation in Air Conditioning Industry (Case
study: Conditioning Co.)
Sajjad Mostaghim Besarati1, Dr.Gholamreza Hashemzadeh*1
1
Department of Management and Accounting, Islamic Azad University, Tehran South Branch, Tehran South, Iran
ABSTRACT
Considering the passage if the societies from the industiral era to the information era, the importance of intellectual
capitals has been increased in the world of business. During the industrial era, the total cost of the assets, factories,
facilities and raw materials were necessary for a succesful business. But today, this effective use of intellectual
assets is effective in failure of success of a group (Gah, 2005). Now, knowledge and mental assets are the existed
intellectual capitals in the organization for maintaining the competetive advantage of the organization and also
development of the innovative capabilities in the organization are important for following the stable life in the
competetive environemny of today. In other words, management and controling the intekkectual capitals and also
the knwoledge assets in the organization provide the condition for transfering the knowledge and information among
the members of the organization which in trun would increase the innovative performance in the organization.
The business brands for companies are like an image and identity card which should be used in order to recognize
the qualities and offering it as a distinguished sign which is competetive. Importance and effect of the brand is so
that although at the beginiing the proper product and service introduce the brands in mind of the public but in the
middle term, continuing the presence in the markey, brand becomes the approval sign of the quality of the product
and services. Research variables include the brand effect, productive innovation, process innovation and official
innovation. Methodology of the present study is practical considering the objective and descriptive considering data
collection. Population of the study include 110 people and smaple in 86 people of the masters and managers of the
air condirioner company. Sicne the data base of the informatic company, books and magazines and interviews and
questionnaires are used for collecting the data, the Smirnov tetst and correlational test are used to analyze the data
and it is concluded that all the the hypotheses have been at 95 percent confodance level.
Key words: brand, innovation
INTRODUCTION The success of these companies is not limited to this
In classic literature of economy, work force, capital time period and during the last seven years, their
and land (raw material) are three main elements of share has been improved (Haupyly, 2010).
production and origins of producing wealth In our century, innovation is the main element and
(Ghafarian, p.2006). in traditional methods of cause and the key to success and the rally of the
industrial calsulation, in order to calculate the cost of sucessful managers is "innovation or destruction".
selling, payments, rwa materials and overload is The advice of most of the scholars of economy and
calculated with a reasonable benefit. However, none management is that " the spirit of enterpreneurship,
of these two pattern are able to answer how a product innovation and creation". If creating innovation in
with same efficiency, quality and beauty can be sold business is only the factor of benefit, a great mistake
with the cost three times more. New strategies of is done (Mahmooudi Pati and colleagues, 2012).
succesful organizations call this phenomenon as
brand. Significane of the study
Five superior organization of the present study The organization which have been more successful in
include: Apple, Nokia, Google, Adidas and Riket management of innovation fail in managing the
Bekaser, all of which have different innovative but innovation compared to their rivals and obtain a
significant performances and the cost of their share towice growth in number of human forces and selling
between the years 2006 to 2007 has increased from (Mason & et al, 2009). Organization have always
25 to 135 percent. been inevitable to change what they offer in theGMP Review, 2015; V16 (4) Sajjad Mostaghim Besarati, Dr.Gholamreza Hashemzadeh
market for their survival and they have to think about staff are considered inevitably and these innovative
changes in the market (Tafreshi and et al, 2010). staff can create development in the organization. In
Brand can lead to creation of new ideas about the our era, innovation was the main and key element of
product and the services of the organization. In fact success in business.
the importance of brand is seen at the time of creating In the world of today which is full of competition and
and following the group success. Brand is reflection everyone tries to win over its rivals. The importance
of a relationship that an organization has with its of innovative brands are more clear. The goal of the
customers and it is the realization of commitment of brand is to maintain the share in the market and find
the organization which promises to do them. Having some solutions and attract the talented staff who then
a powerful brand is helpful in success of the research do innovations and imporve their value in face of the
and development activities and it is the realization of shareholders.
the desires of the organization and harmonized the
attmepts of the staff inside the organization and their Research Hypotheses
tastes and prefrences. If the staff of the organization :
imaging themselves in such a role, the possiblity of Research Area
approaches and new chance is more. Brand is the Temporal area: includes first six months of the year
inspiring power of being goal oreinted and having 2014.
organizational commitment. Without this sense, Local area: is limited to the Air-conditioning
understanding and recognizing the chance is more company
difficult and innovation is harder. When the Subject area: is related to brand and innovation
organziations are mentioned, the human source or the
Research Model
Production innovation
Process innovation Brand
Official innovation
Figure 1.1: Research Model of Chen et al
Brand: the legal title of brand is the business sign. Michael L.Tushman considered innovation as the
Brand is a collection of the practical, emotional, field of success in business so that the managers are
reasonable and advantages that occupy the mind of looking to recognize the cycle of innovation and
the market. Reflecting the meaning, linking the creation and can help to do the changes in
images and signs are the advantages of the brand. organizations for more privileges (Rezaieennejad,
These advantages or benefits of brand became the 1999).
bases for decision making and this is what is the
audience realizes in his mind through seeing, hearing, Idea: is a determined thought which are not analyzed
feeling or any kind of relationship in conceptual, and are produced through our observation. Idea is a
visionary or verbal form. mental concept.
Innovation: using the new ideas due to innovation is
in fact implementing the ideas due to creation which Productive innovation: provides a tool for
is in form of a product or new services. Peter Drunker production which points to development and offering
considered innovation as an activity which needs the products and services (Ojaslou, 2008).
knowledge, attention and hard work of the staff. He
believes that which is common among the staff is not Process innovation: is a tool for maintaining and
a special type of personality but it is the systematic improving and saving the costs and includes the new
commitment to innovation (Rezaieenejad, 2001). methods or improving the findings of production,
92GMP Review, 2015; V16 (4) Sajjad Mostaghim Besarati, Dr.Gholamreza Hashemzadeh
distribution or offering services (Jimenez and Descriptive methods: in this section the information
colleagues, 2008). were analyzed through using descriptive analytical
methods and using the calculation of frequency,
Official innovation: points to the strategies, policies percentage and drawing the bars and describing the
and organizational forms and includes the policies, general condition of the research (responses).
resource specification and other factors related to the Inferential methods: in this section, considering the
social construct (Deft, 1978). questionnaires and their responses, the test of
Komolov-Smirnov was used to measure the
Research Method normality and Spearman correlation coefficient was
The present research is practical based on the goal used for measuring the significance of the hypotheses
and is correlation-descriptive based on the nature and and following a description of the statistical methods
the method since it studies the presents and describe was given.
what it is. Analysis of correlation coefficient is a statistical tool
for determining the type and relationship of a
Population qualitative variable with a quantitative variable and
Population of the present study include 110 experts correlation coefficient is one of the factors used in
and managers of the air conditioning company determining the correlation. Correlation coefficient
(considering the importance of the questionnaires shows the intensity of the relationship and type of the
only the people with bachelor's and master degrees relationship (direct or reverse). This coefficient is
were considered as population). between 1 to -1 and of there is no relationship
between the variables it will be zero.
Sample
Sampling was done based on a combinational method Spearman Coefficient: since the measurement
(random and clustering sampling) which is index of the variables is ordinal and qualitative, the
subdivision of probable sampling. The questionnaire Spearman correlation test is used. Spearman
was distributed among 86 people considering Morgan correlation is calculated as:
chart.
2
Technical features of measurement tools 6 d i
Validity: in order to measure the validity, the rs 1 2
measurement tool should measure what it is intended n(n 1)
to measure. In order to answer this question and
Where
using the opinions of the experts and guides, the test
The difference of the same ranks of two adjectives =
questions were studied and ambiguities were
di
removed and it showed the acceptable content and
The number of ordered pairs in the sample= n….
face validity.
Reliability: using the data gathered from the
Research hypotheses:
questionnaire by the SPSS software, the degree of
The hypotheses discussed in this study include:
reliability coefficient of Alpha Cronbach was 92%
Main hypothesis:
which shows the internal consistency and reliability
There is a significant relationship between the brand
of the questionnaire. In order to calculate the alpha,
and innovation
first the variance of the scores of each sub section of
the questionnaire and then the overall variance have
Second hypotheses:
to be calculated (table are shown in appendix).
There is a significant relationship between brand and
Analysis method of the data was done in order to production innovation
analyze the data and after ranking the choices from 1 There is a significant relationship between brand and
to 5 from completely disagree to completely agree, prossess innovation
the data were analyzed by SPSS.
There is a significant relationship between brand and
official innovation
Table 4-11: statistical results of hypothesis
Rejected
Number of Correlation
component Sig. or
Hypothesis coefficient
approved
93GMP Review, 2015; V16 (4) Sajjad Mostaghim Besarati, Dr.Gholamreza Hashemzadeh
1 Productive innovation 0.000 0.824 approved
2 Process innovation 0.000 0.836 approved
3 Official innovation 0.000 0.913 approved
As it is seen in the table above, all the hypotheses competitive advantage of the industries, skills,
have been approved. experts and high experience of the staff in selling
affairs. Since the indices such as knowledge, skill,
Practical suggestions expert and staff competency and human sources, the
Study and examination of the concepts, features and experience of the expert staff and educated youth has
effective factors on organizational innovation showed high importance and so , it can suggested that these
that innovation in organizations is one of the factors along with each other provide a higher quality
discussions that become more important by growth of product and higher competitive advantage.
the organizations and complexity of the competitions Suggestions based on the first hypothesis include:
among them. Based on the findings of the present As a result of being pioneer in providing the services
study, the presence of brand and innovation names of and new production, more benefit, increased credit of
Air Conditioning Company has created idea, the brand and increase of the goal market is provided
creativity and facilitating the behavior of the staff. for Air Conditioning Company and more customers
So, as development of the brand in real term would be attracted.
facilitate the process of creating innovative Suggestions based on the second hypothesis include:
organizations and put them in a new condition, so in There is no doubt that in order to meet the mentioned
this section based on the results of the data analysis goals, changes in production process and services,
and statistical tests and considering the three factors finding new ways for doing the tasks, advances in
of innovation in the organization and affecting by the providing the methods and new ways of production,
brand, some suggestions are made: improving the micro process, redesigning the
The companies can be successful that are flexible and process, redesigning the business and industrial value
improve their product quality with their services and chain which its performances would be necessary.
can provide new services and products in the Suggestions based on the third hypothesis include:
competitive market of the day and accept the In order to get the complete success in this chain, an
competitive advantage. These types of the companies infrastructure with an organized form is needed in
have to encourage the staff to be innovative and which the innovation is hidden. Looking for new
provide the based for emergence of innovation and official systems and advancement in using and
creativity and creating such condition is one of tasks implementing these systems cause constructions and
of the brand. In fact, it can be said that innovative the organizational relations which are followed by
attempts in the organization are results of correct recognizing the new markets and new customers.
approach toward brand and investing on it. The This new official system created relationship with the
manager of the organization can create this customers and the byproduct of this innovations is
knowledge on the staff and provide the chance for dynamism of the engineering section in task of
using this knowledge. designing and producing the models, reengineering of
Today competitiveness of the organizations and the product and making the completely ordered
industries has less based on the traditional factors product based on the customer’s needs.
(capital, land, and work force) and knowledge and It can be concluded based on the main hypothesis
innovation has increasingly replaced these old that:
factors. The above mentioned descriptions are related to the
So, innovation is not only a source for competitive indices of innovation in the organization including
advantage but as it was mentioned, it is the only the production, process and official innovation which
source. In the modern organizations, using the is performing under the influence of the brand of Air
constructive capitals such as information technology, Conditioning Company. in fact the strong way of
methods and practical plans (such as groupware, production in this company is due to a strong brand.
databases, and internet and …). These factors give Limitation and problems of the research
the organizations and industries the chance to provide Generally, the limitations and obstacles of the present
better quality productions and so have a better research are expressed as:
competitive advantage. Due to short time for obtaining the information
There is no doubt that one of the most important Development of the innovations and brand and their
factors in recent years has the best effect in the mutual effects on each other
94GMP Review, 2015; V16 (4) Sajjad Mostaghim Besarati, Dr.Gholamreza Hashemzadeh
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