A STUDY OF INNOVATION PROCESS IN INDIAN PHARMACEUTICAL COMPANIES

Abstract

This study develops a conceptual framework exploring the innovation process in research and development units of organizations. Research and development teams of pharmaceutical firms operating in India were the unit of analysis. Data were collected from 352 leaders and equal number of team members working in research and development teams. The responses were collected through questionnaire survey method. Questions to measure variables of members‟ proactive personality, emotional intelligence, trust, task reflexivity, team creativity, and innovation adoption were answered by team leaders. Responses on variables of resonant leadership style of team leaders, team information sharing process, and climate for innovation were answered by team members. Out of 450 questionnaires distributed, 352 completely filled responses were finally obtained having a response rate of 78%. Data were analyzed through structural equation modeling using AMOS 21.0 software package. Findings of the study reveal that members‟ proactive personality, emotional intelligence, and trust enhances learning of members called task reflexivity. This learning is further promulgated with the intervention of team information sharing process and support for innovation. Team creativity enhances innovation implementation in organizations. However, resonant leadership style of team leaders did not support task reflexivity. Overall, this study highlights that creativity is promulgated when information is disseminated among members in a supportive climate for innovation. Organizations can create and innovate by developing capability of members who are proactive, emotionally intelligent, and trust their colleagues. So that these team members can rationally judge organizational priorities, learn from their colleagues, plan and execute novice ideas to serve market needs.