|M.Sc Student||Dorfman Iris|
|Subject||Innovation and Quality: Compete or Complete?|
The Mediating Role of Managerial Risk Taking
|Department||Department of Industrial Engineering and Management||Supervisor||Professor Eitan Naveh|
|Full Thesis text|
Innovation and quality are two core elements in today business world. Organizations who want to maintain a competitive advantage are required to come up with innovative and applicable ideas, by the side of maintaining and ensuring quality standards. Research offers two opposing paradigms to explore the relationship between innovation and quality - the complementary approach and the competing approach. In order to reconcile the existing complexity, this study uses the paradox theory, and particularly the paradoxical leadership behavior theory. In addition, relying on evidence regarding the association between innovation and risk-taking, we also examine the mechanism underlying the well-established relation between innovation climate and innovative performance. Specifically, we offer managerial risk-taking as a mediator in the association between the two. A total of 344 employees among 72 teams from nineteen Israeli companies participated in the study. For each team, we collected data from both team members and managers, aggregating their responses separately into a team level of analysis. Findings show evidence for both competing and complementary approaches, offering a comprehensive understanding of the conditions in which each one of them exists. In addition, the mediating role of managerial risk-taking in the relation between innovation climate and innovative performance is being displayed, demonstrating the mechanism underlying this relation. Theoretical contributions and practical implementations are discussed.