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Restructuring Organizations Through Innovation: a Study in the Context of the Indian Chemical Sector

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Abstract

The chemical business in India is under pressure from both internal rivalry and the prospect of inexpensive imports. In the context of the chemical sector in India, the current study focuses on understanding the underlying focus on innovation in the intrinsic organizational design strategy to resist extrinsic transformation agents. It also intends to investigate the impact of innovation strategy on the performance of Indian chemical companies. A poll of executives from chemical companies was conducted. To assess the impact of the antecedents of innovation (combined as the Innovativeness Index) on the performance of chemical manufacturing businesses, a structural equation modelling approach is used. It is possible to argue that as a chemical firm’s relative distinctiveness from its rivals grows, so does its performance, as measured by its capital turnover ratio. The chemical firm’s capital turnover ratio (performance) is also influenced by its relative uncertainty measure—that is, the lower the environmental uncertainty, the more successful the chemical firm is. The relative integration of a chemical company also has a beneficial impact on its performance. The degree to which a chemical business may separate itself from its rivals (relative differentiation), as well as its relative integration with the industry, is influenced by the relative uncertainty of its environment. These inferences may help chemical companies become more successful.

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Author information

Authors and Affiliations

  1. School of Management, Techno India Group, DN 25, Sector V, Salt Lake, Kolkata, 700 091, India

    Amit Kundu

  2. PepsiCo India, 4A, Akash Tower, 781 Anandapur, Kolkata, 700107, West Bengal, India

    Dev Narayan Sarkar

  3. Department of Business Management, University of Calcutta, 1, Reformatory Street, 700 027, Kolkata, West Bengal, India

    Arabinda Bhattacharya

Authors
  1. Amit Kundu
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  2. Dev Narayan Sarkar
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Correspondence to Amit Kundu.

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Appendix. Questionnaire

Appendix. Questionnaire

  1. A

    Relative uncertainty reduction measures

Indicate the level of expenditure on research, forecasts, data-based analysis for formulating goals and strategy

For your organization:

Highly satisfactory

Moderately satisfactory

Satisfactory

Low level of satisfaction

Dissatisfactory

For your closest competitor:

Highly satisfacory

Moderately satisfactory

Satisfactory

Low level of satisfaction

Dissatisfactory

Investment to install the software tools for the selection of best cost-effective options is not sufficient

For your organization:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

For your closest competitor:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

The extent of sharing of relevant information related to environmental challenges, goals etc. within the organization for the purpose of achieving high performance is not sufficient

For your organization:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

For your closest competitor:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

Indicate the extent of emphasis on research and data-based decision making

For your organization:

Very high

High

Moderate

Low

Not at all

For your closest competitor:

Very high

High

Moderate

Low

Not at all

  1. B

    Relative differentiation requirement measures

Indicate the level of interest shown by top level management for the formation as well as smooth functioning of inter-functional task forces for designing innovation/changes

For your organization:

Very high

High

Moderate

Low

Very low

For your closest competitor:

Very high

High

Moderate

Low

Very low

Indicate the level of encouragement of the entrepreneurial activity by the top management

For your organization:

Very high

High

Moderate

Low

Not at all

For your closest competitor:

Very high

High

Moderate

Low

Not at all

Indicate the level of initiatives taken by the management for the enhancement of the expertise of the employees

For your organization:

Very high

High

Moderate

Low

Very low

For your closest competitor:

Very high

High

Moderate

Low

Very low

  1. III

    Relative integration requirement measures

Indicate the level of comprehension and also level of integrity of your strategy in terms of future prospects of your organization

For your organization:

Very high

High

Moderate

Low

Very low

For your closest competitor:

Very high

High

Moderate

Low

Very low

Indicate the level of concern of the departmental heads about the future business prospects, any expansion or diversification needs for the sustainable development of the organization

For your organization:

Very high

High

Moderate

Low

Very low

For your closest competitor:

Very high

High

Moderate

Low

Very low

Managers and supervisors are always rewarded for practicing participative leadership in resolving core problems of the organization

For your organization:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

For your closest competitor:

Absolutely true

Moderately true

Generally true

Untrue

Very much untrue

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Kundu, A., Sarkar, D.N. & Bhattacharya, A. Restructuring Organizations Through Innovation: a Study in the Context of the Indian Chemical Sector. J Knowl Econ 14, 2767–2786 (2023). https://doi.org/10.1007/s13132-022-00953-8

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