Assignment 2

Innovation Management Course 2017

Handing in your assignment

The assignment regarding Dutch Design House case should be delivered through the Assignment
Section on Blackboard before April 23, 2017, 23:59.

Submission after this date and time will not be accepted. If you have any problems or questions about
this assignment or the delivery process, please send an email to im-ba@rsm.nl for the DBA programme
or to im-iba@rsm.nl for the IBA programme.

Naming the file you hand in

The name of the file to hand in through the Assignment Section should be in the following format:

Student number-Assignment2

Answering the Assignment Questions

You are asked to answer the assignment questions in a copy of this document.
Please use the tables and answering boxes in the assignment. Please provide answers in the following
format: Times New Roman, size 10, and single spaced. There is no necessity to use more space than
given in the box (in fact correct answers can easily be given in about half the space in the box).

In total you can earn 100 points for this assignment. 10 points are given for grammar and clarity of
communication. 30 are given per question.

Notice that there are 4 pages in this document including 3 questions with sub questions!

Student number:
412276
Surname:
Noyan
First name:
Benjamin
International BA
(IBA) or
Dutch BA (DBA) IBA
 Assignment Question 1
This assignment question is based on the article by Shalley and Gilson (2004)

The way that an office space is designed has an influence on the way that employees interact.

a) Does the work floor design of Dutch Design House promote employee creativity according to the
article? Explain why.

Almost all work in Dutch Design House is done in projects where different people have to work together
and share ideas and opinions.

b) What is the most important common element for creativity regarding communication of ideas
and opinions between employees on both job, group and organizational level according to the
article?

Different factors of the context within which Dutch Design House employees work have an influence on
the creativity. A group level factor that in the case of Dutch Design House could have an influence on
employee creativity is diversity.

c) Describe how having a diverse group can be both positive and negative for creativity according
to the article? Also give an example from the case of how the group lacks diversity and give your
opinion on if it is important.
a) According to the article as well as the case, Dutch Design Houses (DDH) office layout promotes employee
creativity. Having a work environment with a natural flow of traffic though the central area of the office brings
individuals from different funcitonal departments in contact with each other and facilittates increased communication
and collaboration. Also, the bar provides an opportunity for interpersonal intreaction and creates a more friendly work
environment. The enhanced cross divisional communication and information exchange ultimately leads to an increase
in employee creativity.
b) Although the article does not specifically mention a sinlge common aspect that is most important for creativity, a
factor that has a tremendous influence on creativity at job, group, and organizational level is a supportive work
context. Whether employees or groups feel supported by their environment depends on the employee interaction
between co-workers, leaders, team members, or even individulas from outside of the firm. Additionally, factors such
as the availability of resources, expectations regarding job evaluations and rewards as well as the perception of the
general climate at the workplace play a crucial role in fostering an environment that encourages creativity. Since the
factors that are closer to an individuals day-to-day tasks have a stronger impact on creativity than more distant
factors, it is crucial that managers focus first on job-level factors.
c) Literature on creativity often refers to group diversity (culture, sex, ethnicity, etc.) as a precondition for creative
performance because it brings together different perspectives and enhances problem-solving capabilities. The paper
argues that the reason for this positive effect is the fact that higher group heterogeneity increases the range of
knowledge, skills, and thoughts within groups, positively impacting creativity. Through enhanced group capabilities,
research found that nonobvious alternatives are more likely to be derived and communication both within and outside
of the group is enhanced. Group homogeneity can be seen as valuable factor in creating a shared group mentality that
helps understanding and aligning different opinions. While group heterogeneity entails various benefits, leaders are
required to actively work on creating a group lens, which can be difficult in various situations. Failing to create a
common understanding can then lead to inefficiencies and decreased creativity.
In the case it is clearly mentioned that the team mostly has the same expertise and work ethic. In addition, almost all
employees have a similar educational background. Having such a homogenous team can demonstrate an obstacle in
projects that require knowledge and expertise that go beyond industrial designing. In the example of the failed
project, a more diverse team with a broad range of perspectives, knowledge and skills could have helped in realising
the weaknesses of the strategy and ultimately prevent the project from failing.
 Assignment Question 2
This assignment question is based on the West (2002) article.

Dutch Design House could decide to invest in the company and later on go onto the market with their
product. However, it would then have to compete against other companies.
a) Why could the market position of Dutch Design House, relative to big companies, actually be
advantageous for the project according to the article of West (2002)?
Hans could take an active role inside of the project team during the innovation implementation process.
This would add an external perspective which should get the point across that there is pressure to
perform.
b) Would the article of West (2002) recommend Hans to take an active role as a team member?
Explain why.
According to the article, innovation implementation depends on different factors.
c) What level of innovation implementation should Dutch Design House be able to achieve? Use
the article and explain why.
a) Considering that the market for electronical bike systems is highly competitive and dominated by multinationals,
DDH could profit from its outsider position as well as the associated pressure from external demands. A
longitudinal study of 81 manufacturing firms found that product and technology innovation is negatively correlated
with market share because the threat of being an underdog in a competitive market drives innovation. In addition,
entering a new market entails a high level of uncertainty, which in return spurs innovation development in order to
decrease the uncertainty. Burns and Stalker (1961) found a strong positive relationship between environmental
uncertainty and organic structures that inhibit and foster innovation. Large multinationals with market experience
are not exposed to as much external threat, uncertainty, or demand as DDH, providing the late-mover an
advantageous position.

b) Considering that Hans could add an external perspective with experience in various functional business roles, the
article would indeed recommend him to take an active role as a team member. Being heavily exposed to external
demands as well as uncertainty, DDH should try to leverage the power of knowledge and skill diversity, leading to a
smoother innovation implementation process. In addition, Hans active involvement would demonstrate his
commitment to common group objectives, which favors a high level of team innovation. On top, Hans participation
in decision making of the team could foster integration and commitment, ultimately leading to a higher level of
innovation and efficiency. Also, Hans leadership experience as co-founder of DDH could help bringing different
perspectives into the project team as well as to establish a cooperative group context that enables constructive
controversy. With Hans active participation in the project team, he can continually clarify and ensure that all
members are committed to shared objectives, as well as spur group interaction and information sharing.

c) Despite entering a completely new and highly competitive market, DDH is about to produce a product with which it
has no experience. Therefore, DDH is exposed to an uncertain and threatening environment with high external
demands. Regarding group task characteristics, the companys long history of managing projects that became a
success, as well as the employees commitment to cooperate and create further successes. In addition, tackling the
new project with an autonomous work group enables DDH to jointly optimize social as well as technical
subsystems. The team will be a relatively independent business unit in DDH that is responsible for the entire
project, facilitating task orientation and intrinsic motivation. Having a work facility that supports social interaction
across the entire firm as well as a diverse and skilled team will enable DDH to achieve a high level of group task
characteristics that fosters intrinsic motivation. Ultimately, the innovation implementation process will be
conducted on a high level.








 Assignment question 3
This assignment question is based on both the Shalley and Gilson (2004) and the West (2002)
article.
According to the articles there can be different types of conflict in an organization such as Dutch Design
House. There can be conflicts of interest, for example, when there are multiple candidates going up for
promotion that have to work together in a team.

a) Which specific type of conflict, that both articles mention, is can improve creativity? Explain
why.

Dutch Design House typically have a lot of projects running at the same time. Therefore, employees
quite often do not have a lot of time to spend on projects. They could take on less projects and limit any
time constraint on the employees.

b) Would you set a limit on the time your employees have for a project? Use both articles to argue
your position.

Hans wants to invest and is considering hiring a business student to work on the project as an intern.
Paul is against bringing in a business student.

c) What is the most important argument that Hans could use to convince Paul and do you agree
with Hans? Explain why.
a) Shalley and Gilson (2004) highlight the importance of constructive conflict for performance for creativity. Their
paper outlines that task conflict, which is open disagreement about how work should be done can result in an
enhanced generation of novel ideas and innovations. In this, task conflict is positively related to creativity. West
(2002) also outlines the importance and benefits of constructive conflict, but he calls it informational conflict.
Constructively challenging the groups processes and performances is beneficiary because team members are
more committed to team/ project success than to personal victory or bland consensus. This in return will enhance
creative idea generation and problem solving as well as lead to innovative actions.

b) Time is one of the crucial resources for every project, which can sometimes decide between success and failure.
Shalley and Gilson (2004) argue that it is essential that employees have enough time to be creative. In addition,
the paper outlines that it is also important to set a well thought through time limit to prevent employees from
being bored or unmotivated. West (2002) found that giving employees enough time is especially important in the
creativity stage because time pressure inhibits creative problem solving and increases rigidity of thinking. In light
of this, I would carefully create a time plan for the project and set a time limit that however, leaves enough time
for creativity and innovation.

c) The most important and probably most effective argument that Hans could use to convince Paul to hire a business
student concerns the teams diversity as well as the companys experience with the failed motorcycle project in
which it certainly lacked knowledge and skill diversity. A young student with a fresh mind who has knowledge
about many different business fields could add new creative ideas to the rather homogenous team of industrial
designers. Contrary to an expert in a certain field, the broadly educated business student can contribute diverse
knowledge and expertise from various business fields and by doing so, add value to the business side of the
project. Adding diversity to the current team will lead to an increase in innovation and creative problem solving,
while simultaneously prevent the team from making similar mistakes than in the previously failed project.