Innovation Competency Factors on Casa Pellas Company in Nicaragua -Innovation in Process, Organization and Technology (IPOT)

Abstract

Nowadays due to globalization, companies are facing many challenges, one of them is innovation. Therefore, this study aims at examining how the theory Framework of Innovation developed by Panne et. Al. (2003) affects the innovation competency in process, organizational and technical (IPOT) research model developed by Shih& Tseng (2009), and will help us to determine if this model fits traditional industry. As an example of traditional company, the study of Casa Pellas will be used. To validate the results, a well-known, profitable and innovative company should be analyzed, for which Casa Pellas completely qualifies. In addition, this is the first time that this econometric model is being used in this company to measure innovation. By using a sample of 260 employees of all the company and by running a multiple regression analysis and backward elimination, we will study the four success factors which are organizational related-factors, project related-factors, market related-factors, human related-factors from Panne et. Al. framework. In this study, a fifth factor was added to reflect the importance of the demographic-factor in the success of a company. IPOT is composed of innovation competency, process, organizational and technical innovation; the focus of this study will introduce the benefits of innovation. The empirical results of most of these five independent factors are significant, with its R² at 0.981, showing that these factors successfully demonstrate the positive influence over a traditional company.