Idea generation and innovation are two interrelated factors at the organizational environments. Innovation starts with ideas and therefore is regarded as an important variable of the innovation capacity of the organizations. The way individuals and organizations collect, disseminate, exchange, and use knowledge influences idea generation. Additionally, management of the flow of technological information leads to generating ideas effectively as an important part of an organization's innovation capacity. Middle managers play an important role in informally encouraging employees to innovate and take risks. These middle managers provide political and organizational support for skunk work activities that result in innovative ventures. Middle managers can do this by providing rewards (mostly intrinsic) that allow employees to experiment with, and explore the feasibility of, innovative ideas. Innovation involves the transformation and exploitation of existing knowledge. It requires employees to share information and knowledge. Innovation occurs when employees share their knowledge within the organization and when this shared knowledge generates new and common insights, in a process of divergence and convergence and new key capabilities enhance innovation in the firm. In conclusion, organizational learning results in development, acquisition, transformation and exploitation of new knowledge, which in turn foster organizational innovation.
Last date updated on July, 2014