Evaluate Innovation Competency Factors on Microsoft Taiwan-Innovation in Process, Organization and Technology (IPOT)

Abstract

Innovative human resources (HR) have already become the most precious asset in the era of knowledge economy and the major sources of competitive advantage for maximizing profits. Meanwhile, in the era of globalization, recruiting the best human resources capital worldwide has already become the essential mean for enhancing firm’s innovation competency and profit maximization. However, how firms’ innovation competency can be impact by human resources has seldom been studied. Based on van der Panne’s framework, this study replaced the product-related factors with human-related factors. The IPOT model was developed by Shih& Tzeng. The empirical results showed three major important findings. First, most of the factors in the framework had positive influential power over a firm’s innovation competency to produce successful products or services. Major findings showed that, first, in order to improve the innovation competency, Microsoft Taiwan should recruit young and local employees to avoid from the group thinking problem. Good internal communication was very important for improving Microsoft Taiwan’s innovation competency. Second, Microsoft Taiwan should provide good internal communication channels and opportunities for its department managers. Third, compared with other companies, Microsoft Taiwan went through rigorous risk management; hence, it reduced the cost of project failure and achieved its innovation competency. Forth, the human resource department should emphasize more on the job content and profession fitness for employees. By fulfilling employees’ expectation for the job content, their willingness to cooperate in team was also improved. Fifth, factors that reinforce the market leadership of Microsoft Taiwan and to its successful innovation competency were: market research, quick response to the market change, and on time services.