Abstract
M.B.A.
The paper industry and, more specifically, Sappi Fine Paper, has not been achieving
the levels of innovation required to meet rapidly-changing market needs, especially
when compared to manufacturers like 3M. The industry is therefore losing value and
not achieving optimal returns on investment. The reasons for this lack of innovation
are not known.
This study aims to investigate these sub-optimal levels of innovation, and to define
some of the possible reasons for it.
The study begins with an examination of corporate culture and its impact on
innovation. In this regard, a cultural audit was done on a selected group of Sappi
employees involved in product development from manufacturing, and sales and
marketing. The questionnaire used was aimed at measuring and quantifying
innovation and creativity influencers, and both perceived and preferred dimensions of
culture were recorded. A gap analysis was then undertaken between the two, and
perceptual charts plotted for each of the research groups.
The audit revealed that Sappi Fine Paper does, indeed, have a creative culture, but
the gap analysis revealed that in certain dimensions there are large gaps between
the perceived and preferred profiles. The most critical gap affecting innovation was
the one in the “risk profile” dimension. This revealed a tendency for the company to
be risk averse, while the expressed preference of staff is that it be more open to risk
taking. The literature review also highlights the importance that risk taking plays in
innovation.
The conclusion drawn is that, in order to achieve improved levels of innovation, Sappi
Fine Paper needs to support existing creativity with a greater openness to risk taking
resulting in higher levels of innovation.