Innovation Change Research Articles

A Nonlinear Approach to the Analysis of the Financial Innovation-Money Demand Nexus in Nigeria

This study examines the asymmetric roles of financial innovation in the money demand function in Nigeria using annual data over the period 1981-2020. This is with a view to providing insight into how changes in financial innovation have contributed to the level and stability of the money demand function. The study questions the fundamental assumption of the existing literature that growing trends in financial innovation have symmetric or linear effects on the country’s money demand. Hence, it adopts the nonlinear autoregressive distributed lag (NARDL) with bounds testing procedure together with the cumulative sum of recursive as well as the cumulative sum of squares of recursive residuals tests. Results show that the link between financial innovation and money demand is asymmetric and that of the two partial sum variables, only positive changes in financial innovation have significant effects with the sign being positive in both the short run and long run. This shows that assumptions of linearity and no asymmetric structure reported in extant studies for financial innovation are somewhat misleading. Findings also confirm the stability of demand for money in Nigeria on account of the introduction of asymmetric effects of financial innovation. The study concludes that the financial innovation-money demand nexus is asymmetric and that there is stability in the country’s money demand function once asymmetry or nonlinearity is captured in the nexus. Therefore, it recommends the need for monetary authorities to pay attention to positive changes in financial innovation when policies on money demand are formulated for the purpose of enhancing the effectiveness and reliability of monetary policy as a tool for stabilising the economy.

SE-Lightweight YOLO: Higher Accuracy in YOLO Detection for Vehicle Inspection

Against the backdrop of ongoing urbanization, issues such as traffic congestion and accidents are assuming heightened prominence, necessitating urgent and practical interventions to enhance the efficiency and safety of transportation systems. A paramount challenge lies in realizing real-time vehicle monitoring, flow management, and traffic safety control within the transportation infrastructure to mitigate congestion, optimize road utilization, and curb traffic accidents. In response to this challenge, the present study leverages advanced computer vision technology for vehicle detection and tracking, employing deep learning algorithms. The resultant recognition outcomes provide the traffic management domain with actionable insights for optimizing traffic flow management and signal light control through real-time data analysis. The study demonstrates the applicability of the SE-Lightweight YOLO algorithm, as presented herein, showcasing a noteworthy 95.7% accuracy in vehicle recognition. As a prospective trajectory, this research stands poised to serve as a pivotal reference for urban traffic management, laying the groundwork for a more efficient, secure, and streamlined transportation system in the future. To solve the existing vehicle detection problems in vehicle type recognition, recognition and detection accuracy need to be improved, alongside resolving the issues of slow detection speed, and others. In this paper, we made innovative changes based on the YOLOv7 framework: we added the SE attention transfer mechanism in the backbone module, and the model achieved better results, with a 1.2% improvement compared with the original YOLOv7. Meanwhile, we replaced the SPPCSPC module with the SPPFCSPC module, which enhanced the trait extraction of the model. After that, we applied the SE-Lightweight YOLO to the field of traffic monitoring. This can assist transportation-related personnel in traffic monitoring and aid in creating big data on transportation. Therefore, this research has a good application prospect.

Decisive Drivers Contributing towards Modern Last Mile Delivery Operations: A Qualitative Analysis using ISM

This research article investigates the drivers of logistics management for Last-Mile Delivery (LMD) in a contemporary business situation. It refers to the 21st century's innovative and revolutionary changes in the logistics sector. It explains advanced technology and the digital revolution as driving forces in the modern logistics industry. This study adopts a qualitative approach and presents a conceptual model developed through expert discussion and Interpretive Structural Modelling (ISM), for formulating the proposed model of modern logistics in the era of Industry 4.0 (I4.0). According to ISM and MICMAC analysis, cost-effectiveness and green technology efforts are independent driving variables for efficient and green logistics management. It offers a road map for organizing the drivers in the logistics 4.0 conceptual framework. The scope of work is restricted to only operational logistics management aspects for smooth LMD. This study is confined to only LMD operations and technological advancements in logistics. The research provides valid factors for increasing the LMD efficiency of logistics networks. The importance and relationships between the various drivers are discussed and analyzed to increase the supply chain's sustainability and efficiency.

More than the sum of its parts

Curriculum renewal in higher education is a complex process involving multiple stakeholders across faculties, departments and supporting units with priorities and processes that commonly differ, adding to the complexity. Incentives for instructors to modify their curriculum include funded centralised programs that may also draw on the expertise of academic developers, learning designers and media producers. Here we reflect on our recent experiences working together across disparate academic and professional teams within a centrally funded curriculum renewal and innovation program in a large research-intensive university. One year after the implementation of a formalised network of supporting academic fellows, program reach significantly improved, and several projects implemented award-winning innovations. Early reflections on experiences across our supporting teams suggest that collaborative project work has contributed to more effective and innovative curriculum change initiatives. We propose a deeper investigation of these processes in a research project, to further inform curriculum innovation at research-intensive universities.

HUMAN RESOURCES MANAGEMENT STRATEGY FOR BUSINESS SUSTAINABILITY IN MSMES

Human Resource Management (HRM) is very much needed in Micro, Small and Medium Enterprises (MSMEs) because it can improve HR competency through increasing the knowledge and skills of MSMEs. Managing human resources for MSMEs is a skill that must be possessed by MSME players. HR management in MSMEs includes recruitment, selection, placement, development, compensation (wages), retention, evaluation, promotion and termination of employment. Managing human resources for MSMEs is a skill that must be possessed by MSME players. As the global economy develops, business competition is increasingly competitive. Micro, Small and Medium Enterprises have low competitiveness, one of the causes is low product quality, lack of product innovation and limited mastery of technology. MSME products have not been able to penetrate the free market. One of the causes is the quality of goods that is not yet competitive and technological limitations, even though competitive advantage is very important for the sustainability of MSMEs. Business sustainability is a stability of business conditions, where sustainability is a business continuity system that includes growth, continuity and approaches to protect business continuity and business expansion. Business sustainability in MSMEs can be implemented by responding to rapid changes in technological innovation, focusing on long-term interests, producing environmentally friendly products and striving for the preservation of natural resources and efficient use of technology.

Navigating uncertainties of introducing artificial intelligence (AI) in healthcare: The role of a Norwegian network of professionals

Artificial Intelligence (AI) technologies are expected to solve pressing challenges in healthcare services worldwide. However, the current state of introducing AI is characterised by several issues complicating and delaying their deployments. These issues concern topics such as ethics, regulations, data access, human trust, and limited evidence of AI technologies in real-world clinical settings. They further encompass uncertainties, for instance, whether AI technologies will ensure equal and safe patient treatment or whether the AI results will be accurate and transparent enough to establish user trust. Collective efforts by actors from different backgrounds and affiliations are required to navigate this complex landscape. This article explores the role of such collective efforts by investigating how an informally established network of professionals works to enable AI in the Norwegian public healthcare services. The study takes a qualitative longitudinal case study approach and is based on data from non-participant observations of digital meetings and interviews. The data are analysed by drawing on perspectives and concepts from Science and Technology Studies (STS) dealing with innovation and sociotechnical change, where collective efforts are conceptualised as actor mobilisation. The study finds that in the case of the ambiguous sociotechnical phenomenon of AI, some of the uncertainties related to the introduction of AI in healthcare may be reduced as more and more deployments occur, while others will prevail or emerge. Mobilising spokespersons representing actors not yet a part of the discussions, such as AI users or researchers studying AI technologies in use, can enable a ‘stronger’ hybrid knowledge production. This hybrid knowledge is essential to identify, mitigate and monitor existing and emerging uncertainties, thereby ensuring sustainable AI deployments.

Policy complementarity and the paradox of carbon pricing

AbstractWe present an economics framework appropriate to the exceptionally broad scope of the climate change problem. This considers that economic and social processes, particularly those involved in purposive transitions of energy technologies and systems, involve the interplay between three distinct domains of decision-making and associated actors. The first concerns small-scale and often short-term decision-making, much of which reflects extensive ‘satisficing’ and habituation as identified in behavioural economics. Calculated economic optimization decisions, especially of companies in the energy and energy-intensive industries, then best reflect the core assumptions of neoclassical and welfare economics, including discrete market failures. Third, at the largest scale are strategic judgements made by big actors (e.g. governments, large multinational companies) relevant to transformation of complex systems over long periods—particularly concerning innovation and structural changes, for which lessons from theories of evolutionary and institutional economics are most relevant.Economically, these can be logically mapped in relation to the technology (or more accurately, ‘best practice’) frontier. Each has corresponding policy implications: most directly, respectively in terms of (i) standards and engagement to establish norms; (ii) competitive markets with the critical role of prices; and (iii) strategic investment in innovation and infrastructure. Each faces challenges of implementation and government failure, as observed, for example, with wholly inadequate carbon pricing to date, naïve and ineffective approaches to enhancing energy efficiency, or misdirected support to R&D. Based on the domain distinctions, we argue that the corresponding pillars of policy are naturally complementary, and can be mutually supportive: strong standards and norms on energy efficiency, for example, would enhance the political space for carbon pricing by reducing its direct consumer impacts, while carbon pricing has multiple positive two-way interactions with enhanced low-carbon innovation.From this we also posit a ‘carbon pricing paradox’: that adequate carbon prices, the central recommendation of most economists, are in most jurisdictions only feasible (or even optimal) if equal analytic and policy attention is devoted to the other pillars, and the wider context of macroeconomic and fiscal policies. Only these other aspects can reduce the absolute cost impact of carbon pricing (potentially turning into a gain) and offer consumers and businesses better lower-carbon alternatives, which are critical to establishing climate-compatible pricing structures across our economies.

Transformation process meets innovation leadership—an analysis of new challenges in change theory

The continuous changes in the business environment require transformation processes and innovation in organizational structures to maintain competitiveness. Innovation is required for future orientation and need an appropriate leadership style to be implemented in the company successfully. Various studies in the literature examine the topic of change models and the requirements for effective implementation of changes. Based on the constant change in the labor market, which is due to ongoing digitalization, the need for research of transformation, change-management and radical or disruptive innovation remains topical. A new challenge arises with a transformation in the entire company which affects all essential business processes. Because several levels are simultaneously affected by the transformation process, a more complex concept is required for the implementation than it could be found in the literature. There is a lack of empirical research in general for innovation-driven transformation processes and a missing connection to the implementation of radical or disruptive innovation in company. The aim of this paper is to investigate the need for new research in change theory. The focus is on the importance of innovation leadership for a radical or disruptive innovation change process, what is to be classified under a comprehensive transformation process in the company. In addition, the need for an innovation transformation model is established.

The Learning Collaboratory: developing and evaluating public health students' skills while promoting community health.

Complex and continuous developments in health and healthcare require innovative changes in programs that educate public health scientists and professionals. Public health change agents need critical competencies to confront today and tomorrow's leading problems including leadership, communication, interprofessional practice, and systems thinking. Public Health training programs teach competencies through their applied field experience and culminating project, typically late in the program, and often implemented in isolation from peers and faculty. Objectives and skills do not always align closely with community-based program needs. Students pursuing a degree in science in public health need to deeply comprehend multi-dimensional and interconnected systemic problems and communicate with diverse stakeholders across disciplines to produce relevant community-engaged research. The University of Miami Public Health Learning Collaboratory (LC) was established to transform the learning experience of public health master's students by providing opportunities to develop necessary core skills for effective public health practice early in their training, while applying these skills to address real-world public health needs in the community. Spanning an average of 3 semesters, the LC promotes student involvement in collaborative and impactful capstone and thesis projects. Practice-based teaching and service learning are central approaches to teaching cross-cutting competencies of leadership, communication, problem solving, collaboration, and systems thinking in public health. Significant to the approach is the engagement of previous cohorts of senior students to teach back to junior students, further integrating concepts learned. Long term alumni feedback recognized strengths of the program, including its structure, teamwork & collaboration, critical thinking & problem solving, guidance, nurture & support, teaching back, and content & curriculum. Community partners agreed the LC prepared students to practice in the field of public health. The LC is a promising model for master's level public health education and community application, given the opportunities it provides to strengthen and integrate students' public health skills in a supportive environment, and enhance the transferability and sustainability of student and faculty's community public health work.

The impact of policies on the diffusion of agricultural innovations: Systematic review on evaluation approaches

The demand for sustainable agricultural technologies still lags behind the supply confirming the demand articulation failure of transformational innovation change agricultural policies. To understand the reasons for demand shortcomings, the evaluation of developed policies is required. In the literature, there is little evidence on this topic, henceforth, this paper conducts a systematic review of the primary methodological approaches used to assess the influence of policies on the dissemination of agricultural innovations. The results showed that there are two clusters of evaluation; the first investigates how policies affect agricultural innovation adoption, and the second studies how policies affect yields and profitability. For the first cluster, 70% of the studies analyzed adoption decisions using the Double-hurdle, Probit, or Tobit models or captured changes in adoption levels over time using the Adoption and Diffusion Outcome Prediction Tool and discrete-time duration models. This cluster is related to the assessment of the input and output additionalities of innovation policies. In 58% of the studies related to the second cluster, the focus was the assessment of economic and environmental implications using mathematical programming models, particularly agent-based modeling. The purpose of evaluation in this cluster is more focused on behavioral additionality. There were no experimental or quasi-experimental methods among the methods utilized in this cluster. The majority of studies do not incorporate the evaluation of economic, social, and environmental aspects together; therefore, evaluation outlooks suggest increasing interest in sustainability impact. It is suggested that models from both clusters be used in combination to explore input, output, and behavioral additionalities simultaneously. Furthermore, including white-box evaluation approaches to evaluate demand-oriented innovation policy in the agricultural sector, in addition to usual black-box approaches, is a necessity.

Impact analysis of mergers and acquisitions on the performance of China's new energy industries

The development of new energy industries is crucial to a nation's energy transition to carbon neutrality, while photovoltaic, wind power, lithium battery, and new energy vehicles industries have been active in the capital markets. We choose mergers and acquisitions (M&A) activities in such industries in China to investigate how they affect firms' short-run market performance and long-run innovation. Using data gathered from 2012 to 2020, we evaluate the degree of stock price volatility with the Carhart four-factor model combined with event study analysis. Changes in innovation after M&A activity has occurred are evaluated using the PSM-DID model. Empirical analysis shows that M&A could have a positive, short-run impact on stock prices of new energy industries, while the impact of technology M&A on sub-industries is not consistent. The cumulative average abnormal returns (CAAR) of the wind power and photovoltaic industries turn from negative to positive, and the correlative new energy vehicles and lithium battery industries reach the highest returns in a window period with similar trend lines. Furthermore, technology M&A positively affects the innovation performance of new energy firms, and this effect lasts three to four years. In contrast to prior industry-wide and conclusion-inconsistent M&A studies, we concentrate on new energy industries and prove the definite positive effect of technology M&A for the firms.

The Significance of Traditional Exegesis in Modern Quranic Sciences (Critical Analysis)

For several centuries, traditional exegesis has played a crucial role in understanding the Quran within Islamic heritage. However, the significance of traditional exegesis has emerged as a profound debate in the era of modern Quranic research. The aim of this research is to conduct a critical analysis of the importance of traditional exegesis in the context of modern Quranic sciences.
 The research findings indicate that traditional exegesis holds historical and intellectual value that cannot be disregarded in comprehending the Quran. Nevertheless, it also faces a number of criticisms that need to be addressed in a contemporary context. This research discusses various efforts aimed at addressing these criticisms, including adaptation, reexamination, and integration with modern scholarly methodologies, highlighting the significant role of Muslim scholars and intellectuals in preserving the importance of traditional exegeses while remaining open to innovation and necessary changes to confront the challenges of the modern era.

How policies and actor strategies affect electric vehicle diffusion and wider sustainability transitions.

Implementing electromobility is a central component in the de-carbonization of personal mobility. In recent years, the absolute number of electric vehicles (EVs) and their market share has increased sharply in many countries. This paper focuses on Norway, a pioneer market for EVs that other countries can learn from. The analysis highlights how a combination of local and national policies over a 30-y period, which targeted both industry development and vehicle demand, were important drivers of this development. It also highlights the importance of advocacy groups and strong networks in promoting EVs, as well as changes in user preferences. The paper demonstrates how the EV diffusion has been driven by alignments of multiple processes across different levels, involving interactions between multiple actors and social groups with different interests and views about desirable futures as described by the multi-level perspective (MLP). Building on the MLP, the study of EV diffusion in Norway illustrates how niches are often sustained through demonstrations, experimentation, strategic alliances, and actors securing favorable political and economic conditions. Further, it shows how local or national niches may depend on international regime actors, such as the car manufacturing industry and policies developed abroad. The paper also explores how the introduction of EVs has opened for wider effects, including innovation within production-consumption systems beyond mobility. Based on this analysis, we argue for a nuanced perspective on the relationship between incremental, regime-internal innovation, and wider transformative changes, where the merits of societal learning and experience with battery electricity for transportation are highlighted.

Confronting stresses affecting olive cultivation from the holobiont perspective.

The holobiont concept has revolutionized our understanding of plant-associated microbiomes and their significance for the development, fitness, growth and resilience of their host plants. The olive tree holds an iconic status within the Mediterranean Basin. Innovative changes introduced in olive cropping systems, driven by the increasing demand of its derived products, are not only modifying the traditional landscape of this relevant commodity but may also imply that either traditional or emerging stresses can affect it in ways yet to be thoroughly investigated. Incomplete information is currently available about the impact of abiotic and biotic pressures on the olive holobiont, what includes the specific features of its associated microbiome in relation to the host's structural, chemical, genetic and physiological traits. This comprehensive review consolidates the existing knowledge about stress factors affecting olive cultivation and compiles the information available of the microbiota associated with different olive tissues and organs. We aim to offer, based on the existing evidence, an insightful perspective of diverse stressing factors that may disturb the structure, composition and network interactions of the olive-associated microbial communities, underscoring the importance to adopt a more holistic methodology. The identification of knowledge gaps emphasizes the need for multilevel research approaches and to consider the holobiont conceptual framework in future investigations. By doing so, more powerful tools to promote olive's health, productivity and resilience can be envisaged. These tools may assist in the designing of more sustainable agronomic practices and novel breeding strategies to effectively face evolving environmental challenges and the growing demand of high quality food products.

Urgency of Tax Incentives in Indonesia for Research, Development, and Internationalization of MSMEs

The purpose of this research is to reveal and find out some of the factors needed by micro, small and medium enterprises (MSMEs) to develop their business through development research in order to increase economic growth and business networks at the international level. This study uses library research methods, through a qualitative approach with deductive and inductive process analysis. The data source is secondary data, namely relevant previous scientific work. Data processing is done by: analyzing correlations and building concepts to predict, explain, and control the studied phenomena, and draw conclusions based on the theoretical framework. The results of this study indicate that the development of MSME entrepreneurship is the main driver of economic growth in several countries, including Indonesia. For the development of MSMEs, the government can provide a conducive environment for the business world and MSMEs through financial support such as providing tax incentives. So that MSME development research is the main focus in innovation and technological change to increase higher economic growth. Improving the performance of MSMEs through innovation, job creation, export growth, and the emergence of new highly competitive entrepreneurs is an opportunity to gain greater access to new markets at the international level.

DEVELOPMENT OF THE INFORMATION TECHNOLOGY FOR IT-PROJECT TEAM CREATION

Team creation is a critical aspect of successful IT project realisation. Implementation of effective project management in modern conditions of dynamic technologies requires the presence of a highly qualified team, taking into account the constraits of the project. Working with such a set of data could be simplified by development of an information technology for creation IT project teams. Such technology simplifies the process of selecting a project team, choosing highly qualified members who meet the unique requirements of IT projects. The implementation of such automatisation helps to solve the issue of distribution of competences, coordination and monitoring of work processes related to the creation of the project team. In addition, taking into account the constant development of technologies, information technology allows users to quickly adapt to changes in market requirements and innovations in the field of IT, which is a key factor for ensuring competitiveness. Therefore, the purpose of this work is the development of information technology for the IT project team creation. An additional goal is to create a web application "Teamform" aimed at the process of creation the IT project team. Information technology uses a method of the IT project team creation previously developed by the authors. The method consists of three stages. At the first stage, a set of candidates is determined, the assessment of whose competences meets the requirements of the project. At the second stage, team options are formed in accordance with project requirements. The third step of the method is the selection of a team in accordance with the chosen statement of the problem. The developed information technology and web-application "Teamform" allow creating an effective team of software developers that meets the requirements of the project.

Motivational management in customs authorities

In the context of innovative changes, the key vector for improving the personnel policy is the strategy of motivational development of the organization's personnel. For the customs authorities to effectively address the strategic goals set in the Strategy for the Development of the Customs Service of Russia until 2030, it is necessary that officials demonstrate high labor productivity based on a high level of internal motivation and involvement in the labor process, and, consequently, a high level of professional competence. The authors of the article adhere to the hypothesis that an active personnel policy in the field of motivation and stimulation of labor activity should be considered as a necessary organizational condition for the formation of the personnel potential of customs authorities. In this study, the following methods were used: questionnaire survey; expert survey; method of analysis of hierarchies. Within the framework of the theoretical stage of the study, the article presents an analysis of scientific publications, the results of which are of practical importance for improving the personnel policy in the field of labor motivation, professional development of personnel and the formation of the personnel potential of customs authorities. The article analyzes practical recommendations aimed at improving the strategy of motivational development of officials. At the empirical stage of the study, the authors conducted a questionnaire survey to assess the significance of the factors of the organizational environment of the customs authority on labor efficiency and an expert survey to determine the significance of recommendations for improving the strategy of motivational development of officials. The article presents the results of questionnaire and expert surveys. Acting customs officials, retired customs officials, as well as students studying in the specialty «Customs» acted as respondents and experts. The choice of the most effective methods of motivational development of officials of the customs authorities was carried out on the basis of the application of the method of analysis of hierarchies.

교육 연구방법으로 계보학의 가능성과 의의

The purpose of this paper is to explore the possibility and significance of genealogy as an educational research method. This paper analyzed the concepts and characteristics of genealogy, and explored examples of research using genealogical methodology. Through this, the meaning and significance of genealogy as an educational research method are discussed and strategies for utilizing genealogy as an educational research tool are suggested. 
 Genealogy is the work of tracing the origins of knowledge about current concepts and of analyzing changes. It is a tool that can analyze that the knowledge we take for granted is not spontaneous but contains power relations. In particular, if genealogy is used as an educational research tool, it will be possible to be of help in conceptual reconstruction and practical development.
 The strategies for using genealogy as an educational research method are as follows. First, research starts by raising questions about the concept. Second, in order to collect data, a wide and vast amount of data is collected. Third, during the analysis, concepts are deconstructed and critically analyzed. Fourth, interpretation is done with the subjectivity of the researcher in mind. Fifth, in the writing stage, the researcher constantly reflects on themself.
 If we use genealogy when conducting educational research, we will be able to seriously reflect on the educational problems we are currently facing, and this will help us come up with new alternatives. This is expected to contribute to individual growth and to innovative changes in the education system.

FORMATION PREREQUISITES AND TENDENCIES OF THE ENTERPRISE'S HR CAPACITY DEVELOPMENT

Human resources are the basis for the functioning of any company in the world, regardless of its size or industry. Human resource management through the development of human potential is a way to increase the competitiveness and productivity of employees and leads to an increase in the company's profits. The purpose of the article is to analyse the conditions for the formation of the human resource potential and possible trends of its development in the future in the conditions of innovative changes in the economy. The aim of the article is to identify the key factors that shape and influence human resource potential, as well as the trends in the labour market and education that will shape the trends of its further development. The study uses a general scientific methodology: analysis, synthesis, systematisation, and comparison. The data used for the calculations are those of the State Statistics Service of Ukraine, which are publicly available. Results. The analysed materials of foreign and Ukrainian scientists made it possible to determine the key factors that are the main components in the formation of personnel potential, and the study of statistical data of the labour and education market of Ukraine revealed the general trends of its further development. The practical significance of this article lies in the calculation of modern socio-economic factors, which have the greatest impact on the development of human resources potential. Due to several serious crises in the country, the current situation on the labour market is very difficult, and due to a full-scale war, Ukraine in the future will face the biggest crisis in the entire history of its independence. On the other hand, it can have a positive impact on the development of human potential, as people will often have to think outside the box and learn new professions. The value of this work lies in the separation of the theoretical bases of the development of the personnel potential and the review of the statistical information, which will become the basis for further analysis of the ways of increasing the personnel potential of the Ukrainian enterprises. In further studies it is planned to reveal the existing ways and methods of assessing the human resource potential of enterprises and to explore possible ways of increasing it.

The Role of Change and Innovation in Organizations

In the 21st century, changes and innovations no longer surprise anyone. It is an integral part of any activity. Practically, changes and innovations are the components by which each organization tries to improve the situation, increase flexibility and efficiency. Every innovative approach should be aimed, on the one hand, at system optimization and, on the other hand, it should have a positive impact on employee productivity. In the conditions of globalization, while new management approaches are formed and innovations are introduced, special importance is attached to each step taken by the organization. Every decision that the company makes must be based on the aspect that it will be good. Changes and innovations are practically inseparable from each other. Nowadays, implementation of innovations and various types of changes can be said to be of vital importance for organizations. Therefore, it is necessary that each action of the company is analyzed in detail. It should be determined in advance what results it will bring for the organization, as well as for employees and customers. The paper deals with organizational changes and innovations. The essence of both organizational changes and innovations and the relationship between them are discussed. The paper also analyzes the innovative projects and organizational changes implemented by one of the Georgian companies LLC “Georgian Dairy Products”.