An exploration of innovation and governance in Australian Superannuation Organisations

In a large-scale single industry case study insights are provided into factors affecting innovation into the superannuation industry in Australia, one of the country's most significant service industries. In addition, the links between innovation and corporate governance are explored. The major factor leading to innovation was the CEO's leadership. Barriers to innovation include structural and cultural inhibitors, low competition within the Australian Superannuation Industry, high costs involved with the risk and uncertainty of innovation, difficulties in measuring the success of innovation and a general resistance among employees. The sole purpose‚ÄövÑvp test imposed on trustees by regulation was also perceived as a major inhibitor of innovation. Factors affecting corporate governance were inadequate trustee skill sets, board decision-making processes, board composition, current regulations and an ever changing and highly regulated environment. In the sphere of governance I found that strategic leadership by the CEO was the most important factor and the role of the board was minimal. Board composition and trustee skill sets were not important in innovation.