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Innovation
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All notes of the lectures of the course Innovation Block 1 PreMaster Organization Studies
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Innovation resume papersHoorcollege 1:
You should be able to:
• explain the different types of innovations (e.g., product, process, incremental and radical) and the
antecedents and consequence of each type of innovation;
• define the foundational theories used to understand organizational innovation (Evolutionary
Theory, Knowledge Based View);
• explain the dynamics of intra- and inter-organizational knowledge creation through personnel
mobility;
• understand and explain open innovation and specifically the role of inter-organizational and intra-
organizational collaboration on innovation;
• critically understand and analyze scientific papers with a special emphasis on research design and
causal inference.
,Hoorcollege 2: The innovation environment
Readings:
Abernathy,W. and Utterback, J. (1978), Patterns of industrial innovation, Technology Review,
June/July, pp. 41-47.
Tushman, M. and Anderson, Ph. (1986), Technological discontinuities and organizational
environments, Administrative Science Quarterly, Vol. 31-3, pp. 439-465.
Improvement vs renewal
Improvement / Incremental
• evolutionary; incremental
• “leitmotiv”: we can always improve (more of the same; 1e order solutions)
• focus: management of operations (efficiency)
• dominant role of planning & control e.g.: Total Quality Management (TQM), Six Sigma
Renewal / Radical
• revolutionary: “jumps”
• leitmotiv: crisis – we have to change (first change, then improve; 2nd order)
• focus: management of opportunities (resource leverage; NBD/NPD)
• focus on creativity & entrepreneurship
•e.g.: Internet, Cars, Airplane
Consequences of incremental vs. radical innovations
Improvement / Incremental
• Source of short-term financial revenue
• NO guarantee for long-term survival
Renewal / Radical
• Source of long-term financial costs
• Neccesary for long-term survival
,Abernathy and Utterback 1978
Product life cycle / S curve (Slide 13)
➢ The more time spend on engineering effort the higher the product performance. Refine
technology and adding features.
➢ At a certain point the curve flattens, so no new features will result in growth
➢ Technology push
➢ Market pull: input of market demand of consumers
Process innovation: new ways of producing something
➢ It decreases at a certain point. No need to innovate, it only will cost more and won’t yield
that much anymore.
Why can’t we expect product innovations after the dominant design?
➢ Won’t generate revenue to meet the costs
➢ Pr. Innovations are unlikely to outperform the dominant design > it is the optimum design. It
already meets consumers preferences, more innovations will not increase a lot in revenue.
, Fluid phase: competing designs
A lot of changes in functions of the product.
• Innovation emphasis : functional product performance
• Stimulated by : technological possibilities
• Type of innovation : frequent product changes
• Process : general, flexible but inefficient
• Size of organization : smaller organizations, start-ups. No hierarchy, entrepreneurs.
• Organizational control : informal, entrepreneurial performance
Transitional phase: selection dominant design
• Innovation emphasis : product variation & optimization
• Stimulated by : users and technological possibilities
• Type of innovation : large process changes
• Process : more specialized, less flexible but more efficient
• Size of organization : medium-scale
• Organizational control : project teams
Specific phase: exploitation dominant design
• Innovation emphasis : process optimization (cost reduction)
• Stimulated by : cost pressure and improving quality
• Type of innovation : incremental process changes
• Process : highly efficient, but inflexible
• Size of organization : large-scale
• Organizational control : formal, rules, structures
What are the organizational implications?
Fluid phase
Strong emphasis on:
– Frequent redefinition of tasks
– Limited hierarchy
– High lateral communication
Organic structure: Adaptability (high environmental uncertainty)
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