Summary Resume - Organizing for Innovation (EBM064A05)
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Module
Strategic Innovation Management (EBM064A05)
Institution
Rijksuniversiteit Groningen (RuG)
Summary of Articles & Lectures, , 26 pages
W1: Introduction
− Crossan, M.M. & Apaydin, M. 2010. A multi-dimensional framework of organizational innovation: A systematic review of the literature. Journal of Management Studies, 47: .
W2: Topic “Organizing Knowledge and Capabilities for Inn...
(video)
Def: Organizational structures- are systems of coordinated action among individuals and groups whose preferences,
information, interests or knowledge differ.
Organizations can be designed based on the following elements: structure dimensions: (5)
- Size
- Centralization
- Formalization & Standardization
- Mechanistic & Organic
- Tight & Loosely coupled
Culture (tips for fostering the innovative culture): (5)
- Give a voice to the employees
- Give time
- Eliminate norms that require consensus from decision makers
- Reduce the price of failure
- Cultivate a grand ambition for the organization/an idealistic goal
Articles:
Croissan & Apaydin (2010) A Multi-Dimensional Framework of Organizational Innovation: A Systematic Review of the
Literature
Determinants of innovation: Leadership
(ability to motivate & innovate)- individual &
group level / Managerial Levels- organizational
level / Business processes- process level
Dimensions of innovation: Innovation is boh a
process & an outcome
Innovation as an outcome tends to be more
important than innovation as a process.
Innovational Leadership: Not only the guidance
and support of leaders are vital in promoting
innovative efforts at the initial creative stage,
but equally important is their ability to create
conditions for the subsequent implementation
of innovation. → Upper Echelon Theory: It
states that organizational outcomes are
partially predicted by managerial background
,characteristics of the top-level management team
Managerial Levers: The firm’s task is to combine exploitation of the existing resources while searching for new
opportunities (exploration). In order to compete and sustain in the dynamic nature of the environment, a firm must develop
dynamic capabilities (which allows exploitation and exploitation) as a source of competitive advantage. → RBV + Dynamic
capabilities research: concerned with organizational resources and capabilities.
Business Processes: A typical process theory holds that similar inputs transformed by similar processes will lead to similar
outcomes; that there are certain constant necessary conditions for the outcome to be reached. → Process theory: how
organizational processes transform inputs into outputs.
LECTURE 2: ORGANIZING KNOWLEDGE & CAPABILITIES FOR INNOVATION
Organization’s knowledge base is what an organization knows and it consists of many individual knowledge elements
that are the building blocks of innovation.
3 problems: Knowledge creation | transfer | retention
When an organization’s innovation is based on recombined knowledge elements - problem of knowledge transfer
When an organization's innovation is based on adding new knowledge elements - problem of knowledge creation
+ knowledge retention problem.
Organizations need to be able to manage knowledge to innovate. That means organizations need to achieve 3 management
outcomes:
1) Knowledge creation: new knowledge is generated in organizations.
2) Knowledge transfer: experience acquired in one part of the organization affects another.
3) Knowledge Retention: embedding knowledge in a repository so that it exhibits some persistence over time.
Nature of knowledge
- Tacit vs explicit (codified)
- Internal vs external
- Public vs private
Knowledge can be tacit and private at the same time.
Explicit knowledge is the knowledge that is easily articulated, codified and stored, and it can be transferred without loss of
integrity. (e.g manual on how to use a camera)
Tacit knowledge is the knowledge that is complex, difficult to articulate, codify, store and transfer. (e.g. the knowledge on
know how to take good photos)
Content of knowledge
- Technological knowledge (know-how, scientific knowledge, experimental knowledge)
- Managerial knowledge (coordinate and supervise organizational resources and processes)
- Market knowledge (customers characteristics, preferences and needs)
Levels of knowledge refers to location of knowledge and its:
- Individual: skills and knowledge
- Group: knowledge is specific to a group and not the whole organization-
- Organizational: knowledge is based on documents, accounts, files, standard operating procedures. Organizations
are able to retain old knowledge even the members of the organization chance (leaving or coming)
, - Inter-organizational (between organizations): some knowledge can be specific to inter organizational relationships
like alliances- how the organizations interact with each other.
- Knowledge conversion process:
Tacit knowledge to tacit knowledge → Socialization
Tacit knowledge to explicit knowledge → Externalization
Explicit knowledge to Explicit knowledge → Combination
Explicit knowledge to Tacit knowledge → Internalization
Organizational capabilities vs organizational routines
Organizational Capabilities differ from routines in 3 aspects:
- Routines can be of any size and significance but capabilities are substantial in
size
- Routines can be automatically triggered but capabilities are used as an
outcome of conscious managerial decisions.
- All the routines are building blocks of capabilities
Routine: small scale and frequently repeated, triggered by a consumer |
Repetitive|Recognizable|Interdependent patterns of action| Multiple actors
Organizational Capability: collection of routines
- Ordinary capabilities: collection of operational routines that describe the operational functioning of the company
- Dynamic capabilities: collection of search and innovation routines that modify the operational routines and guide
the creation of new routines.
How do firms develop innovation capabilities?
Another high related (dynamic) capability is the absorptive capacity (PACAP, RACAP)
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