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Organizational Culture for Change . John M. Mason And Kathryn Jablokow Penn State University. Competition by Innovation. Modern Oligopoly Continuous innovation to maintain market share Established levels of R & D. Sustaining Technological Innovation.

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Organizational culture for change l.jpg

Organizational Culture for Change

John M. Mason


Kathryn Jablokow

Penn State University

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Competition by Innovation

  • Modern Oligopoly

    Continuous innovation to

    maintain market share

    Established levels of R & D

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Sustaining Technological Innovation

  • Improved Product Performance

  • Continuous and Ongoing

  • Budgeting, Planning, and Surveys

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Disruptive Technological Innovation

  • Changes the way people do things

    • In their lives

    • How they organize things

    • How they conduct business

    • How they relate to others

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Technology and Intellectual Capital

  • Technology—”the processes by which an organization transforms labor, capital, materials, and information into products and services of greater value…”


    The Innovator’s Dilemma

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Technology and Intellectual Capital

  • Intellectual Capital—”is the knowledge, applied experience, enterprise processes and technology, customer relationships, and professional skills which are valuable assets to an organization.”

    The Journal of Intellectual Capital

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The Culture of Innovation

  • Intellectual Capital is the major asset of the modern firm.

  • If competition is based upon innovation, then an organization must continually increase its base of knowledge or information.

  • Organization must invest in developing new information to add to its knowledge base.

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Innovative Types

  • Sustaining Technological Innovation—information generated is within the bounds of an existing product base.


    Competitor Offerings

    Industry Trends

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Innovative Types

  • Disruptive Technological Innovation—information generated outside the bounds of existing product base.

    Changes in assumptions

    Practical technologies

    Marketing questions

    Complementary products

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  • Information thrives in an environment in which more people have access to it.

    Dialogue increases

    Productivity rises

    People can use their strengths

    People feel better about themselves

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Role of Senior Management

  • Culture of Innovation starts at the top!

    Sets goals and objectives

    Identifies who gets hired and who

    gets promoted

    In a world of greater delegation— leaders need to support

    If the top does not initiate, subcultures

    grow up and coordination failures


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Time Pacing

  • Based upon the passage of time and not external events.

  • “Time pacing relies on choreographed transitions to switch smoothly from engineering to manufacturing, from product to product, from one market to the next, from one business to the next…” Brown and Eisenhardt, 1998

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Rhythm of Time Pacing

  • Time period—short enough to make the firm competitive but long enough to be realistic.

  • Influenced by seasonality, consumer cycles, trade show dates, and competitive pressures.

  • Example: the integrated circuit.

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Organization for Disruptive Technological Change

  • Where do these fit into the organization?

  • Major difference—the market served

    Small versus large

    Generally not major customers

    Don’t know what final use will be

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Portfolio of Innovations

  • Sustaining innovations—generally done internally.

  • Disruptive innovations

    Organizational separation


    Joint ventures, etc.

    Financial Investment

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Disruptive innovation and Time Pacing

  • Some need for regular introduction

  • Can’t just let projects go on and on

  • Real Option approach

    Commercialization must be realized within a reasonable time

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Human Resource Management

  • Problem-Solving Types

    Adaptors versus Innovators

  • Strategic Leadership

    Stages of organizational evolution and renewal

  • Executive Development

    The ‘right people’ for the ‘appropriate time’

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  • Competition requires innovation that is continuous and relentless.

  • Organizations must be intentional and universal in their efforts to innovate.

  • The culture for innovation begins at the very top.

  • The culture is inclusive: management, structure, finance, human resource management, marketing, and other areas of an organization must be a part.