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This study delves into the role of organizations as socially organized units where knowledge is processed, stored, and produced through interaction between agents. It explores how coordination, resource constraints, and organizational routines shape the innovation process, emphasizing the importance of leveraging knowledge for effective innovation. Drawing parallels with Darwin's theory of evolution, the study highlights the evolution of knowledge within organizations and challenges common innovation myths. By adopting an evolutionary approach, organizations can enhance their innovation capabilities and drive successful product and service innovation.
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Organizations? Productive socially organized unit = interaction between agents The firm is a consequence of the coordination of these agents trying to withstand the environment selection pressure Coordination can only be achieved by means of the definition of a common set of rules and codes.
Whyeventhink of organizations? • If: (1) and (2); then, the firm = an “entity processing, storing and producing knowledge” • The whyon the organization resides in its need to process, store and produce knowledge. (1) adaptation = an accumulation of knowledge (2) accept the organization to be in a constant attempt to fit into the environment Hence, a priori we can judge more probable to have better results having organizations as it becomes anenhanced source of variation + moreeffective (?) selective retention (provides different levels)
Parts of the organizations Image taken from: http://www.bettercartoon.com/gallery2/d/9196-6/Cartoon+1743
HSO • Ability to use and create rules. • Knowledge agent = ability to teach and learn from the organization. • Having these agents in the organization, variety production, as a source for rule creation could be estimated as infinite.
Organizational routines routines • Pattern of behavior that is followed repeatedly, but is subject to change. • Capture the individually held knowledge applied in the firm. • Is a source of knowledge for the individual. Routines = the way HSO interact.
Resources • The first implication is that the organization has limited resources of time, money and capacity. • Resources constrained can be relaxed: inversion, cash flow generation, etc. • There’s a need for managing such restrictions.
Organization’s interactions • A system “whose transformation over time through successive adaptive states is explained by a process of variation, selection and retention”. • This Machine will be a result of the interactions between different organizational routines. Organization as a Darwin Machine
Organization’s interactions IMPLICATIONS • An organization is able to generate its own knowledge. • Second, One organization is unique due to the knowledge it posses. • Finally, we have that what actually evolves in an organization is knowledge itself. Organization as a Darwin Machine
Innovation myths • I’m not creative enough. • Innovation is for the big ones. • Innovation = inspiration. • Everything is already invented.
Levels of retention Strategy, business model, structure, etc. Product /service Tacit knowledge Explicit knowledge KNOWLEDGE MANAGEMENT
Can be learned? • Need to break some mental structures • Innovation comes fromthe discipline of trial and errors • + trial and errors = + accumulatedknowledge. • Bythe use of tools.
Innovationstructure From project to market Idea generation From idea to project
Different types. • Marketoriented • Internaloriented
Finding it useful. • Considers change as foundational. From an evolutionary point of view, variation is not an error. • It’s not just about efficiency, but also efficacy problems become relevant. • It’s to be said that an evolutionary perspective is not the only (and not necessarily the best) way to approach to innovation. However, the evolutionary approach gives a broad and coherent framework to explain why innovation is important.
