UNDERSTANDING INDIVIDUAL LEVEL FACTORS OF INNOVATION. Innovative Behaviors and Learning. Innovation Value Chain. Creating Return on Innovation. SOCIETAL FACTORS Society / Culture Historical Context REGULATORY FACTORS Government & Social policies ECONOMIC FACTORS Technology
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UNDERSTANDING INDIVIDUAL LEVEL FACTORS OF INNOVATION Innovative Behaviors and Learning
Creating Return on Innovation • SOCIETAL FACTORS • Society / Culture • Historical Context • REGULATORY FACTORS • Government & Social policies • ECONOMIC FACTORS • Technology • Intellectual Resources • Strategic Partners National Context • Innovation Facilitators • Leadership • Innovation Strategy • Vision • Champion • Tolerance for failure • Strategic Assets • Input, Process, Channel, Customer and Market Knowledge Assets • People • Innovation Champions • Skills & Competencies • Intrapreneurs • Organization Culture • Values • Norms • Commitment • Resources • Compensation • Intellectual Capital • Financial • Time • Space • Innovative Barriers • Mindset • Not-invented-here • Nothing-is-invented-here • Shortage of resources • Organizational bureaucracy • Lack of motivation • Return on Innovation • Business Results • Growth • Profits • Increased Margins • Market Results • Market capitalization • Market growth • Innovation Behaviors • Management Practices • Formal Innovation Processes • Unstructured Innovation Processes • Collaborative Innovation Processes • Knowledge Processes • Capture of existing internal and external knowledge • Creation of new knowledge • Dissemination and sharing of knowledge Innovation Performance New or altered products, services, processes, systems, organizational structures, or business models.
The Role of the Individual • Innovation happens because people do certain things, behave in certain ways. • Innovation requires people to learn something new and unlearn what they believe they know. • How does this happen?
Innovative Behaviors? • Understanding of innovative behavior remains underdeveloped (Wolfe 1994). The contributions thus far include: • innovative behavior at the firm level – what does the company have to accomplish to achieve competitive advantage through innovation. • innovative behaviors of consumers, what do consumers “do” that is unusual, unexpected, and unorthodox, and enables or drives corporate innovation. • alignment between strategy and structure to facilitate innovative behavior. • determinants of innovative behavior – such as leadership and reward systems, or creating a culture to support innovative behavior. • differentiation between facilitators and inhibitors of innovative behavior.
Innovative Work Behaviors • West and Farr (190, p.9): the intentional introduction and application within a role, group or organization of ideas, processes, products or procedures. • …from Janssen (2000, p.299): this definition restricts innovative behavior to intentional efforts to provide beneficially novel outcomes. • Scott and Bruce (1994): innovative work behavior is assumed to be a multi-stage process, covering both the creativity and implementation components
Three tasks of innovative work behavior: Scott, S.U. & R.A. Bruce. 1994. Determinants of Innovative Behavior: A Path Model of Individual Innovation in the Workplace. Academy of Management Journal, 37: 580-607. • Idea generation: formulation of new ideas of any sort, which are benefical to organizational conduct (Woodman, Sawyer and Griffin, 1993) • Idea promotion: capitalizing on ideas generated by finding sponsors and allies with the necessary influence and authority (Kanter, 1983, 1988) • Idea realization: the production of a prototype or model of innovation…that can be touched or experienced, that can now be diffused, mass-produced, turned to productive use, or institutionalized (Kanter, 1988, p.191)
Innovating versus Innovation • Goedhuys et al (2008) differentiate between innovative behavior and innovation offering that, “innovative behavior is influenced by the firm's internal capacities while innovation affects firms' profitability, survival, and employment“.
Innovation as a learning process • Innovation is the creation of a solution to a problem. • Innovation requires knowledge. • Learning is the process of acquiring and/or creating knowledge.
INNOVATION PROCESS & IDEATION (Davila et al, 2006: p.125) Selection Execution Creation Of Value Radical Innovation Generation of Ideas Generation of Ideas Product, Service and/or Process Innovation Incremental Innovation Generation of Ideas
Knowledge, Learning & Innovation McDonough, E., M.E.Zack, H.Lin & I. Berdrow. 2008. “Integrating Innovation Style and Knowledge into Strategy. MIT Sloan Management Review, 50(1), pp.53-58. Given what we know what product/market position can we execute? What do we need to know to execute our product/market position? What innovation position should we pursue given our product/market position? Given our innovation position, what product/market position make the most sense? Product/Market Position Innovation position Knowledge position What innovation position can we execute given what we know? What knowledge is needed to support our innovation position?
How do organizations learn?(Davila et al, 2006) • Learning to act – Can we improve things we are already doing? Incremental improvement of current actions. • Learning to learn – how do we create, acquire, adapt and disseminate knowledge? Are we good at it? Questioning current actions and seeking new opportunities.
Symptoms of learning disability • Disbelief in effectiveness of innovation • Accidental rather than strategic execution of innovation projects • Focus solely on incremental innovation • Lack of investment in innovation
TYPES OF KNOWLEDGE • Explicit – what can be codified, stored and retrieved • Tacit – intuitive, not well-articulated, needs to be interpreted to be expressed
Where does knowledge reside? • Individuals – vision, experience, images, metaphors • Groups – shared meaning, language, conversation • Organizations – routines, systems, rules and procedures, artifacts
Organizational Learning As a Dynamic Process ORGANIZATIONAL LEARNING AND STRATEGIC RENEWAL by Mary M Crossan; Iris Berdrow, Strategic Management Journal; Nov 2003; 24, 11; pg. 1087
Making it work: • Make learning a strategic issue. • Hire the right people. • Provide the right environment. • Engage in unlearning as well as learning. • Remove barriers to learning. • Monitor progress and learn some more!