Innovation in organization

Organizational InnovationDR. C.C. TANSCHOOL OF MANAGEMENTMAE FAH LUANG UNIVERSITY2013

Value-Creation

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Historical graph showing the adoption of new technologies in the United States (designed by Nicholas Felton via the New York Times).

http://www.nytimes.com/2008/02/10/opinion/10cox.html?ex=1360299600&en=9ef4be7de32e4b53&ei=5090&partner=rssuserland&emc=rss&pagewanted=all

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What is Organizational

Innovation (OI)?With Illustrations

New OI Model – the SKA (CC Tan et al.

2013)

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Innovation: Innovation is a means of enterprise. Innovation is a new capacity to create wealth from resources, and makes

resources to become “real resources” of significant competitive advantage. Thus, innovation is a driving force for a firm’s progress (Peter Drucker, 1985). When the environment changes and traditional thinking is challenged, the

enterprise needs to pursue innovation in response to challenges for survival in a rapidly changing market (Burpitt & Bigoness, 1997). The firm must have new products and services to satisfy old customers and attract new customers (AI-Beraidi and Rickards, 2003).

Context changes

New strategies adapted: Innovation

Reference:AI-Beraidi, A. and Rickards, T. (2003), “Creative Team Climate in an International Accounting Office: An Exploratory Study in Saudi Arabia,” Managerial Auditing Journal, 18(1), pp. 7-18.Burpitt, W.J. and Bigoness, W.J. (1997), “Leadership and Innovation among Teams,” Small Group Research, 28(3), pp. 414-423.Drucker, P.F. (1985), Innovation and Entrepreneurship: Practice and Principles, HarperCollins.

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Innovation: The attitude of innovation is directly and

indirectly the most important lever that pushes the company ahead, with a passionate missioned theme.

Steve Jobs in the 1980s was quoted in the Apply company mission statement: “Man is the creator of change in this world.

In its official Mission Statement, artifacts of innovative works are reinforced:

“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.”

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Facebook: Mark Zuckerberg is credited as founding facebook in 2004, when he launched a website called “thefacebook,” which was designed for the exclusive use of Harvard students. The instant popularity of the website drove it to expand and become accessible to other universities, then high schools, and selected companies such as Microsoft and Apple. In 2006 Facebook became accessible to the entire world’s population and by the end of year it had 12 million users.

“Facebook’s mission is to give people the power to share and make the world more open and connected.”

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Google: The history of the Internet information services company only goes back to 1996, when founders Larry Page and Sergey Brin were graduate students at Stanford, and began working on a search engine together which they called “BackRub.” The name of the search engine was changed to “Google” in 1997, a name that was inspired by the mathematical term “googol,” which means the number one followed by 100 zeros, which represented the infinite amount of Information Page.

Google’s mission is to organize the world’s information and make it universally accessible and useful.

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Nike: Nike began on January 25, 1964 as Blue Ribbon Sports with a $500 investment from each founding partner, Phil Knight and Bill Bowerman. Phil Knight was a track and field competitor in college and Bill Bowerman was his coach. The two men started Blue Sports as distributors of shoes manufactured by the Onitsuka company in Japan. In the early 1970’s Blue Ribbon Sports expanded beyond the shoe distribution business to become shoe manufacturers. On May 30, 1978, the company officially became Nike, Inc., a name that is credited to the imagination of the company’s first employee, Jeff Johnson.

The mission statement of Nike is: To bring inspiration and innovation to every athlete* in the world. If you have a body, you are an athlete. Reportedly the asterisked clarification came from co-founder Bill Bowerman.

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Innovation: The attitude of innovation is directly and indirectly the most important lever that

pushes the company ahead, with a passionate missioned theme.

Naked Pizza Restaurants: The concept for Naked Pizza was originally created by founders Jeff Leach and Pharon Wilson as “The World’s Healthiest Pizza” in New Orleans, Louisana. The 496 square foot restaurant was flooded when Hurrican Katrina hit and the founders were among the community of business owners who went back to New Orleans to resurrect their businesses and rebuild the city. After Hurricane Katrina hit, co-founder Robbie Vitrano was working in both advertising and with an organization called Idea Village, both of which were focused on rebuilding post hurricane businesses in New Orleans. The first restaurant branded as Naked Pizza opened in 2006 with a mission much larger than just making pizza and making a profit. In 2009 Naked Pizza got financial backing from billionaires Mark Cuban and Robert Kraft and with that backing started aggressively implementing a franchise model for expansion.

Naked Pizza makes no secret that it is a pizza chain on a mission. “We intend to launch the world’s largest grassroots health movement. We’ll do that by making a delicious, affordable, all-natural pizza and delivering it to your home hot in about 25 minutes. Our mission is delivering great tasting pizza that’s actually good for you.

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Innovation: The attitude of innovation is directly and indirectly the most important lever

that pushes the company ahead, with a passionate missioned theme.

Baskin-Robbins Ice Cream: Baskin-Robbins Ice Cream Stores was founded by brothers-in-law Burt Baskin and Irv Robbins, who each started their own ice cream shops, and then merged together to create the Baskin-Robbins concept. Irv’s ice cream store was Snowbird Ice Cream, which he opened in Glendale, California in 1945, featuring 21 different ice cream flavors. Burt’s ice cream shop was called Burton’s Ice Cream Shop, and the first one opened in Pasadena, California in 1946. In 1953 more than 50 Burton’s and Snowbird Ice Cream shops were rebranded as Baskin-Robbins 31 Ice Cream, with 31 representing a different flavor for every day of the month. Baskin-Robbins was acquired by London-based J. Lyons & Col, and is now part of the Dunkin’s Brands group along with the Dunkin’s Donuts chain.

Since 100.% of the more than 6,000 Baskin-Robbins Ice Cream stores in 50 countries are franchise-owned, each Baskin-Robbins franchise owner could have their own mission statement. But as the parent company of Baskin-Robbins, Dunkin’s Brands has 12 Values and Principles that the company believes should guide the decisions of everyone associated with Baskin-Robbins retail outlets, leading Baskin-Robbins franchisees toward success.

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The Dunkin’s Brans Values and Guiding Principles are:

Our Values: Honesty – Embrace the truth about oneself and the world. Transparency – Demonstrate openness and vulnerability. Integrity – Say what you think and do what you say. Respectfulness – Honor the dignity, inclusion, and diversity of others. Fairness – Do what is right based on common principles. Responsibility – Make yourself accountable to the community.

Our Guiding Principles: Leadership – Responsibility with passion at every level. Innovation – Excellence in everything we do. Execution – Ownership and accountability for results, success and failures. Social Stewardship – Demonstration of good corporate citizenship and responsibility to

all constituents. Fun – Approach every challenge with enthusiasm, energy and excitement. Celebrate

every step of the way.

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When an organization chooses to pursue innovation as a pathway to ongoing success, the starting point is to develop and publish its definition of innovation.

Everyone in the organization needs to understand what innovation means to them at individual, team and organizational levels.

A successful organization achieves the goals and objectives that it sets itself. Innovation is simply a “lever” that delivers success rather than an end in itself. There are many levers that can be used to deliver success, including M&As, 6, and improved HRM practices. Innovation is one of these levers and it should be placed in the context with the objects and aims of an organization.

Innovation

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Define Innovation for the Organization: Innovation is the process that transforms ideas into commercial value:

Innovation = Invention + Exploitation

The starting point for innovation is the generation of creative ideas. Innovation is the process of taking those ideas to market or to usefulness.

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Scope of Innovation? “Innovation” is predominantly linked to R&D associated with

creating new products.

But, Schumpeter put innovation in the following scopes: New products New production methods New markets New sources of supply New forms of organization

New sources of supply

New production methods

New products

New markets

New forms of organization

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Scopes / Types of Innovation:

Technical



New products New markets

New forms of organization

Non-technical

Process innovation

Service innovation

Organizational Innovation

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Positioning

Networked

Organization and People

Systems

Process and Coordination, and

Structure i.e. bricks and

mortar, machinery

CompetitorsComplementors

Customers Cost Quality Availability Innovativeness Env. Performance

Consistencies: Corporate level Business unit level Functional level

The Supply Chain The Distribution Chain

Cost leadership Differentiation Focus Blue Ocean

Capability

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Value CurvesInnovation

Capability Positioning

“Strategic Vision / Parity, Competitive Advantage”

Value increases Non-Value Adding : Decreases and eliminated

RB

V o

f C

om

peti

tion

MB

V o

f C

om

peti

tion

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Value CurvesInnovation

Capability Positioning

“Strategic Vision / Parity, Competitive Advantage”

Value increases Non-Value Adding : Decreases and eliminated

RB

V o

f C

om

peti

tion

MB

V o

f C

om

peti

tion

RBV: To develop and leverage “resources” in order to create new market qualifiers and order

winners. The innovative content for operations strategy should be supported directly by key

operational capabilities deeply anchored within business processes and organizational routines.

Organizational innovation capability, i.e. Learning and Growth capability, must be managed integrally, in order to be both supportive and generative of operating excellence.

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Organizational Innovations

Business Model

Consistency at decisions level

Value-Creation

From this Scheme, OI is resource to BM (Business Models), and thus RBV theories can be examined, and OI strategies become a means of leveraging the firm’s strategic resources (OI) so they are constantly regenerated. Thus, OI has become a highly intelligent activity geared to ensuring that a firm knows well what tangible and intangible resources it has, where they are headed, and how to protect them in avoiding their decay or stagnation.

And, BM becomes the “integrator” of all change initiatives of OI within the organization and eventually helps build “strategic options” to compete in uncertainties.

C.C. Tan et. Al. (2013)

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Positioning

Networked

Organization and People

Systems

Process and Coordination, and

Structure i.e. bricks and

mortar, machinery

CompetitorsComplementors

Customers

Capability

Matching Organizational Innovations and Business Models:

Positioning

Supply-side Capability Demand-side Capability

SSC DSC

Valu

e C

urv

eGet (the Reward)

Give the “Value”Create Value

KPIs

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KPIs =

Quality Availability Innovativeness Environmental Performance

Cost Overburden Efficiency Supply chain cost / Total business model cost

Responsiveness Flexibility Speed Flow management

CSR Marketing 3.0 Waste elimination

Quality

Availability

Innovativeness

Env.P

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Waste Elimination: Taiichi Ohno defined seven common forms of

waste, activities that add cost but no value: Production of goods not yet ordered Waiting Rectification of mistakes Excess Processing Excess movement Excess transport Excess Stock

Order

Rectification of mistakes

Excess processingExcess transport

Excess movementW

aitin

g

Excess stocks

Pro

ductio

n o

f goods n

ot y

et o

rdere

d

It is generally difficult to see all the waste that surrounds the production, and thus it offers huge opportunity for performance improvement today.

The waste could be at the value-chain level.

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It is generally difficult to see all the waste that surrounds the production, and thus it offers huge opportunity for performance improvement today.

The waste could be at the value-chain level. For instance: The provision of most goods and services stretches across several departments and

functions inside the firm and across many different firms. Making an aluminum drinks can, for instance, involves several manufacturing firms

from the mine to the supermarket. Each of these elements in the chain – the reduction mill, the smelter, the hot roller, the cold roller, the can maker, and the bottler – is busy trying to optimize its own performance, typically through bigger machines with faster throughput times and bigger batches. This in turn leads to a series of intermediate stores getting bigger all the time. The net result is that the order is delayed, huge stocks are needed, larger discount to clear the stocks are needed, lost opportunities for new markets and new orders are common, etc.

Thus, optimizing each piece of the supply chain in isolation does not lead to the best result for all and the industry.

Org

. Innov.

Supply Chain

Distrib

utio

n C

hain

Value-Creation

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Renewing the traditional SWOT Analysis (an Org. Innovation aspect):

Supply Side:Resource Position

Value Curves

Product-Market Side:Positioning Position

Strategic Management

S, W O, T

Making sense through Value-Curve To create real Value, not to waste and Non-Value-Added

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Renewing the traditional SWOT Analysis (an Org. Innovation aspect):

Supply Side:Resource Position

Value Curves

Product-Market Side:Positioning Position

Strategic Management

S, W O, T

Making sense through Value-Curve To create real Value, not to waste and Non-Value-Added Strategies.

Resources: Acquire Exploit Develop Absorptive Capacity

Rent-G

enera

tion

As long as possible

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In short: Every step of the value-chain is Org. Innovations driven, on SK (Infrastructure, Structure) A.

PolicyPrinciplePerspective

PlaceProcessProcedure / PracticesPeoplePattern of PeoplePlan i.e. Forecast

Products

Pro

motio

n

ProfitsPeoplePlantPosition

Org. Innov. Develop “dynamic capability” Operational flexibility, and

thus gradually upgraded to Total “organizational agility”

and towards the hard-to-copy, hard-to-diffuse (absorb) capabilities.

Ploy

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There have been few conceptual and methodological contributions to the monitoring of organizational innovations so far (Armbruster et al. 2008):

Organizational innovations comprise changes in the structure and processes of an organization due to implementing new managerial and working concepts and practices, such as the implementation of teamwork in production, supply chain management, or quality management systems.

Organizational innovations

Business performance: Competitiveness (Caroli and Van Reenen, 2001)

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Organizational innovations

Technical product and process innovations



New products

New markets


Organizational innovations act as the prerequisites and facilitators of an efficient use of technical product and process innovations as their success depends on the degree to which the organizational structures and processes respond to the use of these new technologies.

Second, organizational innovations present an immediate source of competitive advantage since they themselves have a significant impact on business performance with regard to productivity, lead times, quality and flexibility (Womack et al. 1990; Goldman et al. 1995).

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Organizational innovations: “Lean production,” an integrated variety of

new organizational concepts (Womack et al. 1990) such as:

Teamwork Job enrichment and enlargement Decentralization of planning, operating

and controlling functions Manufacturing cells Quality circles CI processes Zero buffer principle (Kanban) Simultaneous engineering and JIT

delivery

Driving factor for:

Companies’ competitiveness(Womack et al. 1990)

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Organizational innovations:Other innovative concepts include: Business reengineering (Hammer and

Champy, 1993) TQM (Ishikawa, 1985) Fractal Factory (Warnecke, 1992) Modular Factory (Wildemann, 1992) Intelligent organization (Pinchot and

Pinchot, 1993) Agile enterprise (Goldman et al. 1995) Cellular forms (Miles and Snow, 1997) N-form corporation (Hedlund, 1994)

All of these promised to guide the reorganization of companies in order to achieve significantly better performance indicators with regard to productivity, quality, and flexibility.

Driving factor for:

Companies’ competitiveness(Womack et al. 1990)

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Although these studies have shown the importance of organizational innovations for business performance, defining and measuring organizational innovation still lags behind.

There are different interpretations of the term “organizational innovation” and the lack of a widely accepted definition causes difficulties in designing and implementing measures and indicators that sustain validity over a wide coverage (Lam, 2005).

Definition? Measurement?

So far:Understanding the big picture of OI

Value-Creation

Hopefully can provide us with a clearer, more valid definition on “OI”

Then, we can “Measure OI” and conduct Research in depth and breadth.

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The existing literature on OI is diverse and scattered. There is no consensus on a definition of the term “OI”, which remains ambiguous (Lam, 2005).

Different areas of research are developing their own approaches to try and understand the complex phenomenon of OI:

How OI emerges, develops, and grows at the micro-level within the organization?

The “OI” Literature

Structural:

Change Process:

OL and Creativity:

?

Recently

OL and Creativity (Unfreeze)

Structure and Process (Move)

Reality – Accepted (Refreeze) for Efficiency and Further Productivity

Gain

This strand focuses on theories of organizational cognition and learning (Argyris and Schon, 1978) as well as on theories of organizational creativity (e.g., Amabile, 1988).

Reality?

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Structural:

Change Process:

OL and Creativity:

?

Recently




Gain

Structural aspect? To achieve a structure increasingly capable of continuous problem solving and innovation.

Theories of organizational change and development? Types of change (evolutionary versus revolutionary)? Resistance to change? How to overcome the inertia of organizations so as to enable them to better adapt to changing environments and technologies?

Reality?

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OI leads to competitiveness of firms (Caroli and van Reenen, 2001) But, the measurement of OI (the reality) is not minimally addressed (Armbruster et al.

2008) With knowing the reality well, “OI” research will hardly realize its Full Potential, and

the practitioners will miss the opportunities to use “OI” to transform their organizations.


Structural:

Change:

OL and Creativity:

?

Recently




Gain

Reality?

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Measured Big-Picture

Realities

OI Process

People-Centric (Behavior)



Certainly, the “Behavioral” aspect of OI are vastly neglected.

Measured “OI”s

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PolicyPrinciplePerspective

PlaceProcessProcedure / PracticesPeoplePattern of PeoplePlan i.e. Forecast

Products

Pro

motio

nProfitsPeoplePlantPosition

Ploy

Example: Coordination aspect of organizational innovation:

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Example: Coordination aspect of organizational innovation:

Understanding how economic activities are coordinated inside organizations has always been one of the most fascinating questions in economics.

Since Adam Smith, economists have recognized that the benefit of organizing large-scale production comes from “coordinated specialization.” When there is no specialization, all agents perform the same operations, there is then no need for coordination and no gain from having agents work together in one organization.

Specialization

Coordination

Specialization

Benefits of organizing large-scale production

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Example: Coordination aspect of organizational innovation: Coordination becomes crucial whenever there is specialization. On the other hand, coordination is also costly, which limits the extent of

specialization within organizations. Task coordination is like assembling complementary parts, such as the

assembling of subroutines for a software package, synchronizing travel plans and accommodating logistics for a conference, reforming an economy by restructuring enterprises.

A product or a service is completed successfully only if the characteristics of each attribute of the various parts are matched. Failure in the matching of attributes often implies a breakdown. The attribute matching problem is especially pervasive in implementing changes such as innovation and reform within an organization, because by its nature such a problem cannot be solved by automation.

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Innovation-Value-Driven Supply-Side Competency-and-Customer-side Opportunity Bridging Business

Model introduced (C.C. Tan)

Resources Resources Partners

Activities

Innovation Value Curves(Customer Value Propositions)

Customer Segments

Revenue StreamCost Structure

CRM

Channels of Distribution

Margin Break-Even Cash Flow Equity Growth

Resource Velocity

3 Levels of Characteristics on Activities: Consistency Reinforcing Optimization

3 Levels of Characteristics on CVP: Parity Points of

Differences Resonating

Consumes Generates

3 Levels of Characteristics on Customer Equity: Value equity Brand equity Relationship equity

5-Forces Competitive-Advantage Characteristics on Resources: Not easily

purchased Durability Difficult to

imitate Not readily

substituted Competitive

superiority

VRIN…

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Customer Perspective(CVP, Value Curve)

KPIs

Financial Perspective Revenue Stream Cost Structure Cash

Flow/Return Rate

Resource Perspective: Learning

and Growth Partner

scorecard

Always measure your Organizational Innovations and Business Models

Value-Creation

Process Perspective:

KPIs

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Continued:

But the quality of the coordination, i.e. the adjustment of attributes depends itself on the quality of communication inside an organization. The communication problem arises because only managers directly and frequently engaging in particular task have first-hand information and knowledge about the task.

Communication is necessary for others to use such information and knowledge, but communication is likely to be imperfect because message transmission, due to technical bugs as well as human misunderstanding, can go wrong.

Poor or ineffective communication arises whenever the absence of direct involvement in a task implies poorer knowledge about it.

Poorer knowledge on certain issues

Poorer communication regarding them

Poorer coordination

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Continued:

Drilling further, coordination problem is endogenous, depending on how tasks and decision-making power are assigned within an organization. That is, the organizational form matters.

All these are OI issues.

Poorer knowledge on certain issues

Poorer communication regarding them

Poorer coordination

Form of organization

M-Form (Multi-divisional form) organization as one that consists of “self-contained units” where complementary tasks are grouped together; versus:

U-Form (Unitary Form) organization is decomposed into “specialized units” where similar tasks are grouped together.

Because the M-form and the U-form organizations assign tasks differently, the communication problems they face are also different.

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Continued:

A simple trade-off emerges between “better coordination and less economies of scale” in the M-form compared to the U-form.

In the self-contained units of the M-form, local managers can more easily solve the coordination problem by making good use of local information.

In the U-form organization, coordination of specialized units is centralized by top managers so that economies of scale are obtained, but the coordination problem is harder to solve, as the top managers have to rely on imperfect information about attributes transmitted by local managers.

Obviously, the M-form is better than U-form in promoting innovation or reform if the quality of communication is low and the value of scale economies is not high.

A less obvious, but more important, result is that the M-form organizations is able to promote innovation or reform through “experimentation,” that is, it can experiment an innovation or reform program in some part of the organization first before implementing it in the entire organization.

The fundamental reason why the M-form is capable of carrying out experimentation is its organizational form: each unit is self-contained, and coordination is carried out by local managers.

In contrast, in the U-form, the benefits of experimentation cannot be reaped because coordination is centralized.

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Research Opportunities:

Forms of Organization Depth and breadth of innovation

?

M-form is a more flexible organizational form, which can promote more innovation or reform. The flexibility of the M-form can lead to a higher propensity to innovation or reform, an important dynamic advantage compared to U-form.

In contrast, the U-form is more rigid. This rigidity tends to be deleterious for innovation or reform.

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Example of M-Form and U-Form at National Levels: The Implication to Government’s Policies

The agricultural reforms: There is a striking difference between the organization of the Soviet planning

administration on one hand, and that of the Chinese planning administration, on the other hand (Qian and Xu, 1993).

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The agricultural reforms: The Soviet economy was organized into many specialized or functional ministries

(e.g., Ministry of Cereal and Grain Production, Ministry of Tractors and Farm Machinery, Ministry of Fertilizer Production, etc.). This corresponds to a U-form organization (also known as “branch organization.”).

In contrast, the Chinese economy has been organized mainly on a geographic basis. This corresponds to an M-form organization (also known as “regional organization”).

Thus, the hypothesis: The Chinese economy with its M-form structure is prone to reform via regional experimentation.

On the other hand, when reform comes into the Soviet U-form economy, it is comprehensive and coordinated from the center, and thus more difficult to do.

But always exception which we need to study in depth (the % of variation not explained), i.e. see the Sara Lee’s Sanex soap: the other factors i.e. the leadership factor could be the missing link.

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Different in the setup of government governance structure in ASEAN countries

Different levels of competitiveness and innovation (breadth and depth, speed, frontiers, competitive edge), types and scopes of innovation.

?

How did they resolve the specific challenges or inherent weaknesses of the structure?

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At organizational levels: According to Chandler (1962, 1977) documented important cases of some

large American corporations that replaced the U-form corporate form by the M-form in the first half of the 20th century.

According to Chandler, serious problems arose under the U-form between functional departments, such as production and sales, when the firm introduced new products or adopted innovations. In the case of Du Pont, before 1921 whenever a new chemical was developed such as explosives and paints, coordination difficulties resulted in too many mistakes, which convinced Du Pont to reorganize the firm into an M-form with multi-divisions by products.

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At organizational levels: Similarly, before 1925, Sears, the largest mail-order firm in the U.S., was

organized as a U-form corporation with the headquarters in Chicago and departments responsible for specialized functions nationwide, such as procurement, sales, and distribution. When Sears expanded into many new territories and became involved in new businesses, its coordination problems became severe. In 1939 Sears was reorganized into the M-form with multi-functional and autonomous territorial divisions.

Later, Williamson (1975, 1985) theorized that the overload problem of the headquarters was the main problem with the U-form corporation.

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At organizational levels: Williamson (1975, 1985) argued that, with daily operations being

decentralized to self-contained divisions, the M-form corporations reduce the work overload at the headquarters and create time for top managers to engage in strategic planning.

What about product-focused corporations versus process-focused corporations?

Value Curve

Market-Focused Organizations

Process/Product-Focused Organizations

Future-focused Organization Know the value shifts – Staying

abreast of current worldwide trends and being aware of those just around the corner

Take actions on the values Values/Strategy-focused

organization

Marketing 3.0

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References:Chandler, A. Jr. (1962), Strategy and Structure, New York: Doubleday & Company, Inc.

Chandler, A. Jr. (1977), The Visible Hand: The Managerial Revolution in American Business, Cambridge: Belknap Press of Harvard University.

Qian, Y. and Xu, C. (1993), “Why China’s Economic Reform Differ: The M-form Hierarchy and Entry/Expansion of the Non-state Sector,” Economics of Transition, 1(2), pp. 135-170.

Williamson, O. (1975), Markets and Hierarchies, New York: Free Press.

Williamson, O. (1985), The Economic Institutions of Capitalism, New York: Free Press.

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Look into PSF (Professional Service Firms): PSF is the ultimate embodiment of that familiar phrase “Our assets are our

people.” Frequently, a PSF tends to sell to its clients the services of particular individuals or a team of such individuals, more than the services of the firm.

PSFs usually involve a high degree of interaction with the client, together with a high degree of customization (innovation is needed).

Both of these characteristics demand that the firm attract (and retain) highly skilled individuals.

The PSFs, therefore, competes in two markets simultaneously: The “output” market for its services The “input” market for its productive resources – the professional workforce.

Thus, there is a need to balance the demands of the two markets, which can be accomplished through the firm’s economic and organizational structures – organizational innovations.

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Market of Professional Workforce

Market for Firm’s

Services

Firm’s Economic Structure

Firm’s Organizationa

l Structure

Output Market Customization

Input Market Smartness

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Organization’s structure: Senior (client relations), Manager (project management), and junior

(professional tasks) PSFs are the job shops of the service sectors. The project nature of

the work means that there are basically three major activities in the delivery of professional services: client relations, project management, and the performance of the detailed professional tasks.

Input MarketOrganizationa

l StructureOutput Market

Economic Structure

Organizational Innovation: Need to balance between Input and Output Markets

Business Model

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Data, Information People Information, Knowledge

Raw Materials Machine Finished Goods

Organization’s structure: If the PSF is a job shop, then its professional staff members are its “machines”

(productive resources). As with any job shop, a balance must be established between the types of work

performed and the number of different types of “machines” (people) that are required. The PSF is a “factory,” and the firm must plan its “capacity.”

Capacity Plan MRP/II

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Market of Professional Workforce

Market for Firm’s

Services

Firm’s Economic Structure

Firm’s Organizationa

l Structure

Compensation system Target utilization

Target Growth Rate Project team structure: Job shop for “Brains”, more closely

resembles a disconnected assembly lines for the “Grey Hair” project type (i.e. may require highly customized output, but they usually involve a lesser degree of innovation and creativity than a Brains’ project), “Procedure” project type.

Career and promotion opportunities Target turnover and Growth rates

Billing rates Project team structure

Target utilization Staffing at each level

Mix of project types

Quality of personnel

Organizational innovation is needed for PSFs.

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To prevent innovation deadlock in PSF: While it is in the best interest of the firm to undertake similar or repetitive

engagements, often this does not coincide with the desires of the individuals involved.

Apart from any reasons of status, financial rewards, or fulfillment derived from serving the client’s needs, most individuals join PSFs to experience the professional challenge and variety and to avoid routine repetition.

While individuals may be content to undertake a similar project for the second or third time, they will not be for the fourth, sixth, or eighth.

Yet it is in the interest of the firm (particularly if the market has not yet caught up) to take advantage of the experience and expertise that it has acquired.

One solution, of course, is to convert the past experience and expertise of the individual into the experience of the firm by accepting a similar project, but utilizing a greater proportion of juniors on it. Besides requiring a lesser commitment of time from the experienced seniors, this device serves to train the juniors.

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Thus:

The adoption of concrete organizational concepts has a paramount impact on the ability of a company to improve its performance.

Organizational innovation

Ability to improve performance

Value-Creation

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From the above examples and illustrations:

We can define “organizational innovation” as the use of “new managerial and working concepts and practices” (Damanpour, 1987).

By applying this definition, it is possible to “measure” not only “whether companies have changed their organization (structure and processes) within “a defined time period”, but also “to provide an analysis of the adoption ratios of concrete organizational concepts in different companies and company types” (sector, firm size, etc.) and “the extent of use within one company.”

Organizational innovation defined as the implementation of new organizational concepts serve as the implementation of “new organizational concepts” serve as “an indicator for the intra-firm diffusion of different organizational practices”.

Definition “New” Facilitate “Measures” – Innovate?

Time? Scopes? Comparative Purpose?

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Categorizing organization innovation? As structural organizational innovations and procedural organizational

innovations (e.g., Coriat, 2001; Wengel et al. 2000; Whittington et al. 1999):

Structural organizational innovations: Influence, change and improve responsibilities, accountability,

command lines, and information flows as well as the number of hierarchical levels, the divisional structure of functions (R&D, production, HR, Financing, etc.), or the separation between line and support functions. Such structural OI include, for instance, the change from an organizational structure of functions (product development, production, HR, etc.) into product- or customer-oriented lines, segments, divisions, or business units. Look at our illustrations on U-Form and M-Form organizations.

Procedural organizational innovations affect the routines, processes, and operations of a company. Thus, these innovations change or implement new procedures and processes within the company, such as simultaneous engineering or zero buffer rules. They may influence the “speed” and “flexibility” of production (e.g., teamwork, JIT concepts) or the quality of production (e.g., CI process, quality circles).

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Categorizing organization innovation? OI can be further differentiated along an “intra-organizational” and “inter-

organizational” dimensions. While intra-organizational innovations occur within an organization or

company, i.e., implementation of teamwork, QCs, CI processes, the ISO 9001 certification, inter-organizational innovations extend beyond the boundaries, i.e. R&D cooperation with customers, JIT processes with suppliers or customers or SCM practices with suppliers.

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Focus of Organizational Innovation:

Intra-Organizational: Inter-Organizational:

Str

uct

ura

l In

nov.

Cross-functional teams Decentralization of planning,

operating, and controlling functions Manufacturing cells or segments Reduction of hierarchical levels

Cooperation, Networks, or Alliances (R&D, Production, Service, Sales, etc.)

Make or buy, Outsource Offshoring / Relocation

Pro

cedura

l In

nov.

.

Teamwork in production Job enrichment, Job enlargement Simultaneous engineering CI process, Kaizen QCs Quality, Audits, Certification (ISO) Environmental Audits (ISO 14000) Zero-buffer-Principles (Kanban) Preventive Maintenance …

JIT to customers, with Suppliers Single, dual sourcing SCM Customer Quality Audits …

Type o

f O

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ati

onal In

novati

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A typological Model (Armbruster et al. 2008)

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Procedural Dimension of OI:

The Innovation Value Chain: the innovation best practices to boost your innovation capacity. Idea generation Idea conversion Idea diffusion

Value CurveIdea Conversion Idea Diffusion

ROI (Return on Idea)

OL

Idea Generation

Multi-Stakeholder Involvement; industry concentration & clusters: Knowledge intensity, Local knowledge, “Innovation Excellence” Clusters

Knowledge spillover Stimulate spin-offs Worthiness / Values Appreciated

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Pinpoint your weakest links:For each phase in the innovation value chain, identify your company’s weakest skills.

Phase: This link…. Is weak if….

Idea generation

Collaboration within units

Collaboration across units.

Collaboration with outside partners.

People within units can’t generate good ideas on their own.People collaborating across units don’t produce good ideas.Your company doesn’t source enough good ideas from customers, competitors, inventors, and other external parties.

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Phase: This link…. Is weak if….

Idea conversion

Idea diffusion

Screening and funding of new ideas

Developing ideas into viable products, services, of businesses.

Spreading developed ideas within and outside the company.

Your screening and funding criteria are so strict that they shut down most ideas, or so loose that your company overflows with projects that don’t fit your strategy.

Ideas selected for further development languish in parts of your organization that are too busy doing other things or that don’t see their potential.

Developed ideas don’t get buy-in from customers, internal constituents, distribution channels, or desirable geographic locations.

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Value Curves:Idea generation or converted

Not buy-in? Not buy-in?

The supply side: The demand-side:

Why? Worthy of being

buy-in? Involvement Weaknesses not

mended Issues with other

sides of the value-chain.

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Strengthen your weakest links in the innovation value chain: Your capacity to innovate is only as good as the weakest link in your innovation value chain. The table shows how to select practices that strengthen your weakest links.

If your company has difficulty ….

Generating ideas

Consider these practices:

Build external networks

Examples:

At Procter & Gamble, in-house product developers translate customer needs into technology briefs describing problems needing resolution. Briefs go to technology scouts, suppliers, research labs, and retail worldwide to elicit solutions.

Another example: The pharmaceutical company Eli Lilly has spearheaded InnoCentive (www.innocentive.com), a solution-seeking Web site to find answers to specific technical or scientific problems. The company post questions – for instance, “How can we protect fatty acids from oxidation?” – that any of the more than 10,000 engineers, chemists, and other scientists registered at the site can tackle. The individual or group offering the best acceptable solution gets a financial reward; the winner of fatty acids challenge receive $20,000.

http://www.innocentive.com/

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Generating ideas


Build external networks

Examples:

Build discovery network geared toward unearthing new ideas within broad technology or product domains. This is what Siemens, the Germany-based electronics and engineering company, has done in Silicon Valley.

Since 1999, it has sited a 15-person scouting unit in Berkeley, California. Members of the Technology-to-Business (TTB) Center cultivate personal relationships with scientists, doctoral students, venture capitalists, and entrepreneurs as well as government labs and corporate research centers. Through these relationships, they learn about emerging technologies and business ideas. Their real value as scouts, though, lies in their ability to match emerging technologies to specific Siemens businesses. For instance, TTB scouts learned about technology for optimizing the quality of service on computer networks from a Columbia University doctorate student.

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Generating ideas


Build cross-unit networks

Examples:

P&G has communities of practice, each comprising volunteers from different parts of the organization and built around an area of expertise. The teams solve specific problems and participate in monthly technology summits with representatives from P&G’s business units.


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Employees who don’t know one another can’t collaborate on “new ideas.” And the occasional cross-functional brainstorming session won’t do the trick: It unfairly assumes that people who are unfamiliar with one another will be able to work together to generate ideas on demand. What’s needed is an ongoing dialogue and knowledge exchange between people from different units.

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Converting ideas


Provide cross-unit funding

Create safe havens

Examples:

Organization to drive cross-unit business with funds, in full commitment; systematically drive through.

Establish a separate, autonomous business unit to develop new ideas supporting the company’s strategy. Successful venture managers earned hefty bonuses.

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Diffusing ideas


Designate “idea evangelists”

Example:Let’s look at the European launch of Sara Lee’s Sanex soap and shower products in the early 1990s. Sanex was first created in Spain and quickly achieved leadership in the bath and shower segment as a “healthy skin” concept.

Excited by Sanex’s regional success, Sara Lee’s European executive team asked Martin Munoz, the present of the Southern European division of Sara Lee and a creator of Sanex, to take personal responsibility for coordinating its launch across Europe. The only problem was that Sara Lee’s “highly decentralized structure” made such a launch difficult, and several country managers had already expressed their lack of support for Sanex. So Munoz made it his personal crusade to win them over.

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Diffusing ideas


Designate “idea evangelists”

Example:He had the excellent results from Spain to help make his case, but, as he said, “Success is never enough.”

Despite resistance from the marketing managers in the UK and Denmark, Munoz persevered: He visited them many times, and he brought them out to Barcelona to sell them on the concept.

Munoz was also aware of internal changes and moved quickly to visit and bring on board a new marketing manager who had just replaced a skeptical one in the UK. His tenacity prevailed. After 2 years, Sanex had successful launches in four countries.

It was eventually introduced in 29 countries and for several years was Sara Lee’s best-selling brand in its household and body care division.

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Innovation challenges differ from firm to firm. Use of clear objectives: When Steve Bennett joined Intuit, the maker of the financial software

programs Quicken and QuickBooks, in January 2000, it was a company with lots of ideas – most collected from outside the organization – but little discipline for bringing those ideas to market.

“We had a lot of energy focused on learning from customers,” the CEO recalls, “but we are struggling to decide which ideas would have the highest impact.” To fix this, Bennett demanded that “clear business objectives” be set for “ideas in development,” and he held people “accountable” for delivering on them.

Intuit is now just as good at executing on ideas as it is at generating them. The company’s revenues and profits are up 47% and 65%, respectively, in 2004, in part because of this effort.

Ideas generation Ideas execution

Clear company’s objectives

Organizational learning strengths / communities of practices

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Consider how Intuit developed its Simple Start edition of QuickBooks in 2003.

Developers wanted to observe the owners of one- or two-person businesses: Exactly how did they manage their accounts?

How did they handle their payable and receivables?

Intuit created a fact-finding process: A ten-member development team visited with small business owners in 40 “follow me homes,” where the developers experienced firsthand the business problems facing users.

Many customers didn’t need or want certain higher-end accounting functions in their software, the developers learned, so the team set out to simplify QuickBooks. They tested six successive stripped-down versions of the software in the follow-me-homes before arriving at the Simple Start edition – which proved to be a best seller for Intuit.

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Inte

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OL

Idea Generation

Multi-Stakeholder Involvement; industry concentration & clusters: Knowledge intensity, Local knowledge, “Innovation Excellence” Clusters

Knowledge spillover Stimulate spin-offs Worthiness / values appreciated

A Research Process

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Innovation challenges differ from firm to firm. Use open sourcing: About the same time that Bennett took the helm at Intuit, A.G. Lafley

became CEO of Procter & Gamble, a company that had traditionally been good mainly at developing new products internally and bringing them to market.

But a persistent weakness was its “insular culture.” Lafley wanted the company to become better at “cultivating ideas from

the outside.” After five years of investments, P&G now has a state-of-the-art process

for sourcing ideas externally, which includes a global network of resources and online knowledge-exchange sites. This process complements P&G’s core competency in executing on ideas and has helped fuel an increase in sales and profits of 42% and 85%, respectively, over the past five years.

External Ideas generation

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The Innovation Value Chain: The innovation value chain view presents innovation as a sequential, three-phase

process that involves idea generation, idea development, and the diffusion of developed concepts.

Across all the phases, managers must perform six critical tasks – internal sourcing, cross-unit sourcing, external sourcing, selection, development, and companywide spread of the idea.

Along the innovation value chain, there may be one or more activities that a company excels in – the firm’s strongest links.

Conversely, there may be one or more activities that a company struggles with – the firm’s weakest links.

Thus needs to take an end-to-end view of the organization’s innovation efforts. It centers their attention on the weakest links and prompts executives to be more selective about which practices to apply in their quest for improved innovation performance.

Idea Generation

Idea Conversion

Idea Diffusion

Strategy 1, 2, ….

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The Innovation Value Chain: The innovation value chain can also help managers realize that a perceived innovation

strength may actually turn out to be a weakness if they’re not complemented by equivalent strengths in other areas.

For instance, a hardware manufacturer were at one point had 50 very good ideas for new products and businesses floating around the company, but, because managers did not screen the ideas properly – funding the best ones and killing the others – few ideas took hold, and new ones just kept coming. Then, the engineers there became increasingly frustrated, seeing their creative talents go to waste. By failing to recognize the weak link (idea selection) and focusing more time and resources on an already strong link (idea generation), the management team undermined the company’s overall efforts.

Idea Generation

Idea Conversion

Idea Diffusion

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Idea Generation

Idea Conversion

Idea Diffusion

Absorptive Capacity ?

In the Global Innovation Index 2013 Report: By Cornell University, INSEAD The Business School for the World, WIPO

(World Intellectual Property Organization).

Until the 1990s, the linear model of innovation policy was dominant. This model led to a focus on providing R&D infrastructure, financial support for innovation in companies, and technology transfer.

Resulting analyses and policies emphasized the supply of innovation inputs and support instruments, often neglecting the absorption capacity of firms and the specific demand for innovation support in less-favored regions.

Moreover, issues such as management and organization deficits (in particular within small and medium-sized enterprises) were often overlooked.

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Continued on the weakness: Similarly, it doesn’t matter how great a company’s idea-selection process is if only a few

good concepts are on the table or if the subsequent development process is weak. It’s also a waste of time and money to develop state-of-the-art capabilities for rolling out

products or services when there’s nothing worthwhile to diffuse.

In short, a company’s strongest innovation links are simply no good if they prompt the organization to spend money with little hope of solid returns or if the attention paid to them further weakens other parts of the innovation value chain.

Managers need to stop putting all their effort into improving their core innovation capabilities and focus instead on strengthening their weak links.



OL

Idea Generation

Knowledge spillover Stimulate spin-offs Worthiness / values appreciated

(Marketable Innovations)

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In fact, a company’s capacity to innovate is only as good as the weakest link in its innovation value chain.

We always look into the “strengths” of innovation process but neglected the weaknesses: Idea-poor? Conversion-poor? Diffusion-poor?

The interventions to rectify? To transform? (all about organizational innovation)

Comparative study?

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In Summary: The Innovation Value Chain: To improve innovation, executives need to view the process of transforming

ideas into commercial outputs as an integrated flow – rather like Michael Porter’s value chain for transforming raw materials into finished goods.

Phase 1: Generate ideas Can happen inside a

unit: Do people in our unit create good ideas on their own?

Can happen across units in a company: Cross-pollination. Do we create ideas by working across the company?

Can happen outside the firm. Do we source enough good ideas from outside the firm?

Phase 2: Convert ideas Select ideas for

funding. Are we good at screening and funding new ideas?

Develop them into products or practices. Are we good at turning ideas into viable products, businesses, and best practices.

Phase 3: Diffuse To diffuse those

products and practices. Are we good at diffusing developed ideas across the company.

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KPIs of the Innovation Value Chain:

Ideas Generation: In-house: Number

of high-quality ideas generated within a unit.

Cross-pollination: Number of high-quality ideas generated across units.

External: Number of high-quality ideas generated from outside the firm.

Ideas Conversion: Percentage of

funded ideas that lead to revenues.

Number of months to first sales.

Diffusion: Percentage of

penetration in desired markets, channels, customer groups.

Number of months to full diffusion.


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In Short: Although the use of “innovative organizational concepts” is evidenced to have a positive impact on a company’s competitiveness, research in “defining and measuring organizational innovation” lags behind.

Innovation Value Chain:

Idea generation Idea conversion Diffusion

If executives tailor their solutions to the right problems, over time, a weak link in the innovation value chain will become a strong one – and some other part of the chain will need tending instead.

Managers need to monitor each link in the chain constantly in order to continually improve the whole. That means, they will need to implement new KPIs that focus on the specific deliverables from each link in the chain.

Managers adopting the value chain view of innovation will also need to cultivate “new roles for employees” (HRM Strategies)

OL


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Business Objectives and Strategies, KPIs

HRM Strategies

(Behaviors):

(Methods):

(Knowledge, Realities):


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Business Objectives and Strategies, KPIs

HRM Strategies

Peter F. Drucker:Sources of innovation:

Unexpected occurrences: opportunity, unexpected successes and failures.

Incongruities: Incongruity with the end-user or customers’ wants, incongruity within the logic or rhythm of a process, incongruity between expectation.

Process needs Industry and market

changes, i.e. industry structure.

Demographic change.

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What is “innovation”?

Peter Drucker (2002): Innovation is the specific function of entrepreneurship. Today, much confusion exists

about the proper definition of entrepreneurship. Some observers use the term to refer to “all small businesses;” others, to “all new businesses.”

In practice, however, a great many well-established businesses engage in highly successful entrepreneurship. The term, then, refers not to “an enterprise’s size or age,” but to “a certain kind of activity”: innovation – the effort to create purposeful, focused change in an enterprise’s economic or social potential. The very foundation of entrepreneurship is the practice of systematic innovation.

Above all, innovation is: Work rather than genius. It requires knowledge. It often requires ingenuity. And it requires focus. Innovators rarely work in more than one area. For all his systematic innovative

accomplishments, Thomas Edison worked only in the electric field. An innovator in financial areas, Citibank for example, is not likely to embark on innovations in health care.

But when all is said and done, what innovation requires is “hard, focused, purposeful work.” If diligence, persistence, and commitment are lacking, talent, ingenuity, and knowledge are of no avail.

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New products

New markets


Build the organization’s capabilities: Knowledge, Skills, Attitude that the

company must apply in order to be successful

Can be bought Adapted Synthesized in a fresh way Built

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Teresa Amabile, Ph.D. in psychology and Head of the Entrepreneurial Management Unit at the Harvard Business School, has provided one of the most simple and yet comprehensive framework on “the sources of individual creativity.”

Knowledge – All the relevant understanding an individual brings to bear on creative effort.

Creative thinking – Relates to how people approach problems, and depends on personality and thinking / working styles.

Motivation: Motivation is generally accepted as key to creative production, and the most important motivators are intrinsic passion and interest in the work itself.

Amabile, T.M. (1992), Growing Up Creative, Creative Education Foundation.Amabile, T.M. (1998), “How to Kill Creativity,” in Harvard Business Review.

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Expertise (Knowledge)

MotivationCreative

Thinking Skills

Creativity

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Knowledge: On one hand, in-depth experience and long-term focus in

one specific area allows people to build the technical expertise that can serve as a foundation, or playground for creativity within a domain.

At the same time, creativity rests on the ability to combine previously disparate elements in new ways, which implies a need for a broader focus and varied interests.

Thus, perhaps the best profile for creativity is the T-shaped mind, with a breadth of understanding across multiple disciplines and one of two areas of in-depth expertise.

As Frans Johansson (2004, p. 104) explained, “We must strike a balance between depth and breadth of knowledge in order to maximize our creative potential”

Johansson, F. (2004), The Medici Effect: Breakthrough Insights at the Intersection of Ideas, Concepts, and Cultures, Harvard Business School Press.

Breadth of knowledge

Depth of Knowledge

T-Shaped Mind:

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Creative thinking skills: Heavily attitudinal

Amabile suggests that key aspects of creative thinking are: Comfort in disagreeing with others and trying solutions that depart from the status quo. Combining knowledge from previously disparaging fields – reaching out to other fields. Ability to persevere through difficult problems and dry spells. Ability to step away from an effort and return later with a fresh perspective (“incubation”).

Knowledge from disparaging fields

Move away from the status quo

Persevere

Successful innovation

Step Away & Return Later MIT’s Theory U

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Creative thinking skills: Sternberg (1997; 2000) promotes a “triarchic theory”, the three main aspects of

intelligence that are key to creativity: Synthetic (creative) – the ability to generate ideas that are novel, high quality, and

task appropriate; ability to redefine problems effectively and to think insightfully. Sternberg also notes that the basis for insightful thinking involves knowledge acquisition in 3 forms:

Selective encoding: distinguishing relevant from irrelevant information. Selective combination: combining bits of relevant information in novel ways. Selective comparison: relating new information to old information in novel ways.

Analytical: Critical / analytical thinking is involved in creativity as the ability to judge the value of one’s own ideas, to evaluate the strengths and weaknesses and suggest ways to improve them.

Practical: Ability to apply intellectual skills in everyday contexts, and to sell creative ideas.

Insightful Creativity

Practical Intelligence

Analytical Intelligence

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Motivation: Amabile explains, “We have found so much evidence in favor of intrinsic motivation that

we articulated what we call the Intrinsic Motivation Principle of Creativity: People will be most creative when they feel motivated primarily by the interest, satisfaction, and challenge of the work itself – and not by external pressures (i.e. extrinsic motivation),” (Amabile, 1992, p. 78).

The intrinsically motivated people will explore various pathways and alternatives, taking his or her time and enjoying the process along the way. This exploration will lead to novel, alternative solutions, some of which will turn out to be more appropriate, and successful than the original, obvious path.

Explorative Competencies Exploitative Competencies

Evaluative Competencies

Similar to:Sternberg (1997; 2000)’s Triarchic Theory of Intelligence

CC Tan et al. (2013):

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Motivation: The types of extrinsic motivations that are most likely found in the workplace and

classroom are not easily avoided. Amabile’s research on motivation implies that, in the educational contexts, the impact of grades or praises as reward for schoolwork should be reviewed in light of their impact on creativity.

Amabile suggests that if assessment is necessary, using it as informational – as a tool for improvement, rather than as a judgment, may reduce the feeling of external control.

Explorative Competencies Exploitative Competencies

Evaluative Competencies

(Information)

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Motivation: motivation is particularly important when emphasis is on “novelty.” If

greater emphasis is on persistence, synergistic extrinsic motivators may play a role. Additional roles for extrinsic motivators are that they can help an individual sustain energy through the difficult times necessary to gain skills in a domain. Extrinsic motivators may also serve to bring people in contact with a topic to engage their intrinsic interest.

Extrinsic Motivation

Intrinsic Motivation

Innovation

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I can I will

I’ve done

it

Knowledge

Skill

Attitude

Previous Research: 1-Month Ago (CC. Tan, 2013)

The Mediating Forces: Organizational innovation

policies and deployment Proper adaptation of

intrinsic and extrinsic motivation

Climate creation Idea management Leadership-Followership

balanceNature of realities, Expectations and Goals

(Innovation)

Sustainable Organizational Competitiveness, Sustainable Competitive Advantage

Creative output is linked to the amount of time a person is actively engaged in a creative domain (Simonton, 1999; 2000; 2003)

“Active” engagement and “time”

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I can I will

I’ve done

it

Knowledge

Skill

Attitude

Previous Research: 1-Month Ago (CC. Tan, 2013)

The Mediating Forces:Must target also at SKA domains: Knowledge – the

Ontological realities aspect, i.e. Business Model.

Attitude – the Epistemological relationship with the realities, i.e. Climate Creation, Leadership-Followership Balance

Skills – the Methodological or Processual competence, i.e. the innovation value-chain or SLL, DLL.

Nature of realities, Expectations and Goals

(Innovation)

Sustainable Organizational Competitiveness, Sustainable Competitive Advantage

Creative output is linked to the amount of time a person is actively engaged in a creative domain (Simonton, 1999; 2000; 2003)

“Active” engagement and “time”

New Model for Organizational Innovation: CC Tan et al. (2013)

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Reference:Simonton, D.J. (1999), “Scientific Creativity as Constrained Stochastic Behavior: The Integration of Product, Person and Process Perspectives,” in Psychological Inquiry, 10(4), Lawrence Erlbaum Association.

Simonton, D.K. (2000), “Creativity: Cognitive, Developmental, Personal and Social Aspects,” in American Psychologist, January, pp. 151-8.

Simonton, D.K. (2003), “Scientific Creativity as Constrained Stochastic Behavior: The Integration of Product, Person and Process Perspectives,” in Psychological Bulletin, 129(4).

Sternberg, R.J. (1997), Successful Intelligence, Plume Books.

Sternberg, R.J. (2003), “Creative Thinking in the Classroom,” in Scandinavian Journal of Educational Research, 47(3).

Innovation in organization

Business

attitude of innovation

company mission statement

onitsuka company

passionate missioned

important lever

new orleans

new products

new capacity