Build and manage innovation-ready organizations: how some elephants can dance

  DIO210 cmjnInnovation-ready organizations are not innovative for the sake of it. They combine operational efficiency with both the corporate culture required to continuously exploit and do things in new ways – innovative mindset – and the corporate structures required to explore and sometimes do completely new things – innovative ventures.

DIO209 cmjnInnovative organizations manage to develop a corporate culture that fosters trust, learning and exchanges in order to do things in new ways and overcome the traditional organizational barriers to corporate entrepreneurship.

Fig_2_12Innovative organizations can create dedicated structures where completely new corporate ventures can be nurtured and parented, leveraging their corporate assets while freeing “teenage” ventures from organizational inertia.

Fig_2_13Ambidextrous organizations are designed and managed to retain the innovation agility of many small firms, such as flexibility, engagement and autonomy, while capturing the managerial efficiency of large corporations with their scale, assets and power.


Innovation-ready organizations: mindset and ventures

Keywords: innovation metrics, innovativeness, innovative organizations

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Doing things in new ways: innovation mindset

Keywords: entrepreneurial orientation, innovation culture, mindset, not-invented-here, organizational barriers, silos, trust

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Doing completely new things: corporate ventures

Keywords: breakthough, corporate venturing, internal ventures, new business development, parenting, spin-off, steering committee

  • (Book) Hargadon, A. (2003). How breakthroughs happen: The surprising truth about how companies innovate. Harvard Business Press.
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  • (Book) Schilling M.A. (2006) Strategic Management of Technological Innovation (2d ed.) McGraw-Hill, Irwin(Book) Teece, D. (2009) Dynamic Capabilities and Strategic Management, Oxford University Press
  • (Video) Sonaca aircraft
  • (Video) Solvay Solar impulse
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“Ambidextrous” organizations: small is beautiful, big is powerful

Keywords: contextual vs. structural ambidexterity, size, economies of scale/scope

  • (Book) Govindarajan, V. and Trimble, C. (2010) The other side of innovation: solving the execution challenge Harvard Business Review Press
  • (Book) Leifer, R. (2000). Radical innovation: How mature companies can outsmart upstarts. Harvard Business Press.
  • (Book) Utterback J.M. (2005) Mastering the Dynamics of Innovation, Harvard Business School Press, Boston, Massachusetts
  • (Book) Zook, C., & Allen, J. (2016). The Founder’s Mentality: How to Overcome the Predictable Crises of Growth. Harvard Business Review Press.
  • (Video) The Ambidextrous Organization: agility or a committed identity?
  • (Video) The Zinnovants “Size matters”
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  • (Article) Birkinshaw, J. & Gibson, C. (2004).’Building ambidexterity into an organization’,
    MIT Sloan Management Review, 45: 47–55
  • (Article) Cáceres, R., Guzmán, J., & Rekowski, M. (2011). Firms as source of variety in innovation: influence of size and sector. International Entrepreneurship and Management Journal, 7(3), 357.
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  • (Article) Damanpour, F. (1992). Organizational size and innovation. Organization Studies, 13(3), 375.
  • (Article) Damanpour, F. (1996). Organizational complexity and innovation: developing and testing multiple contingency models. Management Science, 42(5), 693-716.
  • (Article) Damanpour, F. (2010). An integration of research findings of effects of firm size and market competition on product and process innovations. British Journal of Management Vol.21 Issue 4. 996-1010.
  • (Article) Ettlie, J. E., & Rubenstein, A. H. (1987). Firm size and product innovation. Journal of Product Innovation Management, 4(2), 89-108.
  • (Article) Fang, C., Lee, J., & Schilling, M. A. (2010). Balancing exploration and exploitation through structural design: The isolation of subgroups and organizational learning. Organization Science, 21(3), 625-642.
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  • (Article) Gibson, C. B., & Birkinshaw, J. (2004). The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal, 47(2), 209-226.
  • (Article) Hewitt-Dundas, N. (2006). Resource and capability constraints to innovation in small and large plants. Small Business Economics, 26(3), 257.
  • (Article) Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A model of strategic entrepreneurship: The construct and its dimensions. Journal of Management, 29(6), 963-989.
  • (Article) Kanter, R. M. (1989). Swimming In Newstreams: Mastering Innovation Dilemas. California Management Review, 31(4), 45.
  • (Article) Katila, R. (2002). New product search over time: past ideas in their prime?. Academy of Management journal, 45(5), 995-1010.
  • (Article) Katila, R., & Shane, S. (2005). When does lack of resources make new firms innovative?. Academy of Management Journal, 48(5), 814-829.
  • (Article) Khanagha, S., Volberda, H., & Oshri, I. (2014). Business model renewal and ambidexterity: structural alteration and strategy formation process during transition to a Cloud business model. R&D Management, 44(3), 322-340.
  • (Article) Kimberly, J. R., & Evanisko, M. J. (1981). Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations. Academy of Management Journal, 24(4), 689-713.
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(c) Prof. Benoit Gailly, Louvain School of Management

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