Why it matters: innovation management capabilities


Fig_1_17Megatrends such as technology disruptions, international competition and sustainability affect firms across all sectors and industries, creating new competitive and social challenges. Watch the knowledge nugget (test)

Fig_1_18Industries and sectors are also disrupted by new regulations, new customer needs and new technologies, forcing firms to reconsider the sustainability of their assets and activities.

Fig_1_26Small and large firms across sectors must place innovation among their strategic priorities if they do not want to suffer the fate of the dinosaurs.

Fig_1_19This implies developing innovation management capabilities to identify, select and capture the right innovation opportunities, in line with the firm’s ecosystem and strategy.


Megatrends: beyond hi-tech

Keywords: ageing, artificial intelligence, China, creative destruction, digitalization, disruption, environmental innovation, globalization, green innovation, industrial revolutions, internationalization, obsolescence, sustainability, technological change, trends, VUCA, waves of innovation, wealth creation.

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  • (Book) Schumpeter, J. (1942) Creative destruction. Capitalism, socialism and democracy, 82-5.
  • (Video) Demain (Ciril Lyon)
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  • (Video) Prof. John Bessant, University of Exeter (2020) on Managing Innovation
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  • (Article) Mokyr, J., Vickers, C., & Ziebarth, N. L. (2015). The history of technological anxiety and the future of economic growth: Is this time different?. Journal of Economic Perspectives, 29(3), 31-50.
  • (Article) Moore, J. F. (1993). Predators and prey: a new ecology of competition. Harvard Business Review, 71(3), 75-86.
  • (Article) Nidumolu, R., Prahalad, C.K., & Rangaswami, M.R. (2009). Why sustainability is now the key driver of innovation. Harvard Business Review, 87(9), 56-64.
  • (Article) Rodrik, D (2000) “How Far Will International Economic Integration Go? Journal of Economic Perspectives 14(1),  177–186
  • (Article) Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002-1037.
  • (Article) Schiederig, T., Tietze, F., & Herstatt, C. (2012). Green innovation in technology and innovation management–an exploratory literature review. R&D Management, 42(2), 180-192.
  • (Article) Seebode, D., Jeanrenaud, S., & Bessant, J. (2012). Managing innovation for sustainability. R&D Management, 42(3), 195-206.
  • (Article) Smith, A., Voß, J. P., & Grin, J. (2010). Innovation studies and sustainability transitions: The allure of the multi-level perspective and its challenges. Research Policy, 39(4), 435-448.
  • (Article) Smith, A., & Raven, R. (2012). What is protective space? Reconsidering niches in transitions to sustainability. Research Policy, 41(6), 1025-1036.
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Industry and sector trends

Keywords: competitive environment, corporate foresight, customer needs, disruptive technologies, emerging technologies, industry evolutions, scenarios, stakehoders expectations.

  • (Book) Goffin, K. & Mitchell, R. (2005) “Innovation Management” Palgrave Macmillan
  • (Book) Diamond, J. (1998) Guns, Germs and Steel: A Short History of Everybody for the Last 13000 Years, London: Vintage
  • (Book) Brynjolfsson, E., & McAfee, A. (2011). Race against the machine. Digital Frontier, Lexington, MA.
  • (Book) Rohrbeck, R. (2010). Corporate foresight: towards a maturity model for the future orientation of a firm. Springer Science & Business Media.
  • (Video) Danny Hillis: Back to the future (of 1994) (TED talk)
  • (Video) The Five Competitive Forces That Shape Strategy – Harvard business Review
  • (Article) Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005). Competition and innovation: An inverted-U relationship. The Quarterly Journal of Economics, 120(2), 701-728.
  • (Article) Amore, M.D. (2015). Companies learning to innovate in recessions. Research Policy, 44(8), 1574-1583.
  • (Article) Chattopadhyay, P., Glick, W. H., & Huber, G. P. (2001). Organizational actions in response to threats and opportunities. Academy of Management Journal, 44(5), 937-955.
  • (Article) Ganter, A., & Hecker, A. (2013). Deciphering antecedents of organizational innovation. Journal of Business Research, 66(5), 575-584.
  • (Article) Hecker, A., & Ganter, A. (2013). The influence of product market competition on technological and management innovation: firm‐level evidence from a large‐scale survey. European Management Review, 10(1), 17-33.
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  • (Article) Meyer, A. D., Gaba, V., & Colwell, K. A. (2005). Organizing far from equilibrium: Nonlinear change in organizational fields. Organization Science, 16(5), 456-473.
  • (Article) Mone, M., McKinley, W., & Barker, V. (1998). ‘Organizational decline and innovation: a contingency framework’. Academy of Management Review, 23, 115-132.
  • (Article) Orsenigo, L., Pammolli, F., & Riccaboni, M. (2001). Technological change and network dynamics: lessons from the pharmaceutical industry. Research Policy, 30(3), 485-508.
  • (Article) Probst, G., & Raisch, S. (2005). Organizational crisis: The logic of failure. Academy of Management Perspectives, 19(1), 90-105.
  • (Article) Rohrbeck, R., & Gemünden, H. G. (2011). Corporate foresight: Its three roles in enhancing the innovation capacity of a firm. Technological Forecasting and Social Change, 78(2), 231-243.
  • (Article) Ruff, F. (2006). Corporate foresight: integrating the future business environment into innovation and strategy. International Journal of Technology Management, 34(3-4), 278-295.
  • (Article) Siggelkow, N., & Rivkin, J. W. (2005). Speed and search: Designing organizations for turbulence and complexity. Organization Science, 16(2), 101-122.
  • (Article) Taalbi, J. (2017). What drives innovation? Evidence from economic history. Research Policy, 46(8), 1437-1453.

Innovation as a strategic priority

Keywords: growth, pioneer, sensemaking, strategic priority.

  • (Book) Van de Ven, A.H. et al. (2008) The Innovation Journey, Oxford University Press
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  • (Book) Edquist, C., L. Hommen, and M. McKelvey (2001) Innovation and Employment, Process versus Product Innovation, Cheltenham: Elgar
  • (Video) Joe Tidd Developing an innovation strategy (innovation masters)
  • (Article) Berghman L., Matthyssens P., Streukens S., Vandenbempt K., (2013) Deliberate Learning Mechanisms for Stimulating Strategic Innovation Capacity, Long Range Planning, 46(1-2), 39-71
  • (Article) Cefis, E., & Marsili, O. (2005). A matter of life and death: innovation and firm survival. Industrial and Corporate change, 14(6), 1167-1192.
  • (Article) Forsman, H., & Temel, S. (2011). Innovation and business performance in small enterprises: An enterprise-level analysis. International Journal of Innovation Management, 15(03), 641-665.
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  • (Article) Keupp, M.M., Palmié, M., & Gassmann, O. (2012). The strategic management of innovation: A systematic review and paths for future research. International Journal of Management Reviews, 14(4), 367-390.
  • (Article) Maitlis, S., & Sonenshein, S. (2010). Sensemaking in crisis and change: Inspiration and insights from Weick (1988). Journal of Management Studies, 47(3), 551-580.
  • (Article) Mansury, M. A., & Love, J. H. (2008). Innovation, productivity and growth in US business services: A firm-level analysis. Technovation, 28(1-2), 52-62.
  • (Article) Theodosiou M., Kehagias J., Katsikea E., (2012) Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations, Industrial Marketing Management, 41(7), 1058-1070
  • (Article) Weick, K. E. (1988). Enacted sensemaking in crisis situations. Journal of Management Studies, 25(4), 305-317.
  • (Article) Weick, K. E. (1993). The collapse of sensemaking in organizations: The Mann Gulch disaster. Administrative Science Quarterly, 628-652.
  • (Article) Weick, K.E., Sutcliffe, K.M., & Obstfeld, D. (2005). Organizing and the process of sensemaking. Organization Science, 16(4), 409-421.

Developing innovation management capabilities

Keywords: dynamic capabilities, corporate entrepreneurship, strategic leadership

  • (Book) Davila T., Epstein M.J. and Shelton R. (2006) Making innovation work. Wharton School Publishing,
  • (Book) Helfat, C., Finkelstein, S., Mitchell, W., Peteraf, M., Singh, H., Teece and D., Winter, S. (2009). Dynamic capabilities: Understanding strategic change in organizations. John Wiley & Sons.
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  • (Video) Why Do Large Companies Continue to Innovate? by Kuczmarski Innovation (on Vimeo)
  • (Article) Ahuja, G., Lampert, C. M., & Tandon, V. (2008). Moving beyond Schumpeter: management research on the determinants of technological innovation. Academy of Management Annals, 2(1), 1-98.
  • (Article) Ambrosini, V., & Bowman, C. (2009). What are dynamic capabilities and are they a useful construct in strategic management?. International Journal of Management Reviews, 11(1), 29-49.
  • (Article) Aspara, J., Hietanen, J., & Tikkanen, H. (2010). Business model innovation vs replication: financial performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), 39-56.
  • (Article) Barreto, I. (2010). Dynamic capabilities: A review of past research and an agenda for the future. Journal of Management, 36(1), 256-280.
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  • (Article) Chatzoglou, P., & Chatzoudes, D. (2017). The role of innovation in building competitive advantages: an empirical investigation. European Journal of Innovation Management
  • (Article) Chiesa, V., Coughlan, P., & Voss, C. A. (1996). Development of a technical innovation audit. Journal of Product Innovation Management, 13(2), 105-136.
  • (Article) Corbett, A., Covin, J. G., O’Connor, G. C., & Tucci, C. L. (2013). Corporate entrepreneurship: State‐of‐the‐art research and a future research agenda. Journal of Product Innovation Management, 30(5), 812-820.
  • (Article) Corbett, A. (2018). The myth of the intrapreneur. Harvard Business Review, 26(06), 2018.
  • (Article) Cormican, K., & O’Sullivan, D. (2004). Auditing best practice for effective product innovation management. Technovation, 24(10), 819-829.
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  • (Article) Crossan, M.M. & Apaydin, M. (2010). A Multi-Dimensional Framework of Organizational Innovation: A systematic review of the Literature. Journal of Management Studies, 47(6), 1154-1191.
  • (Article) Di Stefano, G., Peteraf, M., & Verona, G. (2010). Dynamic capabilities deconstructed: a bibliographic investigation into the origins, development, and future directions of the research domain. Industrial and Corporate Change, 19(4), 1187-1204.
  • (Article) Eisenhardt, K., & Martin, J. (2000). Dynamic capabilities: What are they?. Strategic Management Journal, 21, 1105-1121.
  • (Article) Fagerberg, J., Fosaas, M., & Sapprasert, K. (2012). Innovation: Exploring the knowledge base. Research Policy, 41(7), 1132-1153.
  • (Article) Glinyanova, M., Bouncken, R. B., Tiberius, V., & Ballester, A. C. C. (2021). Five decades of corporate entrepreneurship research: measuring and mapping the field. International Entrepreneurship and Management Journal, 1-27.
  • (Article) Hansen, M. T., & Birkinshaw, J. (2007). The innovation value chain. Harvard Business Review, 85(6), 121.
  • (Article) Hidalgo, A., & Albors, J. (2008). Innovation management techniques and tools: a review from theory and practice. R&D Management, 38(2), 113-127.
  • (Article) Hornsby, J.S., Kuratko, D.F., Holt, D.T., & Wales, W.J. (2013). Assessing a measurement of organizational preparedness for corporate entrepreneurship. Journal of Product Innovation Management, 30(5), 937-955.
  • (Article) Ireland, R. D., & Hitt, M. A. (1999). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy of Management Perspectives, 13(1), 43-57.
  • (Article) Kuratko, D. F., & Audretsch, D. B. (2013). Clarifying the domains of corporate entrepreneurship. International Entrepreneurship and Management Journal, 9(3), 323-335.
  • (Article) Kyrgidou, L. P., & Spyropoulou, S. (2013). Drivers and performance outcomes of innovativeness: an empirical study. British Journal of Management, 24(3), 281-298.
  • (Article) Lawson B. & Samson D. (2000). Developing Innovation Capability in Organization. International Journal of Innovation Management 5(3), 377-400.
  • (Article) Meyer, A. D. (1982). Adapting to environmental jolts. Administrative Science Quarterly, 515-537.
  • (Article) Mezger, F. (2014). Toward a capability‐based conceptualization of business model innovation: insights from an explorative study. R&D Management, 44(5), 429-449.
  • (Article) Mintzberg, H. (1973). Strategy-making in three modes. California Management Review, 16(2), 44-53.
  • (Article) Newbert, S. L. (2007). Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research. Strategic Management Journal, 28(2), 121-146.
  • (Article) O’Connor, G. C. (2008). Major innovation as a dynamic capability: A systems approach. Journal of Product Innovation Management, 25(4), 313-330.
  • (Article) O’Regan, N., Ghobadian, A., & Sims, M. (2006). Fast tracking innovation in manufacturing SMEs. Technovation, 26(2), 251-261.
  • (Article) Peteraf, M., Di Stefano, G., & Verona, G. (2013). The elephant in the room of dynamic capabilities: Bringing two diverging conversations together. Strategic Management Journal, 34(12), 1389-1410.
  • (Article) Phan, P. H., Wright, M., Ucbasaran, D., & Tan, W. L. (2009). Corporate entrepreneurship: Current research and future directions. Journal of Business Venturing, 24(3), 197-205.
  • (Article) Romijn, H., & Albaladejo, M. (2002). ‘Determinants of innovation capability in small electronics and software firms in southeast England’. Research Policy, 31, 1053-1067.
  • (Article) Rothaermel, F., & Hess, A. (2007). Building Dynamic Capabilities: Innovation Driven by Individual-, Firm-, an Network-Level Effects. Organization Science, 18, 898-921.
  • (Article) Samson, D., Gloet, M., & Prakash S. (2017). Systematic Innovation Capability; evidence from case studies and a large survey. International Journal of Innovation Management, 1750058.
  • (Article) Siguaw, J. A., Simpson, P. M., & Enz, C. A. (2006). Conceptualizing innovation orientation: A framework for study and integration of innovation research. Journal of Product Innovation Management, 23(6), 556-574.
  • (Article) Smith, M., Busi, M., Ball, P., & Van der Meer, R. (2008). Factors influencing an organisation’s ability to manage innovation: a structured literature review and conceptual model. International Journal of Innovation Management, 12(4), 655-676.
  • (Article) Teece, D.J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350.
  • (Article) Teece, D.J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 509-533.
  • (Article) Terziovski, M. (2010). ‘Innovation practice and its performance implications in small and medium entreprises (SMEs) in the manufacturing sector: A resource-based view’. Strategic Management Journal, 31, 892-902.
  • (Article) Tidd, J., & Bessant, J. (2018). Innovation management challenges: from fads to fundamentals. International Journal of Innovation Management, 1840007.
  • (Article) Van der Panne, G., Van Beers, C., & Kleinknecht, A. (2003). Success and failure of innovation: a literature review. International Journal of Innovation Management, 7(03), 309-338
  • (Article) Verona, G. (1999). A resource-based view of product development. Academy of Management Review, 24(1), 132-142.
  • (Article) Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31-51.

(c) Prof. Benoit Gailly, Louvain School of Management

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