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Innovation in Organizations




                              November, 2011
                Taesung Kim (tzk5085@psu.edu)
Types of Innovation-Decisions

1. Optional innovation-decisions: choices are made
   by an independent individual
2. Collective innovation-decisions: … by consensus
   among the members of a system
3. Authority innovation-decision: … by a few powerful
   individuals in a system
4. Contingent innovation-decisions: … only after a
   prior innovation-decision
Organizational Innovativeness

1. Leader’s characteristics: leader’s attitude toward
   change (+)
2. Org’s internal characteristics: centralization,
   formalization (-) / complexity, interconnectedness,
   organizational slack, size (+)
3. Org’s external characteristics: system openness (+)
The Role of Champions

1. The presence of an innovation champion:
   contributes to the success of an innovation in an
   organization
2. The role: something like that of an opinion leader in
   a community
3. The characteristics: innovation-minded, good at
   people skills rather than power
The Innovation Process in an Org

                    Decision

       Initiation                        Implementation




 Agenda                   Redefining/
              Matching                     Clarifying     Routinizing
 Setting                 Restructuring
The Innovation Process in an Org

1. Agenda-Setting: Organizational problems create a
   perceived need for innovation. Sometimes the need
   sets off the innovation, and sometimes knowledge
   of an innovation creates a need for it.


2. Matching: Fitting an organizational problem with an
   innovation.
The Innovation Process in an Org

3. Redefining/Restructuring: The innovation is re-
   invented to fit the org, and organizational structures
   are altered. Both the innovation and the org usually
   change in the innovation process.

4. Clarifying: The relationship between the org and
   the innovation is defined more clearly. The framing
   of an innovation has important consequences.
The Innovation Process in an Org

5. Routinizing: The innovation becomes an ongoing
   element in the org’s activities, which means
   sustainability. Sustainability of the innovation is
   related to (a) its degree of re-invention, (b) the fit
   between the intervention and the org, and (c) the
   involvement of a local champion.
Discussion Questions

1. Assuming you are writing an article about
   diffusion of innovations in the organization,
   could you describe its outline with a brief
   introduction, research questions, methodology,
   and so forth? (Actually the answer to this question
   can be used for the fundamental of task 4.1.)
Discussion Questions

2. Could you provide several examples for each
   type of innovation-decisions in the organization?
   (Several examples for optional, collective, authority,
   and contingent innovation-decisions respectively)
Discussion Questions

3. Do you happen to have any idea against or
   different from the generalizations in this chapter,
   not necessarily from the scientific standpoint
   but from your intuition or specific experience?
   If you do, please share your thought. (G1. Larger orgs
   are more innovative. G3. The innovation champion contributes to the success
   of an innovation in an org. G4. A performance gap can trigger the innovation
   process in an org. G5. Both the innovation and the org usually change during
   the innovation process.)
Thank you!


 Taesung Kim
tzk5085@psu.edu

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Innovation Process in Organizations

  • 1. Innovation in Organizations November, 2011 Taesung Kim (tzk5085@psu.edu)
  • 2. Types of Innovation-Decisions 1. Optional innovation-decisions: choices are made by an independent individual 2. Collective innovation-decisions: … by consensus among the members of a system 3. Authority innovation-decision: … by a few powerful individuals in a system 4. Contingent innovation-decisions: … only after a prior innovation-decision
  • 3. Organizational Innovativeness 1. Leader’s characteristics: leader’s attitude toward change (+) 2. Org’s internal characteristics: centralization, formalization (-) / complexity, interconnectedness, organizational slack, size (+) 3. Org’s external characteristics: system openness (+)
  • 4. The Role of Champions 1. The presence of an innovation champion: contributes to the success of an innovation in an organization 2. The role: something like that of an opinion leader in a community 3. The characteristics: innovation-minded, good at people skills rather than power
  • 5. The Innovation Process in an Org Decision Initiation Implementation Agenda Redefining/ Matching Clarifying Routinizing Setting Restructuring
  • 6. The Innovation Process in an Org 1. Agenda-Setting: Organizational problems create a perceived need for innovation. Sometimes the need sets off the innovation, and sometimes knowledge of an innovation creates a need for it. 2. Matching: Fitting an organizational problem with an innovation.
  • 7. The Innovation Process in an Org 3. Redefining/Restructuring: The innovation is re- invented to fit the org, and organizational structures are altered. Both the innovation and the org usually change in the innovation process. 4. Clarifying: The relationship between the org and the innovation is defined more clearly. The framing of an innovation has important consequences.
  • 8. The Innovation Process in an Org 5. Routinizing: The innovation becomes an ongoing element in the org’s activities, which means sustainability. Sustainability of the innovation is related to (a) its degree of re-invention, (b) the fit between the intervention and the org, and (c) the involvement of a local champion.
  • 9. Discussion Questions 1. Assuming you are writing an article about diffusion of innovations in the organization, could you describe its outline with a brief introduction, research questions, methodology, and so forth? (Actually the answer to this question can be used for the fundamental of task 4.1.)
  • 10. Discussion Questions 2. Could you provide several examples for each type of innovation-decisions in the organization? (Several examples for optional, collective, authority, and contingent innovation-decisions respectively)
  • 11. Discussion Questions 3. Do you happen to have any idea against or different from the generalizations in this chapter, not necessarily from the scientific standpoint but from your intuition or specific experience? If you do, please share your thought. (G1. Larger orgs are more innovative. G3. The innovation champion contributes to the success of an innovation in an org. G4. A performance gap can trigger the innovation process in an org. G5. Both the innovation and the org usually change during the innovation process.)
  • 12. Thank you! Taesung Kim tzk5085@psu.edu