Responses to externally induced innovation: their effects on organizational performance

Article Abstract:

It is possible to externally provoke innovation by means of external challenges or threats. One example of this phenomenon is the accident at the Three Mile Island (TMI) nuclear power plant near Harrisburg, PA. The TMI incident led the Nuclear Regulatory Commission to suggest that new practices be used. In such circumstances it is the responsibility of managers to make choices about the way the organization responds. This study indicates that previous performance can alter subsequent performance. There are shown to be vicious cycles in which poorly-performing organizations respond in such a way that simply perpetuates poor performance: with rule-bound behavior. Organizations that perform better keep their autonomy, which reinforces their performance.

Management, Laws, regulations and rules, Organizational change, Diffusion of innovations, Three Mile Island Nuclear Station, United States. Nuclear Regulatory Commission

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Resource recombinations in the firm: knowledge structures and the potential for Schumpeterian innovation

Article Abstract:

The concept of resource combination is analyzed as a source of business innovation. It is contended that recombinations happen when competencies within the organization are integrated to synthesize new competencies or when the competencies are restructured or reconnected to other competencies. The study focuses on the possible reasons why companies may have difficulty using corporate resources in novel and potentially rent-generating ways. It is proposed that the probability that resource recombinations will be increased when routines are held in explicit forms, but will be diminished when knowledge is widely dispersed, the competency area is delineated, and personal identities become linked with a competency area.

Resource allocation

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Organizing for innovation over an industry cycle

Article Abstract:

It is suggested that over the course of an industry's evolution a gap develops between potential corporate innovators and the mainstream of the organization. This innovative gap is related to the type of innovation important for long-term survival, and the degree to which the mainstream organization responds to innovation. The hypothesis is employed to predict the most suitable of four popular organizations for innovation to each stage in a hypothetical industry's evolution. Discussion is offered of well-known cases of organizational sets, with executive survey data used to test hypotheses in an exploratory way.

Research, Business cycles, Organizational behavior

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