Abstract
Innovation is one of the most likely factors to boost effectiveness, efficiency, and sustainability of an organization, regardless of its sector of activity, as for instance, the armed forces. The absence of innovation can affect the organizations in different ways, from suboptimal operational effectiveness and improvement of organization processes (administrative, operational, or logistics), bringing with it negative impacts on human resources motivation – the main keepers of knowledge, institutional culture, and organizational values. Innovative organizations also generate a stronger sense of belonging across their ranks and structures and fosters effectiveness in fulfilling organizations' missions. Hence, fostering innovation across any typology of organization is crucial and requires a proper approach to promote the desirable involvement of the entire workforce. This text, based on a review of some relevant literature, exposes critical enabling factors. Based on a cause-and-effect analysis, it proposes some recommendations for the practitioner as well as the academic.
TopBackground
Innovation may have distinct definitions, however, it is undoubtedly about challenging the status quo and introducing new and better products, processes, services or management approaches that add value (Deschamps, 2008). Innovation is a capability that is evident in an innovative organisation, and distinguish them from others, by constantly seeking change through innovative solutions to the problems and challenges presented to them.
When an organisation seeks the ability to innovate, it should design and implement a strategy aiming at better results than the current state (Looy et al., 2005). These outcomes will foster innovations that add value to the organisation after implementation (Miller & Brankovic, 2010). They can, however, be differentiated taking into account the type of innovation the organisation is aiming for. That is, incremental or radical innovations may arise. According to Tushman and O'Reilly (2004), incremental innovation consists of small improvements to existing products and operations. These will make their use more efficient and add value to the organisation. On the other hand, if the organisation seeks radical innovation, it must select ideas that have the power to change the basis of competitive advantage and alter the economic structure of the industry (Skarzynski & Gibson, 2008).
An enterprise may be organised in such a way that the two types of innovation can coexist. Looy et al. (2005), proposes the term ambidextrous organisations, to refer to organisations consisting of two structures, where each one deals with one type of innovation. Hence, one of the structures focuses on incremental innovation, where commitment, convergence and dependence of actions is required. The second structure, which is dedicated to radical innovation, is designed to be more flexible, divergent and explore new paths. According to Tushman and O'Reilly (2004) ambidextrous organisations may be the solution because there is no contamination effect, but rather fertilisation, from the radical to the incremental structure. According to Looy et al. (2005), however, such organisations may be at a disadvantage because they are quickly overtaken by competition that focus on just one approach.
Key Terms in this Chapter
Theory of Constraints (TOC): The theory of constraints is a management paradigm that views any socio or technical system as being limited in achieving its goals by a certain number of constraints.
Undesirable Effect (UDE): A central concept from TOC thinking processes, which represents effects that prevent the system of interest, or organization, from achieving its goal.
Leadership: A practical skill encompassing the ability of an individual, group, or organization to “lead,” influence, or guide other individuals, teams, or entire organizations.
Disruptive Innovation: An innovation that creates a new market and/or a value network and eventually displaces established market-leading firms, products, and alliances.
Constraint: A condition that prevents a system (or organization) to achieve its goals.
Change Management: A term for all approaches to prepare, support, and help individuals, teams, and organizations in making organizational change.
System: A grouping of parts that operate together for a common purpose.
Innovation: The practical implementation of ideas that result in the introduction of new goods or services or improvement in processes.
Desirable Effects (DE): A concept from the Theory Of Constrains (TOC), that represents effects that contribute to enable the organization or system of interest to achieve its goal.