Innovation Capabilities: Affirming an Oxymoron?, 2017, vol. 13, issue 1

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https://repozytorium.wsb-nlu.edu.pl//handle/11199/10241

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Przeglądaj Innovation Capabilities: Affirming an Oxymoron?, 2017, vol. 13, issue 1 wg Autor "Breunig, Karl Joachim"

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    Capable design or designing capabilities? An exploration of service design as an emerging organizational capability in Telenor
    (Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione" / Wyższa Szkoła Biznesu - National Louis Univeristy, 2017) Martinkenaite, Ieva; Breunig, Karl Joachim; Fjuk, Annita
    This empirical paper examines a process, starting with the managerial decision to make service design an organizational capability, and follows it as it unfolds over time within one organization. Service design has become an established business practice of how firms create new products and services to promote differentiation in an increasingly uncertain business landscape. Implicit in the literature on service design are assumptions about strategic implications of adopting the prescribed innovation methods and tools. However, little is known about how service design evolves into an organizational capability enabling firms to transform their existing businesses and sustain competitiveness. Through a longitudinal, exploratory case study of service design practices in one of the world’s largest telecommunications companies, we explicate mechanisms through which service design evolves into an organizational capability by exploring the research question: what are the mechanisms through which service design develops into an organizational capability? Our study reveals the effect of an initial introduction of service design tools, identification of boundary-spanning actors and co-alignment of dedicated resources between internal functions, as well as through co-creation with customers. Over time, these activities lead to the adoption of service design practices, and subsequently these practices spark incremental learning throughout the organization, alter managerial decisions and influence multiple paths for the development of new capabilities. Reporting on this process, we are able to describe how service design practices were disseminated and institutionalized within the organization we observed. This study thus contributes by informing how service design can evolve into an organizational capability, as well as by bridging the emerging literature on service design and design thinking with established strategy theory. Further research will have to be conducted to confirm if the same mechanisms are observable across contexts and in other firms, and several future research directions are identified. In addition, the study also has implications for practice as it demonstrates how service design methodology can be implemented and has strategic implications for organizations.
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    Conceptualizing innovation capabilities: A contingency perspective
    (Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione" / Wyższa Szkoła Biznesu - National Louis Univeristy, 2017) Aas, Tor Helge; Breunig, Karl Joachim
    Empirical research has confirmed that a positive relationship exists between the implementation of innovation activities and the future performance of organizations. Firms utilize resources and capabilities to develop innovations in the form of new products, services or processes. Some firms prove to be better at reproducing innovation success than others, and the capacity to do so is referred to as innovation capability. However, the term innovation capability is ambiguously treated in extant literature. There are several different definitions of the concept and the distinction between innovation capabilities and other types of capabilities, such as dynamic capabilities, is neither explicitly stated, nor is the relationship between the concept and other resource- and capability-based concepts within strategy theory established. Although innovation is increasingly identified as crucial for a firm’s sustainable competitiveness in contemporary volatile and complex markets, the strategy-innovation link is underdeveloped in extant research. To overcome this challenge this paper raises the following research question: What type of innovation capabilities are required to innovate successfully? Due to the status of the extant research, we chose a conceptual research design to answer our research question and the paper contributes with a conceptual framework to discuss what innovation capabilities firms need to reproduce innovation success. Based on careful examination of current literature on innovation capability specifically, and the strategy-innovation link in general, we suggest that innovation capability must be viewed along two dimensions – innovation novelty and market characteristics. This framework enables the identification of four different contexts for innovation capabilities in a two-by-two matrix. We discuss the types of innovation capabilities necessary within the four different contexts. This novel framework contributes to the understanding of the strategy-innovation link as well as clarifies the conceptual understanding of capabilities within the strategy literature and establishes the relationship between these structures and innovation management theory.