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Developing grounded theory on
               organizational innovation


                       Maria Larraza Malkorra
Orkestra - Basque Institute of Competitiveness & Deusto Business School


        XXIII ISPIM Conference I Barcelona, 17-20 june 2012
Organizational innovation - multiple challenges ahead (1)

•    Organizational innovation is an                                    1st
                                                          Definition challenge
     ambiguous concept


•    Both in terms of content

           The implementation of new methods in a firm’s business practices,
               workplace organization or external relations (OECD, 2005).

•    And in terms of process (Van de Ven, 1992)

                    Life cycle     sequence of programmed stages
                    Intentional    vision formulation, implementation, evaluation,
    Organizational                 modification
    change
    processes      Dialectical     continuous confrontation and conflict
                   Evolutionary    events happening as an outcome of ongoing
                                   competition for scarce resources

                                                                                 2
Organizational innovation - multiple challenges ahead (2)
                               2nd                                         3rd
                 Relevance                          Methodology
                             challenge                                  challenge

•   Not recognized by Oslo Manual        •   Lack of reliable scales
    until 2005
                                         •   Intangibility of goals
•   Though increasingly important for:
                                         •   Different aggregation levels
     – Firms’ competitive advantage
                                         •   Long life cycles
     – Knowledge development in
                                         •   Extent of implementation
       companies
                                         •   Multidimensional relationship:
     – Enabling other forms of
                                             process <>outcomes
       innovation
                                                                (Kirner et al, 2008)
                                  Can Grounded
                                   Theory help?
                                                                                    3
Purpose of research around organizational innovation (OI)


   Understand organizational innovation:

    – How is the process initiated, developed and evaluated?

    – How is the content defined? New organizational methods in…

        • … business practices?

        • … workplace organization?

        • and/or external relationships?



   Design and apply Grounded Theory as a suitable method for research on
   organizational innovation and building theory about it



                                                                      4
Introduction to Grounded Theory (GT)

                  • Develop theories about barely known phemomenon
Purpose           • Based on data directly collected on the field

Difference        From mere description to theory

Focus on          Behaviours - the engine of the meanings
Use on business
                  Elusive and misunderstood
research
                  • NO deep initial literature review
                  • NO hypotheses
Features          • NO linearity: constant comparative cycle
                  • Fieldwork and data analysis: in paralell
                  • Ends with saturation, confirmability & final theory


                                                                          5
Developing GT on organizational innovation
Research design:
Inductive, longitudinal, field
based multiple case study

Field settings:
- Industrial SMEs from the
Basque Country
- Theoretical sampling




                                                6
Data sources – Ennera’s OI




                             7
Analytical process – Ennera’s OI




                                   8
Ennera’s OI – emerging initial theory
              CONTENT                               PROCESS

New organizational methods              Intentional type:
applied since end 2010:                 • Driven by a strong and
                                          common vision
•   Workplace organization
     – Departments division                 • Strong: coming from a
     – Functional directors assigned          clear leader
     – Bonus system first applied
•   Business practices                      • Common: thanks to a
                                              shared corporate
     – Own work and collaboration             culture (values and
       dynamics established                   practices)
     – New communication forum:
       Board of Directors               • Developed through constant
         • External relationships: no     action and evaluation,
           evidence shown                 formalization comes later

                                                                       9
Next steps and… challenges addressed?
                            •   Next steps on the road towards a grounded theory:

                                 – Go back to literature review

                                 – Look for confirmability:
                                     • Contrast with opposite case study (ongoing)
                                     • Interview with experts
                                     • Peer review on Grounded Theory method

•   Contribution to initial challenges?
                                                                  To be continued…
    Methodology       How to facilitate its transfer?

                             Identifying competitive advantages derived from
              Relevance
                             organizational innovation?

     Definition    Broadening with organizational culture, behaviours or
                   participation, processes…?

                                                                               10
Thank you for your attention!


                       Maria Larraza Malkorra

                     Blog: www.mktinbasque.com
               E-mail: maria.larraza@orkestra.deusto.es

Orkestra - Basque Institute of Competitiveness & Deusto Business School
                            Strategy Department

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ISPIM 2012 - Developing grounded theory on organizational innovation

  • 1. Developing grounded theory on organizational innovation Maria Larraza Malkorra Orkestra - Basque Institute of Competitiveness & Deusto Business School XXIII ISPIM Conference I Barcelona, 17-20 june 2012
  • 2. Organizational innovation - multiple challenges ahead (1) • Organizational innovation is an 1st Definition challenge ambiguous concept • Both in terms of content The implementation of new methods in a firm’s business practices, workplace organization or external relations (OECD, 2005). • And in terms of process (Van de Ven, 1992) Life cycle sequence of programmed stages Intentional vision formulation, implementation, evaluation, Organizational modification change processes Dialectical continuous confrontation and conflict Evolutionary events happening as an outcome of ongoing competition for scarce resources 2
  • 3. Organizational innovation - multiple challenges ahead (2) 2nd 3rd Relevance Methodology challenge challenge • Not recognized by Oslo Manual • Lack of reliable scales until 2005 • Intangibility of goals • Though increasingly important for: • Different aggregation levels – Firms’ competitive advantage • Long life cycles – Knowledge development in • Extent of implementation companies • Multidimensional relationship: – Enabling other forms of process <>outcomes innovation (Kirner et al, 2008) Can Grounded Theory help? 3
  • 4. Purpose of research around organizational innovation (OI) Understand organizational innovation: – How is the process initiated, developed and evaluated? – How is the content defined? New organizational methods in… • … business practices? • … workplace organization? • and/or external relationships? Design and apply Grounded Theory as a suitable method for research on organizational innovation and building theory about it 4
  • 5. Introduction to Grounded Theory (GT) • Develop theories about barely known phemomenon Purpose • Based on data directly collected on the field Difference From mere description to theory Focus on Behaviours - the engine of the meanings Use on business Elusive and misunderstood research • NO deep initial literature review • NO hypotheses Features • NO linearity: constant comparative cycle • Fieldwork and data analysis: in paralell • Ends with saturation, confirmability & final theory 5
  • 6. Developing GT on organizational innovation Research design: Inductive, longitudinal, field based multiple case study Field settings: - Industrial SMEs from the Basque Country - Theoretical sampling 6
  • 7. Data sources – Ennera’s OI 7
  • 8. Analytical process – Ennera’s OI 8
  • 9. Ennera’s OI – emerging initial theory CONTENT PROCESS New organizational methods Intentional type: applied since end 2010: • Driven by a strong and common vision • Workplace organization – Departments division • Strong: coming from a – Functional directors assigned clear leader – Bonus system first applied • Business practices • Common: thanks to a shared corporate – Own work and collaboration culture (values and dynamics established practices) – New communication forum: Board of Directors • Developed through constant • External relationships: no action and evaluation, evidence shown formalization comes later 9
  • 10. Next steps and… challenges addressed? • Next steps on the road towards a grounded theory: – Go back to literature review – Look for confirmability: • Contrast with opposite case study (ongoing) • Interview with experts • Peer review on Grounded Theory method • Contribution to initial challenges? To be continued… Methodology How to facilitate its transfer? Identifying competitive advantages derived from Relevance organizational innovation? Definition Broadening with organizational culture, behaviours or participation, processes…? 10
  • 11. Thank you for your attention! Maria Larraza Malkorra Blog: www.mktinbasque.com E-mail: maria.larraza@orkestra.deusto.es Orkestra - Basque Institute of Competitiveness & Deusto Business School Strategy Department