Locating the Weak Points of Innovation Capability before Launching a Development Project

Abstract

Before launching a development project to enhance innovation capability, it is essential to know how innovation capability is comprehended. This paper suggests a procedure to locate the development targets of organizational innovation capability before making decisions on projects. First, from the viewpoint of practice-based innovation, an understanding of the concept of innovation capability is provided. Further, the suggested classification for innovation capability provides a basis for developing the measurement instrument. Finally, to answer the research question of how an innovation intervention should be targeted, this paper uses practical experiences of implementing the procedure in the setting of a single case company.

Does Innovation Capability Really Matter for the Profitability of SMEs?

“…(), Guan and Ma (), Otala (), Wang and Ahmed (), Martensen et al . (), Dobni (), and Kallio et al ., were used. The variables were measured by a 5‐point Likert‐type scale, ranging from 1 (strongly disagree) to 5 (strongly agree).…”

“…Similarly, in this study, innovation capability is defined as a potential of an organization to create innovations continuously, and it consist of the determinants influencing an organization's capability to manage innovation. According to earlier literature, these determinants include, for example, leadership practices (e.g., Tang, , ; Bessant, ; Tidd et al ., ; Perdomo‐Ortiz et al ., ; Martensen et al ., ; Colarelli O'Connor, ; Skarzynski and Gibson, ; Smith et al ., ; Kallio et al ., ; Saunila and Ukko, ), employees' skills and innovativeness (e.g., Perdomo‐Ortiz et al ., ; Martensen et al ., ; Colarelli O'Connor, ; Skarzynski and Gibson, ; Smith et al ., ; Tura et al ., ; Liu, ; Kallio et al ., ), processes and tools for idea management (e.g., Lawson and Samson, ; Tidd et al ., ; Skarzynski and Gibson, ; Smith et al ., ; Saunila and Ukko, ), supporting culture (e.g., Tang, , ; Lawson and Samson, ; Tidd et al ., ; Martensen et al ., ; Colarelli O'Connor, ; Skarzynski and Gibson, ; Smith et al ., ; Liu, ; Kallio et al ., ; Saunila and Ukko, ), external sources for information (e.g., Romijn and Albaladejo, ; Tidd et al ., ; Perdomo‐Ortiz et al ., ; Colarelli O'Connor, ; Laforet, ; Kallio et al ., ; Saunila and Ukko, ), development of individual knowledge (e.g., Tang, , ; Bessant, ; Tidd et al ., ), employees' welfare (e.g., Laforet, ), and linkage to strategic goals (e.g., Bessant, ; Martensen et al ., ; Smith et al ., ).…”

“…;Lawson and Samson (2001);Neely et al (2001);Kallio et al, 2012 Related to the structures and systems that successful innovation requires. This includes the generation, development, and implementation of innovations and the ways how the work tasks of the organization are organizedIdea generation and management Lawson and Samson (2001); Smith et al (2008) Rewards Lawson and Samson (2001); Martínez-Román et al (2011) Level of decentralization Wan et al (2005); Smith et al et al (2008); An organization's ability to learn from earlier experience and to use that experience to create innovations and develop their operations Attitude to risk Wan et al (2005); Smith et al…”

The Effect of Entrepreneurial Competency on Product Innovation and Business Performance: Empirical Cases of Fashion Business in Central Java, Indonesia

“…The company's success in innovation will be able to make higher-performance (Ardyan, 2016). Kallio et al (2012) explains that success in innovation willmake the business a success. Other researchers also argue that while SMEs have the resources that are able to innovate, then the SMEs business performance, increase (Saunila, 2016;Saunila et al, 2014).…”

Interaction and Innovation - Reframing Innovation Activities for a Matrix Organization

“…Based on literature review, 55 initial items were operationalized (see Kallio, Kujansivu & Parjanen, 2012;Saunila, Mäkimattila & Salminen, 2014, for further details). The items were reviewed and revised with a group of researchers in order to ensure the appropriateness of each item.…”