Managing Project–Organization Coupling in Breakthrough Innovation

Abstract

The relationship between an innovation project and its host organization is the arena wherein the marrying of the innovation to established organizational capabilities and strategies is consummated. This article explores loosely‐coupled systems as an apt metaphor for this interface.Because the model calls attention tomutual influences of innovators and managers and to ways in which projects and organizations are at once loosened from and coupled to each other, it complements other studies that focus on either the innovation project or the sponsoring organization. Findingsshed light on how to manage the relative independence of innovation projectsfrom their sponsoring corporations. Based on prior studies of 13 innovation projects in two Fortune 500 corporations, everyday actions that loosen and couple innovation projects to the strategy and organizational capabilities of the corporation are identified. Findings include: (i) Ordinary, daily decisions, not just extraordinary actions of champions, determine the relative independence of projects and organizations; (ii) Projects may be given independence at a local level of organization, yet be closely scrutinized by senior management; (iii) Innovators may experience a motivational surge if the innovation project allows them to work with greater independence – or a decrease in motivation if the project work reduces their independence.