What creates innovation in a globalized knowledge economy? A cybernetic point of view

Abstract

PurposeThe purpose of this paper is to uncover processes and the corresponding social mechanisms promoting innovation in organisations.Design/methodology/approachIt is the integration of organisational learning, the internal knowledge base of the company and its external knowledge base, viewed in relation to innovations in organisations, which are the main elements discussed in this paper. In the present paper, it is the systemic angle of incidence which will be used.FindingsAn increased focus on information, knowledge and organisational learning, has provided a deeper understanding of factors and processes conducive to innovation and eventually to sustainable competitive advantages. However, little attention has been given to social mechanisms triggering innovations, which are uncovered in this paper.Practical implicationsA conceptual model, which represents a synthesis of the social mechanisms which influence those processes affecting innovation in social systems is presented.Originality/valueThe idea is that when several knowledge domains (practical, theoretical, internal and external) are connected for one specific purpose, the inherent variety may release what is creatively new, igniting innovation in social systems.

Agent behaviors and coordinative mechanism

“…As proven by some scientists such as Wu (2010a, b), Wu and Birge (2012) and Johannessen and Olsen (2011), and so on, why agents interact with the other can be explain to be pursue to their own profit maximized, however, these targets have been became to be limited in the free competition, i.e. the profits gained in the virtual organization are much larger than the ones just rely on its owner efforts in free competition.…”

“…It is the interactions between agents in a complex system make it complex, so, the game theory, whatever non-cooperation game or cooperative game should be cared, must be drawn some profound results to specify the interaction in the complex system, and the emergence for some unbelievable phenomena with their causes and evolutions. As proven by some scientists such as Wu (2010a, b), Wu and Birge (2012) and Johannessen and Olsen (2011), and so on, why agents interact with the other can be explain to be pursue to their own profit maximized, however, these targets have been became to be limited in the free competition, i.e. the profits gained in the virtual organization are much larger than the ones just rely on its owner efforts in free competition.…”

Driver or inhibitor for innovation?

“…An ever-changing and highly competitive marketplace and shorter product life cycles force companies to be more innovative to continually and rapidly develop new products, technologies and services while improving existing ones (Chen et al, 2015;Gebert et al, 2006;Johannessen and Olsen, 2011;Lovelace et al, 2001). Many organizations attempt this with cross-functional new product development teams (NPD teams), as they hope to improve creativity and innovation through this (Gebert et al, 2006;Lovelace et al, 2001).…”