DEVELOPING INNOVATION CAPABILITY IN ORGANISATIONS: A DYNAMIC CAPABILITIES APPROACH
Abstract
This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an "innovation capability" construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures and systems, culture and climate, and management of technology.
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New product development routines lead to new product innovations that in turn result in competitive advantage.
“It is commonly assumed that such routines lead to new product innovations that in turn result in competitive advantage (Lawson and Samson, 2001).”
From On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism (2014) · cites this paper as Lawson and Samson, 2001
Cites
Firm Resources and Sustained Competitive Advantage
Barney, J. (1991) · Journal of Management · doi:10.1177/014920639101700108 · Cited by 48,334 · see citing works
Knowledge of the firm, combinative capabilities, and the replication of technology
Kogut, B., & Zander, U. (1992) · Organization Science · doi:10.1287/orsc.3.3.383 · Cited by 12,939 · cited 1× · see citing works
“Integrative capabilities allow firms to absorb knowledge from external sources and blend the different technical competencies developed in various company departments (Cohen & Levinthal, 1990; Grant, 1996; Henderson & Clark, 1990; 00042.p65 09/29/2001, 4:40 PM379 Kogut & Zander, 1992; Pisano, 1997).”
BackgroundStrategic assets and organizational rent
Amit, R., & Schoemaker, P. J. H. (1993) · Strategic Management Journal · doi:10.1002/smj.4250140105 · Cited by 8,425 · see citing works
Strategic Factor Markets: Expectations, Luck, and Business Strategy
Barney, J. B. (1986) · Management Science · doi:10.1287/mnsc.32.10.1231 · Cited by 5,548 · see citing works
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Schilke, O. (2014) · Strategic Management Journal · doi:10.1002/smj.2099 · Cited by 1,264 · see citing works
Cortimiglia, M. N., Ghezzi, A., & Frank, A. G. (2016) · R&D Management · doi:10.1111/radm.12113 · Cited by 194 · see citing works
Organizing public sector AI adoption: Navigating between separation and integration
Selten, F., & Klievink, B. (2024) · Government Information Quarterly · doi:10.1016/j.giq.2023.101885 · Cited by 147 · see citing works
Organisational Capabilities for Customer Participation in Health Care Service Innovation
Sharma, S., Conduit, J., & Rao Hill, S. (2014) · Australasian Marketing Journal · doi:10.1016/j.ausmj.2014.08.002 · Cited by 103 · see citing works
COLLABORATION CAPABILITY IN VIRTUAL TEAMS: EXAMINING THE INFLUENCE ON DIVERSITY AND INNOVATION
BATARSEH, F. S., USHER, J. M., & DASPIT, J. J. (2017) · International Journal of Innovation Management · doi:10.1142/s1363919617500347 · Cited by 44 · see citing works
Zheng, L. J., Zhang, J. Z., Wang, H., & Hong, J. F. L. (2025) · Annals of Operations Research · doi:10.1007/s10479-022-04800-6 · Cited by 42 · see citing works
Organizational knowledge and collaborative human resource practices as determinants of innovation
Nieves, J., Quintana, A., & Osorio, J. (2016) · Knowledge Management Research & Practice · doi:10.1057/kmrp.2014.26 · Cited by 42 · see citing works
- Authors
- LAWSON, B., & SAMSON, D.
- Affiliations
- The University of Melbourne (AU)
- Venue
- International Journal of Innovation Management
- Publisher
- World Scientific Pub Co Pte Ltd
- Published
- 2001-09
- Volume
- 05
- Issue
- 03
- Pages
- 377-400
- ISSN
- 1363-9196 (ISSN-L)
- 1757-5877
- OpenAlex
- W2101348440
- Cited by
- 1,581
- References
- 4
- Citations by year
- 2026: 87 · 2025: 97 · 2024: 117 · 2023: 150 · 2022: 127 · 2021: 134 · 2020: 110 · 2019: 116 · 2018: 92 · 2017: 97 · 2016: 77 · 2015: 82 · 2014: 76 · 2013: 66 · 2012: 30
- FWCI
- 8.50
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of Innovation Management (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Innovation
- Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
- Keywords
- innovation ability, dynamic capabilities, innovation management, organizational capabilities, Cisco Systems, organizational intelligence, idea management, organizational culture, technology management, new product innovation, wealth creation
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