Innovation Management in Organizations

This article discusses the reasons for the failure of firms to undertake continuous innovations and the strategies undertaken by organizations to facilitate continuous innovations in their systems. It also explores the identification of the organizational design and their relative contribution to the innovative approach of the organization. The article also includes historical cases of organizations where the firms faced different innovation failures and the strategies the firm implemented in order to succeed in the competitive markets.

Running head: INNOVATION MANAGEMENT IN ORGANIZATIONS
INNOVATION MANAGEMENT IN ORGANIZATIONS
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1INNOVATION MANAGEMENT IN ORGANIZATIONS
Introduction
The innovations that are undertaken by the organizations help in maintaining the
sustenance of the same while operating in the offshore markets. Continuous innovations in the
context of the organizations help in upholding their competitive advantage over the other players
in the markets. The key changes that are undertaken by the businesses are based on the changing
market trends. However, at different points of time the organizations fail to undertake the
innovative approach due to resistances from the employees or insufficient resources, which
affects the sustenance of the businesses while operating in the offshore markets (Cantarello,
Martini and Nosella 2012). The different issues that are faced by the organizations while
implementing the innovative strategies affect their sustenance objectives. However, the
implementation of different strategies by the management of the organization helps in upholding
the firm’s innovation capabilities and thereby regenerates the different growth potentials.
The purpose of the discussion is to witness the reasons for the failure of the firms to
undertake continuous innovations. On the other hand, the different strategies that are undertaken
by the organizations in order to facilitate the continuous innovations in their systems are being
emphasized as a part of the research. The identification of the organizational design and their
relative contribution to the innovative approach of the organization is being enumerated as a part
of the study. The research also emphasized on the study of different historical cases of
organizations where the firms faced different innovation failures and the strategies the firm
implemented in order to succeed in the competitive markets. It will be helping in devising the
different innovative strategies that are undertaken by the businesses in order to suffice to the
needs of the organizational growth.

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Theoretical framework
Wei, Zhao and Zhang (2014) stated that the application of Ambidexterity in an
organizational contexts depends on identification of different activities that are undertaken by the
businesses through exploration and exploitation in order to maintain sustenance. The
exploration helps the organizations in upholding the proficiency of innovative approach, whereas
the exploitation helps the organizations in adapting to the different market trends, which will be
helping the business in making a faster growth. Pellegrinelli, Murray-Webster and Turner
(2015) stated that exploration includes a huge amount of risk taking which might affect the
smooth functioning of the venture and the objective of maintaining the sustenance in the
markets. However, Gedajlovic, Cao and Zhang (2012) argued that exploration helps
businesses in creating a competitive advantage over the other players in the market. Moreover,
Cantarello, Martini and Nosella (2012) stated that unlike the exploitation or adaptation of the
old trends the innovativeness of the organization through exploration create new opportunities
for the business.
Wei, Zhao and Zhang (2014) stated that the application of the open innovation model
in the organizational contexts as it helps in maintaining the efficacy of the functions through
knowledge sharing. The main concept of the Open innovation is based on the fact that most of
the companies are unable to cope up with the changing trends and thereby rely on their own
research of the market attributes. Therefore, in order to make the research more viable for the
organizations a system of buying licenses or patents were introduced. It helped the organizations
in making use of the inventions and thereby adapting them to the different changes as per the
trends in the markets. It has helped in maintaining the standards of the offerings that are
presented by the organizations as per the study of the market demand. Pellegrinelli, Murray-

3INNOVATION MANAGEMENT IN ORGANIZATIONS
Webster and Turner (2015) stated that the process of open innovation has mostly helped in
upholding the efficacy of the business processes while operating in a globalized scenario.
Figure 1: Open Innovation Model
(Source: Reed, Storrud-Barnes and Jessup 2012)
Jurksiene and Pundziene (2016) stated that the introduction of the open innovation
model has helped maintaining the efficacy of the functions through knowledge sharing on the
different processes. It has helped organizations in undertaking different innovations while
adapting themselves with the market changes as per the reports. The open innovation model of
the organizations helps in maintaining the efficacy of the functions of the firms as per the market
trends. The adaption of the open innovation model has helped in enriching the knowledge of the
organizations relating to the changes in the systems as per the changes in the offshore markets.

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Corporate Design solutions
The R&D (Research and Development department) of the organization helps in
maintaining the efficacy of the innovation that is planned by the businesses. The application of
the contingency theory in an organizational context is based on the identification of the different
situations through which the risks that are faced by the business might be mitigated. The decision
making system of the organization are mainly based on the study of the diversified situations that
are faced by the organizations while operating as per the objectives of the business expansion.
The multi- tasking attributes of the organizational management is based on the Asset
management and the Growth centered activities (R&D departments) in an organization
(Birkinshaw and Gupta 2013). The issues that are faced by the organizations while undertaking
innovations are based on the exposition of the same to organizational ambidexterity. The
identification of the needs of the organization to adapt and explore the opportunities of
innovation as per the market trends has helped the organizations in maintaining their growth
objectives. Lack of suitable R&D functioning of the organizations affect the organizational
capabilities of undertaking innovation as per the objectives of growth of the businesses.
Pellegrinelli, Murray-Webster and Turner (2015) stated that the lack of proper analysis
of the organizational growth perspectives as per the different market trends affects the
capabilities of the organizations to bring in changes in their market situations. Setting up proper
R&D systems will be helping the organizations in maintaining their competitive advantage and
the innovative approach resulting to sustenance of the businesses. The design of the
organizations plays a major role in the decision making attributes as per the objectives of the
business. Decentralization of the organizational hierarchy affects the decision making systems
through even distribution of power. On the other hand, Wei, Zhao and Zhang (2014) stated that

5INNOVATION MANAGEMENT IN ORGANIZATIONS
the centralization of the organizational hierarchy helps in instilling a sound decision making
system as per the needs of the business organizations. For an instance, the centralized decision
making system that is utilized by Microsoft has minimized the engagement of the employees in
the innovative practices which is planned by the business. It affected the smooth functioning of
the organization as per the organizational growth objectives. On the other hand, Toyota motors
encourage the involvement of the employees in the decision making systems of the organization
which has contributed to the rapid growth of the business in a short span. Li (2013) also added
that the bottom line mentality, relating to the short term profitability of the firm, affects the
innovative approach and thereby results to failure of the innovation that is planned by the
businesses. Therefore, the application of decentralized decision making of the organizations
helps in encouraging the involvement of the employees in the innovative strategies planned by
the businesses.
Figure 2: Organizational design plan
(Source: Gedajlovic, Cao and Zhang 2012)

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The theory of Complementarity acts as an innovative tool, which focuses on different
patterns and strategies that are undertaken by the organizations in order to sustain as per the
demands faced by the same in the offshore markets. The corporate failures are dependent on the
issues relating to multitasking and the high powered incentives that are required to be provided
by the organizations as per the measurable performance. On the other hand, Cantarello, Martini
and Nosella (2012) stated that the lack of proper knowledge of the processes often acts as an
catalyst for the organizational innovative approach. Diverse technological changes in the
organizational context affect the smooth performance of the business. Therefore, the design of
the organizational models is based on the objectives of the business and the type of activities that
are undertaken by the same. The R&D systems of the organization help in maintaining the
efficacy of the functions as per the needs of maintaining the business performance. Internal
innovations that are undertaken by most of the organizations are based on the different needs of
change in the structure and the processes in order to support the sustainability (Cantarello,
Martini and Nosella 2012).
Historical cases
The introduction of Blackberry’s iconic qwerty keypad model fascinated the users since
their ability to connect to internet, email sending options and other modes of communication. By
the year 2011 the organization sold around 50 million of the devices. However, the introduction
of the android technology in the markets affected the demand for the devices that were designed
by the organization, which stubbornly stuck on to the physical keyboard as their watermark. The
sales volume of the organization diminished by the year 2016 to 4 million devices annually
(Nosella, Cantarello and Filippini 2012). It affected the sustainability of the organization
largely. Failure to adhere to the technological change has affected the functioning of the

7INNOVATION MANAGEMENT IN ORGANIZATIONS
organization. On the other hand, the lack of R&D department of the organization affected the
innovative approach of the organization, which resulted to a diminishing demand for the
products in the market.
On the other hand, the introduction of the Google Glass in the year 2012 failed due to the
concerns of privacy as the glass made an attempt to record discretely in different bars, restaurants
and movie theatres. It affected the privacy concerns of different people and associations who
disliked the idea of being recorded without their knowledge (Felin and Zenger 2014). The idea
of the Google glasses failed due to the lack of inspection of the needs of the customers as per the
utility that might be derived from the product. The lack of decision making systems of the
organization through minimization of engagement of the employees in the processes has affected
the proper functioning of the business organization.
The different cases of organizational failures is relevant to the failure of the same while
adapting the new technologies and thereby explore their capabilities in order to bring in changes
in the market structure. The lack of proper understanding of the needs of the customers and the
manner in which the needs might be supported has affected the organizational functioning. On
the other hand, the lack of R&D departments in the organizations has affected the proper
functioning of the processes as per the needs of the organizational growth objectives. The key
elements of the change in the systems of the business are based on the decision making structure
and the organizational design, which judges the capabilities of organizations to undertake
continuous innovations.

8INNOVATION MANAGEMENT IN ORGANIZATIONS
Critical analysis
Chen and D. C. Hambrick (2012) stated that the organizational changes are supported by
the involvement of the employees in the processes. The involvement of the employees in the
organizational decision making systems clearly denotes the smooth functioning criteria and
change readiness. On the other hand, Barbero, A. Ramos and C. Chiang (2017) argued that the
organizational decision making systems and the design of the organizational processes helps in
identifying the capabilities of organizations to bring in innovation in the processes.
Technological innovations create a challenging situation for the organizations to sustain in the
globalized scenario. Therefore, Reed, Storrud-Barnes and Jessup (2012) stated that the
application of organizational ambidexterity in the processes of the business helps in maintaining
the efficacy of the firms to sustain in the competitive business environments. On the other hand,
West and Bogers (2014) argued that the exposition of the explorative mentality of the businesses
might affect the organizational performance due to different risks relating to the refusal of the
business offerings in the wider competitive markets. For an instance, the innovative approach
that was undertaken by Google while designing the Google Glasses failed due to its wider
rejection based on the lack of defining the utility that might be derived from the product.
However, Chesbrough (2012) stated that exploration helps in underpinning the competitive
advantage of the organizations while operating in the diverse competitive markets. Mendes et al.
(2016) noted that the adaptability of the organizations through the utilization of the open
innovation model will be helping in making a strong coalition with the innovative approach and
thereby manage the knowledge of global trends. Hameed, Counsell and Swift (2012) argued by
stating that the R&D department of the organization helps in upholding the uniformity of the
innovation that is undertaken by the businesses as per the capabilities of the same while

9INNOVATION MANAGEMENT IN ORGANIZATIONS
operating in the offshore globalized scenario. Tohidi and Jabbari (2012) stated that the smooth
operations of the business processes are based on the involvement of the employees in the
processes through decentralized decision making system. However, Anderson, Potočnik and
Zhou (2014) argued that decentralization of power and decision making system of the
organization might bring chaos in the organizational model, which might affect the objective of
the business to undertake continuous innovations.
Strategy lessons
The strategic planning of the organization depends on the vulnerability of the position of
the organizations while operating in the diverse markets. The critical nature of the organizational
design and the induction of the value based learning of the businesses through the application of
the open innovation model helps in enhancing the knowledge of market trends. The identification
of the demands of the customers and thereby standardization of the products as per the changing
market trends helps in maintaining the efficacy of the business performance. Jarle Gressgård et
al. (2014) stated that the merger and acquisitions helps organizations in maintaining their
proficiency of adapting the different technological changes in the market. For an instance,
Pebble, the smart watch developing company sold their patented ideas to Fitbit and the like in
order to maintain their efficacy of the operations due to the introduction of players like Apple
inc. in the electronics market.
Denti and Hemlin (2012) supported the view by stating the frequent innovation that
might be undertaken by the organizations are dependent on the adaptability of the same as per
the market demand. The identification of the market demand through the utilization of Big Data
and the open innovation model will be helping the organizations in upholding the innovative

10INNOVATION MANAGEMENT IN ORGANIZATIONS
approach. Renewal of the strategic position of the businesses is chiefly based on the innovation
as per the capabilities of the businesses. For an instance, the renewal of Nokia in the global
market after being undermined due to the development of the android technologies is supported
through the continuous innovative approach that was undertaken by the business to launch
android devices of its own. The organizational sustenance in the market is dependent on the
study of the market trends and the applicability of the same in order to gain a competitive
advantage over the existing players.
Conclusion
Therefore, from the above discussion it can be stated that the sustenance of the
organizations are based on the continuous innovative approach of the same while operating in the
globalized scenario. Innovation in the organizations is supported through the organizational
ambidexterity, which is based on the adaptability of the organization and exploration of the new
ideas in order to bring in changes in the processes of the business. However, there are different
issues that are faced by organizations while undertaking innovations due to the divergent
capabilities and lack of proper knowledge of implementation of the innovative technologies as
per the market trends. The discussion analyzes the different strategic business failures and
renewable in the light of strategic fit and the organizational capabilities. On the other hand, the
discussion also enumerates the different key theories that help in judging the position of the
business while investing innovations in the systems.

11INNOVATION MANAGEMENT IN ORGANIZATIONS
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