Some aspects of an analytical framework for studying the diffusion of organizational innovations

Technology Analysis and Strategic Management

Volumn 10, Issue 1, 1998, Pages 3-22

  Alänge, Sverker ^a   Jacobsson, Staffan ^a   Jarnehammar, Annika ^a  

^a CHALMERS UNIVERSITY OF TECHNOLOGY   (Sweden)

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EID: 0002501877     PISSN: 09537325     EISSN: None     Source Type: Journal    
DOI: 10.1080/09537329808524301     Document Type: Article

References (132)

1. See B. Carlsson, 'Reflections on Industrial Dynamics', International Journal of Industrial Organisation, 5, 1987, pp. 135-148, for delineation of the field of enquiry which he labels industrial dynamics.
2. F. Damanpour, K. A. Szabat & W. M. Evan, 'The Relationship between Types of Innovation and Organisational Performance', Journal of Management Studies, 26, 1989, pp. 587-601; and E. Rogers, Diffusion of Innovations, 3rd Edn (New York, The Free Press, 1983). Innovation is here defined according to Rogers as "any idea, object, or practice that is perceived as new by the members of the social system", i.e. the innovation is viewed from the perspective of the customer and not that of the producer. In addition, in this paper the concepts of organizational, administrative and managerial innovation are used interchangeably. Administrative innovations are sometimes seen as encompassing both organizational change and change in management system (Damanpour et al.), while others use the concept organizational innovation in the same wide sense. In the present paper, the three concepts are used interchangeably.
3. F. Damanpour, K. A. Szabat & W. M. Evan, 'The Relationship between Types of Innovation and Organisational Performance', Journal of Management Studies, 26, 1989, pp. 587-601; and E. Rogers, Diffusion of Innovations, 3rd Edn (New York, The Free Press, 1983). Innovation is here defined according to Rogers as "any idea, object, or practice that is perceived as new by the members of the social system", i.e. the innovation is viewed from the perspective of the customer and not that of the producer. In addition, in this paper the concepts of organizational, administrative and managerial innovation are used interchangeably. Administrative innovations are sometimes seen as encompassing both organizational change and change in management system (Damanpour et al.), while others use the concept organizational innovation in the same wide sense. In the present paper, the three concepts are used interchangeably.
4. D. Teece argues that "Business historians have long been aware that organisational innovations have had remarkable productivity ramifications. A. H. Cole has asserted that 'if changes in business procedures and practices were patentable, the contributions of business change to the economic growth of the nation would be as widely recognised as the influence of mechanical innovations' " (cited in C. Edquist, 'Technological and Organisational Innovations, Productivity and Employment', World Employment Programme Research Working Paper, WEP 2-22/WP. 233, 1992.
5. Ibid.
6. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
7. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
8. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
9. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
10. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
11. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
12. P. A. David, 'Path-dependency: Putting the Past into the Future', Stanford University, Institute for Mathematical Studies in the Social Sciences, Economic Series, Technical Report No. 553, November, 1988; G. Dosi, 'Sources, Procedures and Microeconomic Effects of Innovation', Journal of Economic Literature, 26, 1988, pp. 1120-1171; and G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade, (Hemel Hempstead, Harvester Wheatsheaf, 1990); G. Dosi, D. Teece & S. Winter, 'Toward a Theory of Corporate Coherence', in: G. Dosi, R. Giannetti, P. A. Toninelli (Eds), Technology and the Enterprise in a Historical Perspective (Oxford, Oxford University Press, 1991); B. A. Lundvall (Ed.), National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Francis Pinter, 1992); S. Metcalfe, 'The Economic Foundations of Technology Policy: Equilibrium and Evolutionary Perspectives', mimeo, University of Manchester, 1992; P. Patel & K. Pavitt, 'Uneven (and Divergent) Technological Development amongst Countries and Firms: Evidence and Explanations', mimeo, Science Policy Research Unit, University of Sussex, 1993.
13. Lundvall, op. cit., Ref. 5.
14. Dosi, op. cit., Ref. 5.
15. G. Dosi, 'The nature of the innovative process', in: G. Dosi, C. Freeman, R. Nelson, G. Silverberg & L. Soete (Eds), Technical Change and Economic Theory (London, Francis Pinter, 1988), p. 225.
16. David, and Dosi et al. 1991, op. cit., Ref. 5.
17. This may be less so for radical technical change than for incremental change. Often, though, it appears as if technological discontinuities build upon and expand a firm's existing technology base rather than replacing it. See O. Granstrand & S. Jacobsson, 'When Are Technological Changes Distruptive? A Preliminary Analysis of Intervening Variables Between Technological and Economic Changes', Paper presented at the Marstrand Symposium on Economics of Technology, Marstrand, Sweden, August, 1991; and P. Patel & K. Pavitt, 'The Continuing, Widespread (and Neglected) Importance of Improvements in Mechanical Technologies', mimeo, Science Policy Research Unit, University of Sussex, 1993; C. Oscarsson, 'Technology Diversification - the Phenomenon, Its causes and Effects', PhD dissertation, Department of Industrial Management and Economics, Chalmers University of Technology, Gothenburg, Sweden, 1993.
18. This may be less so for radical technical change than for incremental change. Often, though, it appears as if technological discontinuities build upon and expand a firm's existing technology base rather than replacing it. See O. Granstrand & S. Jacobsson, 'When Are Technological Changes Distruptive? A Preliminary Analysis of Intervening Variables Between Technological and Economic Changes', Paper presented at the Marstrand Symposium on Economics of Technology, Marstrand, Sweden, August, 1991; and P. Patel & K. Pavitt, 'The Continuing, Widespread (and Neglected) Importance of Improvements in Mechanical Technologies', mimeo, Science Policy Research Unit, University of Sussex, 1993; C. Oscarsson, 'Technology Diversification - the Phenomenon, Its causes and Effects', PhD dissertation, Department of Industrial Management and Economics, Chalmers University of Technology, Gothenburg, Sweden, 1993.
19. This may be less so for radical technical change than for incremental change. Often, though, it appears as if technological discontinuities build upon and expand a firm's existing technology base rather than replacing it. See O. Granstrand & S. Jacobsson, 'When Are Technological Changes Distruptive? A Preliminary Analysis of Intervening Variables Between Technological and Economic Changes', Paper presented at the Marstrand Symposium on Economics of Technology, Marstrand, Sweden, August, 1991; and P. Patel & K. Pavitt, 'The Continuing, Widespread (and Neglected) Importance of Improvements in Mechanical Technologies', mimeo, Science Policy Research Unit, University of Sussex, 1993; C. Oscarsson, 'Technology Diversification - the Phenomenon, Its causes and Effects', PhD dissertation, Department of Industrial Management and Economics, Chalmers University of Technology, Gothenburg, Sweden, 1993.
20. Granstrand & Jacobsson, op. cit., Ref. 10.
21. In a corresponding way, the concept of 'technological families' introduced by Gustafsson is based on the rationale that there are product groups which share a common technology base, and that the learning processes are facilitated if they occur in related production technologies. See H. Gustavsson, 'On-the-job Learning and Resource Allocation in Developing Countries: A Measurement Problem in Project Appraisal and a Proposal to Its Solution', Master's thesis, University of Sussex, 1981.
22. A network is here defined as actors, e.g. firms, organizations, associations or individuals engaged in the production, distribution or use of goods, services and knowledge. In these networks, information is spread via personal contacts, either formally or informally.
23. Dosi & Metcalfe, op. cit., Ref. 5; D. S. Landes, Inaugural lecture at the EARIE 18th Annual Conference, Ferrara, Italy, 1-3 September, 1991.
24. Dosi & Metcalfe, op. cit., Ref. 5; D. S. Landes, Inaugural lecture at the EARIE 18th Annual Conference, Ferrara, Italy, 1-3 September, 1991.
25. Metcalfe, op. cit., Ref. 5.
26. Ibid.; E. Rogers, 'The Rise of Silicon Valley', mimeo, Institute for Communication Research, Stanford University, 1981.
27. Ibid.; E. Rogers, 'The Rise of Silicon Valley', mimeo, Institute for Communication Research, Stanford University, 1981.
28. E. von Hippel, The Sources of Innovation (New York, Oxford University Press, 1988); B. Carlsson & S. Jacobsson, 'Technological Systems and Economic Policy: The Diffusion of Factory Automation in Sweden', Research Policy, 23, 1993, pp. 235-248.
29. E. von Hippel, The Sources of Innovation (New York, Oxford University Press, 1988); B. Carlsson & S. Jacobsson, 'Technological Systems and Economic Policy: The Diffusion of Factory Automation in Sweden', Research Policy, 23, 1993, pp. 235-248.
30. B. A. Lundvall, 'Introduction', in Lundvall, op. cit., Ref. 5; B. Johnsson, 'Institutional Learning', in Lundvall, op. cit., Ref. 5.
31. B. A. Lundvall, 'Introduction', in Lundvall, op. cit., Ref. 5; B. Johnsson, 'Institutional Learning', in Lundvall, op. cit., Ref. 5.
32. B. A. Lundvall, 'Introduction', in Lundvall, op. cit., Ref. 5; B. Johnsson, 'Institutional Learning', in Lundvall, op. cit., Ref. 5.
33. Information technology may to some extent reduce the negative effect of geographical distance, but there are limitations in terms of transferring information of a more tacit nature. See J. L. Daniels & N. C. Daniels, Global Vision - Building New Models for the Corporation of the Future (New York, McGraw-Hill, 1993); T. H. Davenport, Process Innovation - Reengineering Work through Information Technology (Boston, Harvard Business School Press, 1993).
34. Information technology may to some extent reduce the negative effect of geographical distance, but there are limitations in terms of transferring information of a more tacit nature. See J. L. Daniels & N. C. Daniels, Global Vision - Building New Models for the Corporation of the Future (New York, McGraw-Hill, 1993); T. H. Davenport, Process Innovation - Reengineering Work through Information Technology (Boston, Harvard Business School Press, 1993).
35. B. Å. Lundvall, 'Innovation as an Interactive Process; from User-Supplier Interaction to the National System of Innovation', in: G. Dosi, C. Freeman, R. Nelson, G. Silverberg & L. Soete (Eds), Technical Change and Economic Theory (London, Francis Pinter, 1988), p. 355.
36. M. S. Granovetter, 'The Strength of Weak Ties', American Journal of Sociology, 78, 1973, pp. 1360-1380.
37. For the R&D process it is known that an R&D team needs different kind of contacts during different phases of the development process. During early phases, the team benefits from many and disperse contacts (including weak ties), while during later phases, the successful teams mostly turn inward and limit the outside contacts to a vital few. See T. Allen, Managing the Flow of Technology (Cambridge, MA, MIT Press, 1984); S. Sjölander, Innovation och Företagsförnyelse-Ideutveckling och Idehantering i Forelag (Malmö, Liber, 1983).
38. For the R&D process it is known that an R&D team needs different kind of contacts during different phases of the development process. During early phases, the team benefits from many and disperse contacts (including weak ties), while during later phases, the successful teams mostly turn inward and limit the outside contacts to a vital few. See T. Allen, Managing the Flow of Technology (Cambridge, MA, MIT Press, 1984); S. Sjölander, Innovation och Företagsförnyelse-Ideutveckling och Idehantering i Forelag (Malmö, Liber, 1983).
39. Given a basic technical understanding and a common language of communication, one single contact to a capable machinery supplier, not necessarily in the vicinity, can provide a firm with the latest technology ahead of most international competitors, as was the case for a small Swedish company producing advanced technical textiles, which had very well established links to an advanced German machinery supplier: S. Alänge & S. Jacobsson, 'Svensk Tekoindustris Infrastruktur', Report submitted to NUTEK, Stockholm, 1992.
40. I. Frej, 'Grundläggande teknologier for småindustrietablering', Examensarbete, no. 1980-9 (Master's thesis in Swedish), Department of Industrial Management, Chalmers University of Technology, Gothenburg, 1981; and E. M. Rogers & D. L. Kincaid, Communication Networks - Towards a New Paradigm for Research (New York, The Free Press, 1981).
41. I. Frej, 'Grundläggande teknologier for småindustrietablering', Examensarbete, no. 1980-9 (Master's thesis in Swedish), Department of Industrial Management, Chalmers University of Technology, Gothenburg, 1981; and E. M. Rogers & D. L. Kincaid, Communication Networks - Towards a New Paradigm for Research (New York, The Free Press, 1981).
42. G. Reitberger, 'Forskning om teknikspridning', Report submitted to the National Swedish Board for Technical Development (STU), Stockholm, 1984; and B. Johannisson, 'Business and Local Community - Swedish experiences from bottom-up planning for local industrial development', Report 1985:4, Östersund, University of Östersund, 1985.
43. G. Reitberger, 'Forskning om teknikspridning', Report submitted to the National Swedish Board for Technical Development (STU), Stockholm, 1984; and B. Johannisson, 'Business and Local Community - Swedish experiences from bottom-up planning for local industrial development', Report 1985:4, Östersund, University of Östersund, 1985.
44. International collaborative R&D ventures have increasingly become a form of extended contacts, which indicates that even international networks can be of a tight nature. See D. Mowery, Alliance Politics and Economics - Multinational Joint Ventures in Commercial Aircraft (Cambridge, MA, Ballinger, 1987).
45. B. Carlsson & R. Stankiewicz, On the Nature, Function, and Composition of Technological Systems', Journal of Evolutionary Economics, 1, 1991, pp. 93-118; Lundvall, op. cit., Ref. 5; R. Nelson (Ed.), National Innovation Systems: A Comparative Analysis (Oxford, Oxford University Press, 1993).
46. B. Carlsson & R. Stankiewicz, On the Nature, Function, and Composition of Technological Systems', Journal of Evolutionary Economics, 1, 1991, pp. 93-118; Lundvall, op. cit., Ref. 5; R. Nelson (Ed.), National Innovation Systems: A Comparative Analysis (Oxford, Oxford University Press, 1993).
47. B. Carlsson & R. Stankiewicz, On the Nature, Function, and Composition of Technological Systems', Journal of Evolutionary Economics, 1, 1991, pp. 93-118; Lundvall, op. cit., Ref. 5; R. Nelson (Ed.), National Innovation Systems: A Comparative Analysis (Oxford, Oxford University Press, 1993).
48. Dosi et al., op. cit., Ref. 5; B. Carlsson & S. Jacobsson, 'Technological Systems and Industrial Policy', in: C. Freeman & D. Foray (Eds), Technology and Competitiveness: The Dynamics of Created Advantages (London, Pinter, 1991).
49. Dosi et al., op. cit., Ref. 5; B. Carlsson & S. Jacobsson, 'Technological Systems and Industrial Policy', in: C. Freeman & D. Foray (Eds), Technology and Competitiveness: The Dynamics of Created Advantages (London, Pinter, 1991).
50. B. Carlsson, G. Eliasson, A. Granberg, S. Jacobsson & R. Stankiewicz, 'Sveriges teknologiska system och framtida konkurrenskraft', report submitted to NUTEK, Stockholm, 1992.
51. Miller found that the process of large-scale innovation, the acceleration of product development and the increasing strategic importance of technology were factors contributing to the concentration of R,D&E activities close to the home base. Factors limiting the concentration were the dispersion of foreign sales, the surveillance of competitors' engineering and styling activities and the support of foreign assembly plants. Furthermore, the development of global networks is constrained by communication difficulties, travel time and cost, and by pressures for regional autonomy. See R. Miller, 'Global R&D Networks and Large-scale Innovations: The Case of the Automobile Industry', Research Policy, 23, 1994, pp. 27-46.
52. P. Patel, 'Localized Production of Technology for Global Markets', mimeo, Science Policy Research Unit, University of Sussex, 1993.
53. However, recent interview data suggest that firms that have a global marketing strategy, including a wish to be perceived as a local entity in each market, are to an increasing extent also in the process of globalizing their R&D, e.g. ABB, Honda, IBM, Motorola and NEC.
54. Inertia is here defined as unwillingness to change or, if a change is implemented, to change in certain already known directions. On the level of the whole organization, the company is usually said to be 'path-dependent'.
55. Patel & Pavitt, op. cit., Ref. 5.
56. W. Cohen & D. Levinthal, 'Absorptive Capacity: A New Perspective on Learning and Innovation', Administrative Science Quarterly, 35, 1990, pp. 128-152; B. Carlsson & S. Jacobsson, 'Technological Systems and Development Potentials - A Policy Discussion', mimeo, Department of Industrial Management and Economics, Chalmers University of Technology and Department of Economics, Case Western Reserve University, Cleveland, 1993.
57. W. Cohen & D. Levinthal, 'Absorptive Capacity: A New Perspective on Learning and Innovation', Administrative Science Quarterly, 35, 1990, pp. 128-152; B. Carlsson & S. Jacobsson, 'Technological Systems and Development Potentials - A Policy Discussion', mimeo, Department of Industrial Management and Economics, Chalmers University of Technology and Department of Economics, Case Western Reserve University, Cleveland, 1993.
58. Metcalfe, op. cit., Ref. 5.
59. Cohen & Levinthal, op. cit., Ref. 35.
60. See C. Thirtle & V. Ruttan, The Role of Demand and Supply in the Generation and Diffusion of Technical Change (London, Harwood Academic, 1987).
61. Carlsson & Jacobsson, op. cit., Ref. 35; J. Bessant & H. Rush, 'Building Bridges for Innovation: The Role of Consultants in Technology Transfer', Research Policy, 24, 1995, pp. 97-114.
62. Carlsson & Jacobsson, op. cit., Ref. 35; J. Bessant & H. Rush, 'Building Bridges for Innovation: The Role of Consultants in Technology Transfer', Research Policy, 24, 1995, pp. 97-114.
63. N. Rosenberg, Perspectives on Technology (Cambridge, Cambridge University Press, 1976); B. Gold, 'Technological Diffusion in Industry: Research Needs and Shortcomings', Journal of Industrial Economics, 29, 1981, pp. 247-269. The example of numerically controlled machine tools (NCMTs) can illustrate this feature. While the first NCMT was produced as early as 1955, it took two major changes (and 20 years) in the underlying technology base and associated price/performance characteristics (and a range of minor improvements) before NCMTs began to be diffused on a large scale. S. Jacobsson, Electronics and Industrial Policy. The Case of Computer Controlled Lathes (London, Allen & Unwin, 1986); E. Ehrnberg & S. Jacobsson, 'Technological Discontinuity and Competitive Strategy - Revival through FMS for the European Machine Tool Industry?', Technological Forecasting and Social Change, 44, 1993, pp. 27-48.
64. N. Rosenberg, Perspectives on Technology (Cambridge, Cambridge University Press, 1976); B. Gold, 'Technological Diffusion in Industry: Research Needs and Shortcomings', Journal of Industrial Economics, 29, 1981, pp. 247-269. The example of numerically controlled machine tools (NCMTs) can illustrate this feature. While the first NCMT was produced as early as 1955, it took two major changes (and 20 years) in the underlying technology base and associated price/performance characteristics (and a range of minor improvements) before NCMTs began to be diffused on a large scale. S. Jacobsson, Electronics and Industrial Policy. The Case of Computer Controlled Lathes (London, Allen & Unwin, 1986); E. Ehrnberg & S. Jacobsson, 'Technological Discontinuity and Competitive Strategy - Revival through FMS for the European Machine Tool Industry?', Technological Forecasting and Social Change, 44, 1993, pp. 27-48.
65. N. Rosenberg, Perspectives on Technology (Cambridge, Cambridge University Press, 1976); B. Gold, 'Technological Diffusion in Industry: Research Needs and Shortcomings', Journal of Industrial Economics, 29, 1981, pp. 247-269. The example of numerically controlled machine tools (NCMTs) can illustrate this feature. While the first NCMT was produced as early as 1955, it took two major changes (and 20 years) in the underlying technology base and associated price/performance characteristics (and a range of minor improvements) before NCMTs began to be diffused on a large scale. S. Jacobsson, Electronics and Industrial Policy. The Case of Computer Controlled Lathes (London, Allen & Unwin, 1986); E. Ehrnberg & S. Jacobsson, 'Technological Discontinuity and Competitive Strategy - Revival through FMS for the European Machine Tool Industry?', Technological Forecasting and Social Change, 44, 1993, pp. 27-48.
66. N. Rosenberg, Perspectives on Technology (Cambridge, Cambridge University Press, 1976); B. Gold, 'Technological Diffusion in Industry: Research Needs and Shortcomings', Journal of Industrial Economics, 29, 1981, pp. 247-269. The example of numerically controlled machine tools (NCMTs) can illustrate this feature. While the first NCMT was produced as early as 1955, it took two major changes (and 20 years) in the underlying technology base and associated price/performance characteristics (and a range of minor improvements) before NCMTs began to be diffused on a large scale. S. Jacobsson, Electronics and Industrial Policy. The Case of Computer Controlled Lathes (London, Allen & Unwin, 1986); E. Ehrnberg & S. Jacobsson, 'Technological Discontinuity and Competitive Strategy - Revival through FMS for the European Machine Tool Industry?', Technological Forecasting and Social Change, 44, 1993, pp. 27-48.
67. E. Ehrnberg & S. Jacobsson, 'Technological Discontinuities, Industry Structure and Firm Strategy - The Case of Machine Tools and Flexible Manufacturing Systems', Department of Industrial Management and Economics, Chalmers University of Technology, Gothenburg, Sweden, 1991; Metcalfe, op. cit., Ref. 5.
68. E. Ehrnberg & S. Jacobsson, 'Technological Discontinuities, Industry Structure and Firm Strategy - The Case of Machine Tools and Flexible Manufacturing Systems', Department of Industrial Management and Economics, Chalmers University of Technology, Gothenburg, Sweden, 1991; Metcalfe, op. cit., Ref. 5.
69. Metcalfe, op. cit., Ref. 5.
70. For a review, see Thirtle & Ruttan, op. cit., Ref. 38.
71. Rosenberg, op. cit., Ref. 40; Ehrnberg & Jacobsson, op. cit., Ref. 41; Carlsson & Jacobsson, op. cit., Refs 28, 35.
72. Rosenberg, op. cit., Ref. 40; Ehrnberg & Jacobsson, op. cit., Ref. 41; Carlsson & Jacobsson, op. cit., Refs 28, 35.
73. Rosenberg, op. cit., Ref. 40; Ehrnberg & Jacobsson, op. cit., Ref. 41; Carlsson & Jacobsson, op. cit., Refs 28, 35.
74. Edquist, op. cit., Ref. 3, briefly discusses this issue and makes a distinction between organizational innovations with respect to their factor saving biases and the degree to which they can be transferred between countries.
75. D. Teece, 'The Diffusion of an Administrative Innovation', Management Science, 26, 1980, pp. 464-470. On the other hand, tacit knowledge is easier to protect.
76. As the importance of company-specific organizational techniques is realized, we will probably still see an increasing priority given to developments of the firm's knowledge base in this field; investments which may have little to do with selling on the market.
77. For an analysis of the role of consultants in technology transfer, see Bessant & Rush, op. cit., Ref. 39.
78. Teece, op. cit., Ref. 46.
79. D. Teece, The Multinational Corporation and the Resource Cost of International Technology Transfer (Cambridge, MA, Ballinger, 1976).
80. J. R. Kimberley, 'Managerial Innovation', in: P. C. Nystroem & W. H. Starbuck (Eds), Handbook of Organisational Design (New York, Oxford University Press, 1981), p. 87.
81. There are companies that have developed a search and development function for organizational practices, e.g. units within the Motorola University.
82. See S. Alänge, 'Total Quality Management as a Tool for Organisational Change', CIM working paper WP 1992-01, Chalmers University of Technology, Gothenburg, 1992; P. Spenley, World Class Performance through Total Quality - A Practical Guide to Implementation (London, Chapman & Hall, 1992).
83. See S. Alänge, 'Total Quality Management as a Tool for Organisational Change', CIM working paper WP 1992-01, Chalmers University of Technology, Gothenburg, 1992; P. Spenley, World Class Performance through Total Quality - A Practical Guide to Implementation (London, Chapman & Hall, 1992).
84. The worst case, of course, is when a mixed message is provided, when there is no correspondence between what the boss says and what he/she does.
85. Kimberley, op. cit., Ref. 51. In large corporations it has been found that major organizational change programmes started by a central corporate office usually lead to failure. Instead, a success pattern has been found when an organizational innovation is, first, adopted, adapted and diffused by line management; later, when an internal success case exists, the innovation can be diffused and implemented on a wider scale within the corporation. See M. Beer, R. A. Eisenstat & B. Spector, 'Why Change Programs Don't Produce Change', Harvard Business Review, November/December 1990, pp. 158-166.
86. Kimberley, op. cit., Ref. 51. In large corporations it has been found that major organizational change programmes started by a central corporate office usually lead to failure. Instead, a success pattern has been found when an organizational innovation is, first, adopted, adapted and diffused by line management; later, when an internal success case exists, the innovation can be diffused and implemented on a wider scale within the corporation. See M. Beer, R. A. Eisenstat & B. Spector, 'Why Change Programs Don't Produce Change', Harvard Business Review, November/December 1990, pp. 158-166.
87. Teece, op. cit., Ref. 46.
88. Empirical work is needed to verify whether or not this is the case.
89. This subjective view is further reinforced by the consultancy firm's interest in packaging organizational innovations and making their offer unique. The result is that essentially the same innovation is described in different sets of 'proprietary' concepts. For example, Western consultancy firms catching up on the experiences developed within Japanese industry describe their own packaged offers in terms such as 'resourceful organizations' or 'horizontal organizations'. What the consultancy firms add to the general concept and features of total quality control is primarily their experience of analyzing and implementing the concept in a larger number of firms. This experience contains a strong factor of learning for each time the innovation is implemented, which is culture-specific depending on the nation/region and corporation in which the consultant has been active.
90. This 'standardizing' has been seen as a factor slowing the internal diffusion process: H. Hasselbladh, Administrativ innovationer i organisationer (Uppsala, Department of Business Administration, University of Uppsala, 1991). On the other hand, the opposite view is probably more common and recommended in normative books, i.e. often the initial use of a pilot project which lays the foundation for a firm-specific standardization is prescribed.
91. See D. Leonard-Barton, 'Implementation as Mutual Adaptation of Technology and Organisation', Research Policy, 17, 1988, pp. 251-267; Damanpour et al., op. cit., Ref. 2.
92. See D. Leonard-Barton, 'Implementation as Mutual Adaptation of Technology and Organisation', Research Policy, 17, 1988, pp. 251-267; Damanpour et al., op. cit., Ref. 2.
93. Leonard-Barton, op. cit., Ref. 60.
94. E. Trist, 'The Evolution of Socio-technical systems', Occasional paper no. 2, Ontario Quality of Work Life Center, Toronto, 1981.
95. N. Tichy, Managing Strategic Change - Technical, Political and Cultural Dynamics (New York, John Wiley & Sons, 1983); Alänge, op. cit., Ref. 53. Edquist, op. cit., Ref. 3, emphasizes that the distinction between technological and organizational change is analytical in nature because it is extremely difficult to distinguish sharply between them in the real world, and the two concepts are often related to one another in a complex way.
96. N. Tichy, Managing Strategic Change - Technical, Political and Cultural Dynamics (New York, John Wiley & Sons, 1983); Alänge, op. cit., Ref. 53. Edquist, op. cit., Ref. 3, emphasizes that the distinction between technological and organizational change is analytical in nature because it is extremely difficult to distinguish sharply between them in the real world, and the two concepts are often related to one another in a complex way.
97. N. Tichy, Managing Strategic Change - Technical, Political and Cultural Dynamics (New York, John Wiley & Sons, 1983); Alänge, op. cit., Ref. 53. Edquist, op. cit., Ref. 3, emphasizes that the distinction between technological and organizational change is analytical in nature because it is extremely difficult to distinguish sharply between them in the real world, and the two concepts are often related to one another in a complex way.
98. A common definition of an innovation refers to the point in time when it is first used in production for a commercial market, and in a similar way the adoption of an organizational innovation can be tied to the first use for commercial production: H. Rush, personal communication, 1994. However, a limited production for a market during a pilot test phase does not necessarily mean that the organizational innovation is in any regular use within the firm. Instead, it could be argued that the subsequent diffusion to other departments could be considered as the starting point for the adoption of the innovation.
99. Here user competence refers to both the ability to search for new opportunities and the ability to implement and manage change. The ability to search for new opportunities means the ability to find, to interpret, to understand and to choose, in this case, an organizational innovation. The ability to implement and manage change means the ability to make the employees understand the need for change in the organization, to set the goals in the right direction, to organize the change process, to involve, motivate and mobilize the workforce in the right direction and, finally, to measure and keep track of the goals.
100. "The literature on organisational innovation is vast and diverse. The studies focusing on invention, on the initial adoption decision or technology transfer among organisations are less relevant to understanding post adoption issues than is the research focused specifically on implementation" (Leonard-Barton, op. cit., Ref. 60).
101. Spenley, op. cit., Ref. 53.
102. For example, R. Beckhart & R. T. Harris, Organizational Transitions: Managing Complex Change (Reading, MA, Addison-Wesley, 1977); E. H. Schein, Organizational Culture and Leadership (San Francisco, Jossey-Bass, 1980).
103. For example, R. Beckhart & R. T. Harris, Organizational Transitions: Managing Complex Change (Reading, MA, Addison-Wesley, 1977); E. H. Schein, Organizational Culture and Leadership (San Francisco, Jossey-Bass, 1980).
104. Teece, op. cit., Ref. 46.
105. For instance, the Volvo Uddevalla plant grew out of the long experience of the Volvo factory in Kalmar.
106. Parallel innovations can be either directly competitive, in that they perform almost the same function or are directed towards the same area, or indirectly competitive, in that they compete for the same limited resources in terms of money, managerial capacity etc. In the case of the sequential form of diffusion, where one innovation is perceived by the individuals in an organization as a direct continuation of an earlier failure, major barriers are created. To overcome such barriers can be a matter of several years. Especially in the case of organizational and technical innovations, there can be a direct synergistic condition. For example, the diffusion of new information technology in the form of distributed PC-based networks conditions and positively reinforces the diffusion of decentralized management practices in large corporations. Kimberley, op. cit., Ref. 51.
107. A. Berger, 'Några spridda tankar kring organisatoriska innovationers uppkomst, spridning och adoption', mimeo, Department of Operations Management and Work Organization, Chalmers University of Technology, Gothenburg, 1993.
108. G. D. R. Zaltman & J. Holbek, Innovations and Organizations (New York, John Wiley & Sons, 1973); J. R. Kimberley, 'Issues in the Design of Longitudinal Organizational Research', Sociological Methods and Research, 4, 1976, pp. 321-347; Kimberley, op. cit., Ref. 51.
109. G. D. R. Zaltman & J. Holbek, Innovations and Organizations (New York, John Wiley & Sons, 1973); J. R. Kimberley, 'Issues in the Design of Longitudinal Organizational Research', Sociological Methods and Research, 4, 1976, pp. 321-347; Kimberley, op. cit., Ref. 51.
110. G. D. R. Zaltman & J. Holbek, Innovations and Organizations (New York, John Wiley & Sons, 1973); J. R. Kimberley, 'Issues in the Design of Longitudinal Organizational Research', Sociological Methods and Research, 4, 1976, pp. 321-347; Kimberley, op. cit., Ref. 51.
111. Organizational distance is here defined as the distance between the old and new ways of working; that is, differences in working routines, organization, ways of working etc.
112. On the other hand, because of the tacitness of organizational innovations, it may well be that potential adopters cannot easily distinguish between organizational practices that are closer to each other, which can result in either the rejection of a new organizational innovation on the grounds that it has already been implemented, or the adoption of certain new concepts while no real change in practice takes place.
113. Teece, op. cit., Ref. 46.
114. Ibid.
115. This has been done through committee work on what constitutes Japanese total quality control and is being enforced through the requirements of the Deming Prize, which is the Japanese quality award given to the company that best fulfils the total quality control requirements. See T. Ikewaza, Y. Kondo, A. Harada & T. Yoneyama, 'Features of Company-wide Quality Control in Japan', in: JUSE, Proceedings of the International Conference on Quality Control (Tokyo, JUSE, 1987), pp. 43-47.
116. Carlsson & Jacobsson, op. cit., Ref. 28.
117. V. Mahajan, S. Sharma & R. D. Bettis, 'The Adoption of the M-form Organisational Structure: A Test of Imitation Hypothesis', Management Science, 34, 1988, pp. 1188-1201. There are cases when adoption is done before a real profit crisis. Often, a strong institutional structure exists, or there are external factors, such as influential customers requiring a change, which for a small supplier firm can be perceived as close to crisis. The adoption can also take place because of a 'bandwagon or demonstration effect' set in motion by leading companies. See K. Bemowiski, 'The Benchmarking Bandwagon', Quality Progress, January 1991, pp. 19-24.
118. V. Mahajan, S. Sharma & R. D. Bettis, 'The Adoption of the M-form Organisational Structure: A Test of Imitation Hypothesis', Management Science, 34, 1988, pp. 1188-1201. There are cases when adoption is done before a real profit crisis. Often, a strong institutional structure exists, or there are external factors, such as influential customers requiring a change, which for a small supplier firm can be perceived as close to crisis. The adoption can also take place because of a 'bandwagon or demonstration effect' set in motion by leading companies. See K. Bemowiski, 'The Benchmarking Bandwagon', Quality Progress, January 1991, pp. 19-24.
119. J. P. Womack & D. T. Jones, The Machine that Changed the World (New York, Macmillan, 1990). One point in case is the Swedish Saab automobile plant, which after a severe crisis has rapidly adopted the principles of lean production and incorporated Japanese managerial experiences and methods into its production plant in Trollhättan. This may be one contributing factor to Kimberley's (op. cit., Ref. 51, p. 94) proposition that "certain managerial innovations are likely to diffuse countercyclically ... As total income increases, consumption of technological innovations increases, whereas consumption of certain managerial innovations does not. As total income shrinks, however, consumption of these managerial innovations is likely to increase".
120. J. P. Womack & D. T. Jones, The Machine that Changed the World (New York, Macmillan, 1990). One point in case is the Swedish Saab automobile plant, which after a severe crisis has rapidly adopted the principles of lean production and incorporated Japanese managerial experiences and methods into its production plant in Trollhättan. This may be one contributing factor to Kimberley's (op. cit., Ref. 51, p. 94) proposition that "certain managerial innovations are likely to diffuse countercyclically ... As total income increases, consumption of technological innovations increases, whereas consumption of certain managerial innovations does not. As total income shrinks, however, consumption of these managerial innovations is likely to increase".
121. Mahajan et al., op. cit., Ref. 80.
122. For many reasons dealt with in this paper, firm-specific knowledge in an organization can be more sustainable that technological knowledge.
123. Government policy may be conceived as one corrective mechanism. For a review of some innovative technology transfer policies, see Bessant & Rush, op. cit., Ref. 39.
124. Kimberley, op. cit., Ref. 51.
125. The dual network structure consists of a tight local network complemented by a weak-ties network in a diversified outside world.
126. M. M. McKinney, A. D. Kaluzny & H. S. Zuckerman, 'Paths and Pacemakers: Innovation Diffusion Networks in Multihospital Systems and Alliances', Health Care Management Review, 16, 1991, pp. 17-23.
127. However, 'the imitation pattern' does not always seem to be the way in which organizational innovations diffuse. In a meta-study of the diffusion of the M-form, i.e. a complex administrative innovation, Mahajan et al. (op. cit., Ref. 80) found that "unlike the adoption of technological innovations, complex administrative innovations may not follow the imitation process". They provided three major reasons for this result: "To sum, ... the uncertainty associated with the performance advantages of the M-form structure, the unique nature of the innovation itself and organisational momentum may be some of the reasons causing the adoption of the M-form structure not to follow the imitation process".
128. Shiba, personal communication, 1987.
129. In addition, the consultants (the 'supplier industry' of organizational innovations) sell a packaged product which undergoes a continuous learning cycle each time it is implemented in a new organizational setting.
130. One instrument on these lists is the use of systematic benchmarking techniques, i.e. to compare processes with best practice in industry in general, not only one's own industry, in order to avoid 'not invented here' biases and to increase the speed of the diffusion of organizational innovations.
131. In Japan, this practice of transferring people and, hence, their tacit knowledge is well developed. One example is the practice of letting a development engineer follow the product downstream. Another example is the habit of moving people who are getting close to retirement age to a supplier firm. S. Alänge, O. Granstrand & S. Sjölander, 'Some Preliminary Impressions from Japan', CIM working paper WP 1988-06. Political and legal constraints can facilitate the diffusion process (Kimberley, op. cit., Ref. 51). One clear example of this is the rapid diffusion of ISO 9000 certification in the UK, which can largely be explained by the Thatcher government's decision to require all suppliers to the state to have an ISO 9000 certificate by a certain date. The result was that all firms considering involving themselves in government procurement activities rushed to get a certificate. Adoption of a new innovation does not, of course, automatically lead to successful implementation.
132. In Japan, this practice of transferring people and, hence, their tacit knowledge is well developed. One example is the practice of letting a development engineer follow the product downstream. Another example is the habit of moving people who are getting close to retirement age to a supplier firm. S. Alänge, O. Granstrand & S. Sjölander, 'Some Preliminary Impressions from Japan', CIM working paper WP 1988-06. Political and legal constraints can facilitate the diffusion process (Kimberley, op. cit., Ref. 51). One clear example of this is the rapid diffusion of ISO 9000 certification in the UK, which can largely be explained by the Thatcher government's decision to require all suppliers to the state to have an ISO 9000 certificate by a certain date. The result was that all firms considering involving themselves in government procurement activities rushed to get a certificate. Adoption of a new innovation does not, of course, automatically lead to successful implementation.