This slideshow was used at XXIII ISPIM Conference to present an academic article with the same title: "Developing grounded theory on organizational innovation". Organizational innovation is currently becoming increasingly relevant for business competitiveness, but the body of research that deals with it is still rather limited. In fact, its “official” recognition as an innovation type by Oslo Manual only goes back to 2005. Still today, however, its analysis is considered methodologically challenging. Assuming that organizational innovation tends to be highly firm-specific, research methods should account for such contextuality in order to profound the understanding of how an organizational innovation process is initiated, developed and evaluated. Therefore, grounded theory is proposed as a suitable methodology to reach thorough understanding of organizational innovation processes, and the progress of its application on a first case study is also presented. Preliminary results have helped identifying the new organizational methods applied and the type of change process developed in the company studied.

1. Developing grounded theory on
organizational innovation
Maria Larraza Malkorra
Orkestra - Basque Institute of Competitiveness & Deusto Business School
XXIII ISPIM Conference I Barcelona, 17-20 june 2012

2. Organizational innovation - multiple challenges ahead (1)
• Organizational innovation is an 1st
Definition challenge
ambiguous concept
• Both in terms of content
The implementation of new methods in a firm’s business practices,
workplace organization or external relations (OECD, 2005).
• And in terms of process (Van de Ven, 1992)
Life cycle sequence of programmed stages
Intentional vision formulation, implementation, evaluation,
Organizational modification
change
processes Dialectical continuous confrontation and conflict
Evolutionary events happening as an outcome of ongoing
competition for scarce resources
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3. Organizational innovation - multiple challenges ahead (2)
2nd 3rd
Relevance Methodology
challenge challenge
• Not recognized by Oslo Manual • Lack of reliable scales
until 2005
• Intangibility of goals
• Though increasingly important for:
• Different aggregation levels
– Firms’ competitive advantage
• Long life cycles
– Knowledge development in
• Extent of implementation
companies
• Multidimensional relationship:
– Enabling other forms of
process <>outcomes
innovation
(Kirner et al, 2008)
Can Grounded
Theory help?
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4. Purpose of research around organizational innovation (OI)
Understand organizational innovation:
– How is the process initiated, developed and evaluated?
– How is the content defined? New organizational methods in…
• … business practices?
• … workplace organization?
• and/or external relationships?
Design and apply Grounded Theory as a suitable method for research on
organizational innovation and building theory about it
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5. Introduction to Grounded Theory (GT)
• Develop theories about barely known phemomenon
Purpose • Based on data directly collected on the field
Difference From mere description to theory
Focus on Behaviours - the engine of the meanings
Use on business
Elusive and misunderstood
research
• NO deep initial literature review
• NO hypotheses
Features • NO linearity: constant comparative cycle
• Fieldwork and data analysis: in paralell
• Ends with saturation, confirmability & final theory
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6. Developing GT on organizational innovation
Research design:
Inductive, longitudinal, field
based multiple case study
Field settings:
- Industrial SMEs from the
Basque Country
- Theoretical sampling
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7. Data sources – Ennera’s OI
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8. Analytical process – Ennera’s OI
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9. Ennera’s OI – emerging initial theory
CONTENT PROCESS
New organizational methods Intentional type:
applied since end 2010: • Driven by a strong and
common vision
• Workplace organization
– Departments division • Strong: coming from a
– Functional directors assigned clear leader
– Bonus system first applied
• Business practices • Common: thanks to a
shared corporate
– Own work and collaboration culture (values and
dynamics established practices)
– New communication forum:
Board of Directors • Developed through constant
• External relationships: no action and evaluation,
evidence shown formalization comes later
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10. Next steps and… challenges addressed?
• Next steps on the road towards a grounded theory:
– Go back to literature review
– Look for confirmability:
• Contrast with opposite case study (ongoing)
• Interview with experts
• Peer review on Grounded Theory method
• Contribution to initial challenges?
To be continued…
Methodology How to facilitate its transfer?
Identifying competitive advantages derived from
Relevance
organizational innovation?
Definition Broadening with organizational culture, behaviours or
participation, processes…?
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11. Thank you for your attention!
Maria Larraza Malkorra
Blog: www.mktinbasque.com
E-mail: maria.larraza@orkestra.deusto.es
Orkestra - Basque Institute of Competitiveness & Deusto Business School
Strategy Department