University:
Massachusetts Institute of Technology
Course:
15.501/516 | Accounting
Academic year:

2023
Views:

199

Pages:

9
Author:

Ashlyn Harris

Managing the Innovation Process Organizational Learning Overview • Take-Away • Required Readings • Supplemental Readings • Caveats 2 Take-Away • Innovation is often a product of absorptive capacity • Innovation can result from efforts of lead users • Innovation is closely tied to organizational learning • Innovation requires focus on window of opportunity 3 (Cohen & Levinthal, 1990) • “Absorptive capacity: A new perspective on learning and innovation” • Absorptive Capacity (ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends) • Individual / Organization (cognitive knowledge structures / R&D communication) • Path Dependence (capacity critical because cumulative and expectation forming) 4 (von Hippel, 1988) • “The sources of innovation – Chapter 8: Predicting the source of innovation: Lead users (pp. 102-122)” • Lead Users (face general needs, but well in advance of marketplace) (positioned to benefit significantly by solving problem) • Examples (open source programs by developers, white-out by secretary) • Methodology (identify trend, identify lead users, analyze insight, test concept) 5 (Argote, 1999) • “Organizational learning: Creating, retaining, and transferring knowledge – Chapter 1: Organizational learning curves: An overview (pp. 1-34)” • Organizational Learning Curves (as organizations produce more of a product, the unit cost of production decreases at a decreasing rate) • Rate Differences (80% average, though much variation across organizations) • Curve Predictors (quality of individuals, technology, and coordination) 6 (Brown & Duguid, 1991) • “Organizational learning and communities-of-practice: Toward a unified view of working, learning, and innovation” • Communities-Of-Practice (informal groups of people connected through shared interest) • Work Practice Disconnect (manuals do not often reflect how work is really practiced) • Learning and Innovation (best done in the context of real work practices) 7 (Tyre & Orlikowski, 1993) • Exploiting opportunities for technological improvement in organizations” • Episodic Pattern Of Technological Change (initial burst of adaptive activity followed by stability followed by additional adaptive activity followed by stability…) • Window Of Opportunity (energy levels are high and situation is novel at initial burst) • Managerial Implication (focus attention on need for change while providing resources) 8 Caveats • What if R&D is not available for absorptive capacity? • Who are the lead users for non-existent markets? • When do learning curves signal innovation? • How does one identify a window of opportunity? 9