Title: Designing for innovative capability in the structure of organisations

Authors: Sarah Kirkeby, Karina Skovvang Christensen

Addresses: Department of Informatics, Copenhagen Business School, Howitsvej 60, 2000 Frederiksberg, Denmark. ' School of Economics and Management, University of Aarhus, Building 1322, Bartholins Alle, 8000 Aarhus C, Denmark

Abstract: Both organisational structure and availability of human resources for innovation are critical elements to organisational start-ups, survival and growth in the global society. However, we only have little knowledge about how different organisational designs influence the availability of innovation resources. Therefore, the aim of this study is to investigate the |missing| link between the ways we organise a firm so it becomes innovative and how the resources become available for innovative activities. Based on a comparative case study, the analysis utilises grounded theory techniques. We found that the perception of innovation links organisational design and the availability of resources for innovative activities. The more divisional organisational design and separation of firm branches, the more diffuse a concept of innovation among human resources, making them less available for innovative activities. Hence, innovation by design should be a prime factor in the organisational structure – both among start-ups and among mature firms.

Keywords: information technology; communication technology; ICT; innovation perception; human resource management; HRM; organisational design; organisational structure; SMEs; small and medium-sized enterprises; business start-ups; innovation management; grounded theory; innovation by design; mature firms; innovative capability; entrepreneurship.

DOI: 10.1504/IJEIM.2010.030068

International Journal of Entrepreneurship and Innovation Management, 2010 Vol.11 No.2, pp.194 - 212

Published online: 09 Dec 2009 *

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