Towards a Theoretical Framework for Organizational Innovation

Being able to innovate has become a critical capability for many contemporary organizations in an effort to sustain their operations in the long run. However, existing innovation models that attempt to guide organizations emphasize different aspects of innovation (e.g., products, services or business models), different stages of innovation (e.g., ideation, implementation or operation) or different skills (e.g., development or crowdsourcing) that are necessary to innovate, in turn creating isolated pockets of understanding about different aspects of innovation. In order to yield more predictable innovation outcomes organizations need to understand what exactly they need to focus on, what capabilities they need to have and what is necessary in order to take an idea to market. This paper aims at constructing a framework for innovation that contributes to this understanding. We will focus on a number of different stages in the innovation process and highlight different types and levels of organizational, technological, individual and process capabilities required to manage the organizational innovation process. Our work offers a comprehensive conceptualization of innovation as a multi-level process model, and provides a range of implications for further empirical and theoretical examination.