Leadership and Organization Innovation Adoption: A Case Study

Background

Barsh, Capozzi, & Davidson (2008) affirm that the concept of innovation somehow suffers from “fashion” effects, being cherished in prosperous times and less talked about in times of greater austerity and contention. Nevertheless, the importance of innovation has been growing in scientific literature and in the rising concern of policy makers (Fagerberg, 2004). However, innovation in socio-economic context is not something new. Fagerberg (2003) highlighted this, since innovation is as old as humanity even if its study and formal use is quite recent

As globalization overthrew the geographical and market boundaries that prevented businesses from reaching their potential, company's ability to innovate - to take advantage of the value creation ideas of its employees and its partners, customers, suppliers and other parts beyond its own limits - is anything but fleeting. In fact, innovation has become a core driver of asset growth, performance and value (McKinsey, 2007). More than 70 percent of senior executives say that innovation will be at least one of the top three growth engines for their companies in the next three to five years (McKinsey, 2007). Other executives see innovation as the most important way for companies to accelerate the pace of change in today's global business environment (McKinsey, 2007).

Some key thinkers in strategy are looking beyond the traditional focus on product and service innovation categories, pinpointing in a pioneering way for innovations in business processes, distribution, value chains, business models and even management functions. The same research also shows that most executives are disappointed with their ability to stimulate innovation: about 65 percent of executives interviewed were only “little”, “very little” or “not at all” confident about the decisions they make in this area (McKinsey, 2007). What explains the difference between the aspirations and execution of leaders? Even starting to build an organization where innovation plays a central role is often much more frustrating than most executives might imagine it to be. Many of those who imitate the approaches of successful practitioners have found that path ineffective.