Bjørn Olsen

Innovation as newness: what is new, how new, and new to whom?

Innovation implies newness. To define and measure innovation better, we investigated three dimensions of newness: what is new, how new, and new to whom? Drawing on prior research by Schumpeter and Kirzner, we developed a scale that addresses six areas of innovative activity: new products, new services, new methods of production, opening new markets, new sources of supply, and new ways of organizing. Using factor analysis on data from two separate field studies – 684 firms from eight industries and 200 information technology firms – we found that innovation as newness represents a unidimensional construct, distinguished only by the degree of radicalness.

Aspects of innovation theory based on knowledge-management

The objective of this paper is to develop some rudiments of innovation theory based upon organizational vision and knowledge management, i.e. facilitating the development-integration and application of knowledge. The theory is systematized in the conclusion with assumptions, a system of propositions and implication for organizational innovation.

Managing and organizing innovation in the knowledge economy

In the knowledge economy, where the business environment is characterised by turbulence and complexity, knowledge is the main source of creating both innovation and sustainable competitive advantage. This paper describes a conceptual model and an associated set of managerial and organising implications for the innovation‐led company. The question we are trying to answer is: which management and organising characteristics are necessary to manage innovation in the knowledge economy? The paper is based on in‐depth interviews of 32 CEOs and top executives in leading European organisations, 40 people known internationally for their ability to achieve and maintain a position among the top performers in their fields, and a “best practice study” of five leading international companies.

The future of value creation and innovations: Aspects of a theory of value creation and innovation in a global knowledge economy

What enhances innovation and value creation in the global knowledge economy? We offer several answers here, chief among them this: Leaders need to move away from focusing on developing innovations and value within the mental models, systems, and organizational solutions of the old industrial economy, with its firm- and product-centric view of value. Instead, they need to focus on providing tailor-made products and services to the newly connected and interconnected customer. They can do this with individualized immediate feedback, a new organizational logic, and new cooperating structures.

Strategic use of information technology for increased innovation and performance

Although we observe a general optimism concerning IT’s potential for creating suitable competitive advantages, there exists a lack of empirical support for the positive economic impact of IT on businesses. This is denoted as the productivity paradox of IT. We argue that in situations of hypercompetition, using conventional productivity measures as the only performance indicator would be inadequate when studying the impact IT has. Furthermore, investing in IT does not ensure its proper implementation. Consequently there is a need to consider what companies are using IT for and its consequences for innovation and a variety of performance measures. In a study of 200 firms within the Norwegian IT sector, we found that focusing on the use of IT might be a promising route for studying the relationship between IT and successful innovations, and between IT and performance. We also found a number of trade‐offs between the various performance measures and between successful innovations and performance. Although we were able to find positive effects of IT we argue in favour of developing an information and a knowledge strategy prior to developing an IT strategy

Intellectual capital as a holistic management philosophy: a theoretical perspective

The aim of this article is to examine the nature of intellectual capital and its role in the value creation processes. In this article, we regard the construct intellectual capital as a holistic management philosophy. We will develop a typology for this holistic management philosophy, in addition to conceptual models to describe and explain contexts pertaining to the various typologies. In conclusion, we will develop an analytical model where intellectual capital is ingrained in a larger operational context in relation to value creation processes.

Organizing for innovation

Abstract The authors argue that process organizing may be a promising route to creating sustainable competitive advantage within a business environment which is becoming increasingly turbulent and complex. Developing invisible assets, and tacit knowledge in particular, is crucial in creating such advantages. This article first presents a framework for process organizing which focuses on the relationship between company vision, the creation of multifunctional teams and the complementary relationship between team members. It then presents a model for making process teams work by emphasizing a number of criteria which should be met in re-engineering work processes, and indicates managerial and theoretical implications.

Systemic thinking as the philosophical foundation for knowledge management and organizational learning

In this article we will discuss the link between systemic thinking, organizational learning and knowledge management. We will develop a conceptual model to illustrate and explain this link, which will be further discussed throughout the article. The main entities of this model are: emphasis on internal motivation, relations in and among systems, in addition to the development of vision, generation of ideas and creativity. The philosophical basis for this model is systemic thinking. We will thus explain the meaning of this way of thinking, before we discuss the individual elements of the conceptual model.

Projects as communicating systems: Creating a culture of innovation and performance

Although often downplayed and instrumental, there is evidence that communication in projects is essential in achieving value creation. Our main interest in this paper is on temporary continuity, a situation where the temporary becomes a permanent condition in social systems. The question that we have address is: What characterizes project communication in a situation with temporary continuity? We argue for the need to transform communication processes into communication capabilities. In a situation with temporary continuity, there is a need to connect to a large number of value-creating processes, and communicating capabilities need to be a part of a communication system, where the aim is to bind together value-creating processes and communication capabilities. We construct a viable system consisting of five sub-systems. To become a viable system, projects in the form of temporary continuity, must handle the potential conflict between a culture of performance and a culture of innovation. This involves developing social mechanisms for coordination and interaction, with a focus on developing communication capabilities, in parallel with focusing on all of the five value-creation processes.

Systemic knowledge processes, innovation and sustainable competitive advantages

Purpose – Turbulence and complexity in the business environment is growing along with the need for external information in creating innovation, as innovation is seen as the primary source of sustainable competitive advantages in the knowledge economy. Consequently, the underlying information processes were external information are gathered and put into use, are crucial for companies in their development of innovation, and ultimately their capacity to limit imitation and create sustainable competitive advantages.Design/methodology/approach – The research question in this paper is, how can systemic knowledge processes create innovation and promote competitive advantages? Through a conceptual model it is argued that a prerequisite for the acquisition, development, integration and application of knowledge, is the existence of systemic knowledge processes, percolation processes and networking.Findings – It is through these processes that organizations can develop innovations, which ultimately will lead to sust...