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A corporate system for continuous innovation: the case of Google Inc.

Purpose – History is full of companies that were once innovative leaders but lost their innovative ability. The purpose of this paper is to explore, from a firm‐level perspective, organizational characteristics for continuous innovation in rapidly changing industries.Design/methodology/approach – Findings from 28 interviews at Google Inc., are compared to previous research on organizational characteristics for continuous innovation.Findings – Googles organization can be viewed as a dynamic and open corporate system for continuous innovation, involving the entire organization and supported by an innovation‐oriented and change‐prone top management and board. The relative importance of eight organizational characteristics in this corporate system is elaborated upon.Research limitations/implications – There is a need for empirical research contributing to the development of a more comprehensive analytical framework for continuous innovation, including the role of culture and selection/facilitation of self‐or...

The evolution of corporate entrepreneurship in Swedish industry—was Schumpeter wrong?

This paper analyzes the evolution and role of corporate entrepreneurship in Swedish industry, particularly for the 1945–1980 period, based on data on the 100 economically most important innovations during this period. Privately owned large corporations (Schumpeter Mark II) dominated in launching innovations in almost all industrial sectors and in all subperiods but decreasingly so. 20% of the innovations were launched by new firms (Schumpeter Mark I) but most of these new firms were spun-off and/or acquired by large corporations. State entrepreneurship was marginal. Universities played an important role, although sector-specific. New firms and existing firms had similar growth rates and almost identical and short gestation times to international markets for their innovations. 80% of the corporate innovations were product renewals rather than product diversifications or process innovations. No evidence of an evolution from autonomous over corporate to state entrepreneurship, as hypothesized by Schumpeter, was found. Evolution of a dynamic coexistence of. these forms of entrepreneurship is hypothesized in this paper. The paper finally presents a model, synthesizing Schumpeter Mark I and II, for analyzing technological change and entrepreneurship.

The board's role in sustaining major organizational change: An empirical analysis of three change programs

The importance of top management commitment for the success of major change initiatives has been emphasized in the literature, while the role of boards of directors (the board) has been in less focus. The purpose of this paper is to analyze how the boards affect the sustainability of major organizational change. This paper is based on three case studies of the diffusion of total quality management (TQM), Toyota production system (TPS), and lean production (LP). Findings from these case studies are then compared to literature on management and organization and corporate governance. It was found that a TQM/TPS/LP transformation is a long-term process. In the case studies, top management commitment is crucial for the sustainability of the implemented change programs. However, a committed top management does not “last forever.” The issue of sustaining change therefore falls back on the governance structure. If the board does not understand the essence of an organizational change, the risk is that top management is replaced with new leaders, who are given new directions by the board. Issues identified as important in order to create board commitment for sustainability of major organizational change are: board competence and experience, board meeting dynamics, board as a provider of critical resources, and the process of replacement of chief executive officers. The dominating agency theory within corporate governance also needs to be questioned and complemented by more recent theories such as the stewardship and the resource-dependence theories. This paper makes an orginal contribution by providing insights into the board’s role in sustaining major organizational change.

The formation and growth of Google: A firm-level triple helix perspective:

The Triple Helix model of innovation systems is widely diffused. The fundamental idea of the model is that ‘university’ can play an enhanced role in innovation in knowledge-based societies and that the three helices – ‘university’, ‘industry’ and ‘government’ – interact in order to produce innovation and therefore regional and national economic growth. This is, however, only one model among several different systemic approaches for explaining regional differences in innovativeness. While the triple helix model emphasizes the role of the university for regional innovativeness, the other systemic approaches call attention to either industry or government as having the lead role in innovation. Further, the triple helix model is developed and primarily explored from a macro-level perspective and not from a firm-level perspective. Finally, while the theoretical value of triple helix interactions are reasonably confirmed, there are still gaps in the triple helix concept, and the practical value is only just beginning to realize its potential. From a firm-level perspective, the purpose of this article is therefore to test the applicability and practical value of the triple helix model when exploring the formation and growth of firms using the case of Google Inc. Useful when exploring a firm’s formation and growth, the triple helix model forces the exploration to start even before the entrepreneur enters the scene, which provides a more holistic picture of firm formation. The three helices were all found to play important but changing roles in the different phases of firm formation and growth. The Google case contributes further understanding of the nature and historical evolution of interactions between the three helices, thereby filling some gaps in the triple helix concept. The Google case also identifies a number of mechanisms for interaction and the important role of the bridging organizations that connect the helices and contribute to the development of interactions. Finally, the concept of ‘spaces’ proved relevant and useful, although in the perspective of a firm, the concept has a broader meaning and exists on different levels.

Diffusion of organisational innovations: an empirical test of an analytical framework

Alänge, Jacobsson, and Jarnehammar (1998) presented an analytical framework for studying the diffusion of organisational innovations, based on the developments in literature on technical innovations and their diffusion. The aim of this paper is to examine the validity of the framework. Two exploratory case studies were carried out on the diffusion of the organisational innovation TQM. The case studies showed that the framework is a useful tool for studying the diffusion of organisational innovations. However, factors such as learning processes on a national and international level and the role of fads need further consideration. In addition, factors needed for a long-term commitment such as boards and owners and internal political and cultural systems need to be further investigated. The paper also presents a model for analysing the different phases in a diffusion process.

The Silicon Valley Model: Management for Entrepreneurship

This book presents a new management model that has evolved in Silicon Valley. The future will favor companies that can migrate to a management model, better suited for the times. The abilities to remain entrepreneurial and innovate constantly will be essential for all companies in an innovation economy. However, most firms still use industrial-age management models that are not suited to attracting and energizing entrepreneurial talent. This book imbibes latest results from a year-long study of Google’s approaches to management, and finds similar principles being applied at companies including, Facebook, LinkedIn, Twitter, Tesla Motors, and Apigee. By distilling on the aspects that work across a variety of innovative firms, the authors present a synthesis that could have profound implications for managers everywhere.

What role do QC-circles play in Sweden?

An analysis is made on why the quality control (QC) circle activities in Sweden took a considerable step backwards since 1985, after a steady increase in the number of circles during the first 10 years. There are many contributing factors to the reversal, among which are lack of top management support, a short term focus and narrow perspective on the role of the circle, and implementation flaws. The perceived decline does however not reveal the whole truth. QC circles exist under other names, and different modified forms of problem-solving groups are frequent. In some firms also QC circles come and go and reoccur when the firm enters into a situation where the total labour force has to be mobilized. The results from Sweden strongly indicate the crucial role of top management involvement for a successful implementation and continuation of a QC circle program.

Strategic technology management issues in japanese manufacturing industry

The purpose of this paper is to elaborate upon some strategic technology management issues which have been identified in interviews with top technology managers in 14 major, technology-based Japanes corporations. The study is part of a larger research project comparing best management practices regarding R&D, technology and innovation in companies in Japan, USA and Europe.

The Volvo Robust Engineering System: how to make robust design work in an industrial context

The Volvo Robust Engineering System (VRES) is an adaptation of the robust design concept in an industrial context. It consists of five different principles as a basic value system, and eight practices that contribute to the implementation of system, parameter and tolerance design. VRES was developed through a learning alliance between Volvo and Chalmers University of Technology. This paper presents VRES and discusses it in relation to the literature-based robust design methodology, which has been a major inspiration for VRES development. VRES has expanded and validated the concepts previously developed in the literature by adding the elements needed for practical application.

Introducing robust design in product development: Learning from an initiative at Volvo

Robust design (RD) has a large potential to contribute to product and process improvements providing increased customer value. However, it has shown to be difficult to obtain these benefits in practice. This study aims to evaluate and learn from an initial approach to introducing RD within the Volvo Group. It is based on three pilot cases within the product development organisation of a business unit. Data were collected through formal interviews and informal dialogues with pilot participants, supplemented by existing documentation of the pilot cases. The main finding was that a RD initiative, characterised by ‘tool-pushing’ and with a predefined solution introduced by an external consultant, faced many obstacles and could not create a sustainable result. Instead, it was found that there is a need to involve engineers and create a learning culture in which RD principles can become a natural part of work practices. This study identified six obstacles to the success of the initiative, which were perceived as learning points for a broader application of RD at the company. This underscores that RD initiatives can also be hampered by similar types of obstacles that have been identified in research on other change processes.