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Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach

Author

Listed:
  • BENN LAWSON

    (Department of Accounting, The University of Melbourne, Victoria, 3010, Australia)

  • DANNY SAMSON

    (Department of Management, The University of Melbourne, Victoria, 3010, Australia)

Abstract

This paper draws together knowledge from a variety of fields to propose that innovation management can be viewed as a form of organisational capability. Excellent companies invest and nurture this capability, from which they execute effective innovation processes, leading to innovations in new product, services and processes, and superior business performance results. An extensive review of the literature on innovation management, along with a case study of Cisco Systems, develops a conceptual model of the firm as an innovation engine. This new operating model sees substantial investment in innovation capability as the primary engine for wealth creation, rather than the possession of physical assets. Building on the dynamic capabilities literature, an "innovation capability" construct is proposed with seven elements. These are vision and strategy, harnessing the competence base, organisational intelligence, creativity and idea management, organisational structures and systems, culture and climate, and management of technology.

Suggested Citation

  • Benn Lawson & Danny Samson, 2001. "Developing Innovation Capability In Organisations: A Dynamic Capabilities Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 377-400.
    • Handle: RePEc:wsi:ijimxx:v:05:y:2001:i:03:n:s1363919601000427
    DOI: 10.1142/S1363919601000427
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