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Archive of posts tagged innovation

How Process Management Impacts Innovation Performance

This article briefly summarizes the study “The Effects of Process Orientation on Exploitative and Explorative Innovation”, by D. Weitlaner and M. Kohlbacher, which will be presented at the 32nd Annual International Conference of the Strategic Management Society, which will take place in Prague, October 7-9, 2012. The presentation of the paper will take place in Track I, Session 239, on the 9th of October (see session details).

The study investigates how individual components of process orientation (i.e. continuous process improvement, corporate culture in line with the process approach, management commitment towards the process program, the process owner role, process performance measurement as well as process knowledge and documentation) affect explorative and exploitative innovation. Exploitative innovations (or incremental innovations) refer to small-scale improvements and adjustments of existing goods/services of a company. In contrast, explorative innovations represent entirely new goods/services which are not inferred from the existing supply of a company.

The empirical study involves 840 Austrian enterprises operating in the manufacturing or service industry. The empirical findings reveal that continuous process improvement and a culture that is in line with the process approach are significantly and positively associated with both types of innovation. The empirical evidence also shows that a narrow focus on detailed process documentation may actually be cumbersome to explorative innovation.

Continuous Process Improvement, Business Process Orientation and Innovation

This article is a brief summary of the paper “Dynamic Capabilities through Continuous Improvement, Organizational Process Alignment and Innovation” by M. Kohlbacher and M. Ringhofer, which will be presented next week at the 30th Annual International Conference of the Strategic Management Society in Rome (http://rome.strategicmanagement.net). The paper examines the interaction effect of continuous improvement initiatives (e.g. Six Sigma or KAIZEN) and business process orientation on innovation. The empirical study uses a sample of 67 Austrian manufacturing companies.

 The empirical evidence shows that firms which apply continuous improvement methods and at the same time

  • have a culture in line with the process approach (i.e. a culture based on teamwork and customer orientation; and where  process workers have detailed knowledge of how their process is executed, etc.) or
  • a strong top management commitment towards the process approach (i.e. where management does not perceive the process program as a single project, but as a way of managing the business; and where management is actively engaged in the process program)

can develop their products to the market more quickly. The paper will be presented in Track I, Session 203.