Online citations, reference lists, and bibliographies.

The Balancing Of Empowerment. A Strategic Resource Based Model Of Organizing Innovation Activities In Service And Low-tech Firms

Jon Sundbo
Published 1996 · Economics

Cite This
Download PDF
Analyze on Scholarcy
Share
Abstract The empowerment of employees as corporate entrepreneurs in the innovation process is important. However, it is also important to control, and thus balance, it. This article tries to answer two questions: Do firms stimulate and balance innovation empowerment, and, if so, how do they organize and manage it? First, innovation empowerment is discussed theoretically within the framework of the resource based theory of the firm. Firms might establish two systems of organizing innovation activities. One is the expert system (typically R&D departments), the other is the empowerment system. The empowerment system is particularly important for low-tech and service firms. The empowerment system is organized corporate entrepreneurship which is controlled by the management—in contrast to free (uncontrolled) corporate entrepreneurship. The argument for controlling empowerment is that it may easily use too many resources. Second, the two questions are discussed empirically on the basis of case studies in Danish firms. Nearly all firms practised empowerment stimulation. A fewer, but still most, practised empowerment control. Inducement mechanisms which stimulate the empowerment and control mechanisms were found. Strategy, particular innovation departments and practical instruments for procuring ideas were the most important inducement mechanisms. Networking and empowerment of customers were under-utilized mechanisms. The most important control mechanisms were the strategy and a linear organization of the innovation process. Organizational learning is the most efficient control mechanism, but is difficult to practise. A model of the balance system is put forward.
This paper references
10.2307/2392236
Creativity and Innovation
H. Nyström (1979)
10.4324/9780203401460_chapter_7
The entrepreneur
R. F. Hébert (1982)
10.1007/978-1-349-11336-1
The competitive advantage of nations
M. E. Porter (1990)
10.2307/588533
The discovery of grounded theory: strategies for qualitative research aldine de gruyter
B. Glaser (1967)
10.2307/1059499
Technical Change and Economic Theory
G. Dosi (1989)
10.1097/00006216-198400830-00014
In Search of Excellence
D. Trandel-Korenchuk (1982)
10.3917/mana.182.0179
Robert A. BURGELMAN & Leonard R. SAYLES (1986), Inside Corporate Innovation: Strategy, Structure and Managerial Skills
Robert A. Burgelman (1985)
10.1002/smj.4250130903
The Character and Significance of Strategy Process Research
A. Pettigrew (1992)
10.2307/j.ctt21668j9.7
Entrepreneurship in Economic Theory
W. Baumol (1968)
10.2307/40183951
Organizational Learning: A Theory Of Action Perspective
D. Schön (1978)
10.1007/0-306-48082-4_3
The Theory of Economic Development
J. Schumpeter (1934)
Allocative efficiency vs. X-Efficiency
Hurvey Leibenstein (1966)
10.1016/0160-791X(95)00017-L
Linking firm strategy and government action: Towards a resource-based perspective on innovation and technology policy
Philip Wegloop (1995)
Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal
R. Simons (1994)
10.1002/pfi.4170300510
The fifth discipline : the art and practice of the learning organization/ Peter M. Senge
P. Senge (1991)
10.2307/3105687
The Sources of Innovation
P. Israel (1988)
10.1111/j.1467-8691.1992.tb00038.x
The Tied Entrepreneur: On the Theory and Practice of Institutionalisation of Creativity and Innovation in Service Firms
Jon Sundbo (1992)
Reindustrialization and Technology
R. Rothwell (1985)
10.1016/0024-6301(92)90439-9
The chaos frontier: Creative strategic control for business
R. Stacey (1991)
10.1016/0956-5221(94)90002-7
Modulization of service production and a thesis of convergence between service and manufacturing organizations
Jon Sundbo (1994)
The change masters
R. M. Kanter (1983)
10.2307/590515
Social Theory and Modern Sociology
A. Giddens (1987)
Fundamental Issues in Strategy
G. Hendrikse (1995)
10.1177/017084069101200205
Corporate Strategy, Organizations, and Subjectivity: A Critique
D. Knights (1991)
Entrepreneurship and economic change
M. Binks (1990)
10.1093/icc/3.3.537-a
The Dynamic Capabilities of Firms: an Introduction
D. Teece (1994)
10.2307/2235344
Evolutionary Economics: Post-Schumpeterian Contributions
Esben S. Andersen (1994)
10.1016/S0024-6301(96)90295-2
The theory of the growth of the firm
E. Penrose (1959)
Readings in the Management of Innovation
M. Tushman (1988)
10.7208/chicago/9780226375489.001.0001
Competition and Entrepreneurship
Israel M. Kirzner (1973)
10.1080/00345334.1985.11756910
Innovation Is Not a Linear Process
S. J. Kline (1985)
10.2307/2393364
Research on the management of innovation : the Minnesota studies
A. V. D. Ven (1991)
10.2307/2144919
Capitalism, Socialism, and Democracy.
A. B. Wolfe (1943)
Service Management and Marketing: Managing the Moments of Truth in Service Competition
Christian Grönroos (1990)
10.2307/2390904
The Management of Innovation
T. Burns (1961)
10.1049/me:19930081
The competitive challenge
R. T. Beaty (1993)
PATTERNS OF INDUSTRIAL INNOVATION
W. Abernathy (1978)
10.1016/s0840-4704(10)60867-8
Mintzberg on Management
Randall R. Steffan Mpa Che (1997)
10.2307/2393143
An Evolutionary Theory of Economic Change.
J. Barney (1982)
10.2307/2522562
Organizations and Environments
H. E. Aldrich (1979)



This paper is referenced by
10.1016/j.dss.2012.05.015
Service innovation readiness: Dimensions and performance outcome
H. Yen (2012)
10.5445/IR/1000081336
An Integrated Dynamic Capability Model for Service Innovation Management
M. Kohler (2018)
A SYSTEMATIC LITERATURE REVIEW ON FIRM-LEVEL INNOVATION MANAGEMENT SYSTEMS
Marcelo Cortimiglia (2015)
10.1111/j.1540-627X.2005.00146.x
Uncovering Barriers to Complex Incremental Product Innovation in Small and Medium‐Sized Financial Services Firms*
P. Vermeulen (2005)
10.1080/01446193.2016.1253856
The impacts of industrialization on construction subcontractors: a resource based view
Edward Goh (2017)
10.1016/J.TOURMAN.2008.04.009
Hospitality teams: Knowledge sharing and service innovation performance
M. Hu (2009)
10.1007/S11628-016-0321-6
Innovation and corporate entrepreneurship in service businesses
Maria de Lurdes Calisto (2017)
Innovation process interlinked with the process of service delivery : a management challenge in KIBS
M. Toivonen (2007)
10.1504/IJSTM.2000.001565
Innovation as a loosely coupled system in services
Jon Sundbo (2000)
10.1108/EJM-10-2012-0568
Exploring front-line employee contributions to service innovation
Jenny Karlsson (2015)
10.1061/(ASCE)ME.1943-5479.0000368
Construction Innovation: Fifth Generation Perspective
M. Loosemore (2015)
10.7202/1017128AR
La novation dans les pratiques des services externes de main-d’œuvre
S. Bourdon (1998)
The influence of organizational learning on performance in Indonesian SMEs
Ferdinandus Sampe (2012)
10.1007/978-981-287-901-1_13
Service Innovation Based on Informatization
Zhenhua Zhou (2016)
10.1142/S1363919603000787
Determinants of Co-Workers' Innovative Behaviour: An Investigation into Knowledge Intensive Services
J. D. Jong (2003)
10.1111/j.1467-8691.2011.00612.x
Mediated and Moderated Effects of Business and Project Planning on Innovation Projects in Hospitals
Bettina Zippel�?Schultz (2011)
10.1109/ICMIT.2012.6225894
Barriers to service innovation - perspectives from research and practice
Romy Lorenz (2012)
10.1177/0266242613484946
Exploring the influence of the family upon firm performance: Does strategic behaviour matter?
R. Basco (2014)
THEORETICAL FRAMEWORK FOR USING RESOURCE BASED VIEW IN THE ANALYSIS OF SME INNOVATIONS
Ilona Baumane-Vītoliņa (2014)
10.1007/S11628-014-0234-1
Seeking an innovation structure common to both manufacturing and services
Rafael Guillermo García Cáceres (2015)
10.1007/978-4-431-54922-2_10
Innovation in Public Service Systems
L. Fuglsang (2016)
10.1007/978-4-431-54267-4_5
Social Innovations—Manifested in New Services and in New System Level Interactions
Marja Toivonen (2015)
10.1016/J.FUTURES.2014.10.004
The futures of magazine publishing: Servitization and co-creation of customer value
Anna Viljakainen (2014)
La marea de la innovación: ¿cuál es la forma más adecuada de coger la ola?
N. E. Lozares (2007)
10.1109/WICOM.2007.818
Notice of RetractionRegions Comparative Analysis: Development of KIBS and Inspiration
G. Wen (2007)
KIBS in Peripheral Regions: Major Outlines
T. Noronha (2013)
10.1007/978-3-540-29860-1_7
Innovation and Learning in Services - The Involvement of Employees
Jon Sundbo (2007)
Productization of knowledge-intensive business services: A managerial perspective
Katriina Järvi (2016)
Management Control in the Front End of Innovation
J. Poskela (2009)
Holistic solutions to shared problems: a case study on inter-organizational collaboration and collaborative innovation in crime prevention
Elisa Kankaala (2015)
10.1080/13669877.2017.1382558
A systematic review of risk management in innovation-oriented firms
Ana Paula Beck da Silva Etges (2019)
10.1111/J.1540-5885.2009.00692.X
Management Control and Strategic Renewal in the Front End of Innovation
J. Poskela (2009)
See more
Semantic Scholar Logo Some data provided by SemanticScholar