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Management innovation


Management innovation is defined as changing the framework conditions and how organizations are structured and managed, e.g. coordinating and controlling activities as well as setting goals and plans. Further, it is critical to competitiveness as mentioned by Gary Hamel.

While the term "innovation" in economic science is most times claimed for technical or procedural innovations, the prevalence of different types of innovation in the academic literature shows strategic, organizational, administrative and management innovations as very few researched.

Management Innovation has many diverse definitions, however all are described as new forms of organisation and process.

Examples of management innovations are heterarchical rather than hierarchical structures (Warren McCulloch), lateral rather than horizontal networks (Heinz von Foerster), "adhocratic" rather than bureaucratic structures (Alvin Toffler), cross-border knowledge network (Bernhard von Mutius) postheroical rather than heroical self concepts (Dirk Baecker). As managers determine the final decision on the distribution of resources, product and process innovations can be results of management innovation in this sense. When management starts to understand itself as communication in the sense of sociological management theory, innovations can be controlled either by classical (incremental) or post-classical (groundbreaking) management models. Management innovation also refers to the influence that management practitioners have on management management and other managers with innovative management models, or that management philosophy is based on managers (see Winfried.W. Weber).

In most companies, management innovation is ad hoc and incremental. A systematic process for producing bold management breakthroughs must include:

Building on our conception of what makes management innovation unique, we develop a frame- work that highlights the four interlinked phases of the process and the roles played by two key sets of stakeholders. This framework is then fleshed out using theoretical arguments and examples from the management literature.

The horizontal dimension consists of four phases of the innovation process:

Motivation, invention, implementation, theorization and labeling—that collectively define a model of how management innovation comes about.


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