Reinventing Innovation Designing the Dual Organization

This book examines the capabilities organizations need in order to meet the dual mandate of current and future performance. It develops a theoretical framework for dual organizing, which emphasizes the escalation of both explore and exploit vent

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Reinventing Innovation

Aaron C.T. Smith Fiona Sutherland David H. Gilbert •

Reinventing Innovation Designing the Dual Organization

Aaron C.T. Smith RMIT University Melbourne Australia

David H. Gilbert RMIT University Melbourne Australia

Fiona Sutherland La Trobe University Melbourne Australia

ISBN 978-3-319-57212-3 ISBN 978-3-319-57213-0 (eBook) DOI 10.1007/978-3-319-57213-0 Library of Congress Control Number: 2017938546 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover Illustration: © saulgranda/Getty Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

CONTENTS

1 The Innovation Imperative

1

2 Changing Forms of Organizing

19

3 Duality Theory

35

4 Embracing the Tension

55

5 Structuring Innovation

75

6 Breaking Out

93

7 Designing Business Innovation

109

8 The Efficient Innovator

123

Index

135

v

LIST

Fig. 3.1 Fig. 5.1 Fig. 8.1

OF

FIGURES

Conditions for exploitative continuity and explorative change: building ambidexterity capability Explore-exploit model Duality management framework

43 82 128

vii

LIST

Table 2.1 Table 3.2

OF

TABLES

Characteristics of exploration and exploitation Explanation of duality characteristics

25 38

ix

CHAPTER 1

The Innovation Imperative

Abstract This chapter establishes the context, background, and aims for the book noting that organizations must manage ostensibly opposing forms, such as stability and change, and freedom and accountability. Organizations therefore need to manage simultaneously for both efficiency (exploitation) and flexibility (exploration). The chapter foreshadows the book’s key premise that the exploration—exploitation ten