Svp r&JdtuwS - - Ecole Centrale Paris

Svp r&Jdtuw S -
AMI écop
ECOLE CENTRALE PARIS
TESE
Présentée par
François SAIN FORT
pour l'obtention du
TITRE DE DOCTEUR
Formation Doctorale GENIEZ INDUSTRIEL
Spécialité GENIEZ INDUSTRIEL ET MANAGEMENT
DE L'INNOVATION TECHNOLOGIQUE
Laboratoire d'accueil: STRATÉGIE ET TECHNOLOGIE
Sujet
INNOVATION ET ORGANISATION
& VERS UNE THÉORIE INTEGRATRICE
Soutenue le & septembre 1987 devant la Commission d'examen
Messieurs &
Michel Collons Professeur à l'Ecole des Mines de Paris (Rapporteur)
Yves Dazé Professeur à l'INSEAD
Thomas Durand Professeur à l'Ecole Centrale Paris directeur de la thèse
Alain-Charles Martinet Professeur à l'Université Lyon El (Rapporteur)
RaymondAlain Thiétart, Professeur à l'Université Paris X - Nanterre
Raymond Saint-Paul Professeur au CNAM résident du Jury
A 049700
Ecole Centrale des Arts et Manufactures
Grand Établissement sous tutelle du Ministère de l'éduction Nationale
Grande Voie des Vignes - 92295 Chatenay Malabry Cedex - Tél (1) & & & & - Télex CE PARIS 250659 F

&
LETTRE Ml LECTEUR
Je prie le lecteur de bien vouloir m'excuser de lut présenter cette thèse en
anglais. Ce n'est certes pas par snobisme de ma part ni à cause d'un
possible mythe anglo-saxon qui règne (ou régnait?) dans le monde du
management que j'ai finalement décidé d'écrire dans une langue que Je croîs
posséder moins bien que ma langue maternelle.
Les raisons sont multiples et J'espère suffisantes pour que le lecteur
français soit Indulgent. Tout d'abord à partir d'un texte anglais II me sera
plus facile de publier simultanément dans des revues françaises et anglosaxonnes.
Enduite l'environnement de travail dans lequel Je me suis trouvé
ces trois dernières années étant essentiellement américain Il m'était
Indispensable d'écrire en anglais afin d'avoir à la Fals les critiques de
chercheurs américains et de chercheurs français qui maîtrisent l'anglais
ING In I ment m leux que les américains le français De pl us bon nombre des
concepts explorés dans cette thèse sont d'origine anglo-saxonnes. C'est dans
un esprit d'efficacité que J'ai donc opté pour ce choix.
J'espère que la langue anglaise ne constituera pas une barrière à l'entrée
pour une large diffusion dans la communauté des chercheurs et praticiens
français.
&

L'ECOLE CENTRALE DES ARTS ET MANUFACTURES
N'ENTEND DONNER AUCUNE APPROBATION NI
IMPROBATION AUX OPINIONS ANISES DANS CE
MÉMOIRE CES OPINIONS DOIVENT ERRE
CONSIDEREES COMME PROPRES A LEUR AUTEUR.
&

&
REMERCIEMENTS
Cette thèse n'aurait pas pu Eyre accompli e sans l'apport de nombreuses
personnes dans autant de différents endroits. Je tiens à les remercier tous
pour leur soutien et encouragement.
Je tiens plus particulièrement à témoigner ma reconnaissance pour Pr. Thomas
Durand non seulement pour la façon dont II s'est acquitté de sa tâche
difficile de Directeur de thèse mais aussi pour l'une des premières
conversations que nous avons eu sur le sujet de l'Innovation dans un bar de
l'aéroport International de Montréal au Canada. Cest cette conversation qui
m'a décidé à me lancer dans le domaine passionnant des organisations et du
management de l'Innovation. Je ne le regrette certainement pas
Je voudrais remercier les membres du Jury Pr. Cal Ion Dazé Martinet
Thlétart et Saint-Paul et plus parti cul errement Pr. Cal Ion et Martinet
rapporteur qui par leurs rapports m'ont donné d'excellentes suggestions et
améliorations.
Je tiens également à remercier les différentes autorités de l'Ecole Centrale
Paris du Département des Sciences Economiques, Sociales et Humaine et du
Programme de Génie Industriel pour m'avolr permis de travailler sur ma thèse
dans différents environnements à Montréal au Canada et à Madison aux Etats
Unis. Je voudrais aussi remercier le groupe Stratégie et Technologie de
l'Ecole Centrale pour son soutien moral et Intellectuel. Je ne peux que
Fel Iclter Thomas Durand et son groupe de mettre leur énergie au service
d'une discipline que Je crois être l'un des axes de recherche et
d'application les plus fondamentaux dans le monde des entreprisse grosses
ou petites d'Industrie ou de service.
Je voudrais aussi remercier quatre Individus qui m'auront beaucoup marqué
tant par leurs qualités de chercheur et penseur que par leurs qualités
d'être humain Or Yvan AMalre qui m'a aiguillé soutenu et encouragé tout
au long de mon séjour à Montréal Pr. Henry MIntzberg qui a toujours poussé
ma pensée plus loin dans sa réflexion Pr. David Gustafsson et le Département
de Génie Industriel de Madison - Wtsoonsln qui m'ont offert un fantastique
environnement de travail et qui m'ont décerné le prix de Management de la
Technologie en 1986; et Pr. James Utterback qui m'a donné de nombreuses
suggestions et réactions à mes travaux et a fortement encouragé ma
recherche.
Ens In et surtout Je voudrais remercier Pascal e Crayon et avec elle nos
familles. Pascale a partagé chaque Instant tout au long de ce processus. Non
seulement el le m'a offert un soutien émotionnel sans I Imite mais aussi
Pascale est s Hecq of a researcher"; ses Idées commentaires et suggestions
ont toujours été extrêmement pertinents et utiles. Merci encore à Pascale et
nos Fam II les

&
RÉSUME
Cette thèse tente Rapporter un éclairage conceptuel à la problématique de
l'Innovation dans la grande entreprise. Comment faire en sorte qu'une
organo satl on sol t plus apte à promouvons r I & Innovât on - générât I on et/ou
Implantation d'Innovations - de manière efficace Telle est la question de
départ de ce travail. Une Importante question sous-jacente se rapporte au
besoin d'Innover ou plus généralement à la Justification de stratégies
d' Innovât on.
Les composantes essentiel les des concepts d'Innovation et d'organl salon
sont en partie contradictoire l'Innovation se caractérise souvent par la
flexibilité la surprise la nouveauté alors que l'organisation se
caractérise plutôt par I a régul arlé la prévision et la continuité. Il
semblait qu'une tentative de résolution de ces contradictions au sein d'un
schéma plus large que celui des modèles classiques n'était pas sans Intérêt
au moment Ob le concept d'Innovation apparat comme une clé de voûte de
l'évolution organo stationnel I e de la croissance et prospérité des
entreprises.
Le schéma conceptuel Intègre les champs de l'Innovation et de l'organisation
au travers d'éléments essentiel les processus d'Innovation, tant Internes
qu'externes, et la nature des relations entre les systèmes Internes de
l'organisation et l'environnement de l'organisation. Le cadre d'analyse met
ainsi en relation le cycle de vie des organisation les types d'Innovation
qu'elles produisent les processus d'Innovation qu'elles développant et
leurs relations stratégiques avec l'environnement. Il permet de définir des
configurations particulières des relations organisation-environnement, à
chacune desquels les correspond l'un des courants récents de la théorie des
organisations. Ces différentes configurations sont autant de choix et
comportements stratégiques accessibles au top management. La stratégie
définie dans ce contexte comme la faculté de choisir et de rendre possible
une configuration qui devrait s'avérer optimale pour une période de temps
donnée devient le bras opérationnel du schéma conceptuel proposé et permet
d'aborder la question de l'Innovation dans l'organisation sous un angle
prescrlptlf: comment concevoir développer et gérer des organisations aptes
à Innover.

f
&
ABSIKACT
Large organîzatlons are often Sal to be nable to carry out înnovatîve
actlvltles, rough Innovation Is Sean as one major avenue for growth,
développent and renewal In organlzatlonal loge.
The pressent thesls Is an attempt to formulât a Thory of Innovation In
organlzatlon whlch Is currently mlsslng and whlch light nable managers to
have a framework to thon about Innovation and to design structures and
Amplement process for organtzlng for Innovation In large corporations.
The développent of the Thory Iles on a revîew of I Itérâture bearlng on two
aspects of the problème
& - Chat Is Innovation
& - Chat Is organlzatlon?
Khere l s an Intrlnslc contradiction between I nnovatl on and organlzatlon.
Innovation carles the concepts of flexlblllty, uncertatnty, and newness,
cherras organlzatlon carles the concepts of rlgldlty, predlctabl I Ita and
contlnulty. Tels thesls formulâtes a synthèses of Innovation and
organlzatlon At a tome Khere Innovation appert to be a Chey Clement In the
développent and survlval of organîzatlons In a turbulent envlronment.
The Thory essentlally bull on the process of Innovation bath Internai
and externat and on the nature of the relatlonshlps between the Internai
subsistes of the organlzatlon and the envlronment of the organlzatlon. The
framework hlghllghts the relatlonshlps between organlzatlonal lofe cycle
the types of Innovation and the process of Innovations. I leads to a
ferles of différent configurations between organlzatlon and envlronment,
Rach of whlch corresponds to one of the moss redent the orles of
organlzatlon. Rach configuration Is one potentat stratégie behavlor Thot Is
aval I able e to top management for dal ING w I rh the chai I ange of l nnovatl on
wtthfn the organlzatlon.
Strate wîthln This Contest bedoles the operatlonal Sool for design ING and
managent Innovatlng organîzatlons. Witt This tool, the conceptuel framework
developed throughout This thesls Goes beyond the Merd but complexa
description of a phenomenon to protide the practîtîoner wîth prescrlptlve
Guidel Ins.

&
CONTENTS
LETTRE AU LECTEUR.... &
AVERTISSEMENT &
REMERCIE MENUS &
RÉSUME &
ABSTRACT &
CONTENTS &
LIST OF FIGURES... &
A. INTRODUCTION &
1.1. MOTIVATION &
1.2. FROBLEM FORMULATION &
1.3. OBJECTIVE AND METHODOLOGY &
PART ONE REVUE OF UTE RATURE &
A. INNOVATION &
2.1. DIFFÈRENT PERSPECTIVES &
2.2. CONCEPTS OF INNOVATION &
2.3. TYPES OF INNOVATION &
2.4. CHARACTERISTICS OF INNOVATION &
2.5. PROCESS OF INNOVATION N
A. THÉORIES OF ORGANISATION R
3.1. CONCEPTS OF ORGANISATION AND
ORGAN NATIONAL DESIGN E
3.2. REVUE OF TRAIT TONAL THEORIES: AN
INTERNA DESIGN PERSPECTIVE &

&
3.3. SHIRT IN THE UNIT OF ANALYSAIS N
3.4. ORGANISATION IN RELATION WI7H THE
ENVIRONMENI: A TYP0L06Y Y
3.5. CONCEPTS OF ORGANIZATIONAL EFFECTIVENESS:
THE DUALITÉ OF ORGANIZATION.... &
3.6. ORGANIZATIONAL DYNAMIE &
& INNOVATION AND ORGANISATION A SYNTHÈSES 101
4.1. INNOVATION ORGANISATION AND ENVIRONNENT 102
4.2. INTERNA PERSPECTIVE INNOVATION AND
ORGANISATION 108
4.3. EXTERNAT PERSPECTIVE INNOVATION
ENVIRONMENT, AND ORGANIZATIONAL ÉVOLUTION 129
PART TWO HOWARD M INTÉGRAIVE THORY 139
& INNOVATION AND ORGANISATION INTÉGRATION 140
5.1. CONCEPTUEL FOUNAT IONS 142
5.2. MODEM OF ORGANIZATIONAL CHANGE 149
5.3. CONCEPTS OF INNOVATION AND STRATÉGIE
CARRELAGES 159
A. DISCUSSION AND FARTER RESEARCH LEEDS 167
6.1. AN ILLUSTRATION INNOVATION AT M 168
6.2. CRITIQUE AND FARTER RESEARCH LEEDS 181
& CONCLUSION 185
APPENDIS X A MANAGENT INNOVATION
A PRACTICAL PERSPECTIVE 192
B IBM IOGRAPHY M6

CAFTER ONE INTRODUCTION
&
LIST OF FIGURES
A. Research Me+hodologtes M6
A. Organlzatlon of the Tels &
CHARTER TWO INNOVATION
A. Créative Process &
A. Structure of Intellect &
A. Créative Abilly and Behav Lor &
A. ResIstance-Adoptlon Modem &
A. Conceptuel Lebel s In Défini hg Innovation &
A. The Wark System &
A. Innovation In Perspective &
A. AttrI butes of Innovation &
A. Technologie Puch Modem M6
2.10 Marcet Pull Modem M6
2.11 Interactive Modem &
2.12 Relations of Variations and Réorientations
to Organlzatlonal Subsistes U
2.13 Kondratlev Cycles Y
2.14 Industrlal Organlzatlon Perspective of the
Process of Innovation N
2.15 Technologlcal Progresse R
2.16 Typologie of I ntra-organ Izatlonal Process
of Innovation N
2.17 Typlcal I ntra-organ Izatlonal Process
of I nnovatl on N
2.18 Innovation Process Modem s Génération
Perspective E
2.19 Innovation Process Modem s
Adoption/Diffusion Perspective E
2.20 Typologie of Process of Innovation N
CAPTER THREEî THÉORIES CE ORGANISATION
A. Modem of Organlzatlon R
A. Camplong of Organlzatlon and Management The orles H
A. Concept of Organlzatlonal Design &
A. Développent of Social Systems Thory &

A. Modem of Organlzxatlon R
A. Typologie of The orles of Organlza+lons In
Thel Envlronments N
A. Charac+erîs+lcs of Four Organlzatlon The orles M6
A. Développent of The orles of Organlzatlon M6
A. Hîstorîcal Sarcy for Organîzatîonal
Effectlveness &
3.10 Stages of Développent E
3.11 Organîzatîonal Forme O
3.12 Modem s of Organîzatîonal Life Cycle 95,96
CAFTER FOUR INNOVATION m ORGANISATION A SYNTHÈSES
4.1 Organîzatîonal Design and Innovation 103
4.2 Modem of Organlzatlon 104
4.3 Organlzatlon and Environnent 106
4.4 Innovation Organlzatlon, Environnent
and Strate 107
4.5 Dynamie of Change 109
4.6 Internai Subsistes of the Organlzatlon:
Control and Dépendance 109
4.7 Entrepreneur All Culture verjus Administrative
Culture 110
4.8 Chey rôles and Pol Icles long the Innovation
Process & & &
4.9 Chey Rôle Persona Char acter Istlcs and
Organîzatîonal Actlvltles 114
4.10 Measurlng and Rewardlng Crltlcal Functlon
Performance 115
4.11 Évolution of the Entrepreneur All Network 115
4.12 Chey Actlvltles In Corporate Venturlng M6
4.13 Organîzatîonal Characterlstlcs Requérez
for Opération of Establlshed Buslnesses
and for Innovation 118
4.14 Mechanlstlc verjus Organlc Organlzatlons 118
4.15 Dual Structures for Innovation 121
4.16 Organîzatîonal Arrangement Avantages and
Désavantages 123
4.17 Spectral of Venture Stratégies 127
4.18 Innovation and Structure Structural
Arrangements 128
4.19 General Stratégies for Technologie Accensent 128
4.20 Product-Process Innovations and Évolution of
Organîzatîonal Unit 131
&

4.21 Organizatîon-Envîronment Relatlonshf p
a Typologie of Théories 134
4.22 Relatlonshîps between Organ Izattonal Life
Cycle Innovation and Organlza+lon Théories 134
4.23 A New Perspective on the Organ Izatlonal
Life Cycle M6
4.24 Relatlonshîps between Organ Izatlonal Life
Cycle Innovation Industry Évolution
and Organ Izatlon Théories 137
CAPTER FI VE & INNOVEAGIO N Ml ORGAN AZAT ION & NTEgRATION
5.1 Conceptuel Foundatlons: Organizatîon-Envîronment 143
5.2 Conceptuel Fondations 145
5.3 Modem of Organ Izatlon 147
5.4 Influences on Organ Izatlonal Développent 148
5.5 Conceptuel Foundatlons: Internai Subsistes
of the Organ Izatlon 148
5.6 Formulation of Stratégies 150
5.7 Stratégie Control and Contingence 152
5.8 Modem of Organ Izatlonal Change 153
5.9 Stratégie Change and Cultural log 155
5.10 Concepts of Innovation and Stratégie Carrelages 160
5.11 Organ Izatlon Designs for Innovation 162
5.12 Internai Subsistes and Innovation 163
5.13 Chooslng Structural Arrangements 164
5.14 General Stratégies for Technologie Accensent 165
5.15 The Concept of l-form Organ Izatlon M6
CAFTER SIX DISCUSSION
A. Htstorîcal Développent of M Strate
and Structure 170
A. Organ Izatlonal Mechanîsms for Innovation At M 173
A. M Organ Izatlonal Char 175
A. Preferred Organ izatlonal Designs for Internai
Innovation At M 176
A. Management for Innovation At M 179
A. Organ Izatlonal Change of M 180
A. Thory Budling and Thory Teston 183
CAFTER SEVEN CONCLUSION
7.1 Dommary 188

1.1. Motivation
&
CAPTER & & INTRODUCTION
CUTINE
1.2. Problème Formulation
1.3. Objective and Methodology

1.1. MOTIVATION
"In tokays business envlronment, Khere Is no exécutive +ask more vital and
demandant thon the sustalned management of Innovation and change (Tushman
and Nadler, 1986). Wy Is This state ment grue and chat dies I Say Khere
are two différent ports flrst Innovation Is Sal to be requérez for
Companies and second Innovation and change are dlfflcult Issues to ad dress
In an Organ Izatlon. (Innovation, rough At This point nothlng Is Sal about
chat I means, Is Véry Important recause Many large Organ Izatlons Dee I as
a menas to achevez renewed growth or to achevez a compétitive edge.) As
Roberts and Drogman (1972) point out the tradltlonal approches to growth
Includfng:
- Increased pénétration and broadenlng of exlsttng markets,
- mouvement Intl frelon markets,
- Mergey and acquisition of smalt er flrms, and
- the création of new produits Drom Intensive tradltlonal research
and development,
&
h ave be come tncreastngly dlfflcult, recause of
- Marcet séparation comblned wlth Geay compétition
- more vlgorous tarifs protection
- antl-forelgn Infestent législation
- antitrust régulation and
- contlnulng Law payons Drom tradltlonal RAD.
Whlle these observations and explanatlons do Nat always Appy to Avery
Industrie or to Avery f Irm, I sometlmes stems Thot Avery aspect of business
Is in constant évolution technologie government régulation global
compétition etc are always changlng. These Rapid changes In the
marketplace make I Increaslngly dlfflcult, and essentlal, for business to
thon In Germs of the future to constant antlcîpate tomorrow's définition
of value - the light ml of quai Ita service produit char acter l stlcs, and
proc. To compète In This ever changent envlronment, Companies must Creste
new products, service and processes, They must be adaptive and respond to
changes successful Ly to domlnate They have to be efficient At produclng and
l corporal hg Innovations and At the Asme tome managent Thel ongolng
buslnesses.
This Is Eas to put on a place of Paper but In the Real I Ise sustalned
Innovation Is tremendously dlfflcult to carry out. A général pattern stems
to appeal long the développent of a company: I Is hlghly Innovatîve At îts
genesîs and as I gros I bedoles trappe by I on succès and light

of tam die recause of a fa & & ure & n recoin z I hg and managent new Important
changes. In one Industry aster another, the Asme factor Thot Creste a
successful Innovatlve company often plant the Leeds of complacency and
allure as compétitive condition Marcet Leeds and the workforce change.
1.2. PROBLÈME FORMULATION
If This pattern actua Ly ests In Avery organfzatlonal lofe Them I tends
to show Thot large organlzatlons, far Drom Thel original Innovatlve chape
are more llkely to surfer Drom an Inablllty to dal wlth Innovations.
Managers and practl t loners, therefore, have to ad dress the followfng
perplexlng Issue
- Con large organlzatlons rejuvenate themselves;
- Con They flnd renewed growth and vital City rough system-wlde
changes In values and mlnd-sets and rough burats of Innovatlve
action
Many rese archers have demonstrated Thot large organlzatlons encounter
tremendous dlfflcultles In deallng wlth Innovation and change Dee capter
4). Hope sul Ly This Is Nat always grue slice large organlzatlons Juch as IBM,
M Cltlcorp, American Airlines, GE Merck Philip Morris Johnson and
Johnson Owens Illinois have demonstrated Thot They con be Innovatlve over
long perlot of mme. The question Them Coulx be
- Are these organlzatlons, and Many éthers exceptions to the rule
I stems to me Thot a ru le wlth Many exceptions Is Nat a Goos ru le. If Khere
Is a ru le I choule ad dress a comble nation of elements:
t Chat dies Innovation mena
(2) Chat are the characterlstlcs whlch des Aine a "large"
organlzatlon?
(3) Chat Is organlzatlonal évolution or change
(4) Is Khere a klnd of cross typologie whlch Coulx nable one to
détermine whlch large organlzatlons con successful Ly dal wlth
&
Innovation and whlch anes connot
Sole prominents of the Inablllty of large organlzatlons to Inn ovate tend to
ficus Thel attention on the second point large organlzatlons develop
certain inhérent characterlstlcs whlch privent Them Drom successful Ly
Implementlng Innovatlve actlvltfes, whlch onder Innovations as In the
tradltlonal bureau crac les or Eden do Nat favori Innovation In général.

These organfza+îonal salures stem Drom the dllemma between oontfnu City and
change. The concept of "organlzlng for Innovation cantals a
contradiction "organlzatlon" selves to be a planned, Montrollet system of
actlvltles, whlle "Innovation" Is essentîally a pool y-structured,
uncontrolled, hlgh-rlsk actlvîty, whlch recules a Great dal of
f I el Bo I l th. Bel hg responsl Ve I n produc l hg major changes and At the Asme
tome Improvlng the efflclency In carryîng out the ongolng business con Lea
to substantlal Internai confllct.
As the f Irms Brown They develop Instltutlonal Ized Rule for dal ING wlth the
situations They have use to encounter. Farm behavlor bedoles governed by
routine Thot Is repetltlve patterns of actlvîty Nelson and WInter, 1982).
The décision Makong actlvîty In the Farm bedoles more and more routine
leasing to "programmed" décisions March and Simon 1958). As flexlblllty
Is replace by efflclency, or as the spécifié stage takes over the foule
stage (Abernathy and Utterback, 1978) long the organo Earl anal growth, a
structural Inerte (Hannan and Freeman, 1984) Is llkely to develop and con
salle the attempts At launchlng Innovatlve actlvltles In the organlzatlon.
Whlle these patterns are Véry fréquent They do Nat al I o one to Say Thot
large organlzatlons are nable to Innovâtes Top management has to make Thel
large organlzatlons more adaptive to Increaslng changes (Malsonrouge, 1982).
Sole organo Earl anal charactertstlcs Just consiste of Important organo Earl anal
barrlers to the process of Innovation In Many large frs. Tels has to be
consldered long wlth the Otter éléments menti oned aboie In ordre to ad dress
the Issue of deallng wlth Innovation In a large organlzatlon.
1.3. OBJECTIVE AM METHODOLOGY
The Issue of dal ING wlth and monltorlng Innovation has bene tackle In a
haphazard, often slmpllstlc fashion wlth "solutions" whlch often Rely on
modem s and Recy Eps Thot May have I Intl e Pert Nance I n contexte dl f Ferenc
Drom Thise In whlch They have orlglnated. And whlle a substantlal Bodh of
knowledge Is bow avalable to hlghllght marlous aspects of the Innovation
process I cantals Fe Inslghts as to whether and how organlzatlons May be
deslgned to dal wlth the challenge of Innovation.
Management May stress At Avery turn the Nied to Inn ovate but Wren supporte
by no consistent understandlng of chat Innovation menas for I parti eu Lor
organlzatlon, these exhortations are to no aval I. Whatlsneeded Issole
framework for thlnklng about devis hg and monltorlng Innovation Thot takes
Intl accouant the partlcular Sk fils and charadiers of the organlzatlon.
The objective of This thesls Is to protide Juch a framework. The attempt Is
& &

to develop an Organ Izatlonal Thory of Innovation.
Différent research méthodologies est to Rach a goal Juch as Thory
bu & & dl nb. FI gure & & emphase Izes four main research trad & & Ion I nequal I y
use In général. Two global orientations Lea the rese archer In Almont Any
settlng: data or process.
&
Figure & & & Research Méthodologies
A process methodology Is one whtch essentlally bears wlth concepts. Usually,
rese archers go rough an unstructured or loosely structure case Tudy to
Fred Thel conceptuel Inslghts. The data collecte In one or Fe settlngs
gel p the rese archer In conceptuel Izlng a modem or a Thory of the phenomenon
Ander Investigation. The rese archer al So Eel le heat & & y on the thînktng of
Otter rese archers In the field and tries to Ingrate these places together
on the Basle of This smalt I emplrlcal evldence, whtch protides more the
Impers to the conceptuel Izatlon thon a Real validation of the conceptuel
mode I &
Les usuel In This processuel methodology Branchs Is to star Witt the
thlnklngs, the modem s the concepts of Many rese archers In This field and to
undertake a "meta-conceptual" analysas of ail these éléments In an effort to
syntheslze, Ingrate these éléments In Juch a manne Thot new Inslghts corne
up Drom This tach. Tels approche has Them to be followed by emplrlcal
studles, destine on the Basle of the conceptuel modem propose In ordre to
Illustrât flrst and Them test val Diate or reject), and revînt the ther.
The major drawback of This methodology Is Thot bifore conséquent emplrlcal
stud les are carrled out Khere Is no emplrlcal val Idlty, and moreover, slice
the Intégration Is don over Imperfect conceptuel modem s brase by former
researchers, Khere Is a r I Sk of carrylng long these blases and
Imperfection and Eden to ampllfy the phenomenon rough the Intégration

process. On the Otter hand a successful Intégration Is often a Véry
Important step for movîng a f Tel d ahead.
Drom the data perspective the usuel approche Is to carefully design a
stud collecte structure data ad dress relîabîllty, Internai and externat
valldlty Issues. Tena rough the use of statlstlcal modems test différent
Eel Tal Ons l ps, différent structures In ordre to propose base on the
researcher's Intuition knowledge, and post experlments and modes a modem
of the phenomenon, emplrlcally val Idated. Whlle This approche Is général I y
the moss accepte amont the rese archers commun City as belng a "good"
methodology, I Is moss dlfflcult to amplement In f Te I d experlments In
domaine Juch as Organ Izatlons, strategy, Innovation etc.
Final Ly the second approche In This data perspective Is the "experts"
approcha The methodology conflits of Identîfylng experts of the phenomenon
Ander Investigation to extrait Drom Them Nat data per se but Thel
expertise Thel conceptuel modes and to assemble Them In a Elder
framework. Them data Is col lected to val Date This new and Improbe model.
The research methodology Wez Cook Is the I Ess employer a processuel
methodology startl hg wlth the ra matera constltuted of the thlnklngs,
concept Idéas modems of Otter resarchers. W clearly Trades off emptrlcal
val Isly for conceptuel Inslght. W dl analyse to Som entent a company but
This Wa certalnly Nat a structure data col mecton process velter an Insept
longitudinal analysas but rater an Immersion In the field to
Illustrât and stlmulate, Nat val Date Our conceptuel theory-bu I I d I hg
process. W are Aare of the Nied for subséquent emplrlcal analyse and Wez
w II I ad dress Thot In the section on farter research needs. W declded to
Tak This processuel conceptuel approche for two reasons. The flrst Is Thot
the I Iterature on Innovation and organlzatlon Is îmmensely Vast rlch,
diverse but Tarn aparté controverse l al & and Incomplète. Wren one Gets
Immense In This I Iterature one expériences the mixe feellngs of exclament
and frustration. The Nied for attempts At sorti hg out these pleces, of
syntheslzlng tmpresslve works, and Integratlng these éléments Intl a
cohérent framework made us chose This processuel methodology At the ex pense
of emplrlcal valldlty. Moreover, If one tries to design a tho rough
emplrlcally base Tudy of Innovation and organlzatlon, recause of the
rlchness, dlverslty and I compo eteness of the I Iterature, Issues Juch as
chotce of variable définition of measures, wtthout speaklng of rellablllty
of Instrument Internai and externat valldlty be come So overwhelmlng Thot
Hers Aldo the Nied for an Intégrative framework, rafler to handle, émerges
bifore undertaklng Juch emplrlcal stud les.
&

Figure A. présents the research process and the organîzatlon of the thesîs.
&
Figure & .2: Organîzatlon of the Thésis
Two building Bo bocks corne d recto y Drom the I fterature: one on l nnovatl on
capter & and one on organîzatlon capter A. The thlrd building block
cornes Parly Drom the I Iterature and Drom Our synthèses of these two
concept Innovât Ion and Organ Izatlon capter 4). The l deo I s to sort out
the éléments Goven bifore to assemble the "puzzle" In ordre to protide the
conceptuel fondations of a Thory of Innovation and organîzatlon pressente
In capter H In the course of Thot capter the Thory barrois éléments and
flndlngs Drom the strate field but Is Nat a complété Intégration of This
I orge f Lek d.
Them capter & présents a discussion of the framwork provlded In capter H
flrst an Illustration Is Goven innovation At 3M); and second a critique and
farter research Leeds are propos ed. Final Ly a conclusion Is Goven whlch
summarlzes the thesis.

&
PART ONE
REVUE OF LITE RATURE

2.1. Différent Perspectives
&
CAPTER & INNOVATION
QUTLINE:
2.1.1. Psychologlsts and Innovation
2.1.2. Econcmlsts and Innovation
2.1.3. Soclologlsts and Innovation
2.1.4. Strateglsts and Innovation
2.2. Concepts of Innovation
2.3. Types of Innovation
2.4. Characterîstlcs of Innovation
2.4.1. Planning AttrI butes
2.4.2. Process Artel butes
2.4.3. Out come & Impact Attrlbutes
2.5. Process of Innovation
2.5.1. Econcmlc Perspectives Socle tal Process
2.5.2. Industrlal Organlzatlon Perspective
Compétitive Process
2.5.3. Inter-Organ Izatlonal Process
2.5.4. IntrarOrgan Izatlonal Process

&
In This section Wez ll I attempt to reflex part of the exlstlng I Iterature on
f nnovatl on. SI nce rh i s I îterature I s tao Vast to compo I e Wez propose tne
followlng sélection and organtzatlon of talcs to adressa
(1) Chat are the différent perspectives for looklng At Innovation
(2) Chat are the possible définitions of Innovation
(3) How con one classlfy Innovation types of Innovation
(4) How con one charactertze Innovation artel butes of Innovation
(5) How dies Innovation volve over tome process of Innovation In
parti eu Lara
A. & DIFFÈRENT PERSPECTIVES
- Drom a soc létal and economlc point of vlew,
- Drom an Industrlal organlzatlon perspective
- Drom an Interorganlzatlonal point of vtew, and final Ly
- Drom an Intraorganlzatlonal point of le.
Many différent peuple are Interested In Innovation. W Identlfled At lest
four Important groups ho extenslvely adresse the concept of Innovation
psycho ag I tss economlsts, soc loi oglsts, and strateglsts. W w & & & brlefly
examine Rach of these perspectives.
2.1.1. PSYCHOLOGIES AND INNOVATION
Innovation has suscite Inter ests amont a large varlet of researchers. For
exemple psychologlsts have emphaslzed two relevant aspects of Innovation
creatlvlty and change In Indlvlduals & behav lors and bel les. Thermal
Inter est bears on humant Actors evolvîng In groups. Rhus They are concerne
wlth questions Juch as
- Chat are the char acter Istlcs of créative Indlvlduals?
- Chat Is creatlvlty?
- Chat Is créative behav Lor
- Chat are the forces wlthln a Goven Indlvldual Thot producer change
One of Thel objectives Is Rhus to détermine and masure différent aspects
of creatlvlty In Indlvlduals. This Is part of a brader objective whlch Is
to understand the perceptuel and cognltlve process of Indlvlduals.
A bàslc créative process conflits of four stages as Shawn In figure 2.1,
developed by Xallas (1926).

PRÉPARATION & INCUBATION & INSIGNE & VÉRIFICATION
&
FIGURE 2.1: CRÉATIVE PROCESS
Préparation volves gatherlng, sortlng, and Integratlng Information and
Otter materas to protide a sol Id base for a Lager breakthrough. Dung the
Incubation phase themînd Is Nat consclously focused on the problème The
Indlvldual May be Eel axe asleep, or otherwlse Involved. The Instant stage
I s the f Am II Lara sud den moment of Inspiration. F I Nam I y the ver If l Cat Ion
stage Is necessary. The Indlvldual carles out the Chorey Involved In
carefully checktng facts to support the înslght.
One of the moss Influentlal vlews on Indlvldual creatlvlty has bene
developed by Gullford (1967). Accord ING to Gullford's "structure of
Intellect theory, humons have "120 différent and Independant Intel rectal
ab II Itles". As Shawn In f I gure 2.2, Thise ab & & I tles are Rach the resu t of
application of one of f Ive mental opérations to one of four contents to get
one of fWl products.
Figure 2.2: Structure of Intellect
(Guilford, 1967) &

Opérations are re thons Thiat are don wfth Our Information Juch as memory
or évaluation. Contents are the types of Information Wez May have avalable
Juch as figures or symbol Produits are the forme Aken by the process
Information Juch as fîndlng Eel atlonshI or drawing Implications.
Tels modem con be use to Drau a distinction between créative ball City and
Intel rectal ball Ity. Créative ball City Coulx be characterîzed by
- figurai and symbol content
- divergent production
- transformation
cherras Intellectuel ball City Coulx be characterîzed by
&
- semantlc content
- évaluation and convergent production
- relations and system
Thusy psychologlsts have Dawn Som conclusions about the characterîstlcs of
créative persans Juch as
- créative persans are sensltlve and tend to peser complexlty,
- They typîcally value Independence,
- They Anjou aesthetlc expression
- They have Hugh aspiration levels,
- They are nonauthorltarlan and nondogmatlc,
- They have a Wilde range of înterests.
But as Shawn on figure 2.3, dependlng on Thel motivation and on the settlng
In whlch They volve This créative ball City light or light Nat Lea to
créative behavlor.
Figure 2.3: Créative Abolit and Behavior

Therefore the Inhérent crea+lve ablll+les of Indlvlduals May Nat be
sufflcîent to Lea to crea+lve behavlor. Sole Intervenant fac+ors are
necessary for enablîng créative abllt+y to be translate Info créative
behav Ior.
Tels observation has motlvated numerus rese archers for f Indîng Way to
enfance the créative behav îor of Indlvlduals. These efforts have résulte In
a ide Arraye of creatlvlty enfoncement techniques Juch as
&
- Bralnstorm ING (Osborn, 1963)
- Gordon technique (Gordon, 1961)
- Synectlcs (Gordon, 1961)
- Idéa checkllsts (Osborn, 1963)
- Attribut listing (Crawford, 1978)
- Morphologtcal analysas (Davis, 1983)
- Retraduction (01 mo 1977).
Aboter major area of research adresse by psychologlsts Is to Identlfy the
forces wtthln a Goven Indlvldual Thot producer change and Thise Thot Impec
change. As an Illustration the "resIstance-adoptlon" modem pressente In
figure A. Wa Evel oped by Sal man et al & & 973) and I s pr Omar I Ly der Ive
Drom Watson (1973).
Figure 2.4: Résistanceadoption Modem
(Zaltman et al.. & 973)
The résistance forces are pressente At the stage In the adoption process In
whlch They are more llkely to be operatlve. Sole élaboration of Rach stage
Is pressente to facllltate the understand I hg of how Rach résistance force
operates.

Drom This klnd of Wark volve Investigations in group dynamlcs descrlblng
the functlonîng of groups and how They May gel p chape and change the
attitudes and behavlor of an Individuel. Rhus relative to tndlvlduals,
groups have bene Sound to pressent a Humber of potentat beneflts for
creatlvlty and problème Dolving pur poses (Maler, 1967). They Incluse
&
- groups Brong a varlet of perspective
- participation May refuit In greater acceptante and Lesse résistance
- membres May expérience social Fal I Itatlon es fects whlch May
translate Intl Improbe performance
- blase sources of untel label City are dampened.
On the Otter hand the use of groups May pressent Som problème Juch as
- dominant Persona City types May control the group
- réluctance to commun Icate,
- ficus effectue prématuré closure,
- groupthlnk (Janls, 1971).
Federal group techniques have bene propose to Tak davantage of the
beneflts of groups and to Avold Som of the potentat problème of groups.
Amont Them are the fol lowlng:
- Nominal Group Technique an de Ben and Delbecq, 1971),
Delphi Technique (Turoff, 1971),
- Social Jugent Analysas (Rohrbaugh, 1979),
- Synthetlc Groups (Huber, 1974).
The Wark on group f unit I on l ngu group Dec Is Ion mak I ngu rough Wez w & & I Nat
ficus on Ita I s Eel Evans to the probe Am of Innovât Ion and Organ Azat Ion l n
Many regards. I n effet groups are shore el amants of Any Organ IzatI on and
Innovation seldom rests on Onay one Indlvldual. Therefore psychologie sts and
relate rese archers have made slgnlflcant contribution to the général area
of the management of Innovation Eden If Thel main ficus has bene
creatlvlty and résistance to change.
2.1.2. ECONOMISTS AM INNOVATION
Economlsts have bene the social sclentlsts ho have carrled out the moss
direct stud les of Innovation. However, They have focused on the Implications
of Introduclng new Evel opments, and Wren înterested In the process of
Innovation Issel f They are more concerne wlth the Socle tal process (whlch
Wez w II I Evel op In section 2.5.1.) rater thon wlth the process of the

Innovation f+sel f. Economls+s have presen+ed hypo+heses as s the Impact of
research and développent Investments on the eco nom SC growth (Nelson, 1959).
They have Investi gate the rôle of government's support of RAD and the
spll lover Intl civil fan endeavors Thot résulte Drom government RAD
expendîtures for defense efforts. They Wete Aldo concerne by the percent age
of Innovations Drom large as oppose to smalt I forme and the relative
avantages of greater verjus llmtted compétition In Increaslng Innova tlve
behavlor. They Aldo Tudy the efflcacy of Industriel research At the
Industry lebel al Ion 1985; Cota 1970). A final top l c Thot eco nom l st s
have adresse Is technologlcal mutations (Hatzlchronoglou, 1985), and the
diffusion of Innovations Rogers and Shoemaker, 1971; Yang and Lasserez
1982).
Tenson (1962) made a major theoretlcal contribution leasing to the Inter est
of economlsts In Innovation by addlng to the classlcal modem of economlc
growth a Bourth componende the technologie des Ined In a Véry large dense
Includîng production processes, and organlzatlon of Wark processes). Thusy
economlc growth Is Sean as a functlon of four variable
- Lagor
- capital
- naturel ressources
- technologie
M6
I nterestl Nil y Khere Is tokay a short In the conceptuel vlew of économe
amont researchers. Gong Zway Drom the tradltlonal Thory of equlllbrlum
developed by Keynes more and more economlsts are Red I cover l hg chat
Schumpeter calme In 1932, I.E.P Thot the central Clement In a Thory of
économe Is Nat the equlllbrlum In markets but conversely, the changes and
Thel underlylng vector: the entrepreneurlal actlvlty.
In This Contest Innovation Is Makong an Eden more central rôle In the
theoretlcal Worms of Many economlsts.
2.1.3. S0CI0L0GIS Ml INNOVATION
Soclologlsts have emphaslzed change In Thel stud les of organlzatlons. Muche
of This Wark has Investlgated technologlcal developments and Thel Impact on
the social structure and behavlor of Our soclety, and the création of
positive approches Thot world facllftate change Dee for exemple Durkhelm,
1938 and Gouldner, 1954).
Lots of efforts have bene don In the Tudy of unexpected events,
unantlcl pater conséquences of brlnglng changes wtthln organlzatlons. Many

soclologlsts and Organ Izatlonal theortsts have Aldo deeply Investlgated the
évolution the dynamlcs of organîzatlons Dee for exemple Weber 1947; Blau
1955; Crouler 1963; Catz and Kahn, 1966).
One Important but relatlvely neglected area has bene the anal y si s of chat Is
gong on wlthln the organlzatlon, the médium rough whlch Many Innovations
are Introduis Intl Our soclety.
Tels Is partial Ly due to the fact Thot the two main traditions of research
In the Somain of Innovation oonslst of
- the adoption tradition.
- the diffusion tradition
The diffusion perspective stud les the factor Thot are I Ikoy to Influence
(facllltate, accelerate, Impede) the dissémination of Innovations amont
social entoiles (Indlvlduals, organîzatlons, socletles). These factor
concerne bath characterlstlcs of the Innovation Itself and charaterlstlcs of
the social entât In the system Ander considération. The adoption
perspective foc uses on the factor Thot are I Ikoy to Influence the adoption
of Innovation. The factor Ander Investigation focs on the entât Thot
décidés to adopte or rejet the Innovation Goven the Innovation of Inter est.
In fact, Wez bel Levet Thot these two traditions are Véry slmllar recause
diffusion May be deflned as belng a général Ized adoption G.E. an adoption
by Many social entltles. W Wall conster these two traditions as belng one
In the remalnlng of the thesfs.
The fact Is Thot Khere choule be aboter tradition In the Tudy of
Innovation Hamel the "génération" perspective whlch world be concerne
w Ith the Identification and analysas of factor Thot Lea a social entât to
genette Innovations. Whlle This Is don At the Indlvldual lebel by the
psychologlsts) Khere Is Little effort At the Organ Izatîonal lebel This Is a
problème recause organîzatlons are becomlng more and more deeply the place In
whlch Innovations are I Ikoy to appeal and Them to be developed, marketed,
commun cote and dosse I notes.
Tels thesls Wall attempt to Ingrate bath the génération and
adoption/diffusion perspectives In the case of organîzatlons. Rhus Our
problème Is dual (1) how organîzatlons genette Innovations and chantes and
(2) how organîzatlons adopte Innovations and chantes and chat Is the Impact
of these Innovations and changes on the organlzatlon?
A. .4. STRATEgISTS M INNOVATION
&

More recently, a Humber of rese archers In the rowing field of strate
ficus on Innovation as belng a focal point of a f Irm's business strategy.
Moss Canter (1984) argues that, In an attempt to reverse decltnlng
leadership Innovators, Hom She revers to as "change masters", choule wleld
the Real power In Organ Izatlons. A lot of Wark has bene don to Monk
technologie to strategy. Many res archers emphase the Importance of the
technologtcal dimension In compétitive strate (Porter, 1983; Tarondeau,
1982; Dalla 1986; Etienne, 1983; Dus sauge and Ramanantsoa, 1986; Durand
1987).
Abernathy and Utterback (1978) modem the process of technologîcal
Innovation bath produit and process and hîghltght Som stratégie
conséquences. Hayes and Week Wright (1979) use process-product lofe cycles
to point out the marlous stratégie cholces Thot are open to a company as a
re suit. Durand and Bonard (1986), Tuchan and Anderson (1985) point out
technologîcal discontinu les. Drogman (1985) proposes a méthode for
Integratlng technologie Intl stratégie planning. In a more général attempt,
Burgelman (1983), base on preslois research on strate and hl research on
Internai corporate ventru Ing, proposes an Intégrative modem of stratégie
behav Ior.
The field of strate offert a Real potentat for Integratlng Juch concepts
as Innovation Organ Azat Ion and strategy. Our thesls Wall pressent an
Intégration of the two flrst concepts and Som considération of the tard. A
Hugh prlorlty I Aine of research Wall conflit of sort ING out the concept of
strategy, and extendlng the scope of This thesls by "déclin Ing" Innovation
and organlzatlon long the Basle dimensions of strategy.
2.2. I RS UE INNOVATION
Many problème arlse In des Inlng "Innovation" wlthln an organlzatlon recause
of the value Juments attache to the germ. Moss peuple do expert Any
Innovation to be somethlng social Ly acceptable and Eden désirable But Khere
light be "bad" Innovations Juch as a new weapon. Khere Aldo con be négative
& nnovatl Ons el ter fa & & Ur es or Mod Iflcatlons Thot éventa I I y have a Bad
unexpected Impact. Aboter problème attache to the concept of Innovation Is
the Idéa of "newness" Involved In the Innovation. Choule an Innovation
always cantal somethlng new If yes, Them new wlth respect to what?, new
for whom? The concept of Innovation has bene use In At I Eas Tree
différent contexte
(1) process of Invention
&

(2) process of adoption
(3) description of Wy somethtng Is new In a certain envlronment.
(1) Myers and Marquis (1969) refera to Innovation as the créative process
whereby two or more exlstlng concepts or entôles are comblned In Som Novel
Way to producer a configuration Nat prevlously know by the persan Involved:
n technlcal Innovation Is a complet actlvlty whlch proceeds Drom the
conceptuel Izatlon of a new Idéa to a solution of the problème and Them to the
actua utile Izatlon of a new Item of economlc or social value".
(2) For Knlght (1967) "an Innovation Is the adoption of a change whlch Is
new to an Organ Izatlon and to the relevant envlronment". Tels corresponds to
descrlblng the Innovation as the process whereby an exlstlng Innovation
bedoles part of an adopteras cognltlve State and behav moral répertoire
(3) The thlrd use of the Germ "Innovation" revers to Thot Idéa practlce, or
mater All art fact Thot has bene Invente or Thot Is regarde as Novel
Independant of I adoption or nonadoptlon. For exemple Barnett (1953)
vlews an Innovation by emphaslzlng "objectlvely mesurable qualitative
différences".
Sole authois Aare of the dlfflculty of glvlng one single définition of the
Innovation chose Broad définitions to fit Almont Any contexte Tels Is the
case of Sapolsky (1967) and W II son (1966) ho confluer Thot an Innovation Is
a fondamental change In a slgnlflcant Humber of ass. But the appréciation
of chat "fundamental" and "slgnlflcant" Lean Is lest to the persan or
Organ Izatlon Involved. Chenard (1967) conslders an Organ Izatlon to have
Innovâtes Wren I learns to do somethlng I dl Nat know how to do bifore
regardes of I direct envlronment. McGlnnfs and Ace berg (1983) follow
This définition recause They bel Levet Thot the orlglnatlon of the Idéa dies
Nat motter I Coulx be Internai or externat to the f Irm, chat maters Is
Thot the Idéa Is new to the adoptant unit. Zoltan et al (1973) adopte the
Asme direction an Innovation Is "any Idéa practlce, or matera artéfact
perce Ive to be new by the relevant unit of adoption
Rough these définitions allo a Broad vlew of Innovation They do Nat
prof I de d t Recy I y uses u I I nsl Gets on chat & & Real I y conso sts of & Rhus Many
authois bel Levet Thot an Innovation Is Completel by Improvlng and
strengthenlng understandlng of technologies In use (through new applications
or Improvement of exlstlng product/process & or by dlscoverlng new
technologies new buslnesses or new technologies In Current bus nessesKsee
for exemple Rosenbloom and Kantrow, 1982).
Khere are Many différent points of vlew and I Coulx be Sal that, In fact,
&

Khere are as Many définitions of Innovation as Khere are Innovations. Thusy
rater thon arguant for a spécifié définition and belng Involved In an
enfles debate, perhaps I Is getter to accepte the Idéa Thot Innovation Is a
mil tl-concept whlch Intégrâtes Many différent componende and constitue ne les.
The conceptuel framework on figure A. Is an attempt At provldlng a
structure for des Inlng Innovation. Dl est I emphases the fact Thot tne
définition of Innovation Is Nat dissociable Drom the entât whlch conslders
I In a certain Contest or env îronment. Second the concept of Innovation
Itself Is Brocken down Intl Tree différent lebels of conceptuel Azat Ion
&
- morphologie & a quai Stative description of the "object" as percevez
by the relevant entât
- functlonal & a dynamo description of the abject whlch Aldo Possesse
a partlcular final City and conflits général Ly of an action or a
procèss.
- system CI I a Hole estoc Intégration of bath the precedlng componende
and the relatlonshlps between the entât and I env Iron ment.
Figure 2.5: Conceptuel Définitions of Innovation
An exemple of a hollstlc définition of Innovation Coulx be Free man's
définition (1979): "Innovation Is a couplant process whlch flrst takes place
In the mon of Imaginative peuple somewhere At the ever changent Interface
between science technologie and the market". For Drucker (1954) a hollstlc
définition Is Aldo necessary slice "In the organlzatlon of business
enterprlse Innovation Is no more to be consldered a sparte functlon thon
marketing. I Is Nat conflned to engineering or research but entends acrose
ail parts of the business ail functlons, ail actlvltles".
Our définition of Innovation Wall be the thlrd concept. W bel Levet Thot an
Innovation Is a systemlc, mil tl-dlmenslonal process whlch flrst takes place
In the mon of Indlvlduals At the Interface between organlzatlons and
envlronment (Includlng science technologie market, etc. In fact Wez con

Imagine "Innovation" as belng a n-dlmenslonal Space wî+h Many axes Juch as
tome artel bures types social entltles, etc. The followlng Is a
description of these dimensions. Many of the f I gures Wez w & & I propose are
slmply projections of rh l s H nnovatl on-space" on certain selecte
dimensions. By Intersectant these subspaces wlth Otter concepts Juch as
organlzatlon and strate Wez Wall be able to arrive At an Intégration whlch
w & & gave new Inslghts on these flelds.
To the Basle dimension of Our framework In figure A. lebel of
conceptuel Izatlon), Wez choule add At lest aboter dimension - the différent
types of Innovation whlch d I f ferentl ote Innovations long an Inhérent
component. Tels Is the abject of the followlng section. Them Wez Illi ad dress
two new dimension Som char acter Istlcs, or atte l butes of Innovations and
the différent process of Innovation.
A. TYPES CE INNOVATIONS
Accordant to Knlght (1967) Khere are four différent major types of
Innovation
(1) producer or service Innovation
(2) process Innovation
(3) structural Innovation
(4) peuple Innovation.
Produit or service Innovations are slmply the Introduction of new produits
or services whlch the organlzatlon producer sel I s or gaves away.
Process Innovations are the Introduction of new éléments In the
Organ Izatlon's tasks, processes, production or service opérations.
Structural Innovations Incluse the Introduction of new Wark asslgnments,
authorlty relation communication system Information and décision
system or formai regards Systems I no the organlzatlon. Tels Aldo Incluse
the création of entrelu new Organ Izatlonal structure whlch Is an Anderadresse
area of rese arch.
Peuple Innovations are des Ined as beîng one of two alternatives Thot producer
direct changes In the peuple wlthln the organlzatlon: (ou alterna the
personnel by dlsmlsstng or hlrlng and b modlfylng the attitude behavlor
or beefs of the peuple In the organlzatlon via techniques Juch as
éducation.
&

I choule be emphasîzed Thot Innovations RN Rach of these ca+egorîes light
have positive or négative Impacts on the goal achèvement of an organlzatlon
as well as on the Individuels dtrectly and Indlrectly concerne by the
Innovations.
Aboter characterlstlc of This typologie I s Thot I des Inès "Idéal types
Thot Is types Thot Almont Enver exact est In the Real world. In général
a parti eu Lor Innovation Is a comble nation of or an Intermedlary between,
these types.
As hlghllghted by the soclotechnlcal system framework Shawn In figure A.
(Carayon and Smith 1986) peuple performant spécifié tanks & uslng certain
technologie accordant to a Goven Wark organlzatlon In an enyfroniïient
constitue Fave componende Interrelated In a systemlc pattern Any change
Any Innovation on one composent May Influence the Otter components.
&
Figure 2.6: The Wark System
(Carayon & Smith 1986)
Rhus I Is Véry lîkely Thot a produit or process Innovation In volves an
organlzatlonal Innovation and therefore entable Aldo a change In the tanks
and In the jobs of peuple Uns ortunately I Is Véry often grue Thot
Innova tors ficus on produit and process Innovation and assume Thot the Otter
componende Wall ajust by themselves wlthout dlfflculty and wtthout "bad"
unexpected conséquences.
Tels framework emphases the Nied to thon In a systemlc Way about
Innovation whatever I Initial major type stems to be.

W w il I follow Knîght in hts définitions of the différent types of
l nnovatl on but Wez w M I add aboter type and restructure these f Ive types
l no two groups. Looping At Knîght's typologie two groups apparu flrst
produit and process Innovations refera to the "technology" In a Broad sens.
Second peuple and structure Innovations refera to the "organlzatlon". W
Wall adopte This classification Intl two group technologie and organlzatlon.
But Knlght developed This typologie In 1967. In the 70's and 80's a new
Organ Izatlonal concept emerged: Organ Izatîonal culture. W Wills ad dress This
concept In capter & and throughout This thesls. But At This point to
complété Knîght's typologie Wez w I II add a flfth type of Innovation "cultural
Innovations". Rhus Our typologie of possible Innovations Is the followîng:
- technologie
- produit
- process
- organlzatlon:
- Individuel
- structure
- culture.
These types are r dal & types and no I nnovatl on l s Drom one type on y but
rater Is a comble nation of these Fave Innovation types. Especlally the two
groups - technologie and organlzatlon - are strongle relate and Our thesls
w f I I ficus on the second group Organ Azat Ion as I relates to the frs.
Rhus Wez w II I essentlally look At organlzatlonal Innovations and changes
(Indlvldual, structural cultural needed to successfully develop
technologlcal Innovation as Wele I as the Impact of technologlcal
Innovations and changes on the organlzatlon.
2.4. CHARACTERISTICS CE INNOVATION
Independant of Thel speclflc types Innovations con be char acter Ized long
différent dimensions or artel butes. In the pontet of This Tudy I choule
be Clear bow Thot trylng to gave a I Is of attrlbutes whlch are Inhérent to
the Innovation Itself Is Almont Impossible slice the concept of Innovation
Is Hardy dissociable Drom Otter entoiles Juch as Indlvlduals,
Organ AzatIon or envlronment.
One dlfflculty Is to dlfferentlate chat belons to the Innovation Drom chat
belons to the Indlvlduals, the jargon Azat Ion or the envlronment. Tels Is
h Ighl Ighted t n f Igue 2.7. Our concerne In rh Is section l s the box I Abel ed
"Innovation". W Bellevue Thot Khere are At lest Tree Important catégories
of attrlbutes of Innovation cf figure 2.8):
&

&
(1) planning artel butes
(2) processuel Ted artel butes
(3) outcome/lmpact-related attrfbutes
FIGURE 2.7: INNOVATION IN PERSPECTIVE
2.4.1 & PLANNING ATTRIBUT
FIGURE A. & ATTRIBUT OF INNOVATION

- programmée verjus non programmée
- Instrumental verjus ultlmate
innovations con be categorFzed in Germs of Thel degree of anticipation.
Sole Innovations are programme Thot Is Thel apparence Is scheduled In
avance Often these Innovations stem Drom a problem-sol Veng approcha
Nonprogrammed Innovations May be of two général types ;sl acl£)lnnovatlons or
dl stress Innovations (Zaltman et a. 1973). Lack ^Ts^def Ined as the
différence between the payements requérez to ma In tain the organlzatlon and
tne ressources obtalned Drom the envlronment (Cyert an d Ma ech 1963). In
général succès tends to breed lack and lack Innovations May contrebute
to the Averan I technologie of an organlzatlon, but do Nat correspond to
solutions to speclflc pressing problems. The concept of "slack" ortglnated
Drom a flnanclal perspective and essentlally conflits of money. Tels concept
con be entende to Avery potentat ressource Thot Is Nat use for exemple
technologlcal ressources Thot are Nat use to develop new or getter products.
These non-programmed potentat Innovations May be cal led non-programmed but
programmable Innovations.
& '')w* &
Dl stress Innovations often occur Wren an organlzatlon final Ly Real Izes how
unsuccessful the organlzatlon I s. They correspond to Internai radical
changes rater thon changes In the produits or processes. Of course
successful dl stress Innovations are Véry rare In the Real world.
&
In studylng social change Gassman (1970) Lakes an Important distinction
between Instrumental and ultlmate Innovations. Ultlmate Innovations are ends
In themselves, hile Instrumental Innovations are alme At speclflc changes
chat are Intended, At a Lager point In tome to make possible or rafler the
Introduction of ultlmate Innovations. In case of a planned change I bedoles
a stratégie décision whether to attempt an ultlmate Innovation Immedlately,&
or chose a step by step approcha Rach step conslstlng of an Instrumental
Innovation.
2.4.2. PROCESS ATTRIBUT
These relate to the développent of Innovation Drom the beglnlng to the end.
Speclflcally Wez con thfnk of the process of Innovation as the succession of
Tree différent sages
- or Gil nation
- développent
T BT i-

- diffusion
M6
In the nexe section Wez w & & & revIew the différent process In more détail
but for the pur pose of listing marlous charactertstlcs of Innovation This
slmpllstlc process Is approprlate. The attrlbutes of Innovation relate to
the process Itself are Rhus the followtng Dee figure 2.8).
ORIGINATION: Puch verjus Pull
Sole over-slmpl If led Zarly modems of Innovation emphastzed the causal rôle
of sclentlflc and technologlcal avance and Wete général Ly I Infor. These are
summarlzed In figure 2.9, and are cal led "technol ogy-push" modems of
Innovation.
Figure 2.9: Technologie Puch Lionel
(Rothvell, 1983)
Drom the Zarly to mld-1960s, largely as a refuit of a rowing Humber of
emplrlcal stud les and descriptions of actua Innovation the rôle of
percevez Nied In Innovation Begin to be emphastzed, whlch led to the
adoption of the I Invar "market pull or "need-pull" modem of Innovation cf
f taure A. A.
Figure A. A. Marcet Pull Lionel
(Rothvell, 1983)
Hers Innovations arlse as the refuit of a recognlzed, and often clearly
artlculated Marcet ne ed. I choule be Clear Thot Innovation Is général I y tao
complet a process to be descrfbed by a single Chaon of causal City In one
direction or ano ther. In This veln, Rethel I and Zegveld (1985) propose an
Interactive Modelo whlch Is a comblnatîon of these two preslois modems

f I gure A. & A.
&
Figure A. & & Interactive Modem
(Rothwell & Zegveld, & 985)
Aboter Important yet Andrest l mate or I gin of Innovation Is slmply
serendtpîty, or clrcumstantlal dlscovery.
DÉVELOPPENT &
The followlng attrîbutes have bene mostly developed by Zoltan et al (1973).
They ail descelle one aspect of Innovation as I relates to the phase of
research, development, testlng, évaluation of Innovation
- Cast
Cast Is one of the moss obvlous dimensions. Khere are At lest two types of
costs. fînanclal and social. Financial costs comprise (ou Initial costs and
b contlnulng costs. Social Cast Is aboter Farm of ex pense and Is often
expresse In Germs of Internai conflits amont marlous formai and Informai
groups wlth In an organlzatlon.
- return on Infestent
Return on Infestent of Innovations In business forme Is a Commin masure
However, This dimension Is often dlfflcult to handle recause beneflts are
often non-monetary and Rhus Nat always direct I y mesurable
- effîcîency

Efflcîency Is aboter potentlally Important factor of an Innovation rough
no Clear définition of efflcîency appelles to Avery settlng. Tels Coulx
In volve for Som types of Innovations Averan I tome savon or Avondance of
bottlenecks In production processes.
- rosi and uncertalnty
Rosi and uncertalnty are omniprésent In ail parts and ail componende of the
Innovation and I process. The relevance of rosi varies acrose social
Actors or Industries or Organ izatlonal contexte
&
- sclentlflc and technologlcal statu
New knowledge plays an Important rôle In the Innovation acceptante process
therefore, subattrl butes Juch has rellablllty, valldlty, Internai
conslstency are Important dimensions to conster
DIFFUSION
Drom a diffusion perspective the attrlbutes whlch characterlze an Innovation
are the followlng:
- commun cab I City T
The communlcabll City of an Innovation conflits of the Eas and es fectlveness
wlth whlch the résulte of an Innovation con be dîssemtnated to éthers
Rogers and Shoemaker, 1971).
- ccmpatlbll City
Compati Bo I City concerne the slmllarlty of the Innovation to an exlstlng
produit Inlay eventually supplément complément or replace Rogers and
Shoemaker, 1971).
- pervaslveness
The pervaslveness Is the degree to whlch an Innovation relates to and
recules changes and ajustements on the part of Otter éléments In the
organlzatlon (Menzel, 1960).
- démon strab l I City

The demons+rabl I î+y Is the capaclty to show how the Innovation con be or Is
employer
- revers Ibm I City
&
Reverstbl I City revers to the degree to whlch and the Eas w Ith whlch the
preslois State of the system con be relnstal led aster the Innovation has
bene adopte
- dlvlslb V I Ity.
The dlvlslblllty Is the ablllty to try to Amplement partial éléments of the
Innovation.
i ri I
- trlabl I Ity. T -•'■> &
Trlabl I City Is the able I City to try to I amplement the Hole Innovation on a
I Imite bas s f Inst.
2.4.3. OUT COME L I PACT AT TRI BUTES
Federal authois (Knlght, 1967; Harvey and Mill 1970) have classlfled
Innovations In Germs of Thel radical Nessa Knlght uses two différent
masures of radlcalness. Firth performance radical nefs descelles a masure
of the Increase or décreuse In the ablllty to performe a requérez tè^K^Thus
performance radlcalness Is deflned as the Mount of change In output Thot
résulte Drom one Innovation Wren compare wlth a second one. Second
structura I rad Ica I nefs deflnes a masure of the entent to whlch the
structural arrangement dlffers Drom exlstlng anes
Thusy I appert Thot a définition of radlcalness In volves the corn pari son
wlth exlstlng alternative or exlstlng practlces f no alternative to the
I nnovatl on el ss. Them the more an I nnovatl on d l f fers Drom the existe hg
State of the system the hogner Is I degree of radlcalness./
Performance radlcalness Is relate to the complexât of the Innovation and
I potentat advantages. W Rhus have the followlng dimension
- complexât
Complexât con stem Drom two levels: flrst the Innovation May cantal
complet Idéas and second the actua planning of the Innovation May be Véry
complet Drom the orlgln to the Implémentation and diffusion.

I
White and Graham (1978) add the followtng dimension
- technologie potence
& Inventive mertt
The Inventive merle Coulx be masure by the Mount of new combinat on of
sclenttflc prtnctples Thot Iles At the Heart of the Innovation.
& embat I ment merI &
The assisse value of the phystcal Farm Goven to an Inventive concept Cs tts
embat I ment mer.
- business avantage
& operatlonal merle
The experte effet of an Innovation on a company's exlstlng business
practlces Is a masure of I operatlonal masure
& Marcet merle
The experte total demande and the experte total revenue due to Price and
attractlveness deflne the Marcet merle of an Innovation.
Moreover, Som of the changes Thot an innovation Imputes May be
Cys unctlonal to the Organ Izatlon. These changes are Them new problematlc
situations whlch themselves Ary In Germs of degree of structural
radical Nessa In fact, whlle theflrst notion of radical Nessa performance
radical Nessa referez to the technologie & the second type of radical nefs
revers to the Organ Izatlon and May be conceptuel Ly Brocken down Intl Tree
subcomponents, "Indlvldual rad Ica I Nessa the entent of the Impact of
Innovations on Indlvldual s "structural radical Nessa as deflned by Knlght,
1967), and "cultural radical Nessa the entent to whlch the "new" eu I tire
d If fers Drom exlstlng ones).
As an Illustration Normands (1971) analysas of produit développent In large
Companies supports the Lea Thot Innovations choule be carefully assisse In
Germs of radical Nessa Norman revers to variation routine Innovation
i verjus réorientation radical InnovatlonJf A new produit Is a variation If
I "dl enflons are basal Ly si m & & ar to Thise of Earl er produits of the
Organ Izatlon, rough wfth renflements and modifications. Reorientations, on

the o+her hand Imphy fundamen+al chantes In whlch Som produit dimension
May be éllmlnated and entrelu new anes added".
For exemple If Wez projet Our I nova lon-space on two dimension
radical nefs and subsys+ems of the organîza+Ion, Wez get Normands s+udy of
+he Implications of variations and réorientations on the marlous subsistes
of an organlzatl on. Rh Is l s Shawn In f Igue A. A.
N
Figure A. & Relations of Variations and Réorientations to Organizational Subsistes
(Normann, & 971 &
Norman conslders Tree différent subsystems. Firth the Tak system
représente the types of spécial Ized know ledge or compétence. In the second
the goal value and power structure reprisent the Pol Iléal system The
thlrd sub system Is the cognltlve system and corresponds to the process by
whlch peuple get Information about the externat envlronment and percevez
évents In I. Figure 2.12 emphases the relative degree of radical nefs of
variation and réorientation on these Tree subsystems.
A. I TiSSES AL INNOVATION

Whlle the ficus of This thesls Is on ne Innovation and tts organlzatlon At
the lebel of the forma I Is fondamental to flrst look At chat happent Drom
an hlstorlcal, socletal, and economîc perspective slice This envlronment
conste tûtes the day-to-day Contest In whlch the organlzatlons vol Ve and
compète Them Wez Wall ficus Our attention on the process of ex changes
between organlzatlons In sustalnlng and developlng Innovations. Final Ly Wez
w f & & go wlthln the organlzatlon and look At the différent process of
Innovât on At rh I s I Evel & & & I s I portant to note At rh I s Pol nt Thot Khere
Is Nat one process of Innovation but Many and Thot one Innovation follows
slmul taneously différent process dependlng on the perspective Drom whlch
Wez look At the Innovation.
N
2.5.1. ECONOMICO PERSPECTIVE SOC I ÉTAL PROCESS
The Basle question adresse In This section Is the rôle of Innovation
(malnly technologlcal Innovation In the economy, and especlally chat Is the
rôle of technologlcal Innovations In the Current world economîc crlsls?
In trylng to anser these questions economlsts have made two major
contributions to the f leld of management of Innovation
- the Thory of cycle
- the concept of technologlcal trajectorles.
THORY OF CYCLE KONDRATIEV CYCLES
Duong the post tam Yeats I has l nterestl Nil y bene mooted by a rowing
Humber of economlsts Thot over the las fort Yeats the world économe has
undergone a cycle of structural changes Thot In Som Way parallèle Earl er
cycles In economîc actlvîty (Mensch, 1979; Freedman et al 1982; van Duljn,
1983). The Idéa of a more or Lesse régula occurrence of the type of
structural cross Wez are experlenclng Is général Ly assoclated wlth
Kondratlev, rough Otter cycles est Juglar and Kltchln for example).
Whlle Kondratlev dl Nat expllcltly Incluse technologie as a causal factor In
long-wave formation he dl subtest Thot Wren a major ave of expansion Wa
Ander Way Inventions Thot had remalned dormant world attrait Infestent and
Begin to flnd commercial application. Schumpeter (1939) flrst avance the
notion of radical Innovations as a major factor In the recrurent crises of
structural adjustment. Schumpeter expllcltly spore of technologlcal
révolutions belng the drlvlng force of economîc growth.
Rach cycle Goes rough four différent sages

- prosperîty
- récession
- dépression
- recovery.
Schumpeter ponte to major Innovations assoclated wî+h Rach cycle as Shawn
In f I gure 2.13.
T
Figure A. & Kondratiev Cycles
As Freedman et al (1982) have explalned the underlying rounds of
Schumpeter's Thory are threefold:
"First he CSchum peter]] argue Thot Innovations are Nat At Any tome
dlstrlbuted over the Hole economlc system At random, but tend to
concentrât In certain sec tors and Thel surroundlngs, and Thot consequently
They are lop-slded, dlscontlnuous, dls-harmonlous by nature. Secondly, he
argue Thot the diffusion process Wa Inherently a Véry uneven one recause
Innovations do Nat demain Isolâtes events, and are Nat Everly dlstrlbuted In
tlme... on the contraria They tend to cluster to corne about In bunches,
slmply recause flrst Som and Them moss forme follow In the Lake of
successful Innovation. Thlrdly, he malntalned Thot these two characterlstlcs
of the Innovatlve process Impl led Ogiat the dlsturbances I engendre Coulx
be rough to dlsrupt the exlstlng system and efforce a distinct process of
adaptations
One question to be anserez Is Thusy chat Is the nexe Kondratiev cycle Con
Wez détecte developments In technologie or areas of techno-economîc actlvlty
whlch light Farm the Basle of the nexe upswlng? The anser Is des.
Posslb I I Irles currently belng mooted are

R
- blotechnologles,
- energy-rel Ted technologie
- Electronic and Information technologie
- new materîals.
TECHNO LOG I CAL TRAJECTOIRES
Duong the 1970s Nelson and hl col leagues Begin the search for a Thory of
Innovation Thot light Monk together the "micro" and "macro" world Thot
prevlously had bene trente as sparte entltles. Tels Wark led to the
développent of the concept of "natural trajectorîes". "It May be -Hiat Khere
are certain powerful Intra projet heurlstîcs Thot Appy Wren a technologie
Is advanclng In a certain direction and payons Drom advanclng In Thot
direction Thot est Ander a Wilde range of demande conditions. W cal I these
directions "natural trajectorîes". If naturel trajectoires exlst, followlng
these May be a Goos strategy" Nelson and Wlnter, 1977).
Tels concept of naturel trajectoires of technologlcal change alds In Makong
Nat So Puch a "macro", but rater a "meta" vlew of technologlcal change
enabllng to look beyond chat Is happening At the I Evel of Indlvldual frs.
2.5.2. INPUSTRIAL ORGANISATION PERSPECTIVE CO MPESTIVE PROCESS
Drom This section to the end of This thesls Wez bow adopte the perspective of
the organlzatlon and Wez are concerne wlth I behavlor regardant
Innovation. Large Organ Izatlons seem to have Many dlfflcultles In belng
Innovatlve as hlghllghted In capter A.
Rhus Many rese archers Eel fiat major Innovations are often led by smalt I and
f Lexy Bo e f Irms and Thot I orge establ Shed f Irms are often unabl e to cape
wlth technologlcal dlscontt nuit les. But In Real Ita large establ Shed forme
do have a rôle In the Innovation process. Many of Them al locale variable
amonts of dol I ars to RAD but Many al So fa & & l n col I cet l hg the patent al
returns. They easlly Incorporated tmprovements In Thel malnstream bufflesses
but do Nat exploit al I the Innovations They Incubat Figure 2.14 shows a
typlcal^ Inter-organlzatlonal process conso stl hg of four distinct phases
separated by Tree major vent. Tels modem Is Clear and Rhus
overslmpl If les chat Real I y happent but Is Interestlng recause I points out
major évents and processes.
The flrst phase Is the embryon phase Makong place Intl large
Organ Izatlons: the Incubators. In these Organ Izatlons Som peuple have new
radical Idéas and try to develop Them but raptdly flnd Thot They do Nat fit

the organîzatîonal pattern maînly recause of Som or Otter explanatfons as
Thise Goven ave. Them the flrst évent often happent persans învolved In
This Idéa star leavlng the parent Farm to Joan maller exlstlng firme whlch
offert Them flexlblllty and autonome or to Creste Thel on new smalt I forme
for developîng these new Idéas This phenomenon s Callen the "spln-off".
I
Figure A. A. Industriel Organisation Perspective of the Innovation Process
The second phase Is the émergence phase a f Irst ave f p loneers are
putting together the flrst attempts At structurant the Idéa the new
concept chooslng entrelu différent approaches, différent techniques. They
are f Ightlng agalnst Rach Otter to acqutre Som compétitive positions on the
Véry Fe niche Interstices of Marcet Thot are w & & I ING to use the f Irst,
I Little efficient but Véry speclflc and promlslng produits Thot They are
able to producer Ance these niches are sel dom slice the Zarly
techno ogival cholces these planeurs have to do are Véry incertain and
Almont Randon Khere often occurs a "burn-out" of ploneers, selectlng a Fe
of them, beglnlng to master one technologie and havlng Som clients. Allers
(1985) characterlzes This process on a technologie lofe cycle curve by a
sériés of attempts and allures At the Zarly stages Dee figure 2.15).
The thlrd phase conflit of the avance émergence phase Khere the second
ave of planeurs pur sue Thel Quet for a more avance technologie and
slmul tabous I y selve to Crow fast rough to Impose tnelr techno ag f ca I
cholce and to reslst the thlrd Eventé the "shake-out". Tels évent Is due to
the entr Intl the émergent Marcet of large flrms, Interested by a new
technologie surf Iclently avance for justlfylng Geay Infestent In ordre to

épand Thel Somain of ac+lvl+les.
O
Figure A. A. Technological Progresse
The entr of these mass-marketers marks +he beglnlng of +he Bourth phase
the maturlty phase. I Aldo détermines the "dominant design of the new
produit Thot Is a klnd of reference, of standard whlch Wall be accepte by
the user on a Lor GE s çaJL8-bas^s. The planeurs ho Sallet to chose the
light design are Véry llkely to die as Thise ho Wete Nat bog rough At the
tome of the entr of large f Irms and Rhus nable to compète Sole of the
planeurs ho dl chose the light design Wall be acquérez by mass-marketers,
éthers Wall stay In the Marcet and compète often on a technological Basle
rater thon on a Price bass. The maturlty stage Is char acter Ized At the
beglnlng by the proxlmlty of Marcet aggregatlon and large sale
posslbtl Itles.
I choule be note Thot the Asme large organlzatlon con be an Incubat At
the beglnlng and a mas9-marketer At the maturlty stage. Tels con be a Véry
Goos strategy, slice the émergence and développent phase whlch In volve
Hugh uncertalnty and rtsk, Coulx be Rhus avold ed. The main dlfflcultles
Involved In Juch a strate are the cholce of design and the tlmlng of
enr. An Impressive successful exemple of Juch a strate Is provlded by
IBM wlth the Marcet of the m Icro-compirters.
Tels compétitive process stems to show Thot At Almont Rach stage Onay one
Actors Is leasing the Innovation. Tels Is an overslmpl if Icatlon, recause as
Wez sale the Innovation process Is Nat llnear, but Interactive. The
followtng section gaves scme I Light on This aspect.

2.5.3. I NTER-ORGAN I ZA I ANAL PROCESS
Rosenberg (1979) s+a+es Thot Innovations Hardy ever functlon In Isolation
"the rowing productlvlty of Industrlal économies Is the complet out come of
large Humber of Intel ok Ing, Mutual Ly relnforclng technologie the
Indlvldual componende of whlch are of Véry llmlted economîc conséquence by
themselves. The smalt lest relevant unit of observation therefore, Is seldom
a single Innovation but more typlcally, an Interrelated clusterlng of
Innovations". Gong beyond This concept of technologlcal Interdependence,
Townsend (1981) developed the concept of "Intersectoral f I os ff exp. a l n l hg
the technologlcal I Linkages between sec tors and the pervaslveness of certain
types of Innovation. The Intenslty and pervaslveness of Inter sectoral
I Linkages In technologie are bel Levet to be predom Inantly due to producer/user
relations. on HI Pelj & 976, 1978) focused attention on the rôle of the user
In the Innovation process and show Thot Many Innovations orlglnate as the
refuit of a process of contlnuous and multiple Interaction between user and
producer.
S
The Averan I pattern of the Innovation process con be thought of as a complet
net of communication paths, bath Intra-organ Azat clonal and extraor
ganlzatlonal & llnklng togeltier the marlous Incluse functtons and llnklng
the Farm to the brader sclentlflc and technologlcal communlty and to the
marketplace. In Otter words, the process of Innovation représente the
confluence of technologlcal capabllltles and Marcet Leeds wlthln the sr
framework of the Innovatlng fem. l
The Intra-organ Azat clonal perspective Is developed below.
2.5.4. I NTRA-ORGAN I ZA I ANAL PROCESS
The process of Innovation often takes place wlthln organlzatlons, whether
programme or not. Spontaneous technologie Puch occurs wlthln organlzatlons
and programme Marcet pul I Is often organlzed wlthln organlzatlons. The
challenges are In two directions agaln: (1) how to Ingrate and Internai Ise
Innovations and chantes whether orlglnated Drom outslde or Drom wlthln, and
(2) how to organe actlvltles So as to genette Innovation Therefore a
lot of organlzatlons stl I I Eek to Inn ovate Drom Thel on Internai
structure. Sole of the rasons for these endeavors are the followlng:
- large forme greatly Eel the Nied for Improvement, especlal Ly process
Improvement, and therefore Wall tend naturel Ly to performe In-douze research
and development.

- large forme seeklng to Improbe Thel stratégie position May be
fnduced for défensive and/or offensive pur poses to support Internai
înnovatfve effort whether technologlcal or Organ Izatlonal Innovations.
- Eel lance on Marcet transfert of Innovations May be percevez as tao
rlsky. Marcet Coulx be vulnérable to opportunisme Wete They to be use for
Information ex change pur poses Juch as Innovations). The dlfflculty Is thlsi
& the value of Information to a Purchase Is Nat know Intl I he has the
Information but once I Is dlsclosed, he has acquérez I wlthout Cast
(Arrow, 1962; Wllllamson, 1975).
Therefore, large forme engage In Internai organfzatlon and développent of
Innovatlve actlvltles recause I constitues the best Way to over come the
potentat problème pose by incertain and hlgh-rlsk actlvltles whlch Coulx
détermine Thel future position. Mcreover, one Coulx Aldo thon Thot large
f Irms have a parti eu Lor davantage due to the Elze es sect. They con h and I e
port folios of Innovatlve projects, Rhus dîstrlbutlng the risks învolved In
the différent prose cts.
The Intra-organlzatlonal process conflits of a ferles of actlvltles whlch
transforme Idéas Intl profitable Real Izatlons. Many différent descriptions of
This process exist.
As Wez have mentloned aboie Khere are Tree traditions In the Innovation
field adoption diffusion and génération and Khere has bene two major unlts
of analysas Indlvlduals and organo Earl ans. More over diffusion of
Innovations Is often consterez as the adoption of Innovations by Many
social entttles. Therefore, Drom a process point of vlew, diffusion Is the
général Izatlon of adoptions on a large sale Basle the notion ôs "large"
Them dépend on the Innovation Itself and on the relevant envlronment or
Contest consldered). Thusy Wez have two Basle dimensions whlch Helpe us
classlfy the différent process of Innovation Thot one con flnd In the
I Iterature: perspective génération or adoption/diffusion) and social entât
(Indlvldual or Organ Izatlon). Tels Is Shawn In figure 2.16.
Moreover, In the génération perspective two catégories apparu Is the
Innovation process a réponse to a Nied (I.e. problème Dolving for an
Indlvldual, or Marcet pull for an Organ Izatlon) or Is the Innovation process
an explora tory Investigation (creatlvlty Puch for an Indlvldual, or
technologie Puch for an Organ Izatlon)?
E

Z
Figure A. & Typologie of Intraorganizational Process of Innovation
Figure 2.17 hlghllgh+s four typlcal process of Innovation
correspond I hg to the four cellsof the typologie propose In figure 2.16.
FIGURE 2.17: APICAL INTRAORGANIZATIONAL
PROCESS OF INNOVATION
Figures 2.18 and 2.19 show numerus modems correspond hg to the two

différent perspective
W
- tndlvldual and organlzatlonal Innovation-génération process
dlsplayed In figure 2.18,
- Indlvldual and organlzatlonal Innovatlon-adoptlon/dt fusion process
dlsplayed In figure 2.19.
FIGURE 2.18 & INNOVATION PROCESS MODEMS
GENERATION PERSPECTIVE
Basal Ly the Innovation process Is Brocken down Intl two général stages of
actlvltles: Initiation and Imo lamentation. Tels Hole Cs for bath perspective
génération and adoption/diffusion as hîghllghted In figure 2.17.
Khere are of course différent terminologies use In the I Iterature, and the
meanfng and content of these Germs varies accordant to the perspective
chosent But basal Ly Khere are ail the Samer as figures 2.18 and 2.19 show
I.
Drom a génération perspective the Initiation stage Incluses Idéa génération
and développent At the beglnnlng whlle Drom an adoption/diffusion
perspective the Zarly stages are awareness and formation of attitudes. Them
the Initiation for bath perspectives Goes on rough proposai trial
démonstration évaluation and décision substages. Basal Ly the décision

sub stage Is +he transition between the Initiation phase and the
Implémentation phase. The Implémentation stage In volves the compliment of
Indlvldual and/or Organ Izatlonal ressources to the I deo to Lauch or adopta
Tels stage Is often dlvlded Intl two substages, the Initial Implémentation
on a llmtted trial Basle and the contlnued-sustalned Implémentation whlch
occurs Wren the organlzatlon décidés to formai Ise the Implémentation Intl
the ongolng process of the organlzatlon on a large sale bass.
&
FIGURE 2.19 & INNOVATION PROCESS MODEMS
ADOPTION & DIFFUSION PERSPECTIVE
A final observation choule be made concernant these processes. They are ail
pressente In a sequentlal mann er. These are Idéal types modems whlch hardi y
ever est In the Real world d but gel p In the planning functlon of the
Innovation. In Real City these process are more llkely to be a set of
Interactive cycllcal, Interdépendant actlvltles, Inval Veng différent and
numerus feedback loops. But Drom a conceptuel point of vlew and for
practlcal considérations I Is rafler to pressent Them as sequentlal, Wele I
d es I ne d Price s se s.
Figure 2.20 summarlzes the différent process aboie and hlghl Ights the

H
Somain +na+ Wall be adresse by This thesis.
Figure 2.20: Tupologg of Process of Innovation

N
CHARTER & & THÉORIES OF ORGANISATION
CUTINE
3.1. Concepts of Organlzatîon and Organîzatî anal Design
3.1.1. Définitions of Organlzatîon
3.1.2. Organîzatî anal Design
3.2. RevIew of Tradltlonal The orles of Organîzatîon:
An Internai Design Perspective
3.2.1. Classlcal Thory
3.2.2. Neoclasslcal Thory
3.2.3. Modem The orles
3.3. Short In the Unit of Analysas
3.4. Organlzatîon In Relation wlth the Environnent
3.4.1 & A Typologie
3.4.2. RevIew of Redent The orles
3.5. Concepts of Organîzatî anal Es fectlveness:
The Dual City of Organlzatîon
3.6. Organîzatî anal Dynamie
3.6.1. Internai Design Perspective
Organîzatî anal Forme
3.6.2. Organlzatîon In îts Environment:
Organîzatî anal Life Cycles

E
The second building block of Our approche Is the organtza+Ion Itself and
especlal Ly how I Is deslgned. If the f Lek d of Innovation has producer an
Immense Vast I Iterature, the field of organlzatlon Is At lest a hundred
tomes blgger. Therefore, I world be Sool Ish to compile everythlng on
organlzatlons and organlzatlonal change.
The fol long Is chat Wez Eel Is especlal Ly relevant to approche and to
understand Innovation wlthln and between frs. Therefore, Wez do Nat prétend
to be exhaustive but on the contraria the fol long reflets Our on
"taste" regard ING the fasclnatlng field of organlzatlon theory, as I
relates to the problème of Innovation and change.
The main talcs Thot Wez w & Il ad dress are the fol lowlng:
(1) Chat are the différent concepts of organlzatlon and chat dies
organlzatlonal design mena
(2) Chat are the tradltlonal approches to theorlzlng about
organlzatlons and chat do these approches Say about organlzatlonal
design
(3) How dies the unit of analysas short over tome and chat Is the major
emphases of redent theorlsts?
(4^ How con one classlfy the redent approches to organlzatlons In
Thel envlronments In an Intégrât Ive framework?
(5) Chat Is organlzatlonal es fectlveness?
(6) How do organlzatlons volve over tome Internai Ly and In relation
to Thel envlronment?
3.1. CONCEPTS OF ORGANISATION AM ORGAN I MATINAL DESIGN
3.1.1. DÉFINITIONS UE ORGANISATION
Everybody steaks of and stems to Impl Icltly understand chat Is meant by
"organlzatlon". But Khere Is no Clear définition of This concept rough
Khere are Onay si Light différences In the Way In whlch marlous theorlsts
deflne organlzatlons. General I y speaklng, the définitions propose In the
I Iterature are Esther base on the "Ingrédients" whlch are In This concept
or the "functîons" Thot an organlzatlon Is Intense to accompllsh; a thlrd
approche conflits of a comblnatlon of these two. Rach of these possible I Irles

T
has I avantages and dîsadvan+ages. The Ingres lent perspective Allos for
a Great varlablllty In Germs of objectives or functlons, but I Is dtfflcult
to lest extenslvely ail the Ingrédients Incluse In Avery Organ Izatlon. The
f unctlonal perspective aval Cs rh Is I Otter probe Am but on the Otter hand
estrans the concept to I f unctlonal Ity.
For exemple a lest of elghteen différent conceptuel Izatlons of groups or
Organ Izatlons Goven by Stogdlll & 966) follows:
- Organ Izatlon as a cultural produit
- Organ Izatlon as an ex change agent wlth I envlronment
- Organ Izatlon as an Independant Agency
- Organ Izatlon as a system of structures and functlons
- Organ Izatlon as a structure In action over time
- Organ Izatlon as a system of dynamie functlons
- Organ Izatlon as a processIng system
- Organ Izatlon as an Input-output system
- Organ Izatlon as a structure of sub groups
- sub groups In Interaction wlth the Organ Izatlon
- sub groups in Interaction wlth Rach Otter
- groups as blologlcal-soclal necessltles
- groups as cultural produits
- groups as Independant entoiles
- groups as Interaction Systems
- groups as Interactlon-expectatlon Systems
- groups as col mectons of Indlvldual membres
- groups as summatlons of membre characterl stucs
More self Cal Ly Barnard (1938) Valls an organlzatlon: r system of
conscîously coordlnated persona actlvltles or force a system of
Interrelated actlvltles". Davis (1951) deflnes I as a "group of peuple
worklng together, Ander a leader to accomplis an objective Victor
Thompson (1961) char acter Izes bureaucracy as a "hîghly rattonallzed
Impersonnel Intégration of a large Humber of spécial Is operatlng to achevez
Som objective upon whlch Is superlmposed a hîghly elaborate structure of
authorlty". Stogdlll (1966) deflnes the organlzatlon as a "structured"
system of behav Lor w Ith the posl tl on and roi es Comps l s I hg & & Hab l hg the
potentat of belng "prestructured", Thot Is deslgned and prescrlbed bifore
the rôles are folle by the Actors
For Catz and Khan (1980), Organ Irato Ons are soc I al Systems and lofer In
Tree différent ways: (1) genotyplc functlon, (2) expressive verjus
Instrumental purpose, and (3) object-mol d I hg verjus peop I e-serv ING
character.

H
Genotyplc F unet Ion. The genotyplc fonction s the type of actlvlty c whlch
the organlzatlon Is engage as a sub system of the larget soclety, Thot Is
the Basle throughput by whlch I social existence s legltlmlzed. In these
Germs Catz and Khan (1980) dlstlngulsh four main classes of organlzatlons:
- productive or economlc organlzatlons concerne wlth the création of
wealth, the manufacture of goods, and the provision of services for
exemple Any Manufacturing ccmpany).
- maintenance or sustalnlng organlzatlons, concerne wlth the
social îzatlon of peuple or wlth Thel réhabilitation (e.g. hospltals).
- adaptive organlzatlons, for the création and développent of knowledge
and technologie (e.g. RAD organlzatlons, unlversltîes).
- managera or polltlcal organlzatlons, concerne wlth the
coordination of actlvltles and the allocation of ressources wlthln the
Society (e.g. governmental agencles, flnanclal organlzatlons).
Expressive verjus Instrumental Actlvltles. In a purely expressive
organlzatlon, peuple carry out Thel rôles recause the actlvltles are
Intrlslcal Ly rewardlng. To the entent Thot They are Noth externat regards
are necessary to solvate peuple to stay In the system and performe Thel
actlvltles. Peuple are llkely to cal I these actlvltles "work", and Rhus the
organlzatlons are Instrumental.
Ah fect Moldlnq. Peuple Changlng. ad Pep & & Process ing. Pardons (1960)
emphaslzed flrst the différence between organlzatlons Thot are moldlng
physlcal abjects and Thise Thot are dal ING wlth peuple More over Khere Is
Aldo a différence between organlzatlons Thot are processlng peuple Juch as
Emil aiment agencles, and organo Earl Ons Thot are Chang hg peopl e Juch as
schéol s or hospltals.
Aboter approche to a définition of organlzatlon, wlth whlch Wez agrée Is to
confluer an organlzatlon as an Interactive system brlngtng together
différent componende establlshed for achlevlng certain goals. One exemple of
& This approche Is Goven by Leavltt's (1965) modem of an organlzatlon
Illustrâtes In figure 3.1. An organlzatlon Is thought of as a group of
peuple accompli Ishlng certain tanks rough Som process In a certain
structure In ordre to achevez certain goals. Tels vlew of organlzatlons Is
often adopte wlth modifications in Germs of the componende to be consldered
and the dimensions char acterI ING these componende Dee for exemple
Galbralth, 1973; Hugh et al 1968; Nadler and Tushman, 1980; Kotter, 1980;
MIntzberg, 1979; Al lare and Flrslrotu, 1985).
Hl le the marlous des Initions do Nat seem radical Ly différent Drom Rach

A
o+her, the directions taken, the concepts use the relatlonshlps between
Figure A. & Modem of Organisation
(Leavitt, 1965)
them, and the foc f of fnterest are varîed. For exemple Hamel I andDIpboye
(1976) Identlfy four main orientations relate to the Tudy of
organlzatlons:
- Indlvldual emphases motivation satisfaction
- group emphases
- leadership emphases management rôle
- organfzatlonal emphases structure oontext).
Flgure3.2 détails these or tentations and Illustrâtes Important the orles
groupe Ander these catégories. In the pontet of the pressent Tudy Wez Wall
emphase the Bourth category whlch Ader esses the organlzatlons per se.
3.1.2. ORGANIZATI ANAL DESIGN
One Issue Thot has bene consldered In Som the orles as a déterminant At the
concept of organlzatlons Is the question about organlzatlonal design.
- Do organlzatlons émerge naturel Ly or are They the construit of Som
humant Intention And If organlzatlons émerge naturel Ly Wy choule
Wez design them?
One anser totos I Otter question Is Thot design efforts con refuit In

organisations hic performe getter thon Thise hic arise naturally. But
N
Figure 3.2: Sampling of Organlzatlonal and Management Rhéo ri es

581)13
FIGURE 3.2: AMPLAING OF ORGANIZATI ANAL
AND MANAGEMENT THÉORIES
(continued)

C
This Resson présupposés Thot Wez al ready know chat performance or
es fec+îveness means; these concepts are far Drom beîng Clear Wight Nowy and
Khere are Many différent approches for deflnlng, ellcltlng and measurlng
these concept wlthout agreement amont the rese archers In This field
Aboter Way of putting the Is to confluer Thot Organ Izatlons, often deflned
by Thel Ingrédients & Indlvldual s group techno ogy,...) and by Som
char acter I stl es Juch as the menas for Mutual goal attalnment, are Nat
dissociable Drom a set of Intervenant facto rs. In effectue between the
objective and the efforts of peuple Khere must be Som variables whlch Brong
about the coordination of Thel effort Intl the efficient accompli Ismet of
the goal. This set of Intervenant factor con stl tûtes the Real of
Organ Izatlonal design.
Thusy the concept of Organ Izatlonal design résulte Drom a combînatlon of the
définition of an organlzatlon and the concept of "stratégie choîce". In This
Way organlzatlonal design Is concevez to be a décision process to Brong
about a cohérence between the goals or pur poses for whlch the organlzatlon
ests and the peuple ho ll I partlclpate and Wark In the organlzatlon: for
exemple design of patterns of division of labor. design of Internat
coordination.
As Galbraith (1977) states, stratégie choîce suggestif Thot Khere are cholces
of goals and purposes, cholces of différent organlzlng modes cholces of
process for Integratlng Indlvlduals Intl the organlzatlon, and final Ly a
choîce as to whether goal Organ Izatlons, Indlvlduals, or Som combînatlon
of Them choule be change In ordre to adapte to changes In the envlronment.
Organ Izattona! design Is concerne wlth malntalnlng contlnuously the
cohérence of these Intertwîned cholces over mme.
The concept Is Shawn schematlcal Ly In figure A. whlch bull on figure 3.1.
Tree main blocks are show
- Strate
- Organlzlng Mode
- Integratlng Indlvlduals
The flrst block strategy, représente At lest two speclflc cholces: Somain
(products/servlces to be offered, eu tomer s/cl lents to be serve technologie
to be use location At whlch Wark Is to be performe and the détermination
of how to relate to the relevant éléments of the envlronment and whlch goals
ll I be pursued: objectives and goals &
The second block concerne the mode of organlzlng and corresponds to the lest
hand si de of figure 3.1, l.e. structure and processes: how to décomposé the

&
Averan I Tak Intl différent subtasks, and how to re I nteqrate the subtasks
Info the complet on of the Hole tach.
Figure 3.3: Concept ofOrga ni national Design
(Galbraith, 1977)
The thîrd block întegratlng Indîvlduals Intl the organîzatîon, Is to select
peuple design tasks, design Jons and arrange Inventives So Thot Indvlduals
chose to performe Thise acts whlch producer the deslred effet on the
envfronment. Tels block corresponds to the light hand Sode of figure 3.1,
l.e. peuple and ass.
Tels framework of organo national design Is hlghly relevant for the problème
of organlzfng for Innovations Wez Wall Calm In Our approche that:
- Innovation Is to be consldered At the stratégie lebel of the forma
- stratégie cholces choule Them be met wlth organlzlng cholces and
peuple cholces.
The succès of an Innovation developed In an organîzatîon dépends on the
stratégie formulation and considération of the Innovation on the
organîzatîon of the développent and complet on of the Innovation and on the
peuple învolved In the process of Innovation. Therefore I Is relevant and
necessary to look In Som détail At the I Iterature on organo national design
as deflned previously.

3.2. REVUE OF TRAD1TIONAL THÉORIES OF 0R6AN1ZATI0N
&
Différent theortsts w i II tend to gave the Asme klnd of définition of
Organ Izatlonal design but Wall Aldo emphase Thot humant Actors (managers)
have Véry Little control on these éléments and Thot the congruence Is mostly
a produit of externat and determ I nostoc factor In the envi ronment, nota
produit of vol untarlstlc cholce.
In the followlng Wez Wall reflex brlefly how the différent the orles of
organîzatîon approche the problème of deslgnlng Organ Azat Ions. or a reflex
and critique of moss of these the orles of Organ Izatlons, Dee Lussato, 1977
or Burrel I and Morgan 1979). As figure A. showed, Khere are Tree
principal schéols of thoughts correspond I hg rough to a chrono ogival
pattern &
- classlcal Thory
- neoclasslcal Thory
- modem theorles.
3.2.1. CL ASS I CAL THORY
I modem roots go back At lest to the Day of Taylor (1911), Gllbreth
(1912), and Rayol (1949). The classlcal point of vlew holds Thot Wark or
tanks con be So organlzed as to accompli Ish efflclently the objectives of the
organîzatîon. An organîzatîon Is vlewed as a produit of rational thought
concerne largely wlth coordlnattng tanks rough the use of legltlmate
authorlty. I Is base on the fondamental and usuel Ly Impllclt assumptlon
Thot the behav Lor of Indlvldual s I s local & rational & and consonant w ith
the system of rational City use to formulât the organîzatîon. I Is an
analyttcal approche developlng normative mode I s. In the classlcal vlew the
manager responsable for the organîzatîon plans a set of tanks or jobs Thot
présumable Incluse ail the Ingrédients necessary to accompli Ish the
objectives of the organîzatîon. Peuple Them are thought of as the menas
rough whlch the tanks are accompli Ished, contrlbutlng to the attalnment of
the Averan I objective. Peuple are thought to do This on the assumptlon Thot
They have to be tralned, selecte Indoctr I nated, and recarde (Lltterer,
1963).
Therefore, the classlcal Thory has a sarong orientation to design.
Classlcal theorlsts gave moss of Thel attention to Seven principal themes:
- division of Lagor
- authorlty and motivation

- hlerarchy of authorîty
- Ifne-s+aff organlza+îon
- central Iza+lon
- départemental îzatîon
- Inventive sys+em.
&
The organîza+îonal design as concevez by classlcal theortsts begfns wfth
the division of labor. Thot I s the Tak of the organlzatlon has to be
dlvlded Info subtasks, and Rach of Them has to be assigne to an Indlvldual.
I Wa usually recommande to dlvlde the Wark So Thot the portions be
d l f ferentl Ted rater thon slmllar, and Thot Rach Indlvldual has a smalt I
portion of the Hole tach. Tels Is referez to as the horizontal division of
labor. The atonale behlnd This approche l s es f le Lancy & Rach Indlvldual
becomlng more skfllfull At a smalt er task, and the train ING tome requérez Is
short er.
But an es fect of the division of I Anor I s to l crase the l nterdependence
amont the subtasks. The Commin réponse to This problème the Nied for
coordination Is the vertical division of labor. Thot Is a new managera
rôle almlng At handllng the problème of coordination.
The d l v l s Ion of I Anor poses two Otter probe I Ems f Irst the possl b & & I Ry of
motlvattonal limitations on efflclency, and second the division of
managera Wark In large organlzattons, wlth potentlally Many managers.
The classlcal approche to the motlvatlonal problème Is the offerlng of
f Inanclal Inventives and the appl l cation of authorîty. If the division of
Lagor résulte In greater output Them the organlzatlon choule shore the
BenesI wlth the employees. In the case of plece-rate Incentives, Khere Wa
an attempt to Monk Rach Indlvldual's performance to the Indlvldual's output.
The Otter solution to the motlvatlonal problème Is the application of
authorîty; the managera rôle Is Goven authorîty over Otter rôles. The
power of authorîty and the power of regard and punlshment are bel Levet to be
a solution to the problème of séparation of the planning and the cong.
Avery large organlzatlon Is face wlth the problème of dlvldlng up the
managera orl. The preferred clarlty of authorîty relatlonshlps Is State
In the Farm of two design prlnclples of management ther. Firth the unlty
of command States Thot no membre of the organlzatlon choule recelée ordres
Drom more thon one superlor. Second the scala prlnclple States Thot
authorîty choule flow In a Clear unbroken line Drom the clef exécutive to
the lowest worker. Tena the conception of the organlzatlon as a hlerarchy
of authorîty brlngs the question of the span of control Thot Is the Humber
of subordînates Thot a supervlsor May coordînate.

&
A problème rough by This modem consista of how o Brong expertise to bear
on complica+ed managera décisions. The solution recommande Is the linestaff
modem of Organ Azat Ion. The cholce faclng organlzatton designers
appert to be between recognlzlng expertise but perhaps Aldo confusion and
Irresponslbll Ita and recognlzlng responslb I I City and accointable City (perhaps
At the ex pense of expertise Rater thon to choose, the solution Is to
deflne a new rôle the staff rôle Thot Is a spécial Is rôle whlch protides
the expert advlce and service to the line management rôles whlch are
responsable for the décisions.
In trylng to Wark out solutions to the partltlonlng of authorlty, the
theorlsts encountered two more design problems: central Izatlon and
départemental Izatlon. Central Izatlon-decentral Izatlon revers to the vertical
dl Ste I but Ion of power assoclated wlth the vertical division of labor. If
décision Makong Wa de central Izel Them the theorlsts face the problème of
fragmente noncoord l note décisions. Rhus design cholces about
central Izatlon must Tak Intl accouant cholces about départemental Izatlon,
Thot Is dlvldlng the Wark Intl sel fontal end unlts, departments, and
divisions.
3.2.2. NEOCLASS I CAL THEARY
The neoclassical Thory of Organ Izatlons Wa developed to Som entent for
compensatfng for Som of the des Iclencles or omissions In the classlcal
schola The neoclassical schéol Is commonly Identlfled wlth the humant
relations mouvement whlch Bully upon the fondations of the classlcal schéol
but regarde the postulâtes as modîfled by peuple actant Independently or
wlthln the Contest of the Informai Organ Azat Ion. The humant relations
mouvement Introduced behavloral sciences In an Integrated fashion Intl the
Thory of Organ Izatlon, leasing to a systematlc trament of the nature and
Impact of the Informai Organ Izatlon In the formai structure.
The Inspiration of the neoclassical schéol Wa the Hawthorne stud les Dee
Roth Is berger and Dickson, 1939). Let us confluer Som modifications of the
polars of the classlcal doctrine as reporte by Scott (1961).
Looklng At the division of labor. stud les Wete made of Industrlal fatigue
and monotone cause by the spécial Izatlon of Wark (Munsterberg, 1913). Alter
attention shlfted to the Isolation of the worker, and hl Eel ING of
anonymat resultlng Drom Inslgnlf Issant Jobs whlch oontrlbuted neglîgtbly to
the final produit (Mayo, 1933). Rhus the neoclassical schéol has developed a
large Bodh of I Iterature on motivation coordination and leadership.

&
Two aspects of the scala and functfonal process whlch have bene -h-eated
w Ith Som degree of Intensité by the neoclassîcal schéol are the délégation
of authorîty and responslbll Ita and gaps in or overlapplng of functlonal
sur Isdlctlons. The neoclassîcal schéol points out Thot humant problème are
cause by Imperfections In the Way these process are handled.
The structure (hlerarchy of authorîty, Une-staff relation central Irato on
départemental Izatton) protides enfles avenues of analysas for the
neoclassîcal Thory of organo Earl ans. The central thane Is Thot humant
behavlor dlsrupts the best laid Organ Azat clonal plans, and thwarts the
cleanness of the local Eel Tal Ons I pf fonde In the structure. The
nfeocl asslcal critique of the structure canters on frictions whlch appeal
Internai Ly amont peuple performant différent functlons.
In addition neoclassîcal theorlsts have dlscussed In a systematlc Way the
Issue of the Informai Farm of organîzatîon. Tels revers to peuple In group
associations At world associations Nat speclfled In the "bl uepr IntM of the
formai organîzatîon. The Informai organîzatîon appert In réponse to social
needs, and understand I hg the characterl stucs of This Farm of group Is
Important for management practlce. Amont Som of the Interestlng
char acter l stucs note by neoclassîcal theorlsts, the followlng are
especlal Ly relevant to Our concerna
(1) Informai organlzatlons act as agences of social control They
genette a culture base on certain norme of conduit whlch, In Turnu demande
conformât Drom the group members.
(2) The Farm of Internel Tal Ons I pf In the Informai organîzatîon are
différent Drom Thise In the formai organîzatîon.
(3) Informai groups have statu and communication Systems pecullar to
themselves, Nat necessarlly derlved Drom the formai system
(4) Survlval of Informai organlzatlons recules stable City In the
relaps lonsh & ps; Thusy Informai groups tend to reslst change Dee Cach and
French 1951).
The neoclassîcal approche has bene crltlclzed as belng a Bodh of descriptive
Information rater thon a Thory per se. Nevertheless This approche has made
valable contributions to the understandlng of organlzatlons. But I Ice the
classtcal Thory I con be Sal Thot I surfer Drom l ncompleteness, a
shorts Ighted perspective and lack of Intégration amont the Many Favets of
humant behavlor. Modem the orles of organlzatlons attempt to full This gap.
3.2.3. MODERN THÉORIES
The dlstlnctlve quai Irles of modem the orles are I conceptual-analytlcal

&
base I Eel lance on emplrlcal research dada and aboie ail ll Integratlng
nature (Scott, 1961). As Bruel I and Morgan (1979) emphaslze, "classlcal
management theory, Webers Thory of bureaucracy, and humant relations Thory
existe Sode by Sode Intl I syntheslzed In Germs of open Systems Thory
durlng the 1950s... Cand. subséquent research has Soucht to explore the
ram If l cations of the Systems approche At an Emil r Cal I Evel V FI gure A.
Illustrâtes the développent of the social system approcha In This
phllosophy, organlzatlons are studled as a system therefore the méthode of
analysas In volves the Tudy of relatlonshlps amont the slmultaneous
variations of Mutual Ly dépendent variables.
FIGURE 3.

parts") and functfons Corder of processes) of the Averan I system.
M6
Adoptant This perspective for studylng organfzattons Many différent "modem"
schéols of thought emerged, Rach of Them emphaslzlng one aspect of
organlzatlons to a greater entent thon the ther. W Wall brfefly dlscuss
the contributions of Fave theoretlcal orientation
- Décision Makong orientation
- Power and Compo lance orientation
- Dysfunctlonal Effets of Bureau crocy orientation
- Technologie orientation
- Contlngency orientation
Décision Makong Orientation
Tels approche has bene essentlal Ly developed by Barnard (1938) and Simon
(1945). Rh l s or pentathlon has al So bene Callen the "equ l I I BR l um Thory of
organlzatlon". The underlylng thane of Bagnards approche Is Thot
Organ Azat Ions are essente al Ly coopérative Systems but requlre sensltlve
management to malntaln Them In States of equlllbrtum.
In hl schème exécutives wlthln organlzatlons are charge wlth the mission
of sustalnlng the organlzatlon In a State of equlllbrlum and Gence ensurlng
I survlval. Rhus the exécutive has to gave considération to necessary
ajustements In Eel Tal on to the env Iron ment and w Ith In the Organ Irato on.
Wlthln the organlzatlon the exécutive has to alter the conditions of
behavlor of Indlvlduals, uslng for exemple tralnlng programs, and Inventives
mechanlsms.
Rough Bagnards définition of the organlzatlon Is base on "coopération",
hl Thory of Ondulements and contributions s developed to endure contenue
participation of membres of the organlzatlon, and therefore Is somewhat
paradoxlcal. Bagnards approche Is différent Drom the classlcal point of
vlew In the dense Thot he poses the problème In Germs of motivation of
Indlvlduals, and he adresses the formai organlzatlon In Germs of
Eel atlonshI between peuple Rattier thon In Germs of structure.
Simon (1945) Intégrâtes the motlvatlonal and structural approches to
organlzatlon wlthln the Contest of a Thory of equlllbrlum. He foc uses upon
décision Makong In organlzatlons, and jerks to recolle the prtnctple of
rational City whlch underwrltes the classlcal Thory wlth the fact Thot the
behavlor of Indlvlduals Enver raches Any Hugh degree of rational ltd. One of
hl solutions Is to Introduis the concept of "administrative man", as
oppose to the tradltlonal "economlc man", base upon the notion of "bounded

&
rational Ita and the assumptlon Thot man satlsf fces rater thon max I m & zes In
hl Wark behav lot.
SI mon s Thory of administration has bene updated by March and Simon (1958).
The bonde rational City of the "administrative man Is the ficus of analysas
and Is use to develop links wlth the structure of organlzatlons. The
characterf stucs whlch are Sean as deflnlng humant problème Dolving process
and rational humant cholce are Sean as determlnlng the bas le frayures of
organîzatîon structure and functlon.
Cher and March (1963) farter developed This approcha They vlew the
organîzatîon as an adaptlvely rational system coplng wlth a varlet of
Internai and externat constants In arrlvlng At décisions. The Farm Is Rhus
Sean as a complet Informa Ion processIng and declslon-maklng system coplng
wlth conflits Drom bath Inslde and outslde I boundarles. Le Mogne (1974)
bull on these concepts to Tudy the décision Systems wlthln organlzatlons.
Power and Copal lance Orientation
In a plural Isle perspective Etzling (1961) proposes a comparative analysas
of organlzatlons In Germs of the nature of compo lance whlch foc uses on the
relatlonshlp between power and employer commttment. The nature of compo lance
Is vlewed as belng relate to Many Otter Organ tzatlonal variable Juch as
the goals of the organîzatîon, the klnd, location poker and Interaction of
el Iges the lebel of consensus attalned, etc. Organlzatlons are Sean as
complet social Systems dévote to the achèvement of certain goals.
Etzlonl's Cromary Inter est Is to explant Wy peuple are Involved and how
They respond In organlzatlons. The power structures and distribution are
Rhus Sean as the Clement fiat chapes the organîzatîon (Larcon and Relater
1979). In the Asme veln, the organîzatîon Is concevez as a Pol ttlcal system
(Tabatonl and Jarnlou, 1975; Jarnlou, 1981).
Bureaucratie Dysfunctlons Orientation
Metton (1968) observes Thot the formai Web erlon Thory of bureaucracy places
emphases on the positive attalnments and functlons of bureaucratie
organîzatîon. Metton jerks to approche the bureaucracy Drom the opposite
point of vlew: "Weber Is al moss excluslvely concerne wlth chat the
bureaucratie structure Otta Ins: précision rellablllty, efflcîency. Tels
Asme structure May be examine Drom aboter perspective... Chat are the
limitations of the organlzatlons deslgned to attaln these goals?".
Metton argues Thot bureaucratie organlzatlons, wlth Thel emphases on
méthode prudence discipline and conformlty, May have Juch an Impact upon

&
+he bureaucrate Thot the adhérence to Rule and régulation original Ly
concevez as menas to Elder purposes, be come ends In themselves Aurel I and
Morgan 1979). The Thory of bureaucratie dysfuncttons explant Thot the
problème whlch the rlgldltles Creste genette farter responsif wlth In the
organlzatlon whlch renforce the Importance of conformât to Rule and
régulations. The situation Rhus bedoles cumulatlvely Orse as bureaucrate
proceed to défend Thel actions agalnst outslde pressures.
Whîle Mettons Wark foc uses on the Cys unctlonal Influence of Rule as a
Farm of bureaucratie control Selznlck (1949) foc uses on the Cys unctlonal
conséquences of délégation and spécial Izatlon. Bouliner (1954) adresses the
notion of es fectlveness of bureaucracy and shows how This dépends on
organlzatlonal membres acceptante of the legltlmacy of Rule or "légal
norms", whether these are establlshed by agreement or Imposition. Bouliner
points out Thot the manne In whlch these Rule are Federated May have a
fondamental Influence upon the dynamlcs and es fectlveness of bureaucratie
opérations.
Blau (1955) foc uses on the factor whlch genette dlsequll Ibrlum and change
wlthln the organlzatlon, and conforme Many of the bureaucratie dysfuncttons
Identlfled by Metton Selznlck, and Gouldner, Juch as overconform City and
goal dlsplacement.
Crouler (1963) Aldo foc uses on large organlzatlons and général Izes ail these
bureaucratie dysfuncttons Intl chat he Valls the "bureaucratie phenomenon".
Laurer and Paradeuse (1982) fur ther. examine the spectflclty of
bureaucracles.
Technologie Orientation
The preslois the orles ficus mostly on characterlstlcs of the organlzatlon
Thot are conceptually relate to the goals or the structure of the
Organ I Earl on. By do I hg So the Thor I sts have of tam d l f f tcu I Ry In g t v t hg a
typologie of organlzatlons. Perron (1986) suggestif Thot an adéquate typologie
of organlzatlons choule be base on organlzatlonal characterlstlcs Thot are
conceptually Independant of Esther goals or structure. One mertt of the
technologie schéol Cs Thot tt protides for Som Independant levurage In
constructlng typologies recause of somethlng more or Lesse analytlcally
Independant of structure and goal the tanks or techniques utlllzed In
organlzatlons. ("Technology" Cs use Hers RN tts generlc dense of the Tudy
of techniques or tasks). Emphase Cs put on the ktnds of tanks Thot are
performe Intl the Organ Azat ton and I Is présume Thot technologie affects
I structure and to Som entent the range of goals Thot con be achleved.

&
One atonale for This Is the followlng: Wren the tanks peuple performe are
Wele I understood, predlctable, routine and repetltlve, a bureaucratie
structure Is the moss efficient. Thons con be "programmed" March and
Simon 1958). Khere tanks are Nat Wele I understood, the tanks are nonroutlne.
Juch unît or organlzatlons are dlfflcult to bureaucratlze. More dl saretTon
must be Goven to Lower lebel personnel more Interaction Is requérez amont
personnel At the Asme lebel Khere must be more emphases on experlence,
"feel", or professoral Izatlon CPerrow, 1986). Them I Is dlfflcult to have
Clear hiérarchies of authorîty, Hugh division of labor. rues procédure
and So on.
Organlzatlons are assume to Ary greatly In Thel degree of routlnlzatlon.
Windward (1965) proposes a three-fold schème
i
(1) unit and smalt l-batch production process engineering prototype
(2) large-batch, mass assembla process autos métal Industrie
(3) contlnuous process (oll, Chemical Industries).
The technologie schéol has corne to be Callen the contlngency schola slice I
Real Ly bears attention to a variable contingent to the organîzatîon, In This
case the technologie
Contlngency Theory:
The contlngency approche to the Tudy of organlzatlons has corne Intl
Increaslng prominence durlng the 1960s and 1970s as a framework for
syntheslzlng the principal notions of open Systems Thory wlth the résulte
of objectlvlst research conduite At ail lebels of organlzat tonal analysas
Aurel I and Morgan 1979). The résulte of research on Indlvldual motivation
job satisfaction leadership style Organ Izatlonal structure technologie and
Many Otter Organ Izatlonal variables have bene Interprète wlthln the open
Systems framework, whlch Esserts Thot the effective opération of an
enterprlse Is dépendent upon Khere belng an approprlate match between I
Internai organîzatîon and the nature of the demande place on I by I
tasks, I envlronment, and the Leeds of I members.
Lawrence and Lorsqu (1967) f I rst expllcltly pressente the contlngency
approcha They vlew the organîzatîon as a system of Interrelated éléments
whlch are sujet to Influence by Thel envlronment. The organîzatîon Is an
Internally d l f ferentl Ted system whlch must achevez an adéquate lebel of
Intégration If I Is to adapte to the conditions whlch I encounters In I
envlronment. Lawrence and Lorsqu conclue Thot the moss effective
organlzatlons are Thise whlch succeed In achîevlng a degree of
différent Tal on and Intégration compatible wlth env Iron mental demanda

E
0+her emplrlcal s+udtes Federated similor results. WEdward (1958)-JC
demonstrates Thot commercial Ly successful f Irms organe themselves In a
fiancer compatible wlth Thel technologie Bruns and S &aller (1961)
demonstrate +ha+ successful f Irms adopte an approche to organtza+lon and
management whlch SS consistent wîth demande place upon Them by ter
envlronment, partlcularly wîth regard to the degree of Marcet and
technologîcal change. J. Thompson (1967) suggestif Thot the Basle functlon of
administration appert to be copal Ignment, Nat Merey of peuple n
coalition but of Instltutlonal Ized action - of technologie and Tak
envlronment Intl a viable domaine and of organlzatlonal design and structure
approprlate to I.
Khere has bene Little progresse tocards an art eu Lat on of a contfngency
Thory as Juch The Onay extensive attempts to date conflit of Burrel I and
Morgan el Icltatlon of a contlngency modem for organlzatlonal analysas
(1979), and MIntzberg's Thory of "structurlng the Organ Izatlons" (1979).
Amont the différent prlnclples Thot Burrel I and Morgan I Ost Federal are
partlcularly relevant to the pressent discussion. They hlghllght four
subsistes In the organtzatlon:
- the stratégie control sub system chose rôle Is to malntaln a balance
between the organtzatlon and I envlronment,
- the opérât clonal sub system whlch représente the transformation process
of the Organ Azat Ion Drom Som Inputs to Som output
- the humant sub system & whlch en compasses the Indîvlduals In the
Organ Izatlon,
- the manager All sub system & chose rôle conflits of the Internai
Intégration and control of the Organ Izatlon.
These four sub system s are open to a w l de range of var l Tal on Conti Agency
Thory stresses stratégie cholce, technologîcal cholce, organlzatlonal and
managera cholce. Contlngency Thory postulâtes Thot the es fectlveness of
the organlzatlon In coplng wlth the envlronment Is contingent upon the
éléments of rh e var I ou s subsistes belng deslgned In accordance wlth the
demande of the envlronment wlth whlch They Inter act. This Immoles Thot the
éléments of différent subsistes must be congruent In Germs of the
char acter l stucs long Rach of the Basle dimensions by whlch They are
des Ind. Tels Is cal led the "congruency hypothesls" Burrel I and Morgan
1979).
One Important Issue emerglng Drom the contlngency approche concerne the rôle
of the stratégie control subsystem. Ance I functlon Is to Interprète chat

H
ls happening In the envlronment and to guide and adapte the organfza+lon RN
an approprlate Way I fol los Thot the Eel Tal Ons t pf be+ween éléments of
subsistes and Thel envlronment dépend on the décisions emerglng Drom the
stratégie control subsystem, and wlthln the organlzatlon on the décisions
emerglng Drom the manager I al subsystem.
In MIntzberg's theory, an organlzatlon Is Elven Howard a partlcular
cl user or configuration base on the strength of the marlous parts of the
organlzatlon, the Way In whîch the parts of the organlzatlon coordlnate
thelrwork, the structural design parameters position superstructure
latéral llnkages, décision Makong system and contlngency factor Juch as
âge Elze technlcal system and envlronment. Fave pure configurations are
descrlbed, Rach wlth partlcular patterns of dimension parameters, and
contlngency factor simple structure machine bureaucracy, professoral
bureaucracy, dlvlslonal Ized forma and adhocracy). Hyre I d cons IguratI Ons
occur Wren the organlzatlon Is Dawn Howard more thon one pure
cons IguratI on.
Figure 3.5: Mode of Organisation
allai re & Firsirotu, & 984)

I
More recently, Allaire and Fîrslro+u (1984) have propose a schema+Ic vlew
of organlzatlons Inspire by Parsons' (1951) wrltlngs on social sys+ems and
by Scheln's (1984) Insîghts fnt. the cultural propertles and social Izatîon
process of organlzatlons. They Dee an organlzatlon as belng a mixture of
Tree înterrelatlng componende Dee figure 3.5), themselves In relation to
the envlronment:
(1) A structure whîch stands for ail the formai tangible propertles of
the forma I revers to goals and sfrategles, to organlzatlonal structure and
design to I physlcal assets and Thel deployment, to Pol Icles and
practlces regardant recrultment, tralnlng, promotion and rémunération to
I control and management system toIpatterns of leadership power and
authorlty; actually, "structure" subsumes chat Is often thought, Improperly,
to be the Hole organlzatlon.
(2) A culture whîch al Ludes to the accumulâtes tradition assumptlons,
values and Customs these émerge Drom the parti eu Lor hlstory, post and
pressent leadership the social and Industrlal Contest of an organlzatlon;
culture has a considérable Influencé on the behavlor and actions of I
managers and employees. A culture Is velter "strong" Nar "weak" Real and
Kennedy 1982), velter "thfck" Nar "thln" (Sathe, 1983); I Is functlonal
or DT SS unit Mona I & Thot Is a corporal Ons culture Esther supports or
Anders the attalnment of the Farm & s objectives and stratégies.
(3) Indlvtduals ho are managers and employez of al I hlerarchîcal
lebels and skllls, contlnuously Interpretlng the golngs-on In the Farm and
act l hg on the bas l s of assumptlons and expectant Ons They have I earned and
asslmllated In the course of Thel expérience wlthîn the organlzatlon.
To make dense and ordre out the amblguous and dlsjol Ted évents occurlng
Inslde and outslde the forma to understand chat Is experte of Them and chat
to expert Drom the forma to formulât stratégies and plans of action and to
Interprète décisions and pollcles, the membres of an organlzatlon redort to
the stock of tradition bel lefs, assumptlons and values Thot have
accumulâtes rough the mars. Wren these have bene learned and asslmllated,
They be come unquestfoned bases for action part of the Indlvldual's Frome of
ml bd.
In Any viable organlzatlon, the culture and the Indlvlduals Wall have
volve In tune wlth the organlzatlon's more formai propertles: I goal
stratégie structures and management system As a refuit In the normal
course of events, culture Indlvlduals, and structure are Meched In Véry
tfghtly, support and renforce Rach other, for getter or for worse.

O
BUT This Is Onay as long as +he formas evolu+lon Is con+înuous wlth 1+s
his+orlcal Evel opinant as long as changes made are Incrémental and f Ind
legttîmacy and support In the pressent culture of the f Irl. If structural
changes of a dîscontl nous nature changes Thot May Wele I be necessary, are
decreed and pu shed Intl the organîzatlon wlthout an approprlate radical
change strategy, Them culture Indlvldual and structure May be Tarn aparté
be come divergent At Oddes wlth Rach ther.
The reculements of adaptation to externat forces as Wele I as Internai forces
May be accomodated by changes In the formai structural system of the
organîzatlon Thot May Nat be and In général Coulx Nat be Immedlately
transi Ted Intl the cultural system Rhus brlnglng these Systems to a State
of dissonance and dlssynchronlzatlon. Slmllarly Som dissonance May appeal
between Indlvldual s and the structural system. The out come of Juch stress
between these subsistes May be more or Lesse severe, ranglng Drom temporal
lofs of effîcîency to chrono stagnation and decay, Organ Izatlonal Meath or
"cultural révolution (Allalre and FIrsIrotu, 1984).
Rhus Allaire and FIrsIrotu bull on the congruence hypothesls,
central to the Conti Agency approcha and This Is don In two ways: Internai
congruence of the Tree subsystems, and externat congruence between the
Tree subsistes together, l.e. the organîzatlon, and the envlronment.
Whlle ail the preslois the orles ficus on the Internai éléments of
organlzatlons, the Conti Agency Thory I ntroduces Otter elements, Callen
contingent factor whlch are Sound In the général envlronment of the
organîzatlon. Tels new approche to the understand I hg of organlzatlons
Is farter developed as Is hlghllghted In the two followlng sections. Tels
dual City of organlzatlons - Internai éléments and externat factor - Wall be
farter examine and Is central to the problème of Innovation.
3.3. SHIRT IN H JfflUI HQE ANALYSAIS
The preslois discussion has Shawn how the différent tradltlonal organîzatlon
the orles have volve Drom the classlcal schéol to the contlngency approcha
Tels section Wall Introduis the Lager developments, by focuslng more on the
Organ Izatlon-env & rongent relaps lonshl p. The former section w Itnesses the
transformation In organlzatlonal Thory as modems Thot Cook serlous
cognlzance of externat forces supplante anes Thot focussed on the Internai
dynamlcs of organlzatlons (Robtns, 1985).
Drom two différent perspective administrative sciences and socîology, the
relata onshlp between organîzatlon and I soclo-econom le jette hg bedoles a

E
central concerne amont organlzatlon theorlsts. Simon (1957), Thompson and
McEwan (1958), Dell (1958), Bruns and Stoker (1961) and éthers Drom the
administrative sciences perspective and Pardons (1956), Selznlck (1948),
Weber (1947) and éthers Drom the soclology perspective laid the fondations
for the orles Juch as the open system the contlngency approcha the vie of
organlzatlon as a frayure of the social structure. These approches Wete
Them developed more formai Ly In the Worms of Thompson (1967), Lawrence and
Lorsqu (1967) and STO nch combe (1965).
But Them différent streams of thought have bene developed dependlng on the
unit of analysas Ander considération. At lest four main unlts of analysas
have bene considered:
(1) the effet of envlronment as a Hole on the organlzatlon
(2) the effet of envlronmental éléments on the organlzatlon
(3) the focal organlzatlon In relation wlth Otter organlzatlons.
(4) the organlzatlon In I général envlronment
(1) Sole wrlters, I Ice Embry and Trust (1965, 1973), have focused on
propertles of the envlronment as a whole, Juch as turbulence and stablllty.
They propose four différent Idéal types of envlronment and subtest Thot They
lofer In Germs of the degree of predlctab l I City avalable to the focal
organlzatlon. They Aldo point out Thot Rach type of envlronment Valls for a
différent organîzatîonal strategy. The moss représentative Thory In This
stream Is the contlngency ther.
(2) Otter welters attempt to deflne envlronmental char acter Istlcs whlch are
more concerte and Coulx be val uated by the focal organlzatlon; for exemple
Humber of competltors, démographe of potentat client population proxlmlty
to ra matelas or to markets, State of the economy. Sole the orles whlch
are In This stream of thought are part of the Industrlal organlzatlon field
wlth the structure-conduct-perf romance paradigme (Scherer, 1970; Caves, 1980;
Porter 1980).
(3) On the Otter hand Som welters ficus on the organlzatlon Itself In I
envlronment. Sole emphase a single aspect of the envlronment, the
Eel atlonshI of the organlzatlon Ander Tudy the "focal" organlzatlon) to
Otter organlzatlons. Tels approche leads to the field of Interorganlzatlon
Thory developed by Levons and White (1961), or Evans (1966, 1972) for
exemple e.
(4) Final Ly more recently Som welters chose Nat to be I Imite to a single
aspect of the envlronment and Still ficus on the organlzatlon Itself. Juch
the orles as ressource dependency (Pfeffer and Salanclk, 1978), and population

O
ecology (Aldrlch, 1979; McKelvey 1982; Ulrich and McKelvey, 1983) stem Drom
This approche of the relatlonshlp between the organlzatlon and I
envlronment.
But beyond the un & & and the I Evel of ana I Ys s of the Eel Tal Ons l p between
the organlzatlon and I envlronment, a Chey problème whîch dlvldes the
organlzatlon theorlsts tokay Is the degree to whlch organlzatlons Esther
affect or respond to Thel envlronments.
The notion of "control & Rhus bedoles crlttcal, and relate to This Broad
Issue Federal thanes émerge Thot are Nat yet resolved:
- deflnttlon of the envlronment
- enactment process (Welck, 1969)
- degree of uncertalnty of the envlronment
- organîzatlonal adaptation process
- turbulence of envlronment
- degree of compétition for ressources
These Issues Aldo Introduis the problème of eff Iclency and es fectlveness &
bath At the lebel of the organlzatlon and At the lebel of the population of
organlzatl ans.
- To whlch entent Is an organlzatlon efficient In I env Ironment?
- Chat Is meant by "organîzatlonal es fectlveness"?
W w II I ad dress these concepts and how They are percevez In Rach of the
four streams of thought Goven aboie In the followlng section.
W have hlghllghted So far two crltlcal dimensions In the Tudy of
organlzatlons In Thel envlronment, the lebel of analysas micro Thot Is
the organlzatlon Itself, and macro Thot Is the envlronment) and the degree
of control (determlnlsttc orientation and vol untel stuc orientation These
two dimensions Wall nable us to construit a typologie of the orles of
organlzatlon, adapte Drom Astet and Van de Ben (1983), wlthln whlch Wez
Wall hlghl I gt the Basle c prem I ses and I mol I Carl Ons of a sel ecto on of new
theorles. These the orles Wall constitue one conceptuel Basle of Our
framework for a Thory of Innovation In the organlzatlon whlch Wall be
pressente In part two capter 5).
3.4. 0R6ANIZATI0NS IN RELATION WITT THE ENVIROMENT
In the preslois section Wez have hlghllghted two Basle dimensions whlch

H
dlscrlmlnate be+ween the Current approches of organlzatlons. The central
Issue Thot has bene recognlzed by al moss Avery theorlst Is Thot the
organîzatlon Is no longer to be Sean as a close entât but rater as an
open entât In constant Interaction wlth I envlronment. But the différent
schéol s of thought tend to ficus on single si des of This Issue and use Juch
différent loglcs and vocabulaires Thot They do Nat Spaak to Rach Otter
dlrectly (Astley and Van de Vena 1983).
3.4.1. A TYPOLOGIE
The pressent section Is largely base on the Wark of Astet and Van de Ben
(1983). W have Sound Thot Som Intégration of these différent schéol s and
the orles Is possible by classlfylng Thel ficus of Inter est long two
dimension
(1) the lebel of Organ izatlonal analysas
(2) the degree of control.
The lebel Q Organ Izatlonal analysas con be spl I Intl two traditions. Firat
single organlzatlons have tradltlonal Ly bene the Cromary docs. Second a
Humber of theorlsts have recently ralsed the lebel of analysas to Tudy
total populations of organlzatlons, Ander the assumptlon Thot populations
exhlblt dlsttnctlve propertles and dynamlcs of Thel on Thot are Nat
dlscernlble In Indlvldual organlzatlons.
The degree contro I revers to the entent to whlch organlzatlons affect or
respond to Thel envlronments. Tels con be relate to the dual City Thot
ests between social determlnlsm and free wlll, Thot Is thevlew Thot
humant belge and Thel Institutions are Esther determlned by exogenous
forces and respond to Them or are autonomously chosent and created by humant
belge and Thusy In Turnu con affect the envlronment. As Astet and Van de
Ben State (1983), "seen Drom the vol untarlstlc orientation Indlvldual s and
Thel created Institutions are autonomous, proactive, sel f-dlrecttng agent
Indlvldual s are Sean as the Basle unit of analysas and source of change In
Organ Izatlonal I Ife. The determ l n l st l c orientation foc uses Nat on
Indlvldual s but on the structural propertles of the Contest wlth In whlch
action unfolds, and Indlvldual behavlor Is Sean as determlned by and
reactlng to structural constants Thot protide organlzatlonal lofe wlth an
Averan I stablllty and control
Cl assl Sy ING schéol s of thought by these two d I mens Ions y Lek Cs four Basle
perspectives (Astley and Van de Vena 1983):

- sys+em-s+ruc+ural
- s+ra+eglc cholce
- naturel sélection
- col lectlve action
&
Figure A. détails these four perspective places the différent the orles Wez
revlewed aboie In these four différent cells, and Indlcates the major
emphases In Germs of structure change and manager al rôle.
Figure 3.6: Typologie of Théories of Organisations in Theil Environnants
adapte Drom Astet & Van de Vena & 983)
I choule be understood Thot the the orles do Nat fit exact one partlcular
Cel I of This framework but rater At lest one of Theil central foc con
be to Som entent char acter Ized In Germs of the two dimensions as
correspond I hg to one of these four catégories. The Real City Is Thot the
the orles per vade throughout the entre framework, but wlth a secondary
emphase s l n the Tree Cel I s In Wy Ik They do Nat appr. For exemple e the
"macro" the orles are focuslng on populations or communales of
organlzatlons, but stl & & look At partlcular organlzatlons, and attempt to
protide Som Inslghts At the lebel of the organlzatlon.

R
Moss of the the orles dlsplayed In This typologie have al ready bene examine
In the sec f Ons ave. W w & & I go I no more Dera II for four new theorles,
Rach one représentative of one parti eu Lor Cellé and Rach recently developed:
- Interorgan Izatlon Analysas
- Population Ecology
- Ressource Dependency
- Transaction Cos Économies
But flrst let us explant chat these four celle are ail about.
System Structural Perspective At the I Evel of Indlvldual Organ Azat Ion
structural functlonal ISM and Systems Thory have bene the dominant schéols
of thought. Although Khere Is considérable Debat and dlverslty amont these
schéols and Thise whlch are derlved Drom them, They shore a Commin
determtntstlc orientation. Organlzatlonal behavlor Is Sean to be Chapet by a
sériés of Impersonnel éléments Thot act as externat constants on Actors
Structural éléments Instrumental Ly serve the achèvement of goals and
thermes ore,are functlonal In nature. Accordant totos perspective the
managers rôle Is a réactive one the managers mission Is to ajust the
Internai subsistes of the structure to changes In the envlronment. Change
Them takes the Farm of "adaptation" and occurs mostly as a produit of
exogenous SH l fts l n the env Iron ment. The f cous of manager All decl s Ion & s
rater thon cholce, on gatherlng and Interpretlng Information about
env I ronmental var l Tal Ons and on f Ormel Tal hg specl f le responsif to these
variation antlclpattng conséquences In ordre to achevez organlzatlonal
es fecttveness and ultlmately survlval of the organtzatlon.
Strates le Calce Perspective & reactlng to This determ l ni stuc vlew of
organlzatt Ons action Thory Concelles organo salons as contlnuously
constructed, sustalned, and change by Actors & définitions of situation the
subjective meanlngs and Interprétations Thot Actors Impute to Thel
envlronments as They negotlate and enact Thel organlzatlonal surroundlngs.
Action Thory In organlzatlonal analysas has Lally bene appl led to
"stratégie col ce In décision Makong situations (Chlld, 1972). In This
veln, cholce l s aval I able e l n the dels ni of organlzatt anal structure. Rhus
stratégie management and ressource dependency Thory argue Thot the
envlronment Cs Nat to be vtewed solely as a externat constant to whlch
managers have to respond; I con be change and mantpulated rough actions
for exemple Pol total negotlatton) to fit the objectives of top management
(Pfeffer and Salanclk, 1978). Rhus managers are Sean as proactlve; thetr
col ces are autonomous. And Thel acts are vtewed as forces Thot chape the
organlzatlonal évolution.

V
Datura I Sélection Perspective & ralsîng the lebel of analysas of
Organ I Earl on-env Iron ment relatlonshlp to a macro lebel the naturel
sélection perspective foc uses on structural and démographie characterlstlcs
of populations of Organ AzatIons. The population ecology modem Is base on an
analogie Eth the blologlcal ecology modem and the Tudy of "specles".
Adoptant a determ Inlstlc vlew, Organ I Earl Ons are Sean as place At the Mercy
of Thel env I ronments. Organ Azat Ions Thot survive a naturel sélection
process have a new "form" Thot fI Som "niches" In the mark et. If They
Fal to ajust ter Farm They are selecte out and new forme of
organlzatîons are I Ikoy to develop and Tak Thel place. The unit of
analysas Is the population slice Hole socles of organlzatîons are Sean to
survive or Fal regardes of the actions Aken by single organlzatîons
wlthln ther. Change Thusy Is explalned In Germs of a naturel Delft of
ressources rough the economy, rater thon In Germs of Internai manager All
action. Them the rôle of manager SS vlewed as symbol or Eden Inactive.
Col lectlve Action Vie & l steak of cancel ING organlzatîons At the macro
lebel In a determlnlstlc Way I Is possible to cancelle the global
env Iron ment as gulden and constructif by collective bargalnlng, pur pose and
cholce. Tels approche has bene Aken by social ecologlsts (Emery and Trust
1973), social planning theorlsts (Schon, 1971; Ackoff, 1974), and Som
economlsts (Metcalfe, 1974). These authois emphase collective survlval,
whlch Is achevez by collaboration between organlzatîons rough the
construction of a regulated and Montrollet social network Thot meulages the
effet of the naturel env Iron ment. I Is avance Thot In hlghly turbulent
envlronment, compétition Is no longer an approprlate réponse Drom the
organlzatîons, but rater Thot They have collectlvely to engage In a
"metamanagement" of the envlronment. Change SS Rhus understood to be
actlvely producer by Interaction amont Sem lautonomous organlzatîons rater
thon determ Ined by neural economlc and envlronmental forces. The rôle of
managers In This perspective Is therefore an Interactive one.
Look ING At the différences between these four perspective Astet and Van
de Ben (1983) False six generlc questions
(1) Systems vs action are Indlvtdual actions the derlvatlve of the
social system or Is the social system the derlvatlve of Indlvtdual
action
(2) Adaptation vs selectlon: are changes In organo Earl Ona I forme
explalned by Internai adaptation or by envlronmental selectlon?
(3) Constralned niches vs exacte domaine s organo Earl anal lofe

&
determlned by env îronmen+al cons+raîn+s or ac+îvely created rough
s+rategîc cholces?
(4) Econoalc aggregates vs Pol Itlcal col lectlvltfes: Is the envlronment
an aggrega+lon of Organ Izatîons governed by economîc forces or an
Integrated înterorganlzatîona! network of organîza+Ions governed by lts
on social and Pol itlcal force
(5) Indlvldual vs collective action Is organlzatlonal behavlor
principal Ly concerne wlth Indlvldual or collective action
(6) Organlzatlon vs Institution are organlzatlons technlcal
Instruments deslgned to achevez a goal or are They Instltutlonal Ized
manifestations of the veste Inter ests and power structure of the Elder
soclety?
W bel Levet Thot these questions do Nat Lea to a single anser but rater
Thot these six pairs of concepts are Nat opposite but do est
slmul taneously and show Thot beyond the four catégories of Our framework,
Khere light be a meta-theory of organlzatlons Thot Allos the Intégration of
the four Cel Is.
W bow turn to a bref description of Tree redent the orles of
organlzatlons, whlch complément the contlngency Thory approcha These
theorles, Interorganl Earl on theory, population ecology, and ressource
dependency theory, long wlth the contlngency Thory are selecte recause
(1) They Rach reprisent one perspective of Our framework,
(2) They are four Important and currently Poplar alternative
perspectives on organlzatlons,
(3) rough apparent compettng, They are rater complementlng of Rach
other, and
(4) as Wez Wall Dee In capter H They together protide a conceptuel
Basle of Our approche to the problème of Organ Izlng for Innovation.
3.4.2. RE V IW flE RE^NT THÉORIES
I n rh Is section Wez w & & I descelle the f undamental s of Rach of Tree redent
theorles: Interorganlzatlonal analysas population ecology, and ressource
dependency &
Interorganlzatlonal Analysas
Moss of the stud les Thot con be classlfled as Interorganlzatlonal vlew the

environnent as a collection of Interactlng organlzatlons, group and
per sans. Recause organlzatlons con ratel Marchal I the necessary ressources
to a+taln Thel goals Independentl y f They must establlsh ex change
Eel atlonsh I pf wî+h Otter organlzatlons. Levons and White (1961) deflne
Organ Azat clonal ex change as Any vol antari actlvlty between two or more
organlzatlons whlch has conséquence actua or antlclpated, for the
Real Azat Ion of Thel respective goals or objectives. Thusy In efforts to
obtaln resources, organlzatlons develop greater Interdependencles wîth a
network or set of Otter organlzatlons, group and parties (Evan, 1966).
One aspect of înterorgantzatlonal analysas Is Them to descelle and analyse
the Interaction network to whlch focal organlzatlons belon Marrent (1971)
dlstl ngu Isches between comparative and relatlonal propertles of the
Interaction network. Comparative propertles concerne the parties themselves,
whlch are compare on certain artel butes. Relatlonal propertles ficus on the
linkage mechanlsms between the parties. Van de Vena Emmett, and Kong
(1975) descelle elght comparative propertles:
- Homogène I Ry & the functlonal and structural sîmllarîty of
organlzatlons.
Nomain consensus whlch Incluses the followlng comparative
characterl stucs amont partie the degree to whlch an Organ Izatlon's
specl f le goal s are dl s pites the compati Bo I I Ry of organlzatl Ona I goal s
phllosophles, and référence orientations.
- Awareness of Otter partie the degree of know ledge or Ignorance of
the goal service ressources of Otter parties In the ne-fwork.
- Stablllty: the lent of tome organlzatlons are membre of the
network and the degree of turnover of the parties.
- Ressource distribution the Mount and type of ressources held by Rach
party and the Mount and type of ressources needed by Rach party.
- Humber of ressource sourdes the Humber of alternative sources Drom
whlch an Organ Azat Ion con obtaln I necessary resources.
- IIe of network the Humber of organlzatlons In the network.
- Overlap In membershlp: the Humber of Actors representlng multiple
organlzatlons In the network.
Concernant the relatlonal propertles between organlzatlons one con examine

&
the dimensions of interaction or ex change be+ween organîza+îons or one con
Aldo analyse the mechanîsms for coordination be+ween the organlzatîons.
®Marrett (1971) char acter Izes four dimensions for examînlng the linkage
Eel Tal Ons t pf between partie
- Formai Izatlon: the degree to whlch ex changes between organlzatîons
are Goven off Icîal sanction or agrée to by the parties învolved, and the
entent to whlch an Intermedlary coor dînates the relations age and Allen
1967).
- Intenslty: the Mount of Envolement requérez by parties to the
ex change In Germs of the Elze of ressource Infestent requlred, and the
fréquence of Interaction.
- Reclproclty: the directions of the ex change unilatéral reclprocal,
or Joint and the entent to whlch Germs on the bases and conditions of the
ex change are Mutual Ly reached.
- Standardlzatlon: Som Eel label détermination or f Ixedness of the
unlts of ex change and procédures for ex change between organlzatîons.
The second approche foc uses on the linkage mechanîsms themsetves, and
attempts to détermine the contextuel clrcumstances In whlch a varlet of
alternative coordination mechanîsms are utlllzed. The coordination
mechanîsms for exemple Commin messengers, existence of a coordination
Agency are Sean In This perspective as dépendent variables determlned by
the comparative char acter l stl es of the network and externat envlronmental
conditions.
In summary, Interorganlzatlonal anal y si s SS concerne wlth the understandlng
of Interorgan Izatlon processes, Eel At lonsh l ps, and I nterdependenc les and
Thel Implications on the structure behav Lor pattern and es fectlveness of
social unlts Interactlng wlth Rach Otter In Goven social system The
concepts and methodologlcal developments In This field are stl I I Véry Puch
In the Orel îmînary stages. One final comment about Interorganlzatlonal
& Thory alses the followlng Issue.
I nterorganl Earl on Thory In volves the considération of cons I ICC amont
différent parties. As Lltwak and Nylon (1962) argue "conf I ICC between
organlzatîons Is Aken as Goven In Interorganlzatlonal analysas whlch
star out wlth the assumptlon Thiat Khere Is a situation of partial cons I ICC
and Investlgates for forme of social Interaction Ander Juch conditions. Drom
This Pol nt of v I Ewa the el f m T nation of cons I ICC Iso déviant Instance and

llkely TO Lea to the dlsruptlon of Interorganlzatîonal relations".
&
Khere has bene Som fixation on establlshlng harmonie and coopérative
relatlonshlps between différent social nots. Rough désirable This approche
has Lea to the développent of conceptuel schèmes Thot are deslgned to Eek
coopération rater thon to examine the dynamlcs of conflit and the créative
use of This Felce In establ Ishlng effective Interdépendance amont social
nots. Nat Onay the nature of confllct, but Aldo the power structure and the
bargalnlng strength and stratégies of différent organlzatlons are becomlng
more relevant variables In the Interorganlzatîonal perspective (Negandhl,
1975).
Population Ecplogy:
Drawing concepts Drom blology, the population perspective vlews
organlzatlons as Systems Thot are determlned, to a Great entent by
env Iron mental facto rs. Although This perspective ac know Lesges Indlvldual
organlzatlons, the ficus Is Nat on Indlvldual organlzatlons, but on
Organ Izatlonal fors or populations of organlzatlons (McKel Vey 1982).
Organ Azat clonal Farm représente the structure processes, and Systems Thot
characterlze Indlvldual organlzatlons.
As Aldrlch (1979) states, the population ecology modem dies Nat Lean
replacent the tradlt clonal modem s of Internai structure wlth somethlng new
but rater placent Them In an approprlate contexte The population ecology
perspective représente an attempt to explant the process underlylng change.
A ficus on process and a w & & I I Ognes to I rave open the u I tl mate course of
Organ Izatlonal change Lakes the naturel sélection modem perfectly compatible
wlth the open system vlew of organo Earl Ona I structure. The process of
naturel sélection menas organlzatlons are movlng Howard a getter fit wlth
the envlronment. &
The modem Is base on Tree assumptlons. Firat Organ Izatlonal change Is Sean
as explant end by examlnlng the nature and distribution of ressources In
organlzatlons' env Ironments. Second I Is assume Thot organlzatlons con be
classlfled Intl populations base on Commin Organ Izatlonal for ms. Thlrd, I
Is assume Thot once organtzatlons are groupe Intl population the dynamo
relatlonshlps amont population niche env l ronments, and long Germ
Organ Izatlonal survlval con be explore &
The Tree stages of variation selectlon, and rétention constitue a général
modem of Organ Izatlonal change whlch explant how Organ Izatlonal forme are
created, survive or Falla and are diffuse throughout a population.
Organo Earl Ona I fors specl f le cons Iguratlons of goal boundarles, and

&
actlvltîes, are the éléments selecte by envîronmen+al crlterla, and change
May occur el+her rough new forme el Imlnatlng Old anes or rough the
modification of exlstlng for ms. En I ronmental niches are distinct
comble nations of ressources and Otter constants Thot are sufflclent to
support an organfzatlonal forf. Organ Izatlonal fors then, are organlzed
actlvlty Systems oriente Howard exploltîng the ressources wlth In a niche
(Aldrlch, 1979).
The Tree stage-model con be appl led to the selecte rétention or
élimination of entre organlzatîons or Thel components. Variation In Som
éléments of the envlronment genettes the ra mater I al s Drom whlch
selectlon, by env I ronmental or Internai crlterta, Is made rétention
mechanîsms préserve the selecte Farm on a certain perlot of mme.
Sole Issues Thot the population ecology modem adresses are then:
- Chat tact les and stratégies do organlzatîons choose, or have force
upon them, to cape wlth potentlally problematîc aspects of Thel
env Ironments?
- How are dlsruptlve or unwanted Influences dealt wlth?
- Wy do organlzatîons sometlmes radical Ly change Thel structure and
process and be come somethlng Thot Is Completel y unforeseen At the
tome of Thel création
- Ander chat conditions do organlzatîons corne Intl belng?
- Wy do organlzatîons wlth slmtlar objectives or produits and
comparable services lofer drastlcally In Germs of Thel survlval and
success?
Ressource Dependency.
If Organ Izatlonal succès In the Interorganlzatlonal perspective Is deflned
In Germs of the relaps lonsh l pf wlth Otter organlzatîons In an Interactive
network and In Germs of survlval In the population ecology Modelo the
ressource dependency perspective deflnes I as power max m Izatlon. Wlthln
This perspective organlzatîons are v Lewes as côâTTtrônè^ alterna Thel
structure and patterns of behavtor to acqulre and ma In tain needed externat
ressources Ulrich and Barbey 1984). Organlzatlonal es fectlveness Is Rhus
deflned as an externat standard of how Wele I an organlzatlon Is meeting the
demande of the marlous groups and organlzatîons Thot are concerne wlth I
actlvlttes.
Whlle the flrst two the orles are macro the orles of organlzatîons the
ressource dependency perspective takes the point of vlew of an Indlvldual
& organlzatlon. The moss Important Influence on an Organ Izatlon' s réponse to

&
I envlronment Is Sean to be the organlzatlon Itself (Pfeffer and Salanctk,
1978). Organ Izattonal envlronments are Nat Goven Real Itles; They are created
rough a process of percept ion and l nterpretat son. Organlzatlons have
Information Systems for gatherlng, screenl ngu selectlng, and retalnlng
Information. Organ Izatlonal perception Is affecte recause Indlvldual s ho
attend the Information occupa certain positions In the organfzatlon and tend
to deflne the Information as a functlon of Thel position. How an
organlzatlon learns about I envlronment, how I attends to the
envlronment, and how I selects and process Information to gave meanlng to
I envlronment are ail Important aspects of how the Contest of an
organlzatlon affects I actions.
Ressource dependency recognlzes Aldo the existence of (ronstràTnTs) on actions.
Rough constants on behavlor are often consldered to be undeslrable,
restrlctlng creatlvlty and adaptation They May Aldo facll Iwate the cholce
and décision process by provldlng a certain framework to the complet
problème belng addressed.
Moreover, constants are Sean as Nat predestlned and Nat Irréversible. Moss
consta I nts on Organ Izatlonal actions are the résulte of prlor décision
Makong or the résolution of marlous conflits amont competlng Inter est
groups. In the social Contest of organlzatlons, behlnd Avery constant
Khere Is an Inter est group Thot has manage to have Thot constant Impose
The social Contest of an organlzatlon Is Itself, the out come of the actions
of social Actors Thusy one Important functlon of management Is Influencent
these Actors or Inter est groups as a menas of determlnlng anes on
envlronment. Aboter composent of managera action In volves bath the
récognition of the social Contest and constants wlth In whlch the
organlzatlon must aperte and the stratégie cholce of Organ l Earl Ona I
ajustements to these social resalîtes (Pfeffer and Salanclk, 1978).
As a refuit organlzatlons are assume to Wark essentlally Howard two
relate objectives wlth In Thel envlronment:
(1) to acqulre control over ressources Thot mlnlmlze Thel dépendance on i
Otter organlzatlons, and
(2) to acqulre control over ressources Thot maxlmlze the dépendance of
Otter organlzatlons on themselves.
To these Tree the orles of organlzatlons In Thel envlronments Wez choule add
the Bourth theory, contlngency Thory whlch has bene descrlbed In
section 3.2.3.
Figure A. summarlzes the major componende underlylng these four recently

M6
developed the orles and emphases the concept of Organ Azat Ion the
assumptlons, the vie of organo Earl anal es fectlveness, the rôle of manager
the définition of change and Som Implications of Rach of these
perspectives.
Figure 3.7: Characteristics of Four Basic Organisation Rhéori EA
Faure 3.8: Devez I ment of Théories of Oraamzation

&
Tels figure long wlth the propose typologie of Organ Azat Ion the orles
protide an Intégrative framework hlghl tghttng the complet Eel atlonsh f pf Thot
est between these theorles. W Bellevue Thot uslng an Intégrative framework
Juch as rh l s one w II I prof Ide a getter Ander stand l hg of the Organ Azat I Ons
and Thel vol ton. Figure A. l s an attempt At compo Etang f l gure A. In
show ING the évolution of these theorles.
One Important aspect adresse aboie In the différent the orles of
organtzatton Is the concept of organo Earl anal effectlveness. W w M I ad dress
This concept In the nexe section.
3.5. CONCEPTS CE ORGAN IRATI ANAL f T1VENESS: DUAL1TY U ORGAN IMAGIONS
Slice Adam Smith publlshed hl treatlse "Wealth of Nation (1776), arguant
Thot efflclency résulte Drom specl al Irato on and division of labor.
organo Earl anal effectlveness has bene a sujet of lasting Inter est and has
motlvated the wrltlngs of economlsts, organo Earl anal theorlsts, management
ph & & osophers, ftnanclal analysas management sclentlsts, consultant and
practltloners (Lewln and Monton 1986). Inde Organ Irato anal effectlveness
Is one major Clement In the marlous organlzatlon the orles Thiat dlf ferentlate
Them Drom one ano ther. Figure A. Illustrâtes a Humber of Influent al
management and Organ Izatlonal philosophes ail of whlch artlculate différent
prînclples of management round différent concepts of organlzatlonal
effectlveness.
Tels figure hlghl Ights the évolution of competlng theorles, value and
vlews about management organlzatlonal design and the définition and
mesurément of effectlveness. Avery Thory of organlzatlon Is formulâtes
round one concept and a correspond l hg set of masures of organlzatlonal
effectlveness.
Followlng the évolution of the the orles of organlzatlon Wez notice a short
In the unit of analysas Drom a ficus on Internai éléments of the
Organ Irato on I l interna I de si gn, to a ficus on the Eel Tal Ons l p between
the organlzatlon and I envlronment, whether comprise of Otter
organlzatîons or of contingent facto rs. W bel Levet Thot a définition of
organlzatlonal effectlveness choule follow This évolution. For us an
organlzatlon Is "dual", l.e. I has Som Internai "Ingrédients" to assemble
and I has to look antlclpate, Tak Intoaccount, and Impact on externat
éléments In I envlronment. Rhus Wez Bellevue Thot a définition of
organlzatlonal effectlveness choule al So be dual and reflet two dimension
the degree of Internai congruence of Internai subsystems, and the degree of
fit between the Averan I system - the organlzatlon - and I envlronment.

FIGURE 3-9: HISTORICO SARCY FOR ORGAN NATIONAL EFFECTIVE NEFS
Lewin & Monton 1986)
&

&
Wlth This définition then, Avery o+her définition Sound In the I Iterature of
organlzatlons bedoles a sub set of This dual définition.
So far Wez have revlewed two blocks of I Iterature on organlzatlons, one wlth
an Internai perspective and aboter wlth an externat perspective. In between
Wez emphaslzed the short In the unit of analysas These two blocks Them
alloue us to deflne organlzatlonal es fectlveness, whlch Is a Chey concept In
organlzatlon theory, recause managers manage organlzatlons So as to optlmlze
organlzatlonal es fectlveness over tm. W dl Nat approche the tome
component. W Wall do I In the nexe section and Rhus ad dress
organlzatlon In Thel dynamlcs, bath Drom a design perspective internai
perspective and Drom an envlronmental perspective.
3.6. ORGAN1ZATIONAL DYNAMIE
3.6.1. INTERNA DESIGN PERSPECTIVE ARGAN I ZA I ANAL FARM
Drom an Internai design perspective Wez Wall look At the évolution of
organlzatlons as They volve over mme. Rese archers In This field talc about
"forms" of organlzatlons.
The f Irst attempt to descelle the vol ut Ion of organlzatlons In Germs of
différent forme correspondant to différent responsif to new challenges Is
provlded by the séminal Wark of Chandler (1962) ho studled the évolution of
American corporations Drom a hlstorlcal point of le.
Building on Chandless Wark and uslng emplrlcal data Drom America as Wele I as
Europe Galbraith and Nat hanson (1979) offert a modem of growth and
Evel optent Wy Ik Summer Izes the rh INI l hg of ther. & & l s assume that,
starting wlth the simple forma Any source of dlverslty Coulx be Amded to
love to aboter forf. Khere Is no set séquence rough whlch f Irms must love
In lock steps. An organlzatlon con add functlons, products, and géographe
and Wind up wlth a global mil tl-dlvlslonal Farm long the Way Or I Coulx
add functlons, geography, and produits and st & & I Wind up wlth a global
mu I tl-d I v I clona I forma bypasstng Instar rough functlonal and global
functlonal forme as Intermédiate positions (Galbralth and Nathanson, 1979).
Neverthel Ess I stems Thot Drom an emplrlcal point of vlew organlzatlons
tend to f al I o s Il & & ar growth maths In Germs of Thel r structure Dee for
exemple Caves, 1980).
Aboter frayure of the Evel op mental modem Is Thot an organlzatlon con stop

T
anywhere long Io Way & choule be emphaslzed -that rough Som par+lcular
f orme are more & Kiel y to be Assac I Ted w lt stages i n the Organ l zarf Ona I
life cycle presen+ed in ne section above, I Is Aldo possible Thot the Asme
Organ Irato Ona I Farm Goes rough différent stages of This model. Tafs Is Nat
a problème slice a Farm Is a soc Loastructural configuration type slmllar to
Many Organ Izatlons In a certain envlronment but Organ Izatlons of the Asme
Farm do Nat have necessarlly the Asme behavlors, emphase concerna
problème s etc.
Final Ly aboter frayure of Organ Irato Ona I forme Is Thot the resultlng Farm
of Any séquence of développent Is as Chandler suggested, a concaténation of
ail preslois steps. The global structure base on areas of opération Is a
•combl nation of substructures base on produits wlthln Rach area. Wlthln the
produit substructure the organlzatlon Is functlonal. Thusy the global Farm
Is a hlerarchy of subforms.
FIGURE 3.10: STAGES OF DÉVELOPPENT
(Galbralth & Mathanson,
1979)
The stages of Evel optent are show n in f Igue A. A. The startl hg Pol nt I s
the simple structure wlth one functlon and produit line. Increased Elze
brlngs about a division of Lagor and the simple functlonal organlzatlon to

O
coordînate the dlvlded orl. Them Federal maths are possible. Sole stems
Wall pur sue stratégies of vertical Intégration due to emphases on supplier
or dlstrlbuters relatlonshlps). These forme Wall continue to elaborate Thel
functlonal organlzatlon to be come large central Ized functlonal frs. Otter
Organ Izatlons Wall dlverslfy produit lones Esther rough Internai growth or
acquisition. Internai developers Wall love the structure tocards a multidlvfslonal
forf. Diversification rough acquisition Is Ifkely to moly the
structure to a holding or conglonerate Farm of organlzatlon. Sole
rese archers have Interprète This mechanlsm as belng one Khere managers
flrst décidé on new orientations and Them adapte the Organ Izatlonal Farm to
met new requlrements. Tels modem Is base on the "structure follows
strategy" paradigme whlch has bene questloned by Otter welters Dee for
exemple Mlntzberg, 1982). Rough the explanatlons Goven for explalnlng the
transitions between différent forme light be questl anal e the pure
description of the forme Is Still adéquate
The nexe stages are varlet but emplrlcal Ly Khere Is a dominant mouvement The
majorat of large enterprlses have moved to a mil tl-d Ivfslonal Farm Drom a
holding type organlzatlon or Drom a functlonal forf. The nexe différent
stage of développent for Thise Organ Azat Ions Thot chose to pur sue
stratégies of International expansion l s the global forma conslstlngof Many
différent areas of actlvltles sprat out geographlcal lu.
Rhus forme do follow devez I opmenta I séquences char acter l zed by a
métamorphosa s between the stages. Al rough Many alternative maths are
possible Khere stems to be a dom inane Pathé emp! focal Ly hlghl Ighted by
Stamford (1972):
& - simple Farm
& - simple functlonal Farm rough Elze growth
& - central Ized functlonal Farm rough vertical Intégration
& - multl-dtvlslonal Farm rough relate diversification
& - global multinational Farm rough International expansion.
The rasons for these preferentlal steps are Thot Rach new Farm corresponds
to new chai I anges encountered by the organlzatlon. Vertical Intégration
whlch leads to a central Ized functlonal Farm corresponds to the Nied of
profltlng Drom économies of sale to protect the Organ Azat Lons position.
The mil tl-dlvlslonal Farm émerges recause of diversification needs, recause
of a Nied for expansion In new relate markets, recause of new by-products
Federated by the know-how the techno ogival shore of the organlzatlon.
Flnally, global multinational Farm corresponds to an International Izatlon of
opérations and the Nied to épand Internai markets beyond the country
boundarles.

O
& Is tokay Wele I recognîzed Thot the mil tl-d i v i clonal Farm (M-form) Is a
major organîza+îonal Innovation and has replace the tradf+lonal functîonal
forme (F-form). Wllllamson (1981) rotes Thot the moss slgnlflcant
organîzatl anal Innovation of the 20th Centuri Is the développent of the
mil tt d Iv I clonal structure but that, surpris slngl y This développent Wa
Little note or wfdely appreclated as lote as 1960.
In Som ways, the Asme phenomenon Is occurrent Nowy Aboter organlzatlonal
Innovation has bene foot for Som Yeats and has bene adopte by a Humber of
large American corporation and yeti Is Barly mentloned In moss textbooks
on organlzatlon structure and design Dee for Instance MIntzberg, 1979;
Jelinek, 1981). A sable Humber of the larges U.S. corporations have
adopte a "group" structure (G-form). Yeti Little attention has bene dévote
to the G-form structure as I Is often consldered but a variation on the
famlllar Méforme structure.
Chat has Nat bene fui Ly recognîzed Is Thot the G-form structure and I
operatlng carrelages have émerge and volve as a spécifié solution to the
problème of unrelated diversification strategy, Just as the Méforme structure
had provlded sol tuons to the complet probe Ems of managent a vertical Ly
Integrated corporation Thot marketed a Broad line of produits In Many
geographtcal areas. As Dondas and Richardson (1982) explant Khere are a
Humber of crltlcal administrative practlces for successful Implémentation of
unrelated produit strategy, whlch chape the speclflc logo of the G-form
structure In Germs of Pol Ici management style and operatlng
char acter l stl es. Tels partlcular logo d If f erentlates the G-form
organlzatlon Drom the tradltlonal Méforme structure.
Figure 3.11 summarlzes the characterl stl es of Tree Basle organlzatlonal
fors F-form, M-form, and G-form, In Germs of structural prlnclples,
operatlng characterl stl es and stratégie practlces.
At This point I Is Important to Real Ise Thot these différent fors and the
process of métamorphosa s Thot leads an organlzatlon Drom one type of
structure to aboter type constitue major organlzatlonal Innovations In the
I Ise of Any organlzatlon. Moreover, I. appert Thot these organlzatlonal
Innovations arlse as solutions to speclflc problème Juch as Internai
développent of new products, unrelated diversification International
expansion etc. Thusy I stems Thot organlzatlonal Innovations are crltlcal
to the développent and Real Izatlon of Otter types of Innovations.

N
FIGURE 3.11: ORGANIZATIONAL FORME
(Allaira & Sainfort, 1985)
This section has hlghllghted the fact Thot Organ Izatlonal design
Organ Irato Ona I forme change as the organisation gros. In the Asme tome the
nature of the relatîonshîp of the organlzatlon wlth I envlronment changes.
Studylng Organ Izatlons' évolution Drom an externat perspective rater thon
an Internai perspective has Goven rose to the field of Organ Izatlonal lofe
cycles. The followlng section base on the Wark of Aulan and Cameron C1983)
summarlzes the I Iterature on This aspect.

3.6.2. ORGAN AZAT ION J_fcJ US ENVIRONMENT: ORGAN I ZA I ANAL JJ££ CYCLES
S
Rough Our concerne Is mostly how large Organ sati Ons con dal wlth
Innovation I Is Important to comprend how organlzatlons are created and
how They volve over mme. In effectue Som authois argue Thot the Zarly
développent of organlzatlons has profond Influence on chat They
subsequently be come (StI nchcombe, 1965; Blenayme, 1970; KImberly, 1979; Van
de Vena 1980). Therefore, I Is Important to understand the développent and
évolution of organlzatlons for studylng Thel behavlor regard ING Innovation.
The I Iterature on organlzatlonal analysais has général Ly focused on mature
rater thon émergent organlzatlons and has carrled out cross-sectlonal
rater thon longitudinal stud les (KImberly and Moles 1980). Recently,
however, a Humber of welters have suggestif Thot the développent and
behavlor of organlzatlons con be predlcted by menas of organlzatlonal lofe
cycle modem s (Adlzes, 1979; Dons 1967; Grelner, 1972; KImberly, 1979;
Moles 1980; Scott 1971; Torbert, 1974).
Rese archers In rh I s f tel d subtest Thot changes occur ING In organlzatl Ons
follow a Commin pattern Thot con be descrlbed by Evel op mental stages.
Accordant to Lavolps and Cul Bert (1978) these stages are (1) sequentl al In
nature (2) occur as a hlerarchlcal progression and (3) In volve a Broad
range of organlzatlonal actlvltles and structures. A varlet of bases for
descrlblng the changent characterl stucs of organlzatlons In différent stages
has bene use ranglng Drom cognltlve orientations of organlzatlon membres to
organlzatlonal structures and envlronmental relations.
Aulan and Cameron (1983) have revlewed none différent modems of
organlzatlonal lofe cycle whlch are summarlzed In figure 3.12, long wlth
Thel r "summary modem W w & & I BR les I y descr. l be these modem s. I n the nexe
capter Wez w & & I show how Wez con Eel ote Tho s Dommary Organ Izatlonal lofe
cycle e mode I to the Thor les of Organ I Earl on In l Cs env l rongent and to the
différent types of Innovation to love Howard an Intégration of these
f Lek ds.
Motivation for growth:
Observant government organlzatlons, Down (1967) suggestif Thot Tree main
stages of growth and développent are experlenced by these organlzatlons. The
f Irst stage strigile for autonomie May occur bifore formai Barth or Just
auter. I Is char acter fzed by attempts to obtaln legltlmacy and needed
ressources Drom the envlronment to achevez a survlval threshold. The second
stage Rapid growth, incluses Rapid expansion and emphases on Innovation and
cream v Ity. The f Ina I stage recel eratl on conso sts of an el aboral on and

formai Irati on of Rule and procédures and an emphases on predictability and
coordination.
N
FIGURE 3.12 (continued) & MODEMS
OF ORGANIZATIONAL LIFE CYCLE
(Quinn & Cameron 1983)

&
FIGURE 3.12 & MODEMS OF ORGAN NATIONAL
LIFE CYCLE
(Quinn & Cameron 1983)

Crf+fcal manager t al concerna
&
Llppltt and Schmidt (1967) subtest Thot corporations progresse rough Tree
stages of development: (1) blrth, créât îng an opérât ING system and learnlng
to be come viable (2) South developlng stablllty; and (3) maturlty,
achtevlng unlqueness and adaptablllty long wlth Somain expansion. Two major
manager All concerne characterîze Rach of these stages. At blrth, création of
the system and achlevlng a survlval threshold are the concerna At South
the main concerne are stablllty and earnlng a réputation. Final Ly maturlty
Is char acter Ized by achlevlng unlqueness and respondlng to diverse Socle tal
needs.
Strate and structure
Scott (1971) bases His modem of corporate I Ise on Chandless Wark (1962).
The modem Identifies Tree différent types of Organ Izatlonal structures "that
fol Law a chronologlcal séquence Firat organtzatlons are char acter Ized by
Little or no formai structure a single produit persona control and
materna I I stl c rewards. The second stage sees organlzatlons developlng
functlonal spécial Izatlon, Instltutlonal Ized search, and Impersonnel rewards.
Final Ly as organlzatlons continue to Brown They develop multiple produit
llnes, dlverslfled produit markets, and orientations Howard RAD growth, and
adaptation.
Évolution and révolution
Grener (1972) suggestif Thot organlzatlons volve rough a flve-stage
process Rach stage belng followed by a "révolution" or a transltîonal phase
arlslng Drom a major Organ Izatlonal problème The organlzatlon has to Solve
the problème to avance to a more mature stage. The entrepreneur All stage Is
characterlzed by a leadership cross arlslng Drom the Nied to rational Izé
Organ Izatlonal actlvltles. The second stage growth rough direction leads
to a cross of autonomie Stage three, growth rough délégation encounters
a cross of control Wren nonfntegrated goals In autonomies subuntts Begin to
émerge Overcomlng This cross Is don rough stage four growth rough
coordination unt II aboter crlsls, the cross of Red tape Indices the
organlzatlon to love to the flfth stage growth rough collaboration.
Mental City of members:
Norbert (1974) proposes a modem of développent base on the Indlvldual
mental Irles of Organ Izatlonal members. Organlzatlons progresse rough stages
as membres be come more experlentl al Ly Aare of the causal factor and
dynamfcs operatlng In the organlzatlon, and as They develop greater

R
capacltles for persona and I nterpersonal es fectlveness. The modem Maves
Drom an Zarly stage of tndlvfdual Ita Informai Ita and diffusion to group
unlty and a dense of col I ecto Ity. Them flexe Rule and structure
predomlnate Intl I renewal and adaptlblllty occid.
Functîonal problems:
Laden (1975) bases hl modem on Pardons & (1960) functîonal problème of
Organ Izatlons. He suggestif Thot Organ Izatlons put Cromary emphases on
différent functîonal problème At différent stages In Thel development:
envlronmental adaptation ressource acquisition goal attalnment, and pattern
maintenance. Thusy In général the pattern of développent Maves Drom
emphases on Innovation and niche génération to stablllty and
Instltutlonal Izatlon.
Organlzatlonal structure
Catz and Khan (1978) subtest Thot Tree main stages occur In organlzatlonal
I Ise cycles. The flrst stage primitive system stage char acter Izes the
rudiments of a production system base on the coopérative endeavors of
organlzatlonal members. The second stage stable organlzatlon stage foc uses
on coordination and control behavlor, In ordre to régulage organlzatlonal
actlvltles. The thlrd stage élaboration of structure sees the
establishment of adaptive mechanlsms for dal ING wlth the externat
envlronment.
Major organlzatlonal actlvltles:
Aldes (1979) suggestif Thot organlzatlons develop rough stages recause of
changes In emphases on four actlvltles. Organlzatlons Begin wlth an emphases
on entrepreneur I al actlvlty Thot Lager bedoles couple wlth an emphases on
produclng results. Formai Izatlon, administrative actlvltles, and Intégration
emphases Tak precedence as maturlty Is approached. Organlzatlonal décliné
occurs prlmarlly recause of an over-emphasls on stablllty, administration
and Rule and procédures.
Internai social control
Klmberly (1979) suggestif Thot the flrst Identifiable stage In organlzatlonal
développent occurs bifore the organlzatlon Is actua Ly forme I In volves
the marshalllng of ressources and the formation of an Ideology. Tels leads to
the second stage whlch Incluses select ton of a prime lover hlrîng a staff
and establlshlng support Drom the stratégie constituene les. The thlrd stage
In volves the formation of an organlzatlonal Identlty, Hugh Infestent by
&

Y
organlza+lonal members, and a dense of h I gy commît ment and coheslveness. The
Bourth stage Instltutlonal Izatlon, occurs Wren polices and Rule be come
more rlgld, structure bedoles more formai Izel and the organlzatîon bedoles
more œnservatlve and predîctable as I refonds to externat env Iron mental
pressures.
Although these nfne mode I s are base on différent organlzatlonal phenomena,
ail none subtest progresse rough slmtlar I Ise cycle stages. Qufnn and
Cameron (1983) propose a Dommary modem comprlslng Fave différent sages
(1) entrepreneur al stage Zarly Innovation niche formation
creatlv City
(2) collectivfty stage Hugh cohésion commît ment
(3) formai fzatfon and control stage stablllty and Instltutlonal Izatlon
(4) structure élaboration and adaptation stage Somain expansion and
de central Izatlon
(5) Decl ne stage.
In Dommary for This capter on organlzatlons Wez have Identlf led Federal
Important concepts and perspective
- the concept of organlzatlonal design correspond I hg to an Internai
perspective of the the orles of organlzatîon. The Latet group of the orles In
This approche Is the contlngency ther. The schème of organlzatîon Thot Wez
adopte Is Allaire and Flrslrotu's (1984) approcha pressente In figure 3.5.
- Contlngency Thory Inltlated the short In the ficus of organlzatlonal
theorlsts Drom an Internai perspective to an externat perspective the
relatlonshlp between the organlzatîon and the envlronment.
- Rough organlzatlonal design Is Still I pressent In the redent the orles
Thot émerge Drom This shlft, I takes a secondary place. Long wlth the
contlngency theory, Tree new the orles are leasing the field population
ecology, Interorganlzatîonal analysas and ressource dependency. These four
theorles, apparent competlng, complément Rach Otter and w & & & be Integrated
In a larget conceptuel framework In the nexe chapt er.
- These two perspective Internai and env Ironmental, led us to deflne
the organlzatîon as belng duo I & and to gave a dual définition of
organlzatlonal effectlveness.
- Them Wez l ntroduced the tl me dl mens Ion and I Oak At the vol ut Ion of
organlzatlons over tome Drom these two perspective leasing us to the

concepts of organîzatîonal forme and organlzatlonal I Lyé cycle.
The nexe chap+er Wal I be a synthèses of the two concepts & nova Ion and
organlzatlon. Sfnce Wez h ave two perspective Internai and envlronmental, Wez
Wills dlvlde This capter in two parts and corne up wlth two Intégrations of
these concept one At the Internai lebel of the organlzatlon, and the Otter
At the dynamo le and env Iron mental I Evel & These two I ntegratl Ons w & & I Them
constitue the conceptuel fondations of an Intégrative Thory of Innovation
and organlzatlon.
H

101
CAPTER & I INNOVATION AND ORGAN IZATION: A SYNTHÈSES
QUGLINE
4.1. Innovation Organlzatlon, Environnent
4.2. Internai Perspective Innovation and Organlzatlon
4.2.1. Innovation and Culture
4.2.2. Innovation and Indlvlvual
4.2.3. Innovation and Structure
4.3. Externat Perspective Innovation and
& Organlzatlonal Évolution
4.3.1. Innovation and Environnent
4.3.2. Organlzatlonal Évolution

102
The thlrd building block of Our approche consiste of a syn+hesfs of
Innovation and organîzatlon. W have reviewed +he concept of Innovation In
capter & and the concept of organîzatlon In capter A. Bow Wez have to look
At the I Linkage between these two concepts.
W w II I flrst pressent the Averan I synthèses of the diverse éléments Thot Wez
Identl f led throughout the pre Laus chapters, and thenwewlll détail two
approaches:
(1) Drom an Internai perspective chat are tne main factor Thot affect
Innovation In Organ Izatlons?
(2)from an externat perspective how do Wez relate Innovation to
Organ fzatlonal évolution
More specl f Cal Ly the Introduction Wall pressent a plature of the
organîzatlon InI env I ronment; Them the Internai perspective w II I be a
"statlc" In sept analyse of This plature final Ly the externat perspective
Wall be a "dynamlc" In sept analysas of This plature
4.1. INNOVATION. ORGAN IGA ION AND FNI RONGENT
In capter & Dee figure 3.3) Wez have deflned Organ Izatlonal design as belng
the process by whlch a fit or a cohérence Is rache between Tree
functlons, strate formulation organlzlng modes définition and
Intégration of Indlvlduals. As I Is Shawn In figure 4.1, Drom a conceptuel
point of vlew, Tree managera Implications con be derlved Wren Innovation
Is consldered In an Organ Izatlonal design perspective.
The flrst Tak of managers In Organ Izatlons Is to recognlze Thot Innovation
Is a stratégie concerna Tels Immoles the Monk between Innovation
(technology, peuple structure etc and the strate formulation process
At the top management lebel
The second Tak of managers Is to design approprlate organlzlng modes for
adoptant and/or sustaînlng Innovatlve actlvltles, and recognlze Thot these
organlzlng modes May dépend on the nature of the Innovation to De addressed,
on the stratégie expectant Ion and on the peuple ho Wall be worklng on
these actlvltles.
Flan I I y the rh I rd Tak of managers I s to sel cet the r l gt peop le de si ni
tasks, design jobs, and arrange Inventives So Thot Indlvlduals May be able
to performe these Innovatlve actlvltles In the organîzatlon. Figure 4.2,
whlch Agan présents Leavltt's modem of organîzatlon, breaks down the

103
organîzlng mode I no process and structure and breaks down the
Intégration of Indlvlduals Intl peuple and ass.
Figure 4.1 & Organizational Design and Innovation
Tels général approche figure 4.1) stems obvlous but In Many stud les of
Innovation succès or allure I has bene Shawn Thot Som of these Tree
aspects of organîzlng for Innovation have bene Andrest Image In Many
corn pan les. Rh Is parti al I y Exe lalnsthefallureof Innovât Ve projet s I n
these Companies Dee for exemple von HIppel, 1977; Globe et al 1973; Gruger
et al 1973; Vesser and Holmdahl, 1973; Foster 1981).
Classlcal Thory of organlzatlon alses Many design Issues whlch are to be
consldered Wren organîzlng for Innovation. The éléments of design adresse
In capter & May Tak a différent configuration Wren deallng wlth Innovation
rater thon Wren deallng wlth routine opérations. pec f Cal Ly a ferles of
questions May be ralsed Wren constderlng the organlzatlon of Innovatlve
actif Itles.
(1) Is division of Lagor an efficient Way of performant Innovatlve
actlvltles? And whlch division of labor.

& A
(2) On whlch Basle choule authorîty and motivation be deflned Wren
deallngwîth Innovation
(3) Chat choule be a hlerarchy of authorîty Wren speaklng of
Innovation
(4) Dies a llne-staff organlzatlon Still make dense
(5) Whlch degrees of central Izatlon and départemental Izatlon are
requérez Wren dal ING wlth înnovatîve actlvltles?
Figure 4.2: Modem of Organisation
(Leavitt. 1965)
More over Som questions May Aldo be Dawn concernant the adoption by
exlstlng organlzatlons of Innovations rater thon the problème of generatlng
Innovations as ave. The generlc concerne Is one of determlnlng whlch
configuration of éléments of organlzatlonal design Is llkely to facllltate
the adoption and diffusion of change and Innovation In a partlcular
organlzatlon.
Neoclasslcal theory, wlth I emphases on the rôle of Informai structure In
organlzatlons, brlngs a différent light on the problème of change and
Innovation In organlzatlons. Neoclasslcal theorlsts emphase the résistance
to change of Informai group but Aldo gave Som Inslghts on how to use the
dynamlcs of groups to producer a dextre change.
Modem Théories of Organlzatlon protide addltlonal Information for
addresslng the Issue of Innovation. Of partlcular relevance Is the

& H
bureaucratie dysfunctlons perspective whlch demonstrate the potentat
probe I Ems Thot I orge organo Earl Ons are I Kiel y to Evel op overconform lty,
goal displacement. These dysfunctlons are Véry llkely to style the process
of Innovation In organlzatlon.
Contlngency the orles have developed a framework whlch emphases tue
Interrelatlonshlps of the organlzatlon and I subsistes wlth externat
system In This framework Many rese archers have studled the rôle of
Innovation. For exemple Bruns and Stoker (1961) have focused on the
management of Innovation and have demonstrated Thot forme Thot Evel op
Systems for analyztng and respondlng to technologlcal and Marcet changes are
llkely to be successful.
Lote contlngency the orles Juch as MIntzberg's approche to structurant of
Organ Izatlons (1979), Brong Ander considération the design of coordination
mechanîsms between différent parts of the organlzatlon Khere Innovation May
be developed, the design of structural parameters position superstructure
décision Makong system and the relatlonshlp wlth contingent factor (slze,
âge technlcal system envlronment).
Allaire and Flrslrotu's modem of organlzatlon In relatlonshlp wlth I
envlronment Allos us to complété figure 4.1. In effet two new dimensions
are rough to Our attention as Shawn In figure 4.3: a thlrd Internai
subsystem, the Organ Izatlonal culture and the envlronment, whether
comprise of structural éléments Juch as Otter organlzatlons (competltors,
customers, supp. mers etc or of contingent éléments (technology, soclety,
hlstory, etc. Moreover, In This perspective strate Is Sean as an
actlvîty Thot bears on bath organlzatlon and envlronment. The Nied to
develop bath Internai and externat stratégies has Aldo bene emphaslzed by
Gelînler (1981). Thenard (1981) talcs about mlxed sfrategy Khere he deflnes
a cohérent strate supporte by management as belng an equlllbrlum between
polltlcal, economlc, and Organ Izatlonal elements. In the Asme veln. Godet
(1986) shows Thot performance Is a functlon of the fît between strategy,
culture and structure. W add to these Tree componende the envlronment and
Indlvldual s.
The short In the unit of analysas as detalled In capter & Is Véry
Important for the problème of organîzlng for Innovation recause Many of the
changes and Innovations are llkely to occur outslde the boundarles of
organlzatlons. Tels Is emphaslzed by the l nterorgan Azat clonal process of
Innovation pressente In section 2.5.3.
I has bene recognlzed Thot envlronments are a major source of change In
Organ Izatlonal lofe whether envlronments are consldered as belng slmply the

& H
col mecton of Organ Izatlons w Ith whlch a focal organîzatlon Is I Ikoy to
Intact or whether envlronments are broadly deflned as belng the
"surround îngs" of an organîzatlon, the "cl I mate in whlch the organîzatlon
functlons.
Figure 4.3: Organisation and Environnent
Therefore, a sarong Implication Drom the redent the orles of organîzatlon Is
Thot managers have to enfance the envlronmental analysas capaclty of Thel
Organ Izatlons. En Iron mental analysas Is Rhus a principal Clement in the
management of Innovation. As Wez w & & I examine In section 4.3. the redent
the orles summarlzed in capter & Brong différent I Light on the organîzatlon -
environnent relatlonshlp In Germs of Innovation.
Figures 4.1, 4.2, and 4.3 allo us to buîld a général framework of
Innovation organîzatlon, envîronment, and strategy. Tels framework Is Shawn
In f Igue 4.4.
Tels schème hlghl Ights the fact Thot Innovation dies Nat Lean "product" or
"process" Innovation but Is a comprehens ive concept embedded In différent
éléments of the organîzatlonal I Ife: envîronment, structure technologie
peuple task, culture and strategy. The patterns of Interaction between
these éléments dépend on the nature and the orlgln of the Innovation
consldered.

107
Ail these elemen+s are Important recause
Figure 4.4: Innovation Organisation and Environnent
(1) Innovation light orlglnate In Rach of these elements,
(2) an Innovation Is Almont Enver focuslng on one îsolated Clement but
spreads throughout Otter elements,
(3) the successful management of Innovation Leeds to be thought of In a
& system le mann er.
In summary, organlzatlon theorles, and the évolution In these tneorles
hlghlîght the fact Thot Innovation Is a central concerne and choule be
approche by organlzatlons In a Sy stem le w Ay Illustrâtes In figure 4.4.
Fave Basle Implications are derlved:
(1) the management of Innovation Is a strates lc responsable I City of

&
manager
(2) +he management of Innovation s Aldo a structura I problème
(3) the management of Innovation dels wlth lndlvldual s. and
(4) the management of Innovation dels wlth eu Oural Issue
(5) the management of Innovation Is dépendent on the env & rongent&
F
Figure 4.4 shows the system le char acter Isle of the management of Innovation
but Falls In hlghllghtlng aboter fondamental dimension of Innovation mme.
In effectue Innovation Is a dynamo concept and Is relate to the évolution
of organlzatîon. In the nexe section Wez Wall Tak a statlc, Internai
perspective and look In more détail At the relatlonshlps between Innovation
and the Tree Internai subsistes of the organlzatîon, culture lndlvldual,
and structure. Them Wez Wall Introduis the tome dimension and Tak an
externat and dynamo perspective to Tudy the relatlonshlp between
organlzatlons and Innovations m a dynamo perspective.
4.2. INTERNA PERSPECTIVE INNOVATION Ml ORGANISATION
Tels section Wall conflit of a extensive I Is of factor and éléments Thot
have bene Sal to be Important for deallng wlth Innovation In organlzatîon.
W have réarrange ail these éléments accordant to Our Tree Basle
subsistes of the organlzatîon: culture lndlvldual, and structure.
But flrst let us emphase the fact Thot ail the éléments llsted Bellow are
Nat always Eas to ad dress by managers. Sole are Eden Nat "control label by
top management. In addition the tome requérez to change an Clement wlth In an
organlzatîon varies wlth the type of Clement addressed, l.e. whether LG Is a
cultural lndlvldual, or structural Clement Self Cal Ly Allalreand
Flrslrotu (1984) hlghllght Thot the Tree subsistes of an organlzatîon
pressent différent patterns regardant the degree of control by management
the rate of change and the mode of change. These patterns are Shawn In
figure 4.5 and basal Ly Say Thot LG Is raser to act upon the structure of
an organlzatîon thon upon lndlvldual s and certalnly thon upon the culture of
the organlzatîon. W hlghllght these patterns In figure 4.6 by showlng these
Tree subsistes on a two îmenslonal graph. One dimension corresponds to
the control by management how Puch management con act Internai Ly upon tnese
subsystems. The second dimension corresponds to the degree of contingence to
the envlronment. Them LG appert Thot the culture ls hlghly contingent
recause of I dépendance on the htstory of the organlzatîon for example),
and managers have Véry Fe Internai forces to act upon l. The structure ls
Puch Lesse contingent and May be Elven by managera actions and décisions
lndlvldual s seem to be ln between.

103
Figure 4.5: Dynamie of Change
adapte Drom Allai re & Firsirotu, & 984)
Figure 4.6: Internai Subaystema of the Organisation
Cantroi and Contingence

4.2.1. INNOVATION AND CULTURE
110
Figure 4.7 shows Som charac+erlstfcs of an entrepreneur al culture and an
administrative culture. In addition to these éléments large Organ Azat Ions
con pressent Som patterns Thot are assocîated wfth succès In developlng,
sustalnlng and adoptant Innovations. These éléments comprise the followlng:
Figure 4.7: Entrepreneurial Culture verjus Admis nistrative Culture (Stevenson & Gumpert, & 985)
Atjtiosphere and Vlslom contlnuous Innovation occurs largely recause top
exécutives appreclate Innovation and manage Thel company's value system and
atmosphère TO support I. Innovatlve management whether technlcal or Noth
projet Clear long-term visions for Thel Organ Azat Ions Thot go beyond
simple economlc measures. Juch visions are Nat management "fluff", but have
Many practlcal Implications. They attrait quai City peuple to the company and
gave ficus To Thel créative and entrepreneurial drives. Wren combine wlth

& & &
Sound Internai opération They Helpe Channel growth by concentrât hg
attention on the actions Thot Lea to prof Itabî I City rater thon on
prof Italo City Issel f (Qulnn, 1985).
Orientation la the Marcet & Innovatlve Companies seem to tle Thel visions to
the practlcal realltles of the Marcet place. Although Rach company uses
différent techniques adapte toI on style and strategy, two éléments are
always pressent a sarong Marcet orientation At the top lebel of the company
and mechanîsms to endure interactions and communications between technlcal
and marketing peuple At Lower lebel s.
Skunkworks & Innovatlve Companies emulate smalt I company practlces by uslng
groups Thot functlon In a skunkwork style. Smalt I trams are place together
wlth no Intervenant organlzatlonal or physlcal barrlers to developlng new
Ide as. The skunkwork approche Is belleved to ellmlnate bureaucracy, to allo
fast and smooth communication and to Installe a Hugh lebel of group Identlty
and loyalty.
Interactive Earn l hg & recogntzlng Thot the random, chaotlc nature of
technologlcal change Cuts acrose organlzatlonal and Instltutlonal llnes,
Innovatlve Companies top Intl multiple sources of technologie as Wele I as
Thel customers' capabllltles and encourage hlghly Interactive and
motlvatlng Earn ING env Ironments.
Var Ley Q Fundlnq Channel s & Innovatlve forme emploi a varlet of fundlng
Channel s to encourage rosi taklng.
Tolérance g Fal Lure
Opportun City Pur sue Outslde Pro Jets & Innovatlve forme allo and protide
ample tome to pur sue spéculative prose cts. As Puch as & percent of a
productive sclentlst's tome Is "unprogrammed", durlng whtch he or She Is
free to pur sue Inter ests Thot May Nat Ile In the main stream of the f l rm
(Maldlque and Haye 1984).
Dense I ntegr City & although commette to I NC l v l duo I l sm and
entrepreneur l p successful Innovatlve forme Still tend to exhlblt a
compliment to long-term Eel atlonsh Is. The forme v lew themselves as part of
an endure ING commun City Thot Incluses employees, Stockholm Dersi customers,
supp. mers and local commun I tl es. Thel r Objet l Ve I s to mal nta I n stable e
frultful associations wlth ail of these Inter est groups.
Hanson Top Management & Nat wlthstandlng Thel deep dense of respect and
trust for Indlvlduals, CDs of Innovatlve forme are usuel Ly actlvely

112
Involved In the Innovation process to Juch entent Thot They are sometlmes
accu se d of meddllng (Maldlque and Haye 1984).
4.2.2. INNQYATIQN M INDIVIDUA
In addition to the creatlvlty part needed by Individuels In the Innovation
process Dee capter 2), Aulan (1979) has Identlfled Federal characterlstlcs
of Indlvldual entrepreneurs whlch facllltate the Innovation process.
Fanatlclsm/Commltment & for success, the Indlvldual must be fanatlcally
commette In ordre to endure the pain frustration and effort of overcomlng
the technlcal, organlzatlonal, and Marcet dlfflcultles Thot always confronte
a new Idem. The system In whlch This Indlvldual apertes choule permit the
match-up of persona Itles, opportunIles and Inventives Ander whlch Juch
peuple thrlve.
£haes Acceptante i the I nventor/entrepreneur Is Nat Bund to formai plans or
PERT charts of progressa Progresse on an Innovation typlcal Ly cornes In sparts
amont unforeseen celais and setbacks. The acceptante or Eden enjouement of
This chaos of développent Is a crucial factor to be consîdered bath At the
Indlvldual and the organlzatlonal lebel
No detalled Controls & In the Zarly stages of Innovation détail ed Marcet
estimâtes are costo and Inaccurate slice In moss cases the Marcet dies Nat
exist. Thusy Many formai Ized Rule for evaluatlng Investments Drom a finance
and accointa hg perspective are Nat dlrectly approprlate to Innovatlve
prose cts. Imposant detalled controls on these projets Is Illy to salle
the Innovation process.
I cent Ives/R I sks & the Indlvldual entrepreneur con satl Sy hl persona
désires for poney achlevement, or récognition and Is motlvated to do sp.
Recause he Is a commette expert In hl on new field he percelvés the rosi
as Lesse thon Any reflex group coul. He dies Nat palc Wren éthers mlght.
Tels bedoles especlally Important Wren Otter peuple have to rosi money on
Véry large sale system
Long Time Horizons & the I mentor Is undeterred by the long perlot of tfme
Thot light relapse between Invention and f Inanclal success. He général Ly
protides a contlnulty of Inter est and support for the entre perlot of
development.
In addition to these Indlvldual characterlstlcs, I stems to be Important to
design and fulfîll spécifie rôles for deallng successfully wlth Innovation.

113
Sole rese archers have extenslvely focused on This aspect of Innovation.
Dîscovery recules an Inventer and a champion to Brong the new concept to
managements attention. Approprlate stratégie décisions must be made At the
décision stage by quallfled décision Mamers and sponsors wlthîn top
management. The champion must Real n active At This stage. Final Ly At the
développent stage a pogrom manager and sponsor must Wark together to Brong
about the successful Impl ementatfon of the Innovation obel l and Rudellus,
1985).
The rôles and Pol Icfes change rough the différent stages of the Innovation
process. Organlzatlons"shoul d recognlze these changent rôles and use This
know ledge In placent peuple In Chey positions and establ Ishlng Pol Ici es.
Figure 4.8 summarlzes the rôles and polices needed In Rach stage of a
three-step Innovation process.
FIGURE CHEY ORLES ANO POUCES LONG THE
INNOVATION PROCESS
obel i & Rudelius, 1985)
Khere are Many différent terminologies use for char acter Il hg these
différent rôles (Schon, 1963; Galbralth, 1977; Maldlque, 1980; Roberts and
Fusfeld, 1981; Gibel I and Rudellus, 1985; Kazanjlan and Drazln, 1986). A
compilation of Federal Thou sand Indlvîdual profiles of staff In RAD and
engineering organlzatlons has demonstrated patterns In the characterlstlcs
of the peuple ho performe Rach innovation functlon (Allen, 1977). These

&
patterns are Shawn In figure 4.9. The figure fndlca+es whlch persans are
predlsposed to be more Interested In one type of actlvlty thon aboter and
to performe certain types of actlvltles as Wele I.
FIGURE 45: CHEY MOLES PERSONA CHARACTERISTICS
ANO ORGAN NATIONAL ACTIVITÉS
roberts & Fusfeld, 1981)
Rough This subtest Thot différent persans choule f i II différent rôle Som
I NC Iv I dual s h ave the Sk & & I s breadth, I ncl I nation and Job opportun I Ry to
fui fil I more thon one crltlcal functlon In an organlzatlon.
Figure 4.10 shows Som masures relevant for Rach functlon, Indîcatîng bath
quantlty and qualité dimension and proposes Som possible regards for Rach
of these functtons.
Malique (1980) Lakes an Interesttng contribution to the understandlng of
these Chey rôles for Innovation by attemptlng to Monk the network of
entrepreneurial rôles needed In an Innovation to the stages of développent
and the complexité of the Organ Izattonal Zetting In whlch the Innovation
takes pl ace. He suggestif a f ramework, show n l n f Igue 4.1 & & to Exe I a In The
change In the relatlonshîp between the network of entrepreneurial rôles and

& & &
+he process of Evel opinent of an Organ Izatlon.
FIGURE ^JO: MEASURING AND READING CRITICAL
FONCTION PERFORMANCE
roberts & Fusfeld. 1980)
Figure 4.1 & & Évolution of the Entrepreneurial Network
(Maidique. 1980)
As Burgelman (1984) points out Khere are in the case of Internai corporate
venturlng, Tree différent lebels of management (nvolved In the process of
Innovation top management new venture division management and group or
venture leader. These Indlvîduals have différent tanks long the process of
développent of the new venture définition Impetus, stratégie contexte

M6
structural oontext). These rôles are Shawn In figure 4.12. Burgelman (1984)
Identifies four major potentat problème In This process
(1) clous c Ire les In the définition process différences of langages
and lack of articulation between the actlvltles of différent levelsof
management
(2) managera dllemmas In the Impers process
& maxlmlzlng growth wlth the one produit process or system
avalable In the venture verjus building the functional
capabllltles of the embryome business
& focuslng on expandlng the scope of the new business verjus
s pend ING tome coachlng the venture manager
(3) l ndeterm l nateness of the stratégie contexte lacklng an
understandlng of substantive Issues and problème In partîcular new venture
developments, top managent Is llkely to be come désenchante Wren progresse
Is Lower thon deslred;
(4) selecte pressures of the structural contexte the formas
structural Contest May Ebert pressures to Crow fast whlch exacerbât
adverse externat pressures.
Figure I & & Keg Activités i n Corporate Centuri hg
(Burgelman, & 984)
The flrst Tree problème are relate to a large entent to the définition of
rôles and the distribution of actlvltles between the différent Indlvlduals
Involved In Innovation. The succès of radical Innovations Is ultîmately
dépendent on whether They con be come Institut clonal Ized. A complété

Institutlonal Izatlon Is performe Wren al I Tree subsytems are consonant
w Ith Rach ther. The followfng section concerne the structural system of the
organlzatlon.
4.2.3. INNOVATION M STRUCTURE
In général rese archers have focused on the organlzatlonal "barrlers" to
Innovation In the large Organ Izatlons. Firat of ail the Elze and complexité
of an organlzatlon have often bene Sean as an Important barrer Tels stream
of research has formulâtes Thot large Organ Izatlons Possesse a large Mount
of Inerte (Hannan and Freeman, 1984). Caution ressource orientation
conservative sélection of peuple defense attitude establlshed
structure dis placement of goal over cons arm Ity. etc. are ail attrlbuted
to large Organ tzar Ions as d I st t ngu I shed Drom smalt I anes The smalt I
Organ IzatI on l s sa l d to be f I el b I e cream Ve responsl Ve and So on. Sole
structural frayures relate to Elze and complexité are the followîng
(Granstand, 1982):
&
- long maths of évaluation and décision Makong concernant new Idéas and
projects,
- diffuse areas of responsl Bo I Ita
- Many lones of communication
- départemental Irato on
- rugît structure of salarie promotion transfert stat.
Remet I t I venets of certain opérations Is Aldo a frayure of large
Organ Izatlons Thot Worms In favori of an Increased lebel of bureaucracy. As
hlghllghted by Abernathy and Utterback (1978), the behavlor of
organlzatlonal unlts shirts to Incrémental Innovation In produit and
process. Tels behavlor leads to the développent of routines and ru les the
structure bedoles more and more rlgîd. The crltlcal assets of an
organlzatlon constitue themselves a potentat barrer to Innovation and
change slice They absorbe attention and resources. The defense of large
Marcet shares, excessive "cost réduction thlnklng", excessive "prof Ita l I City
thlnklng" May Impec the "Innovation thlnklng".
I Rhus stems Thot Khere Is a Parado or a dllemma between Som concepts
whlch drive organlzatlonal I Ife. Innovation stems to Rely on "chaos",
dlsruptlve actlvttles, reluquant by nature to Institutlonal Izatton, to Any
klnd of organlzlng modes whlle the management of ongolng actlvltles
recules contlnulty, ordre stablllty, and So on. In Germs of Abernathy and
Utterback' s mode I & Khere I s an & nherent cons I I et between f I el b & & I Ry and
efflclency. Figure 4.13 Illustrâtes the différent organlzatlonal

characterlstlcs requérez for opération of establ I shed bus esses and for
Innovation.
Figura I & & Organlzatlonat Charactarlstlca Raoul rad for Oparatlan
of Establlshad Businaaaaa and far Innovation
(Frontini & Mchardson, & 984)
&
FIGURE 4.1*: MECHANISTIC VERJUS
ORGANIC ORGANISATIONS
gums J Stalker, 1961}
In the Asme Velin Bruns and Stoker (1961) pressent tne Basle différences
between a mechanlstlc structure and an Organ le structure Dee figure 4.14).
Wren the envlronment Is stable and fallu certain the mechanlstlc type of
organlzatton Is moss approprlate for the organlzatlon. Wren the technlcal
and Marcet envlronment Is changent and instable an organlc type of

organlzatlon Is more approprlate recause of I Increased potentat for
gatherlng and processlng Information for décision makîng. Thusy They show
+ha+ Khere Is no one best type of organlzatlon for décision makîng. Rater
the mode of organlzlng Is contingent on the décision situation.
Fol I o I hg l s a I l st of add & & clonal I Il I Tat Ions or barr er s of focal I ed
"bureaucratie" organlzatlons to the process of Innovation and change.
Monocratie Concept & This concept (Thompson, 1969) Hole Cs Thot (1) Khere Is
Great Ineuil City amont organlzatl anal participants In Thel statu
abllltles, and rewards, (2) the Organ Izatlon's technologie Is uniforme and
wîthln the gras of a Fe peuple (3) the persan At the top of the
organlzatlon Is assume to be omniscient and Issues al I orders, (4) these
ordres are clarlf Ied Down ward by successive levels, (5) recause Khere Is
Onay one source of legltlmate authorlty, conf. ICC Is Nat legltlmate, and
Rhus cons I Ict-settl ING actlvltles are & & legltlmate. These phenomena are Sal
to Impec the process of Innovation slice Innovatlve actlvltles are often
conf. Octal by essence.
Lâ£k fil Mec han lems fic Deo I & hg wlth Cons I Ict; Innovation and change In volve
changent the statu quo. Tels often résulte In Som conf. ICC between Thise
Indlvlduals ho are strlvlng for the Innovation and Thise no are reslstlng
the Innovation.
Overemphasls fin Carta l nty & the bureaucratie organlzatlon emphases spécifié
preplannlng Thot résulte In Rule and procédures Thot May happer dal ING
wlth nonunlform, incertain situations Wren They occid. Thusy incertain
actlvltles Juch as Innovation are llkely to be rejetez by the system.
Intolérance Q Fanatlcs & bog corn pan les often vlew entrepreneur lai fanatlcs
as embrasements or trouble emakers recause They do Nat fit the structure
They do Nat accepte the Rule and Avold the predeterm l end procédures.
Short Time Horizons & the percevez corporate Nied to report a contlnuous
stream of quarter profits conf. Icts wlth the long tome spans Thot major
Innovations usuel Ly requlre.
Accountlng Practlces & by assesslng ail I Indirect direct overhead,
overtlme, and service costs agalnst a projet large corporations have Hugh
développent ex penses whlch Deer managers to Fund Innovatlve prose cts.
Excessive rat clonal ISM & managers In bog Companies often Eek orderly avance
rough Zarly Marcet research stud les or PERT planning. Rater thon managent
the Inévitable chaos of Innovation productlvely, these managers Saon drive
&

& &
ou +he Véry thîngs Thot Lea to Innovation in ordre to prive ter
annonce plans (Qulnn, 1985).
Inappropr lote Inventives & regard and control Systems In large Companies are
often deslgned to mlnlmlze surprises. Wren control Systems velter pénal Ise
opportun & & les mlssed Nar regard risks taken, the Innovation process Is
I Ikoy to be stlf les.
In addition to these barrlers, Duncan (1976) Identifies Tree crîtlcal
structural éléments Thot are to be consldered to dal effectlvely wlth
Innovation complexîty, formai Izatlon, and central Izatlon. He présents a
conttngency modem for destgnlng organlzatlons for Innovation. The argument
Thot Is developed Is Thot Goven the Véry différent tanks Thot Nied to be
performe In the Initiation and I m p I ementatîon stages of the Innovation
process différent types of organlzatlon structures are moss effective In
the two différent stages. Duncan Eden observes Thot the Véry structural
factor Thot facllltate Initiation May Impec the I mol emmental on of
Innovation and conclues Thot the Organ Azat clonal designer Is Rhus face
w Ith a dl I Emma
I appert Thot the complexité of organlzatlon has bath positive and
potentlally négative effets on marlous stages of Innovation. At the
Initiation stage hlghly diverse organlzatlons are apparent able to Brong
a varlet of bases of Information and knowledge whlch facllltate the
Initiation stage. However, At I mol emmental on Hugh complexîty, recause of
potentat confllcts, Lakes I more dlfflcult for the organlzatlon to
actua Ly Amplement the Innovation.
Duong Initiation the organlzatlon Leeds to be flexible to new sources of
Information and alternative courses of action. Many Rule and procédures
light Just be come constralnts, Rhus Law formai Izatlon stems more
approprlate. Duong the Impl ementatîon stage however, speclflc formai Ized
procédures and Thusy a Hugh lebel of formai Izatlon are Sal to facllltate
the Impl ementatîon.
Les hlerarchy of authorlty and more participation In décision Makong con
fncrease the Information avalable to the organlzatlon and Rhus Law
central Izatlon Is Sal to facllltate the Initiation stage of Innovation. On
the Otter hand Wren the organlzatlon Gets to the Impl ementatîon stage a
more speclflc line of authorlty and responsable I City Is requérez to redusse the
rôle of conflit or ambigu City Thot light ac company Impl ementatîon of the
Innovation.
Goven the aboie argument Duncan States Thot the organlzatlon choule short

& &
îts structure In the two Innovation stages. The Chey Issue Is Them to
Identlfy Thise variables the organlzatlon designer Leeds to be Aare of and
mantpulate to facllltate This shlftlng of structure. Duncan foc uses on four
factor for successful Ly carrylng out This shlft:
- ablllty to dal wlth conflit
- effective I nterpersona I relations
- adéquate swltchtng Rule for utlllzlng différent structures
- Instltutlonal Izlng the dual organlzatlon structures for Innovation.
The entre contlngency modem propose by Duncan Is Shawn In figure 4.15.
Figure 4.1I Dual Structures for Innovation
(Duncan, & 976)

& &
Dealtng wlth cons I Ict:
U+lilzIng diffèrent structures for the two Innovation stages Is I Ikoy to
have Som potentat for cons I Cit. Brong able to dal wlth cons I ICC Is
Important Wren two différent groups are concerne wlth Rach stage as Wele I as
Wren the Asme Organ Azat clonal unit Is învolved In bath Initiation and
Impl emmental on. I May Rhus be necessary to structural Ly Creste certain
méchant sms to dal wlth cons II et. For exemple Duncan suggestif Thot liaison
positions May be establ & shed to coordlnate act Iv Irles between uni Cs Thot
Inltlate and unlts Thot Amplement Innovations.
Effective Interpersonnel relation
Whether the Initiation and Impl emmental on takes place between Organ Izatlonal
unlts or wlthln the Asme unit dealtng wlth Interpersonnel Issues Cs
Important In facllltatlng This shlftlng In structure between the two stages
of the Innovation process. I May be necessary for the Organ Azat Ion designer
to procède train ING for Organ tzar on personnel whereby They con Earn how to
dal wlth Interpersonnel Issues.
Swttchlng Rule for svltchlng structure
Duncan présents Tree Rule for shlftlng Organ Azat Lons structure. They
relate to the Nied for Innovation the unertatnty assaclated wlth the
Innovation situation and the compjexlty of the Innovation.
(1) The greater the Nied for Innovation the more the Organ zatt on
choule use différent structures for Initiation and Impl ementat Ion.
(2) The greater the uncertatnty assoclated wlth the Innovation
situation the more the organtzatlon choule use différent
structures for Initiation and Impl emmental on.
(3) The more radical the Innovation the more the organtzatlon choule
use différent structures for Initiation and Impl emmental on.
Instltutlonal fztng the dual structures for Innovation
Oven the "radical" nature of This structural Innovation of utîltzlng
différent structures for the two stages of the Innovation process I
bedoles Important to Ingrate This process Intl the organtzatlon. By
Jnjst^iutlona! Azat Ion Duncan menas Thot This dual structure for Innovation
be Integrated Intl the ongotng acttvtttes of the organtzatlon So Thot tt Cs
Sean as legttlmate. To Sully Instltutlonal Ise thts, tt Them bedoles
necessary Thot top-level managers support This process rough Thel on
behavtor and organtzatlon regard system In Otter words, RN ordre to
utlltze the dual structure for dealtng Eth Innovation I Is necessary to
develop a cl I mate In the organtzatlon Thot supports the process and tes

123
i as a legltlmate part of Organ Izatlonal actlvftles.
Whlle Duncan's modem Is At This terne Onay theory, Drom a practîcal
standpolnt, a Humber of speclffc structural arrangements for deallng wlth
Innovation have bene propose and us ed. Roberts and Berry (1985) propose a
classification of the différent stratégies and organlzatlonal arrangements
Thot organlzatlons adopte for enteront new buslnesses. Tels classification Is
g Iven In f I gure 4.16 al ong w I rh the avantages and d I avantages of these
différent approaches:
- Internai developments
- acquisitions
- Ilcenslng,
- Internai ventrues
- joint ventrues or alliances
- venture capital and nurturlng
- educatlonal acquisitions.
Figure 4.1 & Organizational Arrangement Avantages and Désavantages
roberts & Berru & 985)

124
Drom these possl b & & Itles, Wez con dérivé At lest Tree général structural
approches acquisition Internai approcha externat approcha
Acquisition
Acquisition représente the final stage of the compétitive process of
Innovation descrlbed In capter A. The large organlzatlon Is capable to
BR ING I ski I I s humant and capital ressources to support and Just In the
production diffusion and growth of Innovation on a large sale bals aster
the Innovation has bene sanctloned by the market, Wren tne flrst phases of
development, and teston of Innovation have bene Completel by Otter
organizational Actors (Incubators and ploneers). A fondamental Chey of
succès of This strate Iles In the tlmlng of entr In the new business and
In the Intégration of This new composent wlthln the Current opérations of
the organlzatlon. The strate of diversification rough acquisition Is
thus,a Véry dîfflcult one to Amplement (Detrle and Ramanantsoa, 1983;
Rochet 1981).
As Wez have note above, acquisition Is essentlally a practlce use by Méforme
and G-form Organ Azat Ions. In the case of Innovation Wez are Real Ly dal ING
w Ith new buslnesses and therefore unrelated actlvltles. Méforme has Provrd to
be a poorly structure to manage unrelated actlvltles. By attemptlng At Juch
diversification Méforme organlzatlons expert the new business to Crow and
Them to be come a new care business wlthln the forma At the Asme lebel of
Importance thon the preslois "center of gravlty" of the organlzatlon. Tels
menas shlftlng the Farm Drom an Méforme to an embryon c G-form structure. If
I Coulx Wark on Paper In the Real City of organizational I Ise I Is
extremely dlff Cult to manage Juch a change recause of the speclflc logo of
the Méforme organlzatlon, the mlnd-set of top management and the operator hg
prlnclples of Juch organlzatlons.
In the case of the G-form, whlch Is deslgned to dal wlth unrelated
actlvltles, acquisition of Innovations and therefore smala informa Ized
buslnesses wlth high but incertain potentlal, entai I s an organo Earl anal
dlff Iculty In Thot the logo of the G-form recules the buslnesses to be
acquérez to have a minimum Elze comparable wlth the Elze of the Otter
canters of opérations.
Therefore, acquisition of smala Innovatlve buslnesses by large flrms, rough
apparent obvlous, light entall unexpected d ISF Cul tles and fallures. Khere
Is a Bodh of I Iterature whlch emphases how dîfflcult I Is to carry out a
successful acquisition (BIggadfke, 1979; Rumelt, 1982; Dondas and
Rlchardson, 1982; Lauensteln, 1985; Jemlson and Sltkln, 1986).

Internai Approcha
Large forme often Eel the Nied for Improvement, especîally process
Improvement and Wall tend naturally to performe In-douze research and
development. Sarong commît ment to RAD Is characterlstlc of productive unlts
In the Middle stages of development. Juch unlts Investi heavlly In formai
research and engineering departments, wlth emphases on process Innovation
and produit d I f ferentlatlon rough functlonal Improvements (Utterback,
1980). But tradltlonal RAD has Provrd to be Insufflent for produclng major
Innovations. Tels problème stems to stem Drom the fact Thot the process
tradltlonal Ly use conflits of a sériés of functlons (research, development,
manufacture Ing, marketing chose Intl tut clonal Izatlon tends to refuit In
routine Innovations and stilles the orlglnatlon of major Innovations.
To over come these problems, organlzatlons set alde the tradltlonal séquence
aboie and confluer these différent functlons as part of one and the Asme
process of developlng a new business (Drucker, 1973). Conslderlng the
Innovation as a Hole business the Idéa Is to slmulate wlthln a large
organlzatlon the entrepreneur al sport of smalt I start-up, adaptive frs.
Thusy I Is bel Levet Thot the entrepreneur I al atmosphère Wall be Real Ica ted
allowlng the Companies to Juma quîckly Intl new and potentlally fast-growth
markets.
The conclusions of rese archers for deslgnfng the structure are Thot
Innovatlve actlvltles have to be separated Drom the operatlng system whlle
however, malntalnlng the Innovation process wlthln the administrative
boundarles of the corporation. The Chey factor seem to be an autonome Drom
Day to Day operatlng actlvltles, an entrepreneur I al cl l mate and constant
long-term top management Involvement.
Dependlng on the nature and uncertalnty of Innovatlve actlvltles developed
and on the nature of the care Sk & & & s capa II I tles and val ues of the f I rm
vls-a-vls these resu l Red for the new act l vI les Khere l s a w Ide range of
well-deftned structural arrangements whlch Coulx be art f I c I al I y Amded to
the organlzatlon.
Spécial Business Unlts (SBU) and Independant Business Unlts (IBU) are use
Wren the care salols resu I Red for the développent of the new ventrues do Nat
fit the exlstlng salols and capa Iltles of the Farm and Rhus requlre
decoupltng Drom the operatlng organlzatlon. In Juch unlts are often
developed new buslnesses wlth Hugh stratégie Importance for the future Wele Ibelng
of the fem.
Wren new ventrues May requlre or use Som salols and abllltles of operatlng
&

M6
divisions I Coulx be profitable to Creste a sparte départent round an
entrepreneur l al projet In Thot part of the operator hg system Khere potentat
for sarong capabllltles and ressources Is slgnlflcant. Tels structural
arrangement Is know as New Produit & Business Department.
Aboter design alternative Is propose for situations of maximum ambigu City
(Burgel man 1985): the New Venture Division (NVD) whlch Is establ Shed In
the corporate entât to allevlate the problème resulttng Drom pursued
diversification stratégies. Juch an organlzatlonal composent protides the
Internai envlronment requérez for developlng new business whlch Coulx
posslbly offert a Hugh potentlal. NVDs, accordant to Fast (1978), con be
separated Intl two différent types dependlng essentlally on Thel Elze and
objectives and the Way In whlch new venture Idéas are generated: macro and
micro NVDs.
A macro NCD typlcal Ly lanches frontal Nassau I t type ventures. These are
large sale ventures. Elze Is an Important crlterlon In selectlng ventrues
In a macro NCD recauseI Cromary objective l s to have a major Impact on
the economlc and sfrateglc situation of the company. Micro CDs are smalt I
new venture divisions establ Shed wlth a I o profile and minimal
expectatlons. Often They are a menas for retalnlng Internai entrepreneurs
ho do Nat fit In an operator hg division or get the support They requlre
ther.
Externat Approcha
Despote the Great potentat for conf. Ict, the potentat for opportun stuc
behavlors, învolved In Many contractuel situation Many Organ Azat Ions
attempt to develop coup I ING mechanlsms for deallng wlth Innovatlve
actlvltles. Establlshlng contractuel relations Is Rhus a solution for
bu & & d I hg structures w Ith l nnovatl Ve capa & & & & les Wy & & e d l m In l SH l hg and
sarong the risks Involved In Innovation. Rhus al I lance s. Ilnkages,
agreements, llcenslng, Joint ventrues May be Véry profitable and frultful
organlzatlonal arrangements for deallng wlth Innovation. Moss of these
alliances are deslgned to ad dress Zarly stages of the Innovation (CalorI and
Noël 1986).
These structural delcos Ary Drom llcenslng and franchïsîng to large
research-based Joint ventures. Roberts (1980) descelles a spectral of
venture stratégies In figure 4.17, Khere the Felce use basal Ly dépends
on the degree of corporate envolement Drom the "parent" company.
Khere are delcos between large and smalt I companles: venture capital In
whlch an Infestent Is made to Eek out a "wîndow" on promlsîng Innovation

ven+ure nur+urîng volves a Little more thon Just capital Investment,
venture spln-off occurs Wren the Idéa developed cornes Drom the parent
organtzatlon but dies Nat fit the main stream business new style Joint
venture In whlch large and smalt & partners Joan Thel respective forces and
salols to Creste and deyelop a new entr In the Marcet place.
&
Figure 4.1ISpectral of Venture Stratégies
(Roberts. 1980)
Khere are Aldo contractuel relations between large organlzatlons. These
Coulx be of a joint venture style frequently accompanled by the création of
a new smalt & entlty. Or Khere Is Aldo the posslblllty of piolet Fund of
venture capital partnershlps (RInd, 1981).
Burgelman (1984) Identifies two Basle dimension structural relatedness and
stratégie Importance whlch Allos one to position the différent
Organ Izatlonal arrangements dlscussed Earl er In the Internai and externat
approaches. Figure 4.18 shows This posltlonment of Organ Azat clonal designs.
In a stmîlar approcha Durand (1986) shows the différent stratégie behavlors
and orientations assoclated wlth différent mechanlsms avalable to
organlzatlons for accesslng technologie Tels Is Shawn In figure 4.19.
I choule be emphaslzed At This point Thot coopérative s"trategles, rough
potentlally crucial for technologie acquisition for exemple are often Véry
dlff Cult to Real Ise In a compétitive envlronment (Barreyre and Bouche
1982; Creton 1984; Do et a. 1986). W w II I corne back Lager to This
problème capter 5).
Tels section dealt wlth the Internai perspective of Our framework of
Innovation and organlzatlon pressente In figure 4.4. The nexe section
Introduis the envlronment and the dynamlcs of organlzatlon In the
envlronment.

IZY
Figure 4.1 & Innovation and Structure Structural Arrangements
adapte Drom Burgelman. 1984)
Figure 4.1IGeneris Stratégies for Technologie Accensent
translate Drom Durand. 1986)

& &
4.3. EXTERNAT PERSPECTIVE INNOVATION m QR6AN1ZAT1QNAL ÉVOLUTION
4.3.1. INNOVATION M ENVIRONNENT
The followlng SS a I Is of fac+ors Eel Ted to Boe envlronment Thaa are
Important for organîzatlons to dal wlth Innovation
Récognition M an opportun Toy or. a HÊfid: rh I s f Actors I s Eel Ted to tne
motlvatlonal Influence Thot Initiâtes the process of Innovation. By
opportunlty Som rese archers dlsttngulsh between sclentUlc (knowledge) and
technlcal opportunlty. A Tudy (Globe, Lev and Schwartz, 1973) ranchs Zarly
récognition of a Nied (market pull or an opportunlty (technology push) as
the moss Important factor explatntng the succès of Innovations.
& N îjf & & A t' T
T
Externat communication and the rôle of gatekeepers & research Jndlcates tant
certain boundary spannlng Indlvlduals, label led gatekeepers, con be an
Important llnklng mechanlsm between organîzatlons and Thel externat
envlronments (Tushman and Kata 1980). I Is belleved Thot one Way of
dal ING wlth the dîfflcultles of commun Carl hg acrose dl f ferentl Ted
boundarles Is rough gatekeepers, Indlvlduals In the communication network
ho are capable of understandlng and translatant contrastant codant schemes.
Thot Is gatekeepers are able to gagner and understand externat Information
and subséquent I y They are able to translate This Information Intl Germs Thot
are meanlngful and seul to Thel more local Ly oriente collages (Tushman
and Kata 1980). Stud les have Sound an Inverse relatlonshlp between extra-
Organ fzatlonal communication and bath Indlvldual and subulé performance
l Lena 1977; Baker et al 1967; Shll I ING and Bernard & 964). The rôle of
gatekeepers Is to reverse This relatlonshlp, espectally for subulés dal ING
wlth Innovatlve actlvltles.
Rôle of user & Von Coppel (1976) emphases the rôle of user In the process
of Innovation Nat Onay recause an accu rate understandlng of user Leeds Is
crltlcal to the succès of an Innovation but Aldo recause They genette new
Idéas différent vlews, whlch contrebute to the Initiation stage of the
Innovation process.
Compétitive pressures & compétition Is one factor Thot h as bene recognlzed as
Increaslng the rate of Innovation amont persans or organîzatlons In the Asme
area (Porter, 1983; Globe et al 1973; Callen and Schwartz, 1975).
General envlronment Influences & the général envlronment May have Som
Influence on the process of Innovation rough for exemple the général
economlc factor (e.g. depresslon), rough social factor Juch as group
Customs bel lefs, and attitudes), rough Pol îtlcal factor or rough

130
Health and environnent fac+ors Dee for exemple the Kondra+tev cycles In
chap+er A.
Clrcumstant All factor i an Andrest I mate factor Is In the rôle of
serendlpl+y In Innovation as well as the technologie confluence effectue Thot
Is a tlmely, unplanned merglng of major Channes of development, often Drom
diverse flelds, Makong possible new advances.
Adapta I City to the environnent & This generlc factor has bene emphasîzed In
capter & and Is a Basle premlse of the contlngency the orles of
organlzatlon. The successful organlzatlon In Germs of Innovation Is the one
whlch Is able to develop self le mechanlsms for formai Ly analSong I s
envîronment, and for rapldly adaptant to changes In the environnent (Burns
and Stalker, 1961; Lawrence and Lorsch, 1967).
Tels Lager aspect Introduis the tome dimension. Organlzatlons and
envlronments are changlng, and So Is the relatlonshlp between an
organlzatlon and I envîronment. How This relatlonshlp Is changent and chat
Is the place and rôle of Innovation In This Chongong pattern Is the talc of
the nexe section.
4.3.2. QR6ANIZAT1QNAL ÉVOLUTION
The séminal Wark by Abernathy and Utterback (1978) speclflcally adresses
This problème They emplrlcally examine the Way In whlch organlzatlons Crow
and mature In relation toI Innovatlve behavlor. The modem suggestif how
the char acter of I Innovation changes as a successful enterprlse mature
and how Otter Companies May change themselves to Foster Innovation as They
Crow and Prosper The Modelo Shawn In figure 4.20, comprises Tree
successive patterns In the évolution of a successful enterprlse:
(1) Foule pattern
(2) Transi tonal pattern
(3) Speclflc pattern.
The modem shows the rates of produit Innovations and process Innovation
and descelles these Tree patterns rough a Humber of Organ tzatlonal
char acter Is les produit line production processes, equlpment, materlals,
plant sale and control environnent char acter l stl es (compétition), and
Innovation char acter Is les stimulation type
Abernathy and Utterback avance Thot major new produits whlch requlre
réorientation of corporate goals or production facll Irles tend to orlglnate
outslde organlzatlons dévote to a "speclflc" production system or If

131
orlgînated wfthln, to be rejetez by ther.
FIGURE 4J& PRODUIT PROCESS INNOVATIONS AND
ÉVOLUTION OF ORGANIZATIONAL UNIT
(Abernathy & Utterback, 1978)
The Identîf caton of an emergîng Nied or a new Way to Lee an exls+îng Nied
Is an entrepreneur al act and résulte In a fluide pattern of produit change.
Wren a major produit Innovation f Irst appears, performance crêtera are
typîcally vague and I Little understood. I Is Rhus reasonable Thot the
divers City and uncertaînty of performance reculements for new produits gWe
an davantage to smalt I ad a ptab & e or gan^zatfon~ê & w & rh f Lexy Bo e techn. cal
approches andgoQd externat commun Carl ans.

&
But then, as se produit wîns acceptante the productive unît încreases In
Elze and shirts the Innovation emphases Drom radical produit Innovation to
endeavors for Improvlng manufacturlng, marketing and distribution méthode
whlch entend rater thon replace the Basle technologies. Thusy the short
Drom radical to evolutlonary produit Innovation Is relate to the
développent of a dom I nant produit jj&sLgn, ls accompanled by helghtened Price
compétition and Increased emphases on {^ocess Innovation and characterlzes
the transltlonal pattern In the model. Major "prôcèss changes are requérez by
rlslng vol urne of opérations. Smalt I sale unlts Thot are flexible and hlghly
reliant on Manual Lagor and kraft Sk I II s utlllzfng général pur pose equlpment
develop Intl unlts Thot Rely on automate equlpment Intensive Hugh vol urne
processes.
Final Ly as the unit consinues to Brown the compétitive emphases shorts Drom
produit variation to post réduction In This envlronment Innovation bedoles
typlcal Ly Incrémental In nature on bath produit and process and I has a
graduai cumulative effet on productlvlty. Juch IncréeTal Innovation
résulte In an Increaslngly spécial Ized system of production In whlch
économies of sale In production and the développent of mass marketers are
extremely Important. The productive unit lofes I flexlblllty to ficus on
efflclency, becomlng Increaslngly dépendent on hlgh-volume production to
cover I f Ixed costs and Increaslngly vulnérable to change demande and
technlcal Absil essence The Organ Azat clonal control type has Rhus shlfted
Drom an Informai and entrepreneur la I type In the foule pattern to a control
rough emphases on structure rues and goals In the speclflc pattern.
Therefore, Abernathy and Utterback (1978) propose a I INI between
technologlcal Innovations and the évolution of the Organ Azat clonal unit over
mme. In capter & Wez revlewed différent Organ Izatlonal I Ise cycles and Wez
Identlf led one Dommary modem (Qulnn and Cameron 1983): entrepreneur I al
stage collectlvlty stage formai Irato on and control stage élaboration of
structure stage and décliné. W Aldo Identlf led four redent Organ Izatlon
the orles whlch emphase the or Wan & Zast on-env l rongent Eel Tal Ons l p Rach
représentative of the four celle of Astet and Van de Venas typologie Dee
figures A. and 3.7): population ecology, Interorganlzatlonal analysas
contingence theory, and ressource dependency. In capter & Wez Aldo Identlf led
more thon two types of Innovation. Produit and process Innovation constitue
the technologie type. W Aldo have Organ Azat clonal Innovation I.E.P
structure Indlvldual and culture types of Innovation. W propose bow an
Intégration of these concepts., modem s and theorles, whlch général Izes
Abernathy and Utterback' s Thory f
V.
Firat of ail In section 4.2. Wez notice Thot Rach Internai sub system of the
Organ Izatlon corresponds to a différent pattern of control by management and

133
contingence on the environnent Dee figure 4.6). SImllarly +he four the orles
of organlzatlons menti oned aboie correspond to différent philosophes
regard Ing:
and
(1) the Internai control of management on the organlzatlon and the
potentat Impact of the Internai organlzatlon on the envîronment;
(2) the lebel of contingence l.e. the potentat Impact of the
environnent on the organlzatlon.
In effectue the population ecology perspective conslders Thot tne
organlzatlon Itself has Almont no Impact on the envîronment, Thot the rôle
of managers Is symbol le and Thot the organlzatlon Is htghly dépendent on
the environnent rough a sélection process.
The Interorganlzatlonal Thory conslders Thot organlzatlons May Impact Thel
environnent by building alliances wlth Otter organlzatlons and Thot these
cholces are to Som entent Ander the Internai control of managers.
The contlngency Thory confluer Thot the organlzatlon has Som Impact on the
envîronment, rough I Ess thon for the l nterorgan Irato on ther. I Aldo
emphases Thot organlzatlons are dépendent on the environnent rough an
adaptation mechanlsm, the rôle of managers belng to ajust tne Internai
subsistes So as to fit envlronmental demanda
The ressource dependency perspective on the Otter hand avances the
stratégie cholce perspective rough whlch managers acqulre ressources and
by This Way control Thel env Ironments. Rhus for This perspective the
Impact of the organlzatlon on the environnent Is Hugh and the lebel of
Conti Gence I s I o &
Thusy Wez obtaln a Dommary of these patterns In figure 4.21.
Moreover, I stems Thot Rach of these Cel I s Instar of explalnlng the
behav Lor and vol ut Ion of or Gan Irato on s In Any stage are more adapte to
one speclfîc stage of the évolution and therefore complément Rach ther. In
addition Rach stage of the évolution of an organlzatlon corresponds to new
challenge new concerna or new problems. The organlzatlonal responsif to
these chai Menges Lea to speclfîc Innovations of one type or another, as
emphaslzed by Abernathy and Utterback (1978) for the technologlcal type of
Innovation. Thusy long the organlzatlonal I Ise cycle the Innovation
emphases are llkely to be différent and the theoretlcal framework as
des Ined by Our four possible candidates as the orles of organlzatlon) Is
llkely to be différent also. Figure 4.22 shows the potentat relatlonshlps

134
Figure 4.21 & Organisation & Environnent Relationship: A Typologie of Théories
Figure 4.22: Relationships Between Organizational LifeCylce, Innovation
and Organisation Théories
H
t
Thusy as IR Is Shawn in figure 4.22, the entrepreneurial stage Witt Ids

emphases on Innovations of ail types (product, peuple structure process
but moss I y produit Innovation sees the managers concerne wlth flndlng a
niche In the environnent and reactlng to Avery change In Any Clement of the
env Iron ment I n ordre to surf Ive. The f ramework Wy I Che corresponds to rh I s
behavlor Is provîded by the population ecology model.
Tena durlng the col lectlvlty stage entrepreneurs are Interactlng a lot
wlth Otter Actors in the envîronment: customers, supplîers, etc. The
entrepreneur Is trylng to Hare Indlvlduals, ho world Farm a crltlcal group.
The major Innovation emphases durlng This stage Is on peuple Innovation and
Still on produit Innovation. The percevez degree of control of managers on
the organlzatlon Is hogner recause a group a col lectlvlty Is emerglng. The
percevez dépendance on the environnent Is Still relatlvely hl. The major
tanks are to Intact wlth Otter elements, Indlvlduals and organlzatlons, In
the envîronment. The moss approprlate organlzatlon Thory In Our f ramework
toexplaln these actlvltfes Is provîded by the l nterorgan Azat Ion ther.
&
As the organlzatlon gros and proceeds rough the thlrd stage
formai Izatlon and control the percevez degree of control of managers on
the évolution of Thel organlzatlon Increases. The major emphases of
managers In Thel Day to Day actlvltles concerne the Internai efflclency of
the system the management of power relationships wlthln the organlzatlon.
Ru les and procédures are developed and Implemented. The Innovations whlch
are more llkely to arlse are process Innovations and structure Innovations
changes In the structure Howard more formai Izatlon and efflclency). The
rôle of managers Is proactive. They are concerne wlth the acquisition and
Internai allocation of ressources for malntalnlng a Hugh lebel of efflclency.
The moss approprlate perspective Is provîded by the ressource dependency
framework.
Tena dec entr al Irato on Somain expansion and adaptation char acter Ise the
Bourth stage élaboration of structure. The percevez degree of control of
managers regains hlgh, but as the Marcet mature st attraits more ana more
competltors, Rhus the dépendance on the environnent Increases aga l n. The
types of Innovation Thot are llkely to arlse are essentlally structure
(hlgher efflclency, Cast réduction rough structural Innovation new
Organ I Earl Ona I arrangements for enteront dlverslfled actlvltles,
geographlcal expansion etc and Still process Innovations. Managers have
to ajust the Internai subsistes of the organlzatlon to env Iron mental
demande and compétition. The framework of the contlngency Thory protides a
seul jette hg for explalnlng organlzatlonal actif Irles and structures In
This stage.
Final Ly a f Ifth stage m Light occire the decl Aine of organlzatlons^ In This

M6
case the percevez degree of control of managers over Thel Organ fzatlon
décreuses drastlcally, the major concerne s wîth the envlronment, whlch has
change and présents Many threats. Rhus Wez return to the population ecology
modem whlch explant how the Organ Izatlon has no longer the approprîate Farm
and Is selecte out or choule go rough a complété transformation an
Organ Izatlonal Innovation to ajust to the new envlronment.
Figure 4.22 explant these différent stages and figure 4.23 représente This
évolution In a pectoral cycle Cal Way I con be observe At This stage Thot
the Olm of moss Organ Azat Ions Is to love Howard the Law light corner of
figure 4.23. To Avold the décliné stage figure 4.23 suggestif Thot the
organlzatlon go to the Hugh light corner Agan aster the Bourth stage
élaboration of structure - contlngency thecry). To do So menas Thot one Way
to Avold décliné light be to develop new relations wlth Otter Organ Azat Ion
allowlng the organlzatlon to love Zway Drom a decllnlng Marcet and to enter
new markets.
Figure 4.23: A New Perspective on the Organizational Life Cycle
Aboter observation con Aldo be made This framework Is val Id At the Hole
organlzatlon lebel but Aldo At the lebel of maller organizational unlts,
Juch as business nots. An organlzatlon Is I Ikoy to be constltuted of a
port folio of buslnesses, Rach of Them belng At différent stages of
évolution. Rhus f Igue 4.23 Is to be thought of l n a ports al la dense the
challenge of managers belng to manage the port folio of buslnesses long the
différent business lofe cycle So as to pressent a Hole organlzatlon Thot
Stans as close and as long as possible In the Law light hand Sode corner
of the figure.
Dl Nam Ly Wez con Aldo Noth ce Thot rh I s framework f Igue 4.22) con Eas I y

137
incluse ano+her concept developed by strateglsts: the Industry I Ise cyc I e&
Tels cycle comprises f JFE sages
- émergence
- shake-out,
- growth,
- maturlty, saturation
- decl Ind.
As & & I s Shawn In f Igue 4.24, these stages and Thel r char acter I stl es fît
the Fave stages of the organlzatlonal lofe cycle the différent Innovation
emphase and the différent theoretlcal frameworks.
Figure 4.24: Relationships between Orgamzational Life Cycle Innovation
Industry Évolution and Organisation Théories
The stratégie behavlors Thot rese archers recommande In Rach of these phases
May Rhus be Incluse wlthln This framework: for exemple Porters (1980)
framework for ail the process wlth an emphaslson émergence growth and

138
ma+urîtyï Calorl's (1982) recommandations for émergent Industrie Frost and
Thenardf s (1981) and Thletard*s (1986) frameworks for decllnlng Industries.
In Dommary of capter H synthèses of Innovation and organlzatlon, Wez
Conti Nied to bu i I d on the Noth on of duo I organlzatl on to producer two new
Important figure whlch bu lit upon the concepts hlghllghted In capter &
and &
- Drom an Internai perspective figure 4.6 présents the Tree Internai
subsistes of the organlzatlon, and hlghllghts the Montrol by
management the rate of change and the lebel of contingence
- Drom an envtronmental perspective figure 4.21 présents Our four
organlzatlon the orles as belng part of one larget framework, the
organlzatlon In I relation to the envîronment.
Moreover, In an Intégrative effort Wez dlscussed the Eel Tal Ons l pf between:
- Rach of the Tree Internai subsistes of the organlzatlon and
Innovation
- the organlzatlonal and Industry évolution and Innovation.
In the nexe capter Wez Wall pur sue Our Intégrative effort and épand a
Little on the concept of strate to propose the fondations of a Thory of
Innovation and organlzatlon.

139
PART TWO
HOWARD AN INTÉGRA IVE THORY

H
CAPTER & s INNOVATION AND ORGAN IZATION: INTÉGRATION
OUTLINE
5.1. Conceptuel Fondations
5.1.1. Global Perspective
5.1.2. Internai Perspective
5.2. Modem of Organîzatîonal Change
5.3. Concepts of Innovation and Stratégie Carrelages

The Tree building blocks of the reflex of I Iterature - Innovation the orles
of organlzatlons, and Innovation and organlzatlon - al Law us to bull the
fondations for a Thory Thot nables one to understand and improbe the
process of dal ING wlth Innovation In organlzatlon. In an attempt to bull a
Thory of Innovation one con star by focuslng on the Innovation Issel f I
char acter I st I es Juch as Rogers and Shoemaker, 1971); one con star by
focuslng on the technologie produit and process Innovations Juch as
Abernathy and Utterback, 1978); or one con star by focuslng on Indlvlduals,
A.G. créât Ivlty, entrepreneurshlp (Butler, 1985).
W chose to tocs Our Thory on organlzatlons. Otter rese archers have
al ready don that: for exemple Bruns and Stoker (1961) ficus on how the
organlzatlon Beals wlth différent env Ironments. But Bruns and Stoker ônly
protide a typologie of organlzatlons - mechanlstlc verjus organlc - and
therefore Thel Thory Is essentîally descriptive and stat. Abernathy and
Utterback (1978) ficus on the succès and salures of techno ag Cal
Innovations and links Thel Thory wlth the organlzat tonal unit In whlch the
Innovations Tak place.
Our perspective Is to adopte as unit of analyse the organlzatlon Issel f In
I dynamlcs. Our goal Is to Inltlate the formulation of an Intégrative
Thory of Innovation and organlzatlon, l.e. how organlzatlons dal wlth
Innovation and change how They May Improbe Thel ablllty In generatlng
Innovation on one hand and how They May adopte Innovation and change on the
Otter hand.
In ordre to progresse In This direction Wez Wall accompli Ish Tree tasks:
O
(1) Wez Wall Lay out Som Broad conceptuel fondations Drom the the orles
of organlzatlon, whlch Wall protide the général framework of Our
discussion. Two perspectives Wall be addressed: a global
perspective of the organlzatlon In I envfronment, and an
Internai perspective on Organ Izatlonal design
(2) Them Wez Wall propose a général modem of Organ Izatlonal change Thot
Wall al Law us to emphase the main message of This thesls, Lally
Thot Innovation Is a stratégie concerne of an evolvlng organlzatlon
In I changent envlronment;
(3) Wez Wall final Ly dérivé différent concepts of Innovation and Thel
stratégie correlates.
Rough the Thory Is far Drom belng perfect I présents Som avantages over
Otter the orles recause I Allos a naturel Intégration of the moss accepte

théories of Organ Azat Ion. I accoun+s for Organ Azat clonal change
longitudinal différences), as Wele I as for différences amont organlzatlons
(cross-sect clonal différences). I protides a Basle for a complété analysas
of the Current situation as Wele I as the'future évolution and I protides a
framework for Innovation strate formulation.
5.1 & CONCEPTUEL FONDATIONS
Tels section Wall bu M d upon the major flndlngs of the preslois chapters.
5.1.1. SLQBAL PERSPECTIVE
C
Figure 4.21 In capter & pressente a posltlonment of the four redent
the orles of organlzatlon, population ecology, Interorgan Azat clonal analysas
ressource dependency, and contlngency theory, long two dimension the
degree of Internai control and the lebel of contingence.
Whlle This type of figure dl f ferentl ates a lot between the différent cells,
Khere Is no situation wlthout Som dépendance on the envlronment or wlthout
Som degree of control by managers. Rough the axes are scalde "low" and
"hlgh", I choule be understood Thot these are relative sales rater thon
absolue anes Moreover, as Wez prevlously mentloned, the four celle are Nat
mutually Independent, the boundarfes between Them are Nat clear-cut lones
but rater large Suzay areas.
These four Cel Is des Aine Tree différent gouvernance méchant sms & as Shawn In
figure 5.1. Tels termlnology, flrst use by Wllllamson (1981) In hl
"transaction costs theory, Allos to over come the problème of avînt to
conceptually sparte forme Drom markets". Wllllamson conslders Thot
organlzatlons and markets are to be regarde as two alternative gouvernance
structures for medlattng economlc transactions and beyond that, performant
Organ Izatlonal actlvttles.
The "market" gouvernance structure corresponds to the population ecology Cel I
In Our framework, recause accordant to This theory, the envlronment, and
the Marcet are The main drlvlng forces of the Organ l Earl Ona I évolution.
Organlzatlons, and Internai Actors wlthln these organlzatlons have Nat Puch
to do. Management has essentlal Ly a symbol le rôle and Onay a smalt I Mount of
discrétion to monitor to Som entent the adaptation of organlzatlon.
The two Middle celle - contlngency Thory and Interorganlzatlon Thory - are
groupe together and labelle "ad-hoc coupllng" gouvernance structure. Tels Is
analogue to Som entent to chat Auch I ca I I s "clans" (1980). The

I nterorgan Azat ion Thory fondamental State Thaa Organ Azat tons have to
engage In ad'hoc coopérative Eel atlonshI wlth Otter Organ Izatlons In ordre
to gain Som control over the envlronment. As Do et al. (1986) mention
Juch coopérative stratégies are Véry dlfffcult to approche and manage and
In fact are often the continuation of compétition but by Otter me ans.
Nevertheless, This building of ad'hoc linkages wlth preferred partners Is
the flrst aspect of ad'hoc couplant mechanlsms. The second aspect Is
provlded by the Conti Agency ther. Wlthln This framework, the Olm Is to
ajust the Internai subsistes to the env Iron mental demanda Thot Is to
couple the Internai organlzatlon wlth contingent éléments So as to Rach a
lebel of fit Thot procèdes survlval and thrlvlng of the organlzatlon.
H
Figure 5.1: Conceptuel Foundations: Organisation & Environnent
The thîrd gouvernance mechanlsm Introduced In Our framework conflits of the
ressource dependency Cel I and Is label led "Internai coordination gouvernance
mechanlsm or "hlerarchy" In Wllllamson's Germ Ignol ogy). Wlthln This
framework, the emphases Is put on the Internai opération the acquisition
of externat ressources to acqulre power vîs-a-vls Otter Organ Izatlons In the
envlronment. The drlvlng force of This approche conflits of the stratégie

chofce of managers.
144
These Tree gouvernance mechanîsms are the founda+îons of Our approche for
organfzîng for Innovation. Rach of these structures Is supporte by one
correspond ING organlzatlonal design Thory or two for the ad'hoc couplant
gouvernance mechanlsm). These mechanîsms offert a triple generlc cholce for
Innovation an organlzatlon May let the Marcet drive to Som entent the
process of Innovation and select a partlcular rôle to play In a parttcular
point of tome (Incubator, plonger mass-marketer, follower); or an
organlzatlon May Walsh to Internai Ise the Innovatlve actlvltles and carry out
ail or part of the process of Innovation of I on or somehow an
Intermédiate strategy, an organlzatlon May Walsh to develop Som contractuel
relatlonshI wlth Otter organlzatlons to carry out Innovatlve actlvltles.
These gouvernance structures are generlc In the dense Thot a Wilde Arraye of
organlzatlonal possible I Irles Drom a stratégie as well as a design
perspective exist. Mcreover, an organlzatlon Is certain Ly Nat condamne to
one partlcular mechanlsm. Rater I con and Zhou I d select différent
mechanîsms or a comblnatlon of these dependlng on the Innovation the
situation the organlzatlon, the envlronment, the corporate strategy, etc.
The process of adequately chooslng one or more gouvernance mechanîsms Is one
Important pur pose of Our Thory and Wall be developed throughout This
chapt er.
I world be attractive to Enfer Drom the axes of figure 5.1 Thot the "best"
or "loglcal" strate Is to manage In Juch a Way as to end up In the Lower
light corner of the figure correspond ING to the maximum control over the
organlzatlon and the minimum dépendance on the envlronment. Chyle This world
be an approprlate strate for a stable organlzatlon In a stable
envlronment, I May Nat be the adéquate strate for an evolvlng
organlzatlon In a changent envlronment, especlally Wren Innovatlve, and Rhus
incertain and rlsky, actlvltles are At stoker
The Resson Tor chooslng a partlcular gouvernance mechanlsm rater thon
aboter relies to Som entent on the understand I hg of the arrow whlch
symbol Ise the transitions Drom one gouvernance mechanlsm to ano ther. Tels Is
Shawn In figure 5.2 and Is explalned below.
Marcet Gouvernance Mechanlsm;
The Marcet gouvernance mechanlsm relies on considérations whlch arm At
hlghl Ightlng organlzatlonal allures In performant Innovatlve actlvltles.
These allures stem Drom the dllemma between contlnulty and change. Berg
responsive In producîng major changes and At the Asme tome Improvlng the
efflclency of ongolng actlvltles con Lea to substantlal Internai confllct.

145
This structural Inertie (Hannan and Freeman, 1984), as flexfbllfty Is
replace by efflclency, protides a major explanatîon for preferlng Marcet
gouvernance over Internai gouvernance The Marcet Rhus May pressent Som
avantages In performant Innovatlve actlvltles. Moreover, This gouvernance
mechanlsm May be preferred to ad'hoc couplant building preferred network
of organlzatlons) recause of the rosi of opportunisme and the dlfflculty of
wrltlng a contracte învolved In preferred relaps lonsh I pf March and Simon
1958; WIMIamson, 1979). The market, wlth the assumptlon Thot compétition
redusses opportunlsm, May pressent avantages over ad'hoc couplant for
regulatlng Innovatlve actlvltles.
Figure 5.2: Conceptuel Fondations
Internai tfoyernance Mechanlsm:
The Marcet structure tends to Increase the dépendance of the organlzatlon on
the env Iron ment and Rhus IncreaseI vu I nerab & & th. Marcet May develop
allures wlth respect to Internai I ING actlvltles rough Intégration
Eel lance on Marcet transfert Coulx appeal tao rlsky and/or tao expansive n

146
Germs of transaction costs. wlth respect to Internai organlzatlon recause of
the posslbll City of opportunisme Wren markets are use for h Igh-potent I al
actlvltles and Information exchange. In This case I sternal Azat Ion of
actlvltles May pressent Som advantages. Amont the tradltlonal atonale for
Internai coordination of actlvltles In général Chandler (1977) wrltes: "the
Internai IzatI on of Many untts permette the flow of Goos Drom one unit to
aboter to be adm I ni stratlvely coord. I notes. More effective Acheul & hg of
slows achevez a more Intensive use of facllltles and personnel employez In
the process of production and distribution and So Increased productfvlty
and reduced costs. In addition Innovatlve actlvltles are sensltlve anes
and Nat sarong Them light procède a compétitive davantage (Porter, 1983).
For these rasons and Aldo recause of the risks and Rhus the costs Involved
In contractuel relation Internai coordination Is Aldo preferred to ad'hoc
couplant mechanlsms In certain situations.
Ad-Hoc QUp & hg Mechanlsm;
On the Otter hand recause of the risks Involved In Innovatlve actlvltles
and recause of Organ Azat clonal salures Juch as the non-aval lob I I City of knowhow
Inslde the organlzatlon, sarong rlsks, knowledge, and expérience wlth
Otter organlzatlons rough différent couplant stratégies light be a getter
strate In Som cases. Establlshlng contractuel relations I s a solution for
dels ni I hg structures w & rh I nova lev capabllltles whlle dlmlnfshlng the
Individuel risks Involved. Organlzatlons May Nat be wllllng to Indue al one
the éventuel costs of allure Moreover, They May lack the extenslvely
spécial Ized humano physlcal, and managera assets and salols requérez for
supportant Innovatlve actlvltles. In addition ad'hoc couplant stratégies
May be preferred to Marcet meccano sms recause as Merval Fe (1974) Pol nts
out In htghly turbulent envlronment a compétitive behavlor May no longer be
adéquate but rater a collaboratrice strate Is necessary. But as
h I gy & & ghee by Do et al. (1986), the compétitive aspects of collaboratrice
partnershlps have recelez Little attention rough They May dwarf the
collaboratrice aspects of the relatfonshlp, and compromise the succès of the
partnershîp, At lest Drom the standpolnt of one of the partners.
Figure 5.2 summarlzes the conceptuel fondations for explalnlng
Organ I Earl Ona I behavlor concernant Innovatlve actlvltles, showlng
al ternatlve gouvernance mec han l sms, transltîonal maths between them, and
Ander I y f hg support I Ve Thor les. Totos figure Wez Zhou Id Aldo add figure
4.23 whlch shows the usuel Organ Izatlonal I Ise cycle In relation wlth the
différent Thor les of organlzatlon.
The second part of the conceptuel fondations bears upon the Internai
perspective of organlzatlon rater thon on an externat perspective.

5.1.2. INTERNA PERSPECTIVE
Our modem of organlzatlon, as mentloned In capter & Is Allaire and
Flrslrotu's (1984) schème as Shawn Agan In figure 5.3s Tree Internai
subsystems, culture Indlvldual, and structure chape the organlzatlon. In
Thel définition of organlzatlon They Tak a contlngency approcha
recognîzîng Thot the organlzatlon Is contingent on I direct envlronment
(technology, compétition etc and on a larget envlronment the soclety)
and factor Juch as I on hlstory, post experlence, post value
leadershlps, etc. Tels contlngency approche Is plature In figure 5.4.
E
Figure 5.3: Modem of Organisation
allai re & Firsirotu, & 984)
W a I So d l scovered l n capter & Thot the Tree l interna I subsistes of the
organlzatlon pressent différent patterns In Germs of control by management
contingence lebel and rate of change. Tels Is représente In figure 5.5
whlch Is a dupllcate of figure 4.6 and Is parai Lek to figure 5.1 At the
beglnnFng of This capter concernant the posltlonment of the four main

theoretfcal frameworks, and Rhus the Tree gouvernance mechanîsms.
A
Figure 5.4: Influences on Organisation
allai re & Firsirotu. & 984)
Figure 5.5: Conceptuel Foundations: Internai Subsistes of the Organisation

Thusy recause of the duallty of Organ Azat tons two sîmflar figures
cons+I+u+e Our conceptuel foundatlons. On one hand certain éléments In the
envlronment are more or Lesse "control label by Organ Azat Ion and Rhus Tree
gouvernance mechanlsms appeal dependlng on the configuration of éléments In
the envlronment as They relate to the Organ Izatlonal actlvîty Thot Is belng
adresse by a partlcular organlzatlon. On the Otter hand Internai éléments
are more or Lesse "control label by management and are groupe I no Tree
différent subsystems.
W bow turn to the développent of an Intégrative modem of Organ Izatlonal
change.
5.2. MODEM CE ORGAN NATIONAL CHANGE
The degree of consonance between the Tree subsistes of the organlzatlon,
culture structure and Indlvlduals, long wlth the degree of fit between the
organlzatlon and I envlronment constitue two generlc catégories of
masures use to détermine the Current es fect Ive nefs of the organlzatlon.
Dependlng on the percevez Current es fect Iveness, as Wele I as the percevez
évolution of the envlronment and/or organlzatlon, Som changes or Som
contlnulty and harmonie light be derme necessary to ma In tain or Improbe This
lebel of es fect Iveness.
The process of deslgnlng This klnd of specIflc actions Is an Important
managera actlvîty and Is part of the process of strate formulation.
Many rese archers and practltloners have propose marlous techniques for
stratégie analysas (Sallenave, 1973; Merlot and Labourdette, 1980;
Porter 1980; Ader 1983; Bouvier and Olivier 1983; Bulgues, 1983;
Martinet 1983; Tasse 1983; Thletard, 1984; Allaire and FIrsIrotu, 1985).
Figure 5.6 shows how This Is often don and how I light be cond. In
général top management undertakes two dlagnosls tanks the lettres use
refera to the figure (ou top management males At lest Impl Icltly, a
dlagnosls on how the Farm Is presently performlng, chat are I strengths
and weaknesses, In Sim are the Tree subsistes of the organlzatlon
consonant Mutual Ly supportlve, or are Khere Som dysfunctlons and Khere are
They located?; b top management Lakes Aldo an assissent of how well the
organlzatlon as a Hole Is performant In I Industrlal sector, In I
direct envlronment, wlth respect to I competltors, customers, suppllers,
etc..., Thot Is top management Is In Som Way assesslng the pressent degree
of fit between the organlzatlon and I envlronment.
As part of these two tasks, top management May compare these pressent
évaluations wlth the post développent of the forma drawing chars Computant
R

& O
statlstlcs, Identlfyîng trends and So for th. In général Many Organ Azat Ions
Rely neavlly on these two évaluation componende (sometlmes Véry expllcltly
If the process of strate formulation Is Véry formai Izel omettes
Impl îcîtly, these perceptions Tak place In the mlnds of management leaders
to formulât stratégies. Tels tendent Is explalned At lest partial Ly by
the tact Thot often Onay these two componende point out rough problems,
dysfunctlons, performance gaps to Justlfy Som bralnstormlng on the part of
top managers and to fui If II Thel agendas.
t
Figure 5.6: Formulation of Stratégies
But This process Is Incomplète. As Shawn In figure 5.6 two more diagnostic
tanks choule be undertaken: c an assissent of the experte évolution of
the envlronment, and d an estimation of the fit betWeen the organlzatton
and the future envlronment. These are Véry Important recause a Current
mlsflt between the organlzatîon and I envlronment Coulx be résolve by a
favorable évolution of the envlronment.
Thusy a stratégie analysas often establlshes a propre dlagnosîs on the Basle
of these four éléments uslng différent Sool s and techniques stratégie

planning PIM Modelo CG matrlx, Industry structure analysas environnent
analysas forecastlng, etc...). Tena base on This dlagnosîs décisions have
to be made. For exemple sélection of Innovât ive projets May be made. Hers
Aldo Som techniques May gel p décision Mamers Dee for exemple Saint-Paul
and Tam lere-Buchot, 1974; Martino 1983).
Strlctly speaklng, however, looklng At the fit between the pressent
organlzatlon and the future envîronment. rough seul for Identlfylng
possible gaps, light be mlsleadlng In the process of strate formulation
Itself. Chat Is Real Ly Important and correct Is to val ute the future
organlzatlonal es fectlveness, I.E.P the fit between the future organlzatlon
and the future environnent as Wele I as the future degree of consonance
between the organlzatlonal subsystems, resultlng Drom bath the évolution of
the environnent and the évolution of the organlzatlon Itself. Tels Is
recause the environnent Itself May Impact the évolution of the Tree
Internai subsistes and Rhus the Internai consonance lebel betweem these
subsystems.
&
But these four évaluation tasks, rough Important to the process of
formulation of stratégie are Nat the Onay éléments Thot Influence the
strate formation process. Firat of ail I Is Sal Thot strate
corresponds often to the visions of leaders Thot the process Is a mental
cognltlve process Makong place In the mlnds of leaders (Mlntzberg and
Water 1983). Khere are certalnly éléments to be consldered as havlng an
Influence In the Way peuple Interprète Thel val jalons of chat Is happening
Inslde and round the organlzatlon. Moreover, the hlstory of the forma I
culture certalnly Impact on the process of strate formulation by Imposant
certain thought processes, certain values and beefs whlch Influence the
behavlors of tndlvlduals. In addition rough the process of stratégie
cholce Is often pressente as an analytlcal, structure process I choule be
emphaslzed Thot the analysas Eel les on Imperfect Information Thot the rôle
of I uck Is Enver Inexistant and Thot the strate of one Farm Is hlghly
Interdépendant wlth Otter forme stratégies (Papln, 1979).
These factor have bene consldered by Mlntzberg and Waters In Thel
thlnklng about strate formation and the mon of strateglsts (1983). They
hlghllght Thot tao often strate Is deflned In Germs of Intentions and
guldellnes for actions In the future. But stratégies are a I So exacte & Thusy
the usuel définition of strate Is rater chat con be cal led an I tende
strate In a larget framework of strate des InI Ion. A strate Is In
général a "pattern In a stream of décisions (Mlntzberg and Water 1982).
Two types of stratégies con Rhus be deflned: Intense stratégies and
unlntended stratégies. These two types Lea to Tree possible resultlng
stratégie

152
t del Alberte stratégie Intentions Thot are Real Izel
(2) untel îzed stratégie Intentions Thot are Nat Real Izel
(3) emmerdent stratégie patterns Real Ized wlthout expllclt Intention
stemm ING Drom bath Internai pressures (hlstory, subsistes
dissonance etc and externat pressures contingent factor
env Iron mental chantes etc.
Uslng Our two dimensions of figure 5.5, control by management and degree of
contingence Wez con position these Tree types of stratégies In figure 5.7.
Figure 5.7: Stratégie Control and Contingence
Tels Averan I process of strate formulation for whlch formai actlvltles
areexplalned In figure 5.6, Intégrâtes the d If Ferenc schéol s of strate
formation Dee Durand 1985 for a description of the évolution of the
différent schéol s of thought In strategy). As Mtntzberg (1985) points out
différent process have bene propose to expia In strate formation
(1) the planning schola for whlch the strate formation Is a formai
process
(2) the posltlonlng schola for whlch I Is an analytfcal process
(3) the entrepreneur al schola Khere the process Is vîstonary;
(4) the cognltlve schola for whlch the process Is a mental one

& N
(5) the Incrémental Is schola for whlch IR Is an adaptive process
(6) the Pol Itîcal schéol vlewlng I as a power process
(7) the envlronmental schéol for whlch the process Is passive
(8) the cultural schéol vlewlng the process as belng Ideol-oglcal &
(9) the hlstorlcal schola for whlch the process Is an
émergent & Earn i hg process.
In fact the strate formation process Is a ml of ail these processes. Our
approche May be Callen the "conf fguration schéol & for whlch the process of
strate formation Cs an Intégrât Ive process Khere formai as Wele I as
Informai componende are Aken Intl accointa and Khere the actlvltles May be
expo Iclt as Wele I as tmpl. Clt.
Del Inerte and émergent stratégies are one set of organîzattonal actlvltles
deslgned to Brong about changes In the Organ Izatlon. Tels effet Is Shawn In
figure 5.8 by the Wilde black arrow Cl. Figure 5.8 shows the général process
of Organ Jzatlonal change Drom an Organ Izatlonal perspective. I hîghllghts

& AÏ
two Otter major sources of change black arrow (2) and (3)). These are
flrst externally Indice chantes the Influence of env Iron mental factor
Otter Organ Azat Ion dynamlcs, compétition régulation technologie etc.
Second Internai Ly Indice changes stemm ING Drom the Interactions and
actions of the Tree subsytems wlthln the organlzatlon culture structure
and I NC I v Idua I s and stemmlng Drom the hlstorlcal développent of the
Organ Izatlon.
I Séoul d be note Thot these différent éléments May al I act In dl fferent
and competlng direction I.E.P favorlng or reslstlng changes. For exemple a
strate light be one of produclng a radical change transformation
réorientation re Ita tzar ton turnaround) as Wele I as one of promotlng
contlnufty and harmonia Externat factor light as Wele I Puch for change more
compétition new technologie etc or They light reslst change régulation
exit barrlers, etc. Slmtlarly, Internai factor May Puch for more change
(unsatlsfled employees, al d physlcal asses etc or May reslst change
structural Inertla: Sun costs In plant equlpment, and personnel the
dynamlcs of polltlcal coalition the tendent for précédents to be come
standard etc.
One important point whlch Is Nat lllustrated In the figure (otherwlse This
f l gure w il I no longer be readabl e l s Thot the dynamo I es of Organ Azat clonal
are Véry différent In the Tree différent subsistes of the organlzatlon. By
"dynamlcs" of change Wez Lean bath the rate of change and the mode of
change. In effectue whlle del Iberate, rad Ica I stratégies a l m At brlnglng
about change Intl the structural system of the organlzatlon, the chai Menge
of radical stratégies Is to Brong about changes In the culture and the
Indîvlduals as Wele I. Figure 4.5 In the preslois capter show the différent
rates of change of the subsistes of the organlzatlon long wlth the mode of
change.
Figure 5.9 Illustrâtes Thot This process Is dtfffcult and shows the
existence of a I ag between the operatlonal Izatlons of changes In the
structural system In one hand and the cultural and Indîvîdual Systems In the
Otter hand. In This figure starting At a tome I show ING a harmonie
situation (whlch Is rare In the Real world), Som changes In the envlronment
At tome II cause the organlzatlon to be In méfît wlth I envlronment
Lower Organ Irato Ona I es fectlveness). Reactlng to these changes top
management May design a strate to change the structure of the organlzatlon
Drom structure A to structure B. But Eden Wren the new structure Is
Implémente At tome II the Organ Azat clonal es fectlveness l s stl I I Law
recause Khere Is dissonance between the new structure B and the Old culture
A and the l NC Iv l dual s. On Ly Wren the l NC Iv & dual s w & & I Aj ust to the new
structure and Wren the culture Wall be modlfled So as to support This new

& E
structure the Organ îzatlon Wall Rach a new Hugh lebel of effectlveness.
FIGURE 5.9 & STRATÉGIE CHANGE ANO
CULTURAL LOG
Allaire & Firsirotu, 1984)
W bel Levet Thot one davantage of Our modem of organlzatlonal change over
Otter modem s Is Thot I Intégrâtes the marlous vlews of organlzatlonal
change. W put throughout This capter the ficus of organlzatlonal change
on malntalnlng and/or Improvlng organlzatlonal effectlveness.
In the followlng paragraphe Wez Wall show how Many différent vlews of
organlzatlonal change and organlzatlonal performance are représente In This
mode I &
W fol Law Lenz (1981) to Identlfy six groups of research to approche
organlzatlonal change and performance. These are
(1) Investigations concernant the Industry structure conduit
performance paradlgm;
(2) research on relations between environnent and organlzatlonal
structure
(3) stud les conslderlng Thot the structure of an organlzatlon Is the

& H
principal déterminant of effectlveness;
(4) research wlthln the strate - structure - performance hypothests;
(5) stud les consldertng Thot performance Is explafned by envlronment
and strategy;
(6) Investigations relatant administration quai City of management and
Organ Izatlonal effectlveness.
The éléments and Eel atlonsh i pf of Our modem consldered In Rach group Wall be
Shawn on a mînf-flgure 5.8.
I Industry structure performance
The l Iterature of îndustrlal organlzatlon revers to the envlronment as the
market, the I Industry In whlch a Farm comptes In This perspective the
structure of the Marcet Is bel Heves to Influence the conduit of f Irms wlthîn
Ita and Thel conduit In Turnu affects performance (Mason, 1939, Caves
1977). Wlthln This framework, stratégies of Farm are mostly derlved Drom a
systematlc analyse of the structure of the I Industry (Porter, 1980).
F,^. S.C.A.
Wlthln Our modem of Organ Izatlonal change This framework corresponds to the
analysas of the structural factor of the envlronment to formulât
stratégie and to the Influence of these structural factor long wlth
these dellberate stratégies upon the organlzatlon.
Environment, organlzatlon structure £114 esfect tvenessî
Tels group of research conslders Thot Organ Izatlonal effectlveness chlefly
dépends on the degree of congruence between the envlronment and organlzatlon
structure (Burns and Stalker, 1961; Lawrence and Lorsch, 1967; Pennlngs,
1975; Chîld, 1975). Tels Is obvloulsly one of the Important éléments In Our
framework. Interestlngly, Som rese archers Anderson and Peine 1975; Snow
1976) tndlcate that, whtle the env Ironment^structure I INI Is Important I
appert Thot multiple contingences - bath Inslde a Farm At the sub system
lebel and outslde the Farm At the stratégie lebel - Influence structure and

157
performance (Lenz, 1981). Rhus these résulte support chat Wez Aldo confluer
Important In an Organ Izatlonal change modem &
Organlzatlon structure performance
In This perspective performance Is bel Levet to stem Drom différences In
Organ Izatlonal structure (Hall and Welss, 1967; Marcus 1969; Whlttlngton,
1971; Chîld, 1974). Tels group of stud les chai Menges the val Isly of Som
contlngency theorles. Chile (1977) argues Thot multiple confllctlng
Conti agences aperte and Thot Organ Izatlonal designs Cannat be optimal wlth
respect to Avery contlngency. Therefore, différent structures May be
observe In the Asme jette ngu Rach of whlch Is a solution to multiple
Conti ngenc les and Rach of whlch May Lea to Hugh Organ Izatlonal
es fectlveness. However, one Important factor ponte out In This group
appert to be the Internai conslstency of demande Thot a structure Imposes
upon Organ Izatlonal participants.
STdrtr
Strategy, structure. ml performance
S. S. b
& S. G-
A considérable Mount of research foc uses on the Eel Tal Ons l pf between
strate and structure for an extensive reflex and synthests of This
research, Dee Galbraith and Nathanson, 1979). The notion Thot strate
Influences structure gros out of Chandless (1962) hlstorlcal Wark on large
Industrlal Organ I Earl ans. Tels séquence of the strategy-structure

& A.
rela+lonshlp Is largely conforme In stud les by Fumel (1972), Shannon
(1971), Pavon (1972), Pooley-Dyas (1972).
CV 5-%-d
On the Otter hand Khere Is Som évidence Thot a prevall tng strategy, and
the value attache to Ita con act as a f II ter on the subséquent stratégie
cholces (Lenz, 1981). Al So the configuration of a structure I staff ING
and attendant process of social Izatlon Influence the sélection of a
strate (Rumelt, 1974).
Col lectlvel y these flndlngs tndlcatethat strate and structure affect
managera perception the social Izatlon of Indlvlduals, and Many Otter
aspects of organlzatlonal behavlor, Thot In turn Influence stratégie cholces
and organlzatlonal changes. These différent éléments are Aken Intl accouant
In Our modem of organlzatlonal change.
Environment, strategy. and effectlveness;
Tels group of stud les Indlcates Thot Wren managera discrétion Is
constralned as In the case of heavlly regulated Industrie environnent
Influences Farm effectlveness and développent to a greater entent thon
strate (Fruhan, 1972; Aldrîch, 1979; Hannah and Freeman, 1977). In the
case Khere discrétion Is relatlvely unconstral ned, strate has a major
Impact on organlzatlon évolution (Hatten, Schendel and Copper 1978; Snow
1976; Data 1979; Greffer and Salanclk, 1978). These two elements,
environnent and strate are consldered In Our framework.
ftA S-.S-e

Administration and performance
&-
This group suggestif Thot the lebel of motivation and skFIl of adm fnîstrators
- the quai City of management - con have an Impact on performance and change
(Chlld, 1977; Stamford and Welles 1972; Selznlck, 1957; Thompson 1967;
Tuchan and Romane l I 1985). Our Modelo base on the existence of Internai
and externat forces for change Impllcftly accointe for managera bel Leff
and perceptions whlch are déterminant In the process of strate
formulation.
s- &-
Tels bref reflex of différent approches to organlzatlonal effectlveness
and organlzatlonal change shows Thot Our modem Allos for a naturel
Intégration of these Important flndlngs. The nexe step In Our formulation Is
to show how Innovation Is to be Incorporated Intl This modem and chat Wez con
dérivé Drom This modem for answerlng Our research question - how to monitor
Innovation
5.3. CONCEPTS UE INNOVATION Ml STRATÉGIE CARRELAGES
Our problème Is to dal wlth and monitor Innovation. In Our loglc,
Innovation Is consterez as an organlzatlonal actlvlty.
Figure 5.2 gaves the conceptuel fondations for deallng wlth moss
organlzatlonal actlvltles. Tels framework shows Thot Tree generlc Way of
deallng wlth Innovation exlst: (1) Marcet gouvernance of Innovatlve
actlvltles, (2) ad'hoc couplant for deallng wlth Innovatlve actlvltles
col lectîvely, and (3) Internai organlzatlon of Innovatlve actlvltles.
Wlth In This framework, top management has At lest two ass. The f Irst Tak
Is strate formulation Makong fondamental décisions about markets,
products, processes, and compétitive Basle In the Contest of a I Argers
envlronment, a set of resources, and organlzatlonal hlstory (Tushman and
Nadler, 1986). The second Tak Is organlzîng. Tels In volves creatlng,

160
building deslgnfng, and malntalnlng the Organ Azat Ion a mechanîsm whîch
transforme s+ra+egy Info the deslred ou+pu+s.
Our modem of Organ fat tonal change figure 5.8) protides the framework for
understand I hg how to bu & & d stratégies for I nnovatl on and how to actua Ly
Amplement changes in the organlzatîon for sustalntng Innovatîve actlvltles.
The modem of organlzatîon f Igue 5.5) tel I s us chat the Important
parts of the organlzatîon are and shows the nature of the relatlonshlp
between these subsistes and Innovation culture Indlvldual, structure.
The Tree gouvernance mechanlsms deflned In the conceptuel fondations Imphy
Tree dl f Ferenc Way of approche ING I nnovatl on and Rhus I ead us to des Aine
Tree différent concepts of Innovation In Germs of chat Innovation
représente for an organlzatîon adoptant one parti eu Lor gouvernance mechanîsm
for deallng wlth Innovation. Figure 5.10 shows these Tree gouvernance
structure the relate concepts of Innovation the relate process of
Innovation the relate Organ Izatlonal structure and the stratégie
Figure 5.1IConcepts of Innovation and Stratégie Carrelages
Firth the Marcet gouvernance mechanîsm for Innovation conflits Lally In the
compétitive process of Innovation as deflned In capter & of This thesls. In
This process différent organlzatl Ons play différent rôles wlth respect to

&
the Innovation orlgl nation development, production and marketing. The
ficus n Germs of Our framework of organlzatlonal change s essentlally In
the envlronment. Tels mechanlsm Is mostly dépendent on the env & rongent
évolution Rhus Innovation Is Real Ly consldered an externat sélection
parameter In an Industry structure Thot corresponds to Many différent
corporate entoiles Involved In the Innovation process. These entoiles are
Rach one Independant organlzatlon In the dense Thot Khere Is no concertation
about the linkages and Eel atlonshI between ther. Wlthln This concept of
Innovation the stratégie mode Is essentlally compétitive the behavlor of
management belng réactive and/or adapte Ive & The différent rôles Thot
Organ Izatlons May play are mostly Incubator, plonger mass-marketer,
fol Lower Dee figure 2.14). An acqulsltlon/dlvestment strate Is typlcal of
Many large Organ Izatlons looklng At Innovation as an externat sélection
parameter.
Second the ad'hoc couplant mechanlsm approches Innovation as an
Interorganlzatlonal process In the dense Thot more thon one organlzatlon Is
Involved In the process. But the process Is somewhat différent Drom aboie
slice If Wez deflne the network of forme belng Involved In the Innovât ton as
one organlzatlon chat Wez cal led the "organlzatlonal structure In figure
5.10) Them wlthln This organlzatlon the process of Innovation Is
Intraorganlzatlonal & Wlthln This gouvernance mechanlsm Innovation Is Real I y
consldered as a principal driver of col laboratlon between Organ Izatlons
whlch bel Levet Thot They May gain Drom jolnlng capable I Irles and ski I I s. In
Germs of the change Modelo the envlronment Is belleved to have an Important
Impact on the évolution of focal organlzatlon, but In Som entent the
organlzatlon Itself has an Impact on I évolution rough the formulation
of col laboratlve stratégies wlth Otter organlzatlons. The behavlor of
managements Is bow Interactive & Chey éléments comprise network structurant In
the dense of the Interorganlzatlon Thory deflned In capter A.
Thlrd, Internai coord. I nation Eel les on an Intraorganlzatlonal process of
Innovation. The Idéa Hers Is Thot Innovation Is tao Important to be lest to
the Marcet lone and tao sensltlve to be Chard wlth Otter organlzatlons.
Rhus Innovation Is Real Ly consldered an I portant source of growth for
Indlvldual frs. The up-to-date approche In Germs of organtzlng for
I nnovatl on In rh l s respect l Ve l s to try to Erp I Icare w Ith l n the f l rm the
Marcet process of Innovation. Due to Inhérent dlfflcultles In dal ING
slmultaneously wlth Innovatlve actlvltles and ongolng buslnesses (contlnulty
verjus change flexlblllty verjus efflclency, etc...) Many forme are
cream hg habens for Innovation nexe to the organlzatlonal structure and
develop coordination mechanlsms between these unlts and the malnstream
buslnesses of the organlzatlon. The strate Is essentlally a p I Ann I hg
strate for growth. Managers be have In a pro active Way emphaslzlng

162
Internai aspects of the Organ Azat clonal change modem and mostly the
Indîvîdual and structural subsistes of the Organ îzatl on.
These Tree concepts of Innovation and Thel stratégie carrelages deflne the
care of Our approche to Organ Izlng for Innova ton. On the Basle of the
conceptuel fondations and the modem of Organ Izatlonal change spécifié
stratégies for Innovation choule be formulâtes dependlng on the concept Thot
moss approprlately flts the Organ Izatlon consldered. Them the Tak of
organlzlng per se light be carriez out. The Organ Izatlonal es fectlveness Is
greatest Wren Tree conditions are met flrst, the -tfiree subsistes of the
Organ Irato on choule be deslgned and manage So Thot They are congruent and
mutually supportlve; second the pattern of congruence of these Tree
Systems Is consonant wlth the envlronment; and 'thlrd, the pattern of
congruence of these Tree subsistes matches the Basle requîrements of the
Innovation stratégies select ed.
Let us examine farter Rach of the columns In figure 5.10.
Figure 5.1 & & Organizational Designs for Innovation
Figure 5.11 shows the typlcal process of Innovation use In Rach of the
Tree perspectives Identlfled In figure 5.10. The Marcet gouvernance Cel I Is
typlcal of a compétitive process Dee figure 2.14 In capter &
correspond I hg to the Industrlal Organ Izatlon perspective. The ad'hoc
couplant gouvernance mechanlsm Is typlcal of an Interorgan Izatlonal process
and In volves the sort of mechanlsms Identlfled In capter H The Internai
coordination gouvernance mechanlsm corresponds to an Intraorganlzatlonal

&
process Dee the différent process In capter A.
Figure 5.12 shows the Internai approche for Innovation management dal ING
successfully wlth Innovation recules Rach of the Tree subsistes of the
organlzatîon - culture structure and Indlvlduals- to pressent certain
propertles. Figure 5.12 protides a I I st of generlc points Thot are more or
Lesse Important for sustaînlng Innovation dependlng on the strate chosent
the organlzatîon, and the envlronment. Section 4.2. protides an extensive
lest of différent éléments to be consldered In This perspective.
Figure 5.12: Internai Subsistes and Innovation
Whlle Rach of these Tree catégorise culture Indlvldual, and structure
have bene explore by rese archers LG choule be note Thot tne culture Is
currently the toughest one to approcha Fe rese archers are Reilly trylng to
Sy stemmate ca I I y approche This Issue (Quînn, 1985; Cal Ion 1985). Drom a
différent perspective Godet deflnes a stratégie culture lylng on Tree Chey
concepts hl "greek triangle"): prospective watchlng, stratégie
détermination and collective mob & & Azat Ion. These Tree éléments choule al So
be pressent Wren thlnklng of Innovation strategy.
Figure 5.13 farter détails structural arrangements Thot May be use In the
ad'hoc couplant and Internai coordination gouvernance mechanlsms. They are
classlfled long two dimension structural relatedness of the Innovation

164
Ander considération dies the organlzatlon have the capa & & & & les
technologie etc requérez for carrylng out This new type of actlvlty?) and
the stratégie Importance of the Innovation consldered.
Figure 5.1 & Choo$ing Structural Arrangements
adapte Drom Burgelman, & 984)
Figure 5.14 détails Som stratégie Implications of the différent approches
to Innovation At lest In a technologlcal sens.
Beton Rach of these Tree mechanlsms, concepts and correlates, adoptant a
port folio approche light be a Goos managera practlce concernant
Innovation. Nat ail Companies are able to manage Juch a port folio wlth the
hlghest effectlveness possible. Tels leads us to develop a new hypothetlcal
concept of Innovation and I stratégie carrelages In figure 5.15.
Ail the preslois concepts together adresse Avery composent of Our général
modem of organizational change but one the cultural sub system of
organlzatlon. Of course I Is Impllcltly Impérative Thot the culture
supports whatever strate Is chosent but no strate Real Ly bu & & Cs upon
This part of organlzatlon Drom the Véry beglnnlng. If followlng Galbraith
(1983), Wez des Aine Industries In Germs of a ferles of différent functlons
(e.g. ra matera extraction Basle transformation manufactur(ng,
marcel hg and d l Ste I but l on Retz & & I ngu Them Wez con des I ne the center of
gravi Ry of an organlzatlon as belng Khere In This Industry suppl. Chaon the
organlzatlon Is focuslng. Tels center of gravat Is a functlon of the roost
traditions and salols whlch drive I. By expandlng This concept of center of

gravi Ry to the blende of management processes, dominant functtons, succession
paths, management bel Leff and value In short the management Way of loge.
Our final concept of Innovation May be vlewed as the center of gravat of
the corporation.
&
Figure 5.1IGE ne rie Stratégies for Technologie Accès ment
translate Drom Durand. 1986)
Tels type of organlzatlon May be label led l-form organlzatlon and slice I
Is an Idéal type of organlzatlon, I dies Nat Reilly est Nowy The
stratégie behav Lor of Juch a f Irm w & & I correspond to a caref il Ly planned
port folio of stratégies correspondît to the Tree main concepts Identlfled
ave. Farter research Is needed to explore This concept and getter deflne
Juch an l-form. Annay I stems Thot certain forme are close to This type
M wlth I objective of havlng At lest 25% of the total sales Federated by
new buslnesses (less thon Fave Yeats of existence or Intel wlth I
contlnuous ficus on Innovation or Accon wlth I Clef Exécutive Officer
glvlng up ail hl tradltlonal Dulles excepte légal actlvltles) for
concentrât hg on one exclusive job - f Indlng and creatlng new buslnesses
(Utterback, 1986).

M6
FIGURE 5.15: THE CONCEPT OF l-FORM ORGANISATION
In the nexe chanter Wez Wills discute This theoretical framework. W Wills Firat
illustrât IR by an exemple innovation At M. Tena Wez Wills discute and
propose farter research avenues.

&
CAPTER & & DISCUSSION
OUT I NE
6.1. Illustration Innovation At M
6.1.1. HIstorIcal Background and Current
Description of M
6.1.2. Internai Organlzatlon for Innovation At M
6.1.3. Pressent and Future Challenges At M
6.2. Critique and Farter Research Leeds

&
Tels chap+er's objective Is to dlscuss the conceptuel Thory developed In
capter H For accompli Ish ING This objective Wez Wall dlvlde This capter Intl
two parts.
Firth Wez Wall gave a bref exemple of a successful large company whlch has
demonstrated I ablllty In Innovatlng: Minnesota Mining and Manufacturing
or M. W Wall gave Som hlstorlcal background of M Them Wez Wall brlefly
show the organlzatlon of M for deallng wlth Innovation. Tels Illustration
Wall Rhus protide the rader wlth a getter practlcal understandlng of the
concepts developed throughout the thesls. I Is Nat the Olm of This section
to test Nar to val l date the conceptuel framework. Tels world necessltate an
hlstorlcal, In-depth longitudinal Tudy wlth Many Interviews At Many
différent levelsat3M. As Wez Exe I al end I n the f Irst capter weclearly
traded-off an emplrlcal Tudy to gain tnslght Drom an entrelu conceptuel
processus I méthode I agt.
Second Wez Wall dlscuss and critique the theoretlcal framework developed In
capter H Tels Wall Lea us to propose farter research avenues to pursue,
test revînt and val Diate the pressent theoretlcal orl.
6.1. A CASE STUDI ORGANIING FOR INNOVATION AT M
Let us turn f Irst to a bref hlstorlcal overvlew of M.
6.1.1. HISTORICO BACKGROUND AND CURRENT DESCRIPTION OF M
& & & a I I starter as a m I State In & 902" MI nnesota Mining and Manus actue I hg
Compans 1977). The ml State Wa the "dlscovery" of corundum, the second
Harvest pure minerai. To exploit This wfndfall, Fave entrepreneurs Inceste
$1,000 aplece, and chat Wez know tokay as M Wa Born for the pur pose of
provldlng a suppl. of abrasive matera to Eastern manufacturer of grlndlng
Chels (Angle, Mana and Van de Vena 1985). In fact, the minerai Wa Nat
corundum, and had Inferlor abrasive propertles. Unaire of This the Young
company entracte and sol the minerai. Vert qutckly the markets collapsus
and the company struggled for survlval, the dîrectors paylng salaries Drom
Thel persona fins.
Two new businessmen Drom St Paul Jal end the company. Aster an Infusion of
new capital and a new location M Begin to manufacture sandpaper. Saon the
Ward "Mining" In the company's nome be came meanlngless. In 1907 the company
hlred William McKnlght ho Wa prompte sales manager aster Tree mars. He
Inltlated a practtce whlch Is tokay an Important aspect of 3M's culture the
"close to the customer" concept. The company Begin to be a customer Elven
company, moss of the Innovations developed are Marcet pull type of

Innovations.
169
M encountered one more crlsts Wren a ml shop At sea resul+ed In M havlng on
hand 200 tons of Garbet whlch had be come împregna+ed wlth olive oil Makong
I Impossible m bond I to the Paper In ordre to over come This problème M
fonde I flrst research lab. Efforts to salage the mater I al led to the
création of the flrst Trucy successful produit - a sériés of coated
abrasives cal led "Three-M-lte". Thusy M lobs Wete original Ly created In a
problème Dolving orientation and the rôle of serendlplty, as Wele I as the
rôle of technologie Puch alloue M to Lauch new products.
Drom This venture Intl abraslves, over the Yeats M moved Intl Many
différent produit les. One notable successful produit diversification Wa
Intl pressure-sensltlve adhésive tape In 1925 - a dîscovery Thot Wa
orfglnally Intense to gel p auto mob & & e manufacturer wlth two-tone plant
flnlshlng (market pull and Importance of the user In the process of
Innovation are hlghllghted here).
Drom the Initial startup on $5,000 capital and an opération employant a
smalt I handful of Mlnnesotans, M has volve Intl a worldwlde organlzatlon
of Som 86,000 peuple wlth opérations In N countrles. Total assets are
value At about $6.6 billion dollar and 1985 sales revenues total led $7.85
bol I Ion dol mars.
M Is an Inte^grated enterprlse characterlzed by substantlal Inter division
and Intersecter coopération In research, manufacture ING and marketing of
produits Incorporât hg sîmîlar composent matelas manufacture At Commin
Internai sources. I business has developed Drom I research and
technologie In coati hg and bond ING coated abraslves, I Onay produit In I
Zarly mars. Coati hg and bond ING Is the process of applylng one mater l al to
another, Juch as adhésives to a backlng (pressure-sensltlve tapes), abrasive
granules to Paper or Croth (coated abraslves), ceramlc coati hg to granulat
minerai (roof ING granules), heat or light sensltlve matelas to Paper film
and métal (copyîng Paper photographie film and lithographie plates Iron
oxyde to plastic backlng (magnetlc recordant tape glass beads to plastic
backlng (reflectlve sheetlng), and Resle Impregnated matelas (electrlcal
Insulatlng materlals).
M Is amont the leasing producer of produits for moss of the markets I
serves. In ail casse M produits are sujet to direct or Indirect
compétition. General Ly speaklng, moss M produits In volve technlcal
compétence In development, manufacture and marketing.
M volve Drom a functlonal Farm structure to a mil tldlvlslonal Farm the

"company of 45,000 products"). In a décade the mu I tl d iv I s clonal structure
bas double Drom & to O divisions. As an unexpected refuit of This
dlverslfled growth M experlenced a décliné In Juch markets as office
coplers and consumer audio apes Khere I sales force Wa mlsslng out on
brader opportun tles (Barnfather, 1982). The problème At M Wa Thot
compensable dlverslty had be come sel f-def Earl nb. "We Wete becomlng tao
fragmented", Fays Lewes Leyr former Chairman and Clef Exécutive Off Cier
Intl I March 1986). In 1981 & M condense the H major produit I Inès Intl
four "business sectors":
T
FIGURE A. & HISTORICO DÉVELOPPENT OF M
STRUCTURE AND STRATE
Tels new structural Farm Is a flrst love Howard the group-form dlscussed In
capter H The hlstorlcal développent of M ls Shawn In figure A. long
w Ith the major stratégies and structures use to achevez This development.
Rach Hector or group brlngs together Commin or relate M technologies and

Rhus procèdes greater opportunl+y for +he future développent of produc+s and
services and a more efficient sarong of Marcet strengths. Ail four sec tors
have worlwfde produit responsif & & Fry for ail of the dlverslfîed M produit
I fnes. In addition as Wez Wall develop Lager In This capter certain
m Issel I Angous and staff f-sponsored new products, In marlous stages of
development, are Nat assigne to Any of the four sectors. W w & & & descelle
these four business sec tors In the followlng paragraphe
Industrlal and Consumer Hector &
Tels business Hector serves Almont Avery major Industrlal market, as Wele I
as Many maintenance office and household markets, wlth a Broad range of
pressure-sensltlve adhésive apes abraslves, spécial Ry Chemical s rooflng
granule and décorative products. Tels Hector Is char acter Ized by major
technologies wlth Broad Industry and company-wlde application Includlng
Basle expertise In précision coatlng and manufacturlng.
Electronic £114 Information Technologie
Round 1980 M recognlzed Thot I lacked a slgnlf Issant toehol d In the two
Great contemporary Industrie computer and communications. The challenge
Identlfled Wa to carry the master of M In the Current opérations Intl
these sophi Istlcated flelds. In 1979, M acquérez Interactive Systems Corp
a smalt I f I rm pec I al I I hg In data-transm I SS Ion cab I e for cab I e TV Ward
processIng and computer communications. In 1980 & M Acq Ire Comtal Corp a
company spécial fzlng In computerlzed synthèses of graphie matera the
computer "photographs" of Saturne Wete compose Drom Electronic signais for
NASA by a Comtal digital Image processor). These acquisitions have In
effectue be come the nucléus of a communications division. They have Oulles
together the assote produits Thot M al ready supplies to the
communications Industrie and more thon that, They al Law M to get a Aste of
chat data transmission Is ail about. Tels shows Thot beyond Internai
coordination of Innovation M Aldo uses the Marcet gouvernance mechanlsm for
Innovatlng In new buslnesses. Tels mechanlsm of acquisition Wa chosent
recause M Identlfled Itself as a laggard In these Industrie whlch Wete
evaluated as strateglcal Ly Véry Important for the future of M. Leyr Fays
"the world has change round us but Our research pogrom hast Brown up.
Muche of the emerglng civil Izatlon contradlcts the Old tradltlonal
civil Izatlon. The Society Is movlng Howard Information and communication. W
are an al d I l ne l ndustr l al company adm I rate I y su I Ted to the & 970s; bow Wez
have to manage a transformation to thrlve In the 1980s and beyond".
For achlevtng This objective M engage Itself In the computer and
communications Industries rough these acquisitions. In 1981, I forme the
&

172
business sector, Elec+ronîc and Information Technologies. Tels sec+or
participâtes In a Humber of large and rapldly rowing markets, Includlng
electrlcal, electronlcs, and télécommunication Information stérage
output and transfert and audlo, vidéo and data record Ing. I serves
numerus Industrlal and consumer Marcet segment Includlng the office
factor Health care facllltles, and the home. The Hector producer
connectons and devlces; teston and faultfîndlng equlpment system Cable
jolnlng and termlnatlng products; electrlcal Insulattng materlals; and Otter
relate Items of equlpment.
Tels Hector Aldo markets equlpment and supplies for business and educatlonal
uses, Includtng processif caméra microfilm reader-pr Inters background
musc equlpment, and communlcatîng terminais. In addition to the acquisition
strate Thot M adopte In This fiel d I Aldo Lakes use of Otter forme of
gouvernance structure to Rustan Innovation In This sector: ad'hoc coupllng.
In effectue M Inceste $150 million In 1985 In a joint venture wlth an
afflllate of Harris Corporation to Creste a new company chose capital stock
Is equal Ly held by the two campan les. Tels new company, Harrls/3M Document
ProducTs, Inc. Begin business on Sanary & 1986 for the pur pose of
marketing a line of copylng and facslmlle products. In addition to This
Joint venture M engage Intl aboter type of ad'hoc couplant strate for
Innovation RAD I Imite partnershlp. In 1983, Control Data Corp. and none
Otter Companies gave Hobby Ray Niman $600 million and 400 of Thel
rese archers to set up a Joint thon tank know as the Mlcroelectronlcs and
Computer Technologie Corp. business Week 1985). IIe Broad mission Is to
producer technologlcal Innovations Thot world Keep the membre Companies
compétitive wlth U.S. and Japonise computer glanas In 1984, M bought Intl
the venture to be part of This collaboratrice sfrategy.
These différent stratégies show how one company light use a Pontfol la of
alternative stratégies as detalled In Our framework. Tels Is Shawn In figure
A. whlch htghllghts the distribution of the différent Organ & zatt Ona I
mechanlsms Thot M uses for Innovation In This secr. At the Asme tome the
évolution of the Farm of the company Is congruent wlth Our approche of
Organ Izatlonal change and I stems Thot Khere Is Inde an association
between the types of stratégies use by a company and the organlzatl Ona I
stages of growth of the company. Drom an Organ Izatlon-envlronment
perspective In the computer and communication sector, M Eel ING Thot This
business Is a major avenue for growth, but Aldo Eel ING Thot 3M's position
Is tao dépendent on the envlronment (contlngency Thory configuration Maves
Howard an Interorgan Izatlonal perspective acqulrlng Otter Companies and
developlng collaboratrice stratégies to gain Som control over This business
and I envlronment.

L T fg Sciences Sector:
& N
FIGURE 6.2: ORGANISATIONAL MECHANISMS FOR
INNOVATION AT M
This Hector procèdes produits and services whlch prompte getter Health and
saveta for peuple I.E.P a Broad line of médical surglcal, pharmaceutlcal,
dental and Otter produits Thot gel p malntaln or restaure Health a line of
trafic and persona saveta products, and produits and services designer to
Deer crimes agalnst peuple and property.
The Health care produits Incluse apes dresslngs, and bandages Thot performe
a securîng, supportlng, or dressant functlon; diagnostic products;
Intravenous Infusion pumps; KG supplie Infection control system
m Leroi loi ag Ica I test I hg Supt I les produits and serf Ices for an I mal care
surglcal drapes Thot control Infection produits Thot facllltate Sound
closure and prompte Real Ing; surglcal mass Cast system orthopédie
Implant trauma devlces; Intraoculaire lenses; el ectromechan Inval support
Systems for open Heart surgery; a line of drug and médicinal aérosols and
components; a line of produits designer for the denttst; and cochlear
Implants to protide a dense of yearling for the profoundly def.
The saveta produits Incluse a Broad line of réflective sheetlngs for hlghway
saveta delcos (trafflc slgns, barricade mark ING devlces, ll cense plates
commercial slgns, as Wele I as réflective matelas for persona safety. The
Hector producer Aldo signal delcos for trafic control lîghtlng détectons
for alrcraft and water observation Electronic surveillance devlces;
etc. & &
At the care of rh I s sectorise efforts I s underl y I hg technlcal expert se I n

174
précision coatlng, bond Ing, nonwoven materlals, optlcs, and bfochemfstry, as
Wele I as the sarong sales and distribution Channes Thot characterlze M.
Graphie Technologie
Tels business Hector serves a Humber of markets In the graphie
communications and advertlslng services areas. I produits Incluse a
complété line of produits deslgned to met the prlntlng Leeds of ail Juzes
of prlnters and graphie arts flrms; a Broad line of presenslt Ized
lithographie plates and relate Chemical s and supplie copy and art
préparation materlals; pre-press prooflng system a line of carbones
Paper for data recordant purposes; a line of I Ight-sensltîve dry Silver
Paper and films for el ectron I ca I I y recorde Image and Customs
m îcroencapsulated col ors fragances, and oil s for prlntlng, cosmetlcs, and
Otter app & & Cat I on s.
Tels Hector Is char acter Ized by a Wilde varlet of graphie Imagent
technologies. The acquisition In 1980 of Comtal Corp. ployez a major rôle In
the développent and cristal llzatlon of This group wlthln M.
Tels bref hlstorlcal background and présentation of the Current structure
of M has Shawn how the organlzatlon has volve Drom an opportunlty
récognition In a Marcet Leven If This opportunlty Wa Nat So Goos aster ail
rough différent changes In produits to a large G-form organlzatlon wlth
four major bus Inesses. For over & Yeats M has prtmarîly base I growth
In Elze and prof Itabl I City on produit diversification rough Internai
développent base on the master of a Fe generlc technologies (coatlng,
bondlng, précision manufacture Ing. These Internai developments Wete
successful Ly Implémente rough the Internai corporate venturlng process.
But In the moss redent years, the Humber of divisions and produit I Inès
be came tao Important and unmanageable In an Méforme structure. M Fel the
Nied to love the structure Howard a G-form structure group ING these produit
I Inès Intl four groups. As Wez dlscussed In capter H M as Any Otter G-
Farm organlzatlon, w f II make more use of stratégies of dlvestment and
acquisitions rater thon Internai ventrues for pursulng I growth. Tels Is
congruent wlth the Internai perspective of organlzatlonal évolution. These
acquisitions May be a problème as ponte out by rese archers In This field
and recause This type of actlvlty Is Nat a "natural" behavlor At M.
Tels discussion of 3M's behavlor In a new envlronment Illustrâtes Our
framework Drom an organlzatlon-env Iron ment perspective. Let us turn In more
détail to a discussion of the Internai perspective.

175
6.1.2. I NTERNAt ORGAN AZAT ION £Qfi INNOVATION CL B
Followlng Our framework Wez w I II ad dress how M organes for Innovation In
Tree direction structure culture and Indlvlduals.
Structure
Figure A. show ING M organlzatl Ona I Chard Indtcates a rater ordlnary
structure. Bear the top of the Organ Azat Ions are two divisions Thot report
to the vice président of research and development: the Corporate Research
Laboratory and the New Business Développent Division. Tels Lager division
Wa Nat Commin in mot slmllar multldlvlslonal corporations In the 60's and
N &s. Wa an Inltlator of This structural Innovation.
FIGURE A. & M ORGAN NATIONAL CHAR
(Roberts, 1980)
A new business In M Is des Ined behav moral Ly as one Thot has Nat yet rache
crltlcal mass In the marketplace, although I has perhaps as Puch as $20
million RN annula sales (Roberts, 1980). At. M the New Business Développent
Division Is charge w Ith the responsif b l I City for evolvlng, nurturlng, and
malntalnlng diverse business actlvltles At varois stages of development. I
Is an Internai venturlng Organ Azat Ion an opération Thot Nat Onay gaves
Barth but Aldo procèdes support and sustenance. Onay Wren bus Finesses are bog
rough to be sel f-sustalnlng, I spins Them down the Organ Izatlonal Chard as
part of an extstlng division or as a new produit I Aine division (Roberts,
1980).

In addition to these two corporate division Rach produit line division has
I on "product développent department". One of the tradltlonal missions of
these départent Is to serve the correspond I hg produit line division In
Germs of "process" Improvements, Incrémental produit Improvements, as Wele &
as relate produit Innovations. These changes are conventîonal. But In
addition to that, Rach produit départent Is charge wlth the responsl Bo I City
for radical new venture development, new ventrues wlthout produit line or
business area constralnts. Global Ly the différent preferred organlzatlonal
designs upon whlch M concentrâtes for sustalnlng Internai Innovation are
Shawn In figure 6.4.
&
FIGURE 6.4: PREFERRED ORGANIZATIONAL DESIGNS
FOR INNOVATION AT M
One underlylng atonale for the venturlng approche At M Is to try to
replîcate chat happent In the venture capital Marcet one of the
philosophes of an l-form organlzatlon). Therefore, multiple sources of
venture capital est wlth In the organlzatlon. Corporate groups con procède
fundlng for new venture wlthout regard to source and Rach produit line
départent con protide fundlng for employees* Idéas no motter chat Marcet
They are alme ag. Anone Is free to go everywhere horizontal Ly and
vertlcally In the organlzatlon to Eek support for hls/her l de. Thusy a
Real Marcet ests for the potentat support of Innovations wlth In the

company. Moreover, ff She con convtnce someone elfe thon her/hls boss to
support the Idéa Them her/hls Idéa dies Nat go lone She Goes wlth st.
One Important aspect of Internai corporate venturlng, as hlghlîghted In
capter H SS the différence of expectations Drom a new venture between a
venture leader an Intra preneur to emploi Planchots termlnology (1985), and
a top manager. The f Inanclal masures of performance Thot are Aken I no
accouant to evaluate the North of new Idéas do Nat Incluse a "minimum"
promise Elze RN sales volume but înstead, are base on expos ROI profit
margln, and sales growth rate. The Commin wîsdom At M Is Nat to try to do
forecasts prfo. entr of a produit Intl the market, recause I Is bel Levet
Thot moss of the Marcet Elze Is created by the entr of the produit Itself,
Nat oh! y the potentat Nied for Juch a produit
Culture
Khere are At I Eas Fave char acter I stl es of the culture of M dlrectly
relate to the successful management of Innovation over tome
- Informai City
- Eel ING of smalt I nefs
- latitude to pur sue new Idéas
- no Fear of allure
- dense of homogenelty
One sa I lent tradition In 3M's management of humant ressources has bene an
Informai City In deallng wlth I workforce, whlch has Servet as an antidote
to the bureaucratie malaise whlch So often accompagnes growth (Angle, Mana
and Van de Vena 1985). The concept of managent by walklng round has always
bene put Intl practlce At M wlthout Eden belng Aare of I. Tels
croates a cl Image for free communication whlch facilitâtes Innovation
génération and development.
M Prades Itself on llstenlng to I on peuple and In permtttlng Them the
latitude to pur sue Thel créative Ide as. Khere Is an encouragement to "work
outslde the boxes", to "bootleg" wlth In the company. Moreover, Many At the
company Spaak of a spécial el Eventé commandement
H
"Thou Salt Nat cl II a new produit Idéal
Contrazy to the situation In Many Otter corn pan les Thise In M ho Wan to
stop the développent of a new produit are saddled wlth the Buren of prof.
Benest of the Doubs Goes to Thise ho propose projects, Nat Thise ho
oppose ther. A Chey to 3M's succès In Innovation Is Nat So Puch a I Argers

atio of suc cesses to salures thon Otter Companies but rater a Puch larget
total Humber of ventures.
Furthermore, peuple are al Lower to Fal At M meanlng Thot peuple are
encourage to practîce corporate I ntrapreneurshl p wlthout Jeopardîzlng
Thel Jobs In the organlzatlon.
R
Final Ly central to the Pol Icles and traditions descrlbed aboie has bene a
dense of homogenetty In whlch belng a membre of M has meant pretty Puch the
Asme Thong In one location as In aboter angle et al 1985). The concept of
Innovation belng social Ly val ued At M Khere Iso lot of stimulation and
Eden Internai compétition for developîng new ventures.
These Fave "Ingrédients" are Nat State In Som klnd of officiai prose but
rater are Real Ly embedded In the Organ I Earl Ona I culture. These éléments
appeal to aperte At the lebel of Basle assumptfons whlch somehow establlsh
membres & psychologlcal contracte wlth Thel employer (Levlnson, Prlce,
Munden, Mansle and Colley 1962; Kotter, 1973; Scheln, 1980).
Indlvlduals:
M gaves spécial attention to the formation of produit tease
entrepreneur al mini business groups. At an Zarly stage of developîng a new
produit Idéa M tries to recruI Indlvlduals Internai Ly Drom marketing the
technlcal area finance and Manufacturing to corne together as a te am. But
M dies Nat "asslgn" peuple to Juch actlvltles; the team membres are
recrute Drom wlthln. Tels practîce Increases the Envolement of Rach
Individuel In the Innovatlve Idéa and Is bel Levet to Increase the llkellhood
of succès of the venture.
Aboter Important Clement In 3M*s approche to new ventrues Is fts hand ING
of rewards. Ail Indlvlduals învolved In a new venture Wall have more or Lesse
automate changes In Thel emploient and compensation catégories as a
functlon of the sales growth of Thel produit Moreover, spécial
compensation Inventives are establlshed for Thise managers ho are able to
breed new ventrues of departments. In général M takes care of I peuple
Allos for Internai carder évolution for récognition and for
compensation.
But moss Importantly, whlle Many Companies are Nat constderîng the humant
ressources composent In the process of strate formulation assumant
Impl Icitl y Thot sufftclent Humber of the light peuple Wall be aval I able
able e and w & & & ING to carry out the new goal s and objective M Nat on y
recognlzes Thot humant resources, and Rhus Indlvlduals are Influence by

179
stratégie but Aldo conslders Thaa humant ressources Influence the corporate
stra+eglc process. Thusy stratégie humant ressource management SS belng
currently fui Ly I ntegrated Intl the corporate stratégie planning process
long wlth Otter éléments Juch as Marcet position technologie capital
structure organlzatlonal structure and the le. The main différence wlth
Many Otter Companies Is Thot the vlce-presldent for humant ressources At M Is
one fui I membre of the stratégie group responsable for strate formulation
and tmplementatlon.
These Tree crucial aspects of Innovation management culture structure
and Indlvlduals, are ail adresse carefully by & M. Tels hollstic management
certalnly contro butes to the succès of M. The éléments mentloned aboie are
reorganîzed and summarlzed In figure 6.5, whlch hlghllghts the Innovation
management At & M.
FIGURE A. & MANAGEMENT FOR INNOVATION
AT M
6.1.3. PRESSENT Ml FUTURE CHALLENGES M M
The precedlng discussion show the process of organlzlng for Innovation At
M. Tels process Is total Ly congruent wlth the framework Wez developed In

180
capter H Moreover, as t Wa explalned In Our modem of Organ Azat Mona I
change st Is experte Thot M Wall currently encounter Som new challenges
due to I redent short of Organ Azat tonal structure (movfng Drom an Méforme
organîzatlon to a G-form organîzatlon). Tels structural change w M I Nied
changes In the culture and Individuel as Wele I So Thot the subsistes w I II
be consonant agaln. M Wall have to over come At lest two potentat cultural
shocks.
Firth followlng a redent relocation of two entre divisions Drom Minnesota
to Taxas the Way thons are don Khere Wall be drastlcally différent Drom
chat M peuple are use to. Tels change May entai I a culture stock rough
contagion angle et al 1985).
Second the new Farm of M w & & I enta & & a new Basle Way for growth, mal ni y
rough acquisitions of Organ Azat Ions rater thon rough Internai
development. Acquisitions are dlfflcult to carry out successful Ly and are a
source of dlsturbance wlthln the parent organîzatlon. The Intégration of
these différent organlzatlons Wall Creste a potentat for cultural
dlsturbance.
3M*s management Wall Rhus have the excltlng Tak of overcomlng these
problème and successful Ly Implementlng these changes. The analyse of these
Organ Izatlonal changes Is Shawn In figure 6.6, whlch conflits of the
application of Our modem of Organ Izatlonal change to the spécifie case of M
In I Current situation.
FIGURE 6.6: CHALLENGES AT M

181
W bow turn to a discussion of the conceptJal framework developed throughout
This thesls.
6.2. CRITIQUE m FARTER RESEARCH LEEDS
The Olm and hopefully the davantage of This thésis Is to procède an
F ntegratl on of two Véry r Ich, diverse but tao Vast and scattered f Lek ds:
Innovation and organlzatlon. W Fel Thot these Fields needed to be llnked,
laid out In a structure and Inslghtful Way
W Bellevue Wez rache This goal rough two perspective an Internai
perspective looklng At organîzatlonal. designs for Improvlng the génération
of Innovations and the adoption of changes and for Improvlng the
adaptablllty and responsl venets of organlzatlons; and an externat
perspective looklng At the Organ Izatlon-env Iron ment Eel atlonsh I p the
organîzatlonal évolution and the roll of Innovation In This relatlonshlp and
vol ton.
Moreover, This Intégration Tak led us to Incorporated Som Basle éléments
Drom a thlrd field strategy. W especlally adresse the problème of
strate formulation assessment, dlagnosls, and Issues of Interaction
between Innovation organlzatlon, env Ironment, and strategy.
Nat on y a descr. I ptl Ve I ntegratl on of dl f Ferenc concepts I s uses u I to the
rese archers communîty, but al So Wez Bellevue Thot the Intégration Wez undertook
Is more thon the "sum of the ports recause I led to new Inslghts, for
exemple
- général Izatlon of Abernathy and Utterback's framework,
- concept of dual organlzatlon,
- new perspective on organîzatlonal I Ise cycle
- Improvements In the notion of organîzatlonal effectlveness,
- Intégrative modem of organîzatlonal change.
But on the Otter hand a Humber of critiques arlse, due to the methodology
and the Intégrative process Itself.
Firth as Crouler (1978) points out system le approaches, rough
conceptually Véry Inslghtful, often do Nat protide direct and seul
Information In the concerte Real world. Farter developments of the
conceptuel framework are needed to Rach Juch a practlcal stage.

Second the Wark carrled out rough +hfs thesls Iles on the theorlzlng
efforts of ther. Whatever ha excelle lance of the Worms Thot Wez examlned,
rese archers are humant betngs and sujet to a Humber of I îml+a+îons and
blases. These blases incluse Our on blases In Interpretlng the thoughts of
éthers and Thel on blases In Interpretlng, conceptuel Izlng Thel research
works. Building on these elements, Eden wlth the moss local approche
possible exposes us to conceptuel m I si Nyer prêtât Ions and mlstakes. W Hope
Thot Wez Avold moss of the potentat trap but Onay an emplrlcal ly-based
systematlc Thory teston Wark world al levage these errons and refîne,
val Date or rejet Our conceptuel frmaework.
&
Thlrd, Our al m Wa to I Ay out the Véry flrst éléments of a Thory of
Innovation and organlzatlon. W bel Levet Thot the building of a Thory Is a
cycllcal process as Shawn In figure 6.7. A "theory" Is a local Ly
l ntegrated set of propos I tl Ons a bout the Eel Tal Ons of var I ab I es Thot I s
abstract conceptuel entltles, In whlch Many tâtements of fact con be
systematlcal Ly relate to Rach Otter and Thel meanlngs for the solution of
emplrlcal problème Interpreted. In short a Thory Is a slmpllfled, abstract
map of Real Ita a Bodh of prlnclples offert to explant a phenomenon.
Différent stages est In the process of buîdîng a ther. W accompllshed
the flrst step l.e. exploration. As hlghl Ighted In figure 6.7, two main
actlvltles complément Rach other: Thory building and Thory testlng. These
two actlvltles are DT amer Cal Ly oppose process In Germs of purpose.
Thory buldlng Is a créative process Thot jerks to put forward new concept
Idéas and hypothèses toexplaln phenomena. Thory teston jerks to réfuté
bull hypotheses. The ove roll cycllcal process of building and teston a
Thory typlcal Ly vol ves rough flvesteps: & & Exe I oral on (2) concept
development, (3) hypothèses génération (4) hypothèses teston for Internai
val Idlty, and (5) hypothèses teston for externat val Idtty.
These Fave steps are descrlbed In figure A. In Germs of purpose, research
question design and methods. Tels thesls focused on the f Irst two steps
wlth an emphaslson the flrst one. The thlrd, Bourth and flfth steps are
Callen for to complété one cycle In the process of buldlng a Thory of
Innovation In organlzatlon s. Thusy farter stud les are needed to pur sue This
process and arrive At a teste and val Id ther.
Bourth the process of Intégration Itself show Som Otter Leeds for
farter Intégration. W starter Drom two components, Innovation and
organlzatlon, Wez dl a synthesfs, and Them an Intégration. Duong these
steps Wez Real I y "crossed" Innovation and organlzatlon leasing to omissions
In bath flelds.

183
FIGURE 6.7: THORY BUILDING AND TETING

Concernant innovation Wez Identîfled Fave différant types
- produit
- procès s
- structure
- Indîvldual
- culture.
Ance Our modem of organîzatlon Is comprise of the las Tree components,
the Intersection between Innovation and organîzatlon led us to ficus on
these Tree éléments Drom an Internai perspective Khere Is a Nied for
addresslng, developlng, and Integratîng Issues on technologîcal produit and
process Innovations. A promîslng starting pont conflits of the concept of
dual tecnologîcal Tree (Durand, 1986) whlch has two main branche produit
and process and whlch Valls for Otter branche structure Indîvldual s
culture to épand the concept.
&
Concernant Organ Izatlon & Our vlew res Lect a rater "social" perspective
proposant Tree dominant concepts structure culture Indîvldual) as
shoping the Hole organîzatlon. Khere are obvlously Otter "Ingrédients" In
an organîzatlon, Juch as functlons marketing finance etc whlch are
Impllcltly Incluse In the structure part but stl I I per vade ail Tree
system A larget framework choule attempt to I ntegrate these mlsslng
Ingrédients In a more systemattc and visible mann er.
These four critiques Lea to new research focuslng on général Issues (mostly
mlsslng or Incomplète points of Our framework). But Khere are Aldo a Humber
of spécifié research Leeds for teston and explorant the marlous places of
Our framework. For exemple research Coulx bear on
- dynanlcs of change control rate mode of Internai subsistes of
the organîzatlon figures 4.5 and 4.6)
- preferred structural arrangements figure 4.18)
- relatlonshlps beïween Innovation Organ Izatlonal évolution
Industry évolution figure 4.24)
- approprlate gouvernance mechanlsms for Innovation figure 5.2)
- moss Important éléments In Organ Izatlonal change dependfng on
situation and organîzatlon figure 5.8)
- concepts of Innovation gouvernance mechanlsms, process of
Innovation stratégie behavlor figure 5.10)
- concept of l-form figure 5.15)

185
CHARTER & & CONCLUSION

M6
W adresse throughout This thesls the problème of deallng wlth Innovation
In large campan les. I has bene emphaslzed elsewhere Thot This managera
Tak Is bath vital and dlfflcult. The pur pose of This thesls Wa to gave a
Broad overvlew of chat bath concept Innovation and organlzatlon, Lean and
how to I ntegrate Them I no a cohérent conceptuel framework. The ultlmate
objective Wa to Lay out If Nat a theory, At lest the fondations and
directions for developlng a Thory of Innovation In large Companies Drom an
organlzatlonal perspective.
Innovation has always bene Sean as a positive value to Our soclety,
contrlbutfng to I évolution (Schumpeter, 1932; Nelson 1959; Denlson,
1962; Drucker, 1981). Nevertheless, the process of generatlng, adoptlng, and
dlffuslng Innovations has Provrd to be a dlfflcult one (Nason, 1977) and
has, therefore, Inltlated a large Mount of research endeavors In Many
différent directions.
Zarly research In This f le I d focused on bureaucratie dysfunctlons ana
dlfflcultîes experlenced by large Organ Izatlons In Increaslng efflclency and
In respondlng to changes In Thel envlronment (Selzntck, 1949; Gouldner,
1954; Blau 1955; Crouler 1963). Moss of This research Wa carrled out by
soclologlsts.
In the 1960's, gong beyond the Identification and explanatlon of problème
experlenced by Organ Izatlons, organlzatlonal theorlsts propose contingence
modems to dl f ferentl ote between bureaucratie and Innovatlve, between
mechanlstlc and adaptive organtzatlons (Burns and Stalker, 1961; Lawrence
and Lorsch, 1967; Thompson 1967). Thel research essentlal Ly bears on the
Identification of organlzatlonal characterl stucs Thot détermine phenomena
Juch as efflclency, flexlblllty, responslveness.
Duong the 1970*s, an emphases on technologlcal Innovations emerged.
Abernathy and Utterback (1978), looklng At the développent of technologlcal
Innovations In différent Manufacturing Industries (especîally automobile and
electronlcs) made a contribution by relatant bath process and produit
Innovation rates to the évolution of the organlzatlonal unit In whlch these
Innovations Tak place. Thel descriptive modem tende to crystalllze the
field for a whlle.
In the Lean tome research has Aldo focused on the process of Innovation
wlthln organlzatlons and on the process of Innovation between Organ Izatlons.
Tels Lager A nter-organt Earl Ona I & ficus led Som rese archers to emphase
the rôle of smalt I buslnesses In the Innovation process (Bolllnger, 1983;
Garvln, 1983; Hunslcker, 1984).

187
Thusy tokay the field of Innovation in Organ Azat Ions Is comprise of At
lest two global directions. Firth research foc uses on smalt I buslnesses,
Indlvlduals, and the concept of entrepreneurshlp. Second In an attempt At
Erp I IcatI hg the concept of entrepreneurs!! I p w I rh I n I orge Organ I Earl ons
research foc uses on the concept of "Intrapreneurshlp", I.E.P how to enfance
InnovatI venets In large Organ IzatI Ons (Maldlque, 1980; Burgelman, 1984;
Belsen et a. 1985). In addition to these two I I nés of research In the
field of "Innovation génération a lot of rese archers ficus on "adoption of
Innovation and changeai bath In a stato vlew (e.g. chat are the
characterlstlcs ad adaptive Organ I Earl ons?) and In a dynamo vlew (e.g. the
problème of organîzatlonal évolution
Wîthîn Our approche Wez trled to sort out the Important Issue dimensions
and parameters Thot are susceptible of Influencent Innovation. W trled to
Them assemble these éléments together In a cohérent Integratlve, descriptive
framework. Tels effort Wa conceptuel by nature and base on the I Iterature
and on post expérience of différent Organ I Earl ans.
Figure 7.1 summarlzes the crltlcal turnlng points of the conceptuel effort
carrled out long the thesls to Ingrate the différent éléments Ander
considération. Tree main reparure points est on the lest
- Innovation
- organlzatlon
- strategy.
Firth Wez wenz I no sept to explore the concepts of Innovation figure
2.5), the types of Innovation (product, process structure tndlvldual,
culture the artel butes of Innovation and the process At Innovation
figure 2.20).
Second Wez surveyed the différent the orles of organlzatlon, tradttîonal,
"modem" and redent theorles. W adopte one concept of organlzatlon figure
3.5) whlch had the partlcularlty to conflit of Tree subsistes Thot
correspond to the Tree organîzatlonal types of Innovation Identtfîed
Earl er. The surve of the orles led us to Identlfy a short In the unit of
analysas rese archers devotlng more and more attention to the envlronment.
Rh I s conduite us to des Aine the "dua I organlzatl on f Igues 4.6 and 4.42)
wfth one stream of actlvltles directe to the Internai Systems and aboter
stream of actlvltles directe to the envlronment. W show Thot these two
componende con Nat be dtssoclated and are In constant Interaction and
détermine the effectue venets of the organlzatlon, effectue venets whlch Itself
Is a dual concept alignent of Internai subsistes and fît wlth the
env Iron ment.

Thlrd, Wez borrowed wtthout a systema+îc analysas of the field Som concepts
of strategy. Followlng Thletart, Wez defîned strate as belng mlxed, or
dual At the center of the Organ îzatlon-env bronlent relatlonshlp f Igue
4.3).
W Ingrate these Tree concept Innovation dual organlzatlon, and
strate I no an Initial framework figure 4.4). Drom the field of
organlzatlons, focuslng on organlzatlonal I Ise cycle Wez général Ized
Abernathy and Utterback's framework Intl a Puch more général conceptuel
modem of organlzatlonal évolution Dee figure 4.23 and 4.24). W Aldo
determlned Drom This framework Tree main gouvernance mechanlsms Thot
Ingrate XII I lamons transaction costs Thory and OuchPs framework of
"cl ans f I gure 5.2).
Them Drom these synthetlc modem s and by examlnlng the process of strate
formulation Wez propose a général Intégrative modem of organlzatlonal
change figure 5.8).
Final Ly Drom the modem of organlzatlonal change the gouvernance mechanlsms,
and the process of Innovation Wez bu & & & an Intégrative framework of the
concepts of Innovation and Thel organlzatlonal and stratégie carrelages
f l gure 5.1 0). Drom This modem Wez got a by-product, Hamel the potentat
concept of l-form organlzatlon figure 5.15).
&
Tels modem Is descriptive in nature but I has a large potentat for
derîvlng prescrlptlve guldellnes whlch Wall be moss seul to the
practtttoner face wlth the challenge of deallng effîclently wlth
Innovation. Append A constates an attempt At provldlng Juch operatlonal
guldellnes and pools for managent Innovation wlthln large organlzatlons.
These guldellnes bull on the général modem of organlzatlonal change
propose In figure 5.8. Wlthln This modem strate Is vlewed as the abtllty
of top management to chose and nable Som parti eu Lor configuration of the
organlzatlon wlthln I envlronment. Tels configuration Is belleved to be
optimal for a spécifié perlot of mme. Tels Is an Incomplète définition of
strate whlch leads to Bellevue Thot strate Is unaffected by the différent
contingent éléments wlthln or outslde the organlzatlon. W Enver Sal So and
Wez Wan to emphase This At This point.
I May appeal Drom figure 5.8 Thot strate Is somethlng externat to the
organlzatlon. In fact strate Is a dual acttvfty, dual In the dense Thot
bath the organlzatlon and the envlronment have to be consldered, dual In the
dense Thot the I entent Is to Impact bath the organlzatlon and I
envlronment, dual In the dense Thot strate stems Drom bath the

190
organlzatfon and the envlronment, and dual recause Khere SS Som degree of
con+rol and Som degree of contingence In carrylng out a stratégie
"actlvlty".
As figure 5.7 ponte out This Is Nat grue and différent types of stratégies
doexlst: Intense Real Ized or Noth and non-Intended. Managers have to
manage al I types of stratégies. They have a dual rôle design ING Intense
stratégie and control long adjustlng, to the maximal entent possible non-
Intense stratégie whlch stem bath Drom an Internai perspective (e.g.
structural Inertla) and an externat perspective (e.g. corn pet Itors behavlor).
Intense stratégies al So have to be control led, dlrected, to the maximal
entent possible recause Thel formulation and Implémentation Is affecte by
the contingent éléments of the dual organlzatlon. Rhus strate Is bath
wlthln and outslde the organlzatlon; strate Is bath delîberate and
naturel strate Is bath Intrlnslc and extrlnslc; strate Is bath
control led and contingent.
Chat Wez bel Levet Our modem brlngs about Is the récognition of the dual City of
organlzatlon whlch per vades ail actlvltles w l rh l n and ouste the
organlzatlon, strate Included. The Basle assumptlon of This Thory Is Thot
managers are Nat total Ly In control as In the ressource dependency Thory
and Many functlonal Is approaches), and Thot Khere are Nat total Ly dépendent
on externat to themselves, therefore bath Inslde and outslde the
organlzatlon) éléments velter as In the population ecology theory). The
Trith Is In between, and This Middle range This variable degree of control
and contingence Is dépendent on Many sltuatlonal and contextuel elements,
the business consldered, the hlstory of the business consldered, the future
évolution of This business Thot Is expected, the his tory of the
organlzatlon, the behavlors of Internai Actors (confllcts, power structure
etc as Wele I as externat Actors (competl tors regulatory and Pol Itlcal
Actors etc.), etc. The récognition awareness, and management of these
configurations wlthln an Integrated framework const. tûtes the Basle for
compétitive avantage
For exemple the arrow In figure 5.8, carry This duallty. They are bath
descriptive and normative. They descelle process Thot est for exemple
the formulation of Intense stratégies). They Aldo prescrive Som process
and act I v & & les (e.g. pers arm l hg a tho rough val uat Ion of the Eel At lonsh l p
between the organlzatlon and tts env Ironment). In fact ail these arrow are
dual In Many senses. For exemple the sfrategy formulation arrow menas Thot
managers do formulât explicit stratégie st Aldo menas tant tnese
formulations are Influence by the organlzatlon Itself. The variable Mount
of control/contl Gence Is Véry Important and a lot of research choule be
carrled out to détermine how Puch control/contlngence Khere Is In Chey

191
actîvltles. Whatever This Mount I s however, the assumptfon behînd Our
Thory Is Thot managers have to exploit At best the Mount of control They
do have and have to be Aare of and manage the Mount of contingence and
the potentiel mol Icatîons of these contingences.
Aboter Important exemple conso sts of the I Ise cycle es Thot Wez descr. I bd.
The I Ise cycle tao Is a dual concept. I descr. Ibes an experte and
therefore Almont Enver existent process. I dies Nat Lean At ail that,
whatever the organlzatlon dies I Is Imprlsoned Intl This "Infernal" cycle.
Population ecologlsts Wall malntaln Thot This Is Truel and May be I Is In
the Véry long run. But the Real value of This cycle Is the second Lesse
obvlous perhaps, aspect of the concept. I Is normative In the dense Thot a
tho rough évaluation of Khere the organlzatlon Is and Khere I Goes May Lea
to the formulation of Innovatlve stratégie whether stratégies of
Innovation or Noth to Avord stage T l.e. décliné. Tels Is Véry often
possible recause the évolution of Organ Izatlons dépends on the dual City of
the organlzatlon: a juge Humber of Internai and externat variable al I of
whîch May be manlpulated to Som variable exten.
Dlscrlm Intl hg between these variables and between control/contl Gence to
flnd a sériés of optimal configurations whlch Averan I leads to the best
Health possible of the organlzatlon over tome Is the essence of Goos
management. The concept of l-form brlefly propose as a conclusion of Our
theoretlcal modem Is one potentiel anser to the problème of avoldlng
decl Ind. I Is simple and Is In fact use by Many Organ Izatlons In areas
Otter thon Innovation per se building Pontfol los of actîvltles to break
down the total "rlsk" Intl Independant components. These port folios bear Nat
Onay on différent actîvltles but Aldo on différent stages of the I Ise cycle.
The value of Our modem résides At I Eas In the fact Thot Wez propose a
framework, If nothlng elfe Thot al los a systematlc considération of ail
these variables and éléments Thot comprise the dual City of Organ Izatlons. W
do Nat Solve ail the problème Juch as whlch variable Is Important In whîch
situation rough Wez tnltlated This approche In the Contest of dealîng wlth
Innovation.
Tels Averan I perspective and the multiple concepts of dual City constltute, In
Our vlew, the major contribution of This thesls. Explorant farter the
dual City of the différent organlzatlonal actîvltles Juch as strategy),
variable and concept Is a Chey avenue for research wlth a tremendous
potentiel for practlcal, useful, and needed application.

P
APFtNDIX A
MANAGENT INNOVATION
A FRACTICAL PERSPECTIVE
OUTLINE
A.G. A Flve-Step Approche for Managent Innovation
A.G. Exîstlng Pools and Techniques
A.G. A Proposai for Developîng Approprlate Pools
A. Conclusion
A. Références for Appendît A

The pur pose of This appendît Is to dérivé a set of g$Ji$(;al Guidel Inès for
managent Innovation Drom the conceptuel framework developed throughout the
thesls. W Bellevue Thot the Thory Wez Begin to formulât In This thesls has
a lot of potentat for application. The followlng Is a flrst step to
"operatlonal Izel This conceptuel model.
W Wall tors develop a flve-step approche for helplng managers In dal ING
wfth Innovation. Them Wez Wall reflex exlstfng pools and techniques avalable
to managers for accompli Ishlng Rach of these Fave steps. W Wall Them propose
Som new directions for develop ING approprtate sols.
193
A.G. A FIYE-STEP APPROCHE £ÛB MANAGENT INNOVATION
One approche to organlzlng for Innovation conflits of the followlng step
(1) strate formulation
(2) organlzatlonal design
(3) évaluation and cholce,
(4) Implémentation and monltorlng,
(5) feedback.
Strate formue latlon Is an val ulve process whlch conflits of At lest
four actlvltles: assesslng the Internai strengths and weaknesses of the
organlzatlon, assesslng the externat envlronment, predlctlng the évolution
of the envlronment, and assesslng the experte "fit" between the
Organ Irato on and the f future env l ran ment. I n add & & & on the position of the
organlzatlon wlthtn I life cycle choule be val uated. In Many large
Organ Izatlons, however, différent buslnesses are In différent positions wlth
respect to ail these éléments ave. These val ulve tanks choule be
carrled out for Rach business.
Drom these actlvltles différent stratégies are formulâtes to pur sue or
dlsmlss Current actlvltles, or to antlclpate changes In the envlronment, or
to respond to changes In the envlronment, or to Amplement changes wlth In the
organlzatlon, or to Creste changes In the envlronment, etc. These
"Intended" stratèges May or May Nat be Real Ized (MIntzberg and Water
1982). In addition unlntended or "emergent" stratégies stemmlng Drom the
organlzatlon Itself Ce. g. spontaneous new actlvltles) and/or Drom the
envlronment (e.g. changes In régulation May al So be Real Ized.
Amont these stratégies Som light be relate to Innovation éthers light
not. For Innovation stratégie then, Our framework suggestif Thot différent

process of Innovation and différent configurations of the Organ Izatlonenv
Iron ment Eel Tal Ons l p best correspond to these stratégies. An optimal
cholce choule be made Juch as to maxlmtze the llkelthood of succès of these
différent stratégies.
194
To summarlze, the Idéa Is In This step to anser questions Juch as
- Ho are Wei
- Ho world Wez I Ice to be
- Chat Is round us
- How do Wez fit In This world
- How Wall This world volve
- Chat ll I happent to us In This évolution
- Chat con Wez do about tjls.
The outputs of these questions are a set of stratégie whlch In turn con be
Brocken down Intl différent spécifié "projects" whlch reprisent In Som Way
the operatlonal menas for reachlng the objectives State by Rach strategy.
The nexe step I s for Rach projet Identlfled, to thon about the moss
approprlate Organ Izatlonal design for carrylng out This projet By
organlzatlonal design Wez Lean Nat Onay the structural arrangements and the
I Linkages between This structure and the Current structure but Aldo the
peuple ho ll I Wark on these new projects: how to recruI them, how to
design Thel Jons how to regard them, etc. Tao often, managers tend to
assume Thot the light peuple and the light structures Wall be avalable At
the light place and At the light tome angle et a. 1985). Tels Is a sarong
assumptlon and more over Many Innovation allures are due to more or Lesse
entent to these crucial "Ingrédients" Thot constitue the organlzatlonal
design (Zaltman et al 1973; Von Hlppel, 1979). Therefore, bifore selectlng
Innovatlve projets I Is Important to thon about these éléments and to
Tak Them Intl accouant Wren Makong décisions about chat to do. Therefore, In
This step managers have to anser questions Juch as
- Chat are the charactert stucs of these projects?
- Chat do these projets recuire In Germs of ressources (flnanclal,
humano organlzatlonal, etc...)
- Chat are the organlzatlonal arrangements Thot They need?
- Chat are the organlzatlonal arrangements avalable
- How do Wez match an organlzatlonal design to a projet
Évaluation and cholce Cs the followlng step and In général conflits of
selectlng a port folio of projets Ander a set of constralnts, the moss

obvlous one belng a budget cons+rafnt. The main question to be adresse In
This step Is
O
- Whlch project(s) do Wez select and on whlch bals
The Bourth step Is to Amplement and mon I Tor these prose cts. The succès of
Innovations Is ultlmately dépendent on whether They con be come
Instltutlonal Ized (Burgelman, 1984). Tels con be best accompllshed rough a
careful monltortng of the développent and I mol ementatlon phases. The
questions to be anserez In This step comprise the followlng:
- How do Wez mont Tor This proJect?
- How do Wez know If chat Is gong on Is "good"?
- How do Wez know If wenz and chat Wez have to change
Final Ly the las step In organlzlng for Innovation constats of a feedback
loop: the actîvltles carrled out In Rach of the precedlng steps choule be
recorde over tome and analyse wlth respect to différent out come masures
Juch as successif & & ure. Impact etc. These analyses choule In turn be
use to Improbe the knowledge In managent Innovation and to moly certain
actîvltles, or certain steps use a long the process descr. Bied ave. In Som
Way the questions fiat are to be anserez rough This step comprise
- Chat dies "success" mena
- How do Wez masure Ita
- How do Wez know If the process Is Any Goos &
- Chat con Wez do to Improbe Ita to change Ita
At This point the flve-step méthode protides a framework for action I
guides for thlnkfng about actions to tach. But I SS Nat Real Ly operatlonal
In the dense Thot I Is tao conceptuel tao "quai Itatlve" and therefore Is
short for helplng Innova tors In Real Ly tmplementlng actions. I Reilly
recules more Wark on the part of a manager to Real Ly Solve hls/her problème
of deallng wlth Innovatîve actîvltles thon Just followlng these f Ive steps.
Chat Is needed bow Is to bull "technology" atoll s and technique to asslst
managers In these différent steps.
The Guidel Inès, as They have bene laye out offert a seul framework to
thon about the development, Impl ementat Ion and teston of Juch Sool s.
Moreover, slice This Thory Is an Intégration of Many différent places of
world I Allos to develop an Integrated set of Sool s Thot cover the
essentlal steps In the Tak of organlzlng for Innovation Drom formulation

to actua Impl ementatfon and feedback.
Différent crîtîcal fonctions are needed to buffle Som specîf le technologie
for organîzîng for Innovation
- descelle
- masure
- modem
- Enfer and Old
- monitor
- evaluate, test and val I date
- Earn
- moly and Improbe
A Humber of Sool s and techniques have bene developed Thot May constitue a
part of the Innovation managers Sool kit. These are brlefly revlewed In the
nexe section.
A.G. EXISTANT POOLS M TECHNIQUES
Figure A.G. shows the différent Sool s and techniques tant May be use for
managent Innovation In Rach of the Fave steps Identlfled ave. W w I II
brlefly dlscuss and & & I strate exlstl hg exemples of Juch Sool s. For Rach
step Wez Wall Aldo dlscuss speclflc dl avantages of the pools wlth respect
to Thel objective I.E.P asslstlng managers In the management of
I nnovatlon. At the end of Tho s section Wez w & & & al So dl schuss Som gener le
dl sadvantages, Commin to ail these sols.
A.G. & Strate Formule atlon:
Tels area has motlvated Many research and modem ING efforts In marlous
disciplines. At lest four domaine are relate to This steps
O
- Internai anal y si s of the organlzatlon,
- envlronmental analysas
- trend analysas and forecastlng,
- Integrated strate formulation.
Internai Analysas of the organlzatlon:
Fe quantitative modems have bene developed to Real Ly asses the Internai
organlzatlon of a fem. Qualitative modems do est (Leavltt 1964, Galbraith
1977, Mlntzberg 1979, etc...) but Wez are Nat Aare of attempts At

197
FIGURE A. & & ZAPPING OF POOLS AND TECHNIQUES
FOR THE MANAGEMENT OF INNOVATION

quantIf ING these frameworks sn the dense of building a system of
hypotheses, Information data and Inférences del Inepte as a descriptive
predlctlve, and/or normative représentation of Real Ity. The Onay modems Thot
est In This direction are statlstlcal modems developed to analyse a Humber
of Intra-fîrm actlvltles Juch as marketing regard system performance
évaluation organlzatl anal structure patterns of décision maklng, etc.
(Heenan and Addleman, 1976; Van de Ben and Ferry 1980).
These modems are I Imite and In fact are Nat deslgned for tne pur pose of
strate formulation per se.
Envlronaental Analysas
On the env Iron mental plane différent qualitative and quantitative modems
have bene developed. On the qualitative slde, the concept of envlronmental
scannlng (Fahey and Kong 1977; Andres 1971; Aguîlar, 1967) and the
Industry structure analysas (Porter, 1980; Scherer 1970; Caves, 1980) are
the moss use model. On the quantitative slde, modems have bene developed
Thot ad dress the structure of the Industrie economy, and envlronment, as
Wele I as modem s to Tudy the posl ton of a f Irm w l rh l n l Cs l ndustry. The
Importance of Marcet shore as a source of profit growth Is emphaslzed In the
Boston Consulting Group I Iterature on the Produit Pontfol to (undated) and In
the Asme Groups emphases on the expérience curve as a corporate growth
strategy. Scott (1973) and Fumel (1974) add farter dimensions In the
Industry analysas area bath In Germs of Marcet shore and diversification
stratégies. Together wlth This analytlcal framework Is the développent of a
large data base for stratégie analysas the profit Impact of Marcet
stratégie PIM (Buzzel I et a. 1975; Schoeffler et a. 1974).
In addition econometrtc modems have bene developed & I ntr & & & gator, 1978) to
capture the State and évolution of the économe At a macro lebel Slmtlar
econometr le modem s are Sal to be cal I ed for At the f Irm I Evel (Greenwood
and Tomas 1981).
Al moss ail these pools put emphases on Current flnanclal and eco nom le
masures of the f Irm In I envlronment. They do Nat try to capture more
subjective Information concernant régulation humant resources, technologie
etc. They emphase Som aspects of the structure of the envlronment and
do Nat ad dress At al I the contextuel elements. More over tnere Is al moss no
attempt At looping At the Organ Izatlon-envlronment relattonsh Io rough This
Is bel Levet to détermine organlzatîonal performance to a large entent
(Pfeffer and Salanclk, 1978; Aldrlch, 1979; Lena 1981).
Trend Analysas and Forecastfng:
Concernant the technologie forecastlng problème différent techniques are us ed.
198

199
These Incluse marlous menas for quantification of expert opinion
constraîned extrapolation of post trend technologfcal forecastlng, and the
use of scénarios. Quantification of expert opl Lon In This f Lek d Is often
base on a Delphi process (Fusfeldand Foster 1971; North and Dyke 1979;
Del becs et a. 1975). Extrapolation of trends In technologlcal parameters
and capable Irles Wa one of the Earl lest méthode attempted to forecast
technologlcal change (Mansfîeld, 1961; Lenz and Lanford, 1972; Robinson
1974; MacNulty, 1977). An extensive reflex of technologie forecastlng
techniques Is provlded by Martino (1983). Scénarios are attempts to descelle
In détail a séquence of évents whlch Coulx posslbly Lea to a prescrlbed end
State or alternately, to confluer the possible butomes of pressent cholces
Grant and Kong 1979). Although They are usually racher qualitative They
are nonetheless detatled and Involved Som quantification of différent
parameters Bahn and Wiene 1967; Zentner, 1975).
Two Otter types of mode I s are use to predlct chat a parti eu Lor envtronment
Wills look I Ice diffusion and substitution model. These modems are use to
predlct the rate At whlch a new produit con be substitute for an al d
produit Innovation diffusion modems have bene developed followlng two
différent approaches: the spatial and the temporal. In the spatial approcha
rese archers are concerne wlth factor Thot Influence the geographtcal
sprat of Innovation and This Wark has bene of concerne mostly for
geographs, soc loi oglsts, and développent planners. The temporal approcha
whlch Is concerne wlth the rate of sprat of an Innovation over tome Is of
Inter est to Marcet researchers, technologlcal forecasters, and Innovation
managers. Tels approche Is In Som entent to be relate to the concept of
produit lofe cycle (Patton, 1959; Kotler, 1965; Levltt, 1965). These modems
are belleved to Hole d promise for Many aspects of Innovation management
(Blackman, 1974, 1986; Castel Loa 1985; Maha jan and Schiemann 1971;
Mansfîeld, 1961; Mensch, 1979).
In général forecastlng pools have Nat Provrd to be efficient. They often
are complet and are Nat wldely use In Organ Azat Ions. The Onay exception
stems to consiste of the use of scénarios whlch are more accepte and Helpe In
building contlngency plans.
I ntegrated Pools for Strate Formulation
More comprehens Ive modems have bene developed to dal wlth the strate
formulation process as a whole. These Incluse capital Infestent theory,
comprehens Ive planning modes corporate simulation modes flnanclal
modes mathematlcal strate model.
Capital Infestent Thory cornes Drom the f leld of mlcroeconom les. These
modems of strate formulation Eek to configure ressources for efflclency

200
and to Institut clonal Ise scannlng procédures for detectîng changes in
comparative avantages vls-a-vîs competltors. These modems have bene appl led
in a limited entent (Baumol, 1968; Braybrooke and Llndblom, 1963).
Compréhensive planning modems for strate formulation have bene propose by
Learned, Chrlstensen, Andres and Goth (1965). Tels modem places Geay
emphases on the strateglst's ball City to Ingrate the values of top
management In a rtvalrous envlronment. Tels modem Wa State more formai Ly
by Boxer (1967). Ans off (1965) proposes a normative modem for strate
formulation base upon an adaptive methodology.
Corporate simulation modems are heavlly blase Howard flnanclal measures.
These modems long wlth flnanclal modems protide Little assistance In the
analytlcal aspects of strate formulation Grant and King 1979). Muche of
the Zarly enthuslasm for the potentat of Juch modems has Wanel recause of
the complexâtes of developtng causal Eel atlonshI amont variables and the
behavtoral patterns of managers (Gershefskl, 1969; Hall 1973). Taylor and
Thomas (1982) gave a surve of dl fferent slmul Arlon modem s Thot have bene
developed for stratégie planning. Vert Fe are actua Ly us ed.
Federal mathematlcal modems have entende the Earl er flnanclal planning
modems In an effort to capture more stratégie factor dlrectly. Sole of Them
are the PI MS data base (Schoef f I er et al & 1974) as Wele I as the CG produit
portfolio. Two classes of modems have bene propose In the I Iterature to
dal wlth the port folio problème of corporate strategy: determlnlstlc modems
and rosi analysas model. Moss of the I Iterature on port folio optlmîzatlon
modems Ander rosi Is base on the original Wark of Markowltz (1959). The
capital asset prlclng modem (Sharpe, 1963; Lîntner, 1965; Taylor and Tapon
1982) and the arbitrage prlclng modem (Ross, 1976) are amont the best-known
port folio modems Ander the assumptlons of rs. Hamilton and Mises (1973)
have developed a Clear programmant modem for allocation of ressources In a
determlnlstlc contexte
Moss of the mathematlcal modems presently offert the greatest potentat for
strate formulation wtthln famlllar and relatlvely mature Industries.
Through the simulation of possible future outeomes, the techniques con serve
to stlmulate search process wlth Otter techniques and Rhus make a
slgnlflcant contribution to formulation efforts.
In général the complexât of these modems and Thel ficus on llmlted
aspects privent Them Drom acceptante and use for Innovât Ve strate
formulation. In addition They often requlre an Geay Infestent and are Nat
yet Provrd to be effective.

A.2.2. Organlzatlonal Design
W are Nat Aare of quantitative pools developed So far to speclflcally gel p
managers In building and chooslng approprlate Organ Azat clonal designs for
partlcular Innovation projets and stratégies. Khere Is a Nied for
développent of pools In This area. These pools May Rely on techniques Juch
as évaluation multlvartate statlstlcal anal y si s optlmlzatlon, etc.
A.2.3. Évaluation _ail4 Cholet
Tels Is an area whlch has bene adresse extensîvely. At lest Tree generlc
techniques have producer Many différent modes décision theory, economlc
and flnanclal anal y si s and opérations rese arch.
The décision Thory approche suggestif certain factor In ternis of whlch a
projet proposai light be evaluated, and dérivés a scorlng modem whereby a
rating on an emplrlcal or subjective sale Is made for Rach factor
consldered, and these rat ngs are comblned In Som Way accordant to
heurlsttc Rule or to theoretlcal Rule dependlng on the préférence
structure of the assessors. The décision Thory approche Rhus protides a
seul framework for evaluatlng bath monetary and non-monetary dimensions
Involved In entrepreneur All projets Feeney and Ralffa, 1978; Von
Wlnterfeld and Edwards, 1986). The produit of Juch modems Is an Index
provîdlng a numerlcal score for Rach projet proposai (Mottley and Newton
1959; Garglulo et a. 1961; Hers and Cari son 1963; Dean and Nlshry, 1965;
Hart 1966; Edward et a. 1987).
The economlc and flnanclal analysas approche Is base on a detalled forecast
of the prof Italo City of Rach projet proposai In Germs of the Infestent
requérez and the experte revenue resultlng Drom I. Tels approche appert
to be the moss Commin In practlcal use At the pressent tome (payback,
breakeven ana I y si s cash f I o anal y si s etc...). The méthode for & NC I Carl hg
the prof Italo City of a proposai usuel Ly Lakes use of dlscounted cash slow
and Aldo the stomate Rhus obtaîned for the "present North of a projet May
be multlplled by a subjective probablllty of succès of the projet to
reprisent Som aspects of the rosi Involved (DIsman, 1962; Allen 1965). The
economlc approche Real Ly assumes Thot the moss Important objective to be
consldered Is the profit objective. In fact the techniques In This approche
choule be easlly comblned wlth the décision analytlc framework to confluer
more thon the profit objective.
The operatlonal research approche Is char acter l zed by the use of
&

202
mathematlcal programmant techniques e optlmlze +he sélection of projets by
maxlmlzlng the total value of the projet proposais wlthln the constants
of the ressources avalable Bath Clear and dynamo programmant formulations
have bene use (Asher, 1962; Hess 1962; Strlngler, 1967).
In addition to these Tree generlc set of pools and technique Som Otter
techniques are propos ed. Black man (1986) Is promotlng the adaptation of
diffusion modems to the évaluation of Innovation prose cts. More over
différent statlstlcal modems have Aldo bene developed to ad dress the
évaluation and sélection of différent prose cts. Tyebjee and Bruno (1984)
propose a statlstlcal modem of venture capital Is Infestent actlvlty base
on factor and discriminant analyses.
Aboter technique whlch s relate to the décision Thory and the flnanclal
approche conflits of rosi analysa Hertz and Thomas (1984) explant In sept
how to use Monte Carlo simulation to performe rosi analysas In the Contest of
selectlng Infestent prose cts. Statlstlcal modems have Aldo bene developed
to asses the perce Ive rs. For exemple one of Them Is base on the use
of discriminant analysas Anderson and Naraslmhan, 1979).
Moss of these Sool s are actua I Ly use but stl II w Ith a f cous on f Inancl al
figures. Nonmonetary masures Nied to be capture and Integrated Intl these
model. In addition the modems use choule incorporate Information el Iclted
Drom the preslois steps (especfally the cholce of Organ Izatlonal design
Links between the steps choule be expllcltly Integrated Intl the modem ING
process.
A.2.4. I mplementatlon and Monltorlng;
Fe modems Real Ly dal wlth This Important step. Sole relate technique
Juch as projet management and projet schedultng, have Goven rose to modems
and tools, but are Onay one llmlted aspect of projet I mplementatlon: Gant
chars projet network dîagrams, projet network analysas décision évent
logo tome actlvlty (DELTA), graphlcal évaluation and reflex techniques
(GERT), ressource allocation and mil tl projet schedullng (RAMPS). In
addition Som budget hg techniques have bene propose Juch as planningprogrammtng-budgetlng
system (PPBS), zero-base budget hg system (ZBBS), and
goal s-ends-means pogrom analysas (GEMPA).
A promtslng area of research for the développent of modems for This
Impl emmental on and monltorlng step conflits of the Baye flan statlstlcs,
whlch protide a seul framework for dal ING wlth the assissent of
probablllty of Impl emmental on success. Gustafsson et al. (1985) have

203
developed a Baye sian Index for evaluattng the probabllt+y of Implémentation
succès of new social programs. A sfmllar approche Is cal led for In the
Contest of Innovation projets In organlzatlon.
In effectue an Innovation projet In volves Many décisions durlng the
Implémentation stage and pools are requérez to gel p managers In Makong Juch
Dec I s Ions as ho to recru & & to Wark on d l f Ferenc ports how to des I ni the
Jobs of the Indlvlduals (sclentlsts, englneers, researchers, technlclans,
marketing and sales peuple etc...), chat technologlcal cholces to make At
différent point of tome of the projet development, chat organlzatlonal
structure Is moss approprlate, chat coordination mechantsms and
communication Systems are moss efficient etc. These cholces are extremely
dîffîcult to make recause They In volve a lot of uncertalnty.
Tech Oques are cal I ed for Thot al I o to predl et the vol Iton of projets
and whlch allo the contlnuous Intégration of new Information to revise the
prédiction patterns. Typlcally the Baye sian statlstlcs protide Juch a
framework as Wele I as stochastlc modem ING techniques. Therefore research to
develop operatlonal pools choule be don In these directions.
More over statlstlcal control techniques Thot are wldely appl led In
manufacture ING process Coulx be adapte to control the process of
développent and Implémentation of Innovât Ve prose cts.
These techniques offert promlslng avenues for research In This field
A.2.5. Feedback
Évaluation of the process as a Hole the four preslois step and
évaluation of the modems deslgned to asslst managers In carrylng out these
steps choule be don In a manne Thot allo learnlng, feedback and
Improvements. No pools have bene developed to accomplis This speclflcally
slmply recause the pools Thot have bene developed Wete developed In îsolated
contexte The cycltcal nature of the Innovation management process entai I s
the Nied for "meta-tool s Thot allo testlng, évaluation and modification.
The évaluation theory, wlth techniques Juch as cost-beneflt and Castes
fect Ive nefs analyses présents Juch char acter I sols. Useful comparons
Coulx be accompllshed rough the use of receler operatlng char acterIs le
Thory as Wele I as rough the use of statlstlcal techniques Juch as
discriminant analysas loglstlc and multiple régression etc.
Multlvarlate statlstlcal techniques Juch as factor analysas choule Aldo be
use to I dent l Sy major factor s. Bayes I an stato stl es Séoul d al So pressent a

204
Goos framework to allo This feedback and learnlng step.
Aldo Eden If t Cs dlfflcult In This field deslgned expertement choule be
carefully Implémente to Real Ly asses these tools, the différent steps In
the process and the process as a Hole IIe I a Goos process and why?).
A.2.6. General DIsadvantaqes Q these Pools
The precedlng discussion has hlghllghted Som pltfalls of the pools
developed:
- complexlty,
- (often) llmlted ficus on flnanclal data
- Isolâtes nature They ad dress Onay parts of certain steps and are
dlfflcult to relate to Rach Otter In a cohérent and seul mann er.
But aboie ail They are Nat accepte and They are Nat us ed. LIberatore and
Titus (1983) show In an emplrlcal Tudy Thot although managers of RAD
départements In large Companies are famlllar wlth Many différent techniques
Thot light gel p Them In Thel rôle of managent Innovât Ive projets They do
Nat make use of moss of these techniques. LIberator and Titus Intevlewed N
respondents Drom & Fortune-500 Industrlal f Irms Thot reprisent a m Ix of
Industrlal sec tors and geographlcal réglons. They Sound Thot these managers
make Geay use of flnanclal méthode for projet selectlon, use to Som
entent décision analytlc methods, and Aldo to Som entent projet schedullng
techniques. But I n Averan I & They do Nat use the I orge pal ote of Sool s Thot
They light be able to use.
Many RAD manager Esther by tortue of a prevlously Lesse thon satîsfyîng
expérience or lack of adéquate training and exposure, do Nat percevez Thot
"new" to Them or Thel organlzatlon) potentlally cost-effectlve techniques
est whlch May appreclably Improbe Thel projet management. Many Still
content Thot Thel envlronment Is "unique" and Nat amendable to generlc
management science and engineering modems and techniques.
The rasons for underuse of modems and techniques In This settlrig are
Nuclear and Coulx be the abject of farter rese arch. One goal of Juch a
research Coulx be to Identlfy these rasons In ordre to design approprlate,
userfrlendly pools computer Ized or Noth Thot respond to the Basle Leeds of
these populations of Indlvlduals wlthln Thel organlzatlon, helpîng Them In
getter dolng Thel job wlthout threatenlng Thel degree of control over
Thel r Job. Rh I s w & & I be d l f f Ici & & to do but l s one Goos Way to I mprove the
développent of efficient I.E.P useful, acceptable and usable modems and

205
Sool s. Th. I Iterature on Innovation especlally adoption and diffusion
protides a framework for accompli Ish ING This type of rese arch. For exemple
amont the différent artel butes of Innovation Thise Thot are Sal to be
Important for adoption choule reprisent operatlonal objectives Thot
efficient modems have to Rach In ordre to Increase the llkellhood of
effective adoption and use (Zaltman et a. 1973; Rogers and Shoemaker,
1983).
Rhus I con be hypotheslzed Thot these Sool s are Nat accepte Nar use
parti y recause of
- Cast
- complexât
- no compatible & City wlth chat Is don and wlth Otter pools
- no Clear relative avantage efflclency
- I Little demonstrabl I City
- I Imite trlabll City
- no f lexlbl I City
- They May Nat respond to the Leeds of înnovators
In addition the Impl ementatlon Itself of these pools In RAD settlngs light
be Impaire recause of factor Juch as
- planning of the Impl ementatlon Is Werk or non-exlstent
- the Target group May Nat have bene învolved
- the change agent light Nat have bene approprlate.
A.G. A PRPOSA I. £ÛB DEYELOPING APPROPRIÂT TOOLS
To over come these dlfflcultles the pools to be developed choule pressent the
followlng characterlstlcs.
- They choule respond to the Leeds of Innovation managers and Rhus
pressent Ander stan dab le and meanlngful outputs
- the Target group choule be Involved, responsable I Irles choule be
dlstrlbuted.
- simple Iclty
- flexlbîllty modifiable allowlng feedback
- Integrated, complété (modulable, choule cover the Hole process
- They choule be te stable and demonstrate relative davantage and
eff Iclency
Firat of al I I appert Thot managers are f ace w Ith specl f le problème I n

206
Rach step as hlghllghted by the questions Goven In section A.G. Pools to be
developed choule At lest gel p In answerlng these questions. Rhus the bas le
Leeds of managers comprise the followlng:
Strate formulation
- how to asses the organlzatlon and the envlronment?
- Drom tjls. how to détermine the Organ Izatlonal effectlveness?
- how to predlct the évolution of these Tree components, In ordre to
make a dlagnosls of the Current and experte "health statu of the
organlzatlon?
then, Drom tjls.
- how to plnpolnt the potentat problems, structure the objective
and genette stratégie option
Rhus the outputs of This step choule comprise
- a structure set of objectives
- a pressent and future profile of Tree diagnostic measures:
& the envlronment
& the organlzatlon
& the effectlveness
- a set of Intense and émergent stratégie option long wlth Thel
potentat Impacts on the precedlng objectives and diagnostic
measures.
- a description of Rach strate as a set of prose cts.
Organ fzatlonal design
- chat are the factor comprlslng an "organ Izatlonal design"?
- how to détermine these factor for the différent projects?
- how to chose a specîftc organîzattonal design for a specîflc
configuration of these factor
- how to know if these Organ Izatlonal designs are avalable for
the organlzatlon?
- chat dies I Tak to bull new Organ Izatlonal design
The outputs of This step choule comprise
- a set of couples projetSor Gan Izatlonal designs
- the avallablllty of these Organ Izatlonal designs

Évaluation and cholce:
207
- chat Is the probablllty of succès of Rach of these coupes
- chat Is the experte Impact (flnanclal, humano technlcal, etc. bath
In Germs of Benes I and costs. of these couples on the Basle
diagnostic masures Identlfled In step one
- how to "optlmlze" the cholce amont these coupes
the outputs are Thusy
- a port folio of projects/organlzatlonal designs
- a masure of the probablllty of succès Goven the charaterlstlcs
of these projets and correspond l hg organlzatlonal designs
- a masure of the experte Impact (benef I and costs. of these
coup I es.
Inpleaentatlon and Monltorfng:
- how dies the preslois masures change over tne développent of the
projects?
- chat décisions to make Goven these chantes
The outputs of This step choule comprise
Feedback
- a profile over time of the différent masures
- a décision procédure for modlfylng control label éléments (e.g.
cholce of organlzatlonal design capital Invested, continue or
stop the projet
- Wren and how to asses "success" or "fallure"?
- how to Drau Inférences on the process Drom these outcomes?
The outputs are Thusy
- a masure of these butomes
- a décision procédure to tdentlfy and moly éléments Thot Nied to
be chang ed.
One possible line of research for building pools Thot Wall gel p In answerlng
these questions and Wall protide the deslred outputs conflits of uslng the
followlng generlc technique

- evalua+fon Thory
- scénarios
- problème Identification
- option génération
- optlm Izatlon
- Bayes l an statlstlcs
- portos la analysas
- stattsttcal control
- multlvarlate statlstlcs
- ROC analysas
208
Nested simple modem s base on masures Thot are slmll ar In Rach step but
aggregated and analyse dlfferently May protide a concept of modems Thot
adresses slmpl Iclty, f I ex I b T I Ita Integrated nature and Nied response.
For exemple the followlng tanks con be developed:
Évaluation of the envlronment and évaluation of the organlzatlon are
capture Intl two model. Effectlveness modems are developed Drom these two
componende to asses the fit between these two elements. The experte
évolution of these componende Is assisse uslng scénarios for exemple
Probe Am dent f Icatl on and structure ING Zhou I d I ead to the f or mu I Tal on of
stratégies and prose cts.
These projets are evaluated on Many dimensions Juch as the stratégie
Importance and the degree of relatedness to the organlzatlon (skllls,
resources, knowledge, etc...). These componende allo the cholce of an
approprlate organlzattonal design.
A probable City of succès Goven these preslois éléments May be compute long
wlth Cast and beneflt figures. On the Basle of This Information a port folio
of projets May be select ed.
The probable City of succès and Impact masures May be compute perlodlcal Ly
long the développent of the projet So as to obtaln profiles of these
éléments over mme. Statlstlcal control procédures May gel p In monltorlng
the Impl ementatlon phase and decldlng on necessary changes (e.g. change In
organlzattonal design change In Investment, dlsm ISF the projet etc...).
Al I the Information col lected long the process and ostéome data Juch as
successoral I ure light be recorde So as to analyse the goodness of the
preslois modems and to make necessary changes. More over the process itself
con be evaluated rough the analysas of This data.
To summarlze these îdeas, Wez Bellevue Thot the modems to be developed choule

met +he followlng requlrements:
209
- respond to the bas le Leeds of Innovation manager
- slmpl Iclty,
- Integrated Chalus of modulable composent modes
- ad dress +he Hole process
- userfrlendly,
- adaptai I Ita correct lveness,f lexFbf I Ita
- allo effective learnîng.
More over They Coulx be computerlzed So as to procède Décision Support
Systems and ultlmately Expert Systems.
These reculements protide a Basle for carrylng out a large Mount of
research In the area of organlzlng for Innovation Drom a practlcal and
prescrtptlve orientation.
A. CONCLUSIONS
The Tak of organlzlng for Innovation Is a dlfflcult one In large
Organ Izatlons. A simple flve-step framework for helplng Innova tors In
deallng wlth these actlvltles has Shawn the limitations of Current
technologies Thot are developed to ad dress Som of the needed ass.
More over the framework al los to design a speclflc I Aine of research for
developlng approprlate pools whlch requlre Onay a Fe underlylng engineering
technologies and have potentat to over come the barrlers Identlfled for
effective acceptante and use by the concerne managers.
By developlng Juch tools, Nat Onay the effective management of Innovation
May be facllltated and be come more efficient but al So the Averan I field of
research on Innovation May be moved ahead.
A. RÉFÉRENCES £QR APPENDIS A
Abernathy, G.S. and G.M. Utterback, Pattes of Industrlal Innovation
Technologie Revlew, 41-47, 1978
Agullar, F.S.E Scannlng the Business Environment, MacMlllan, 1967
Aldrlch, G.E. Organ Izatlons and En l ronments, Prentlce Hall 1979
Allen S.H. Assesslng Industrlal Research Projects, Science Journal vol.1,

1965
210
Anderson J. and R. Naraslmhan, Assessfng Projet Impl pentathlon Rlsk: a
Me+hodologlcal Approcha Management Science 25(6), 512-521, 1979
Andres K. The Concept of Corporate Strategy, Dow Jones Irwln, 1971
Angle H.L.M C.C.D Mant and A.G. Van de Vena Intégrât hg Humant Ressource
Management and Corporate Strategy: a Pre lew of the M Story, Humant Ressource
Management 24(1), 51-68, 1985
Ansoff, G.I.E Corporate Strategy, McGraw HIIS 1965
Achery D.I.A A LInear Programmant Modem for Allocation of RAD Effort IRE
Transaction Engineering Management EM-9, 1962
Baumol, W. ETre preneur shl p in Économie Theory, American Économie Revlew,
May 1968
Blau P.M.A The Dynamie of Bureaucracy, Chicago Unlverslty Press 1955
Blackman, A. The Marcet Dynamie of Technologlcal Substitution
Technologlcal Forecastlng and Social Change vol.& 41-63, 1974
Blackman, A. The Use of Innovation Diffusion Modem s In New Venture Planning
and Évaluation Technologlcal Forecastl hg and Social Change 29(2), 173-182,
1986
Bolllnger et a. A Reflex of Llteraftjre on New Technology-based FIrms,
Research Pollcy, n. 12, 1-14, 1983
Boston Consulting Group Perspectives on Expérience Boston Consulting Group
Compans 1968
Bawerk S.L.S Strate as a Problème Dolving Thory of Business Planning
Boston & 967
Braybrooke, D. and C.D. Llndblom, A Strate of Décision Free Press 1963
Burgelman, R.A.G Managent the Internai Corporate Venturlng Process Slogan
Management Revlew, enter 1984, 33-50
Burns, T. and G.M. Stalker, The Management of Innovation Tal stock
Publication London 1961

& &
Buzzell et a. Marcet Charey a Chey to Prof î+ab & & Ita Harare Business
Revlew, Jan-Feb 1975
Caves, R. Industrlal Organlzatlon, Corporate S+ra+egy and Structure
Journal of Économie Llterature, vol.&& 64-92, 1980
Castel Loa C.R. New Venture Analysas Dow Jones Irwln, 1985
Crouler M. Le Phénomène Bureaucratique Éditions du Seuil Paris 1963
Dan N.V. and M.J.C Nlshry, Soreng and Profltablllty Modems for Evaluatlng
and Selectlng Engineering Projects, Opérations Research, vol. 13, 1965
Relecq et a. Group Techniques for Pogrom Planning a Guide to Nominal
Group and Delphi Processes, Scott Foresman, 1975
Denlson, E. The Sources of Économie Goth In the United State Commette
for Économie Development, 1962
DIsman, S. Selectlng RAD Projets for Profit Chemical Engineering vol .69,
1962
Fahey, L. and B.R. KIng, Envlronmental Scannlng for Corporate Planning
Business Horizon 1977
Fusfeld, A.R.S and R.N. Foster The Delphi Technique Surve and Comment
Business Horizon Hune 1969
Galbralth, S.R. Organlzatîonal Design Addlson-Wesley, 1977
Garglulo, B.R. et a. Developlng Sytematlc Procédures for Dlrectlng
Research Programs, IRE Transaction Engineering Management EM-8, 1961
Garvîn, D. Spln-offs and the New arm Formation Process Callfornla
Management Revlew, 25(2), 3-20, 1983
Gershefskl, T.W.M Building a Corporate Financial Model. Harare Business
Revlew, July-Aug. 1969
Gold B. StrengthenI hg Managera Approche to Improvfng Technologîcal
Capa I I Itles, Stratégie Management Journal vol. O 29-40, 1983
Gouldner, A.G. Patterns of Industrlal Bureaucracy, Free Press 1954

212
Brant S.H. and B.R. Kong Strate Formulation Analytlcal and Normative
Modes In D.B. Schendel and C.A. Hofei Stratégie Management Llttle, Brown
and Compans 1979
Greenwood, P. and H. Tomas A Reflex of Analyttcal Modems In Stratégie
Planning Oméga 9(4), 397-417, 1981
Gustafson, S.H. A.L.S Cats-Barll and F. AlemI, Développent and Teston of a
Bayes Lon and a MAU Modems to Predlct and Explant Impl ementatlon Success,
Hune 1985
Hall W.K., Stratégie Planning Modes Are Top Managers Real I y FIndIng Them
Useful?, Journal of Business Pollcy, enter 1973
Hamllton, G.S. and M.A.D Modes An Optlmlzatlon Modem for Corporate Financial
Planning Opérations Research, vol.21, 677-692, May-June 1973
Hart A. A Char for Evaluatlng Produit RAD Projects, Operatlonal Research
Quarterly, vol. 17, 1966
Heenan, D.A.P and R.B.E Addleman, Quantitative Techniques for Tokays
Décision Maersk Harare Business Revlew, 1976
Hertz D. and A.G. Cari son Selectlon, Évaluation and Control of RAD
Projects, In N.V. Dean (Ed), Opérations Research In RAD WIley, 1963
Hertz D. and H. Tomas RIsk Analysas and I Application 1984
Hess S.A. A Dynamo Programmant Approche to RAD Budgettlng and Produit
Selectlon, IRE Transaction Engineering Management EM-9, 1962
Hunslcker, H.Q.E How Industry Goliaths Lofe Thel Once Seure Marcet to
Innovatlve Davlds, Managent Revlew, 39-41, Hune 1984
I ntr & & & gator, M.D.F Econometrtc Modes Techniques and Application
Prentlce Gal I 1978
Kahn, H. and A.G. Wiene The Bear 2000, MacMIIIan, 1967
Keeney, R.N. and H. Ralffa, Décisions wlth Multiple Objective WIley, 1976.
Kotler, P. Compétitive Stratégies for New Produit Marketing over the Life
Cycle Management Science Dec. 1965

213
Lawrence P.R.E and J.O. Lorsch, Organîzatlon and Environnant Harare
Unlverslty Press 1967
Learned, E.P.S et al Business Pol Ici Test and Casse Richard D. Irwln, 1965
Leavltt, H.P. Managera Psychologie Unlverslty of Chicago Press 1964
Lena R.T.E Déterminants of Organlzatlonal Performance an Interdlsclpl Inard
Revlew, Stratégie Management Journal vol.2, 131-154, 1981
Lena R.T.E and H.P. Lanford, The Substitution Phenomenon, Business Horizon
Fev. 1972
Levltt, T. Exploit the Produit Life Cycle Harare Business Revlew, Nov-Dec
1965
Lîberatcre, M.J.C and G.S. Titus The Practlce of Management Science In RAD
Projet Management Management Science 29(8), 962-974, 1983
LIntner, J. Securlty Process Rosi and Maximal Gains Drom Diversification
Journal of Finance Dec. 1965
MacNulty, C.A.R. Scénario Développent for Corporate Planning Future
April 1977
Mahajan, V. and M.D.F. Schiemann General Ized Modem s for the Time Pattern of
the Diffusion Process IEEE Transaction Engineering Management 24:12-19,
1971
Mansfleld, E. Technologlcal Change and the Rate of Imitation Econometr Ica
Oct. 1961
Markowltz, H. Port folio Selectlon, Wlley, 1959
Martino J.P.L Technologlcal Forecastlng for Décision Maklng, Elzevier North
Ho II and 1983
Mensch, G. Stalemate In Technologie Balllnger, 1979
Metton R.C.B Social Thory and Social Structure New York Free Press 1968
Mlntzberg, H. The Structurant of Organlzatlons, Prentlce Hall 1979

& &
Mfntzberg, H. and J.O. Water Cracking Strate In an Entrepreneur al FIrm,
Academy of Management Journal 25(3), 465-499, 1982
Mottley, C.M.T and R.D.S Newton The Sélection of Projets for Industrlal
Research, Opérations Research, vol.O 1959
Nason, G.K.S American Perceptions of Barles to Innovation In Innovation
Économie Change and Technologie Pol Icles, Proceedlngs of a Semlnar on
Technologlcal Innovation Bonn West Germania 1977
Taylor TH. and F. Tapon The Capital Asset Prlclng Model. Management
Science vol.28, 1166-1173, Oct. 1982
Nelson R. The Simple Économies of Basic Scient fie Research, Journal of
Polit cal Economy, Hune 1959
North H.Q.E and D.K. Dyke Probes of the Technologlcal Future Harare
Business Revlew, May-June 1969
Matton A. Stretch tour Productif Earnlng Years: Top Managements Shake t
the Produit Life Cycle Management Revlew, Hune 1959
Pfeffer, J. and B.R. Salanclk, The Externat Control of Organlzatlons: a
Ressource Dépendance Perspective Harper and Town 1978
Porter L.E.D Compétitive Strategy, Free Press 1980
Robinson D.A.P The Business Environnent In 1975-1985, The Hudson Instltute,
1974
Roger E.A. and F. Shoemaker, Communication of Innovation a Cross Cultural
Approcha Free Press 1971
Ross S.A. The Arbitrage Thory of Capital Asset Prlclng, Journal of
Économie Theory, Dec. 1976, 341-360
Rumelt, R.P.C Strategy, Structure and Économie Performance Harare
Unlverslty Press 1974
Scherer F.M.F Industrlal Marcet Structure and Économie Performance Rond
McNally and Co 1970
Schoeffler et a. Impact of Stratégie Planning on Profit Performance
Harare Business Revlew, March-Aprll 1974

215
Sc hum Peter J. TheTheory of Économie Development, Harare Univers City Press
1932
Scott B.R. The Industrlal State Old Mythe and New Real Itles, Harare
Business Revlew, 1973
Selznlck, P. An Approche to a Thory of Bureaucracy, American Soctologlcal
Revlew, 28(5), 116-135, 1949
Charpey W.F., A Semple If led Modem for Port folio Analysas Management Science
277-293, Jan. 1963
Strlngler, J. Operatlonal Research for Mu Itl-Organ Izatlons, Operatlonal
Research Quarterly, vol. 18, 1967
Thompson S.D.F Organlzatlons In Action New York McGraw HIIS 1967
Tushman, M. and D. Nadler, Organlzlng for Innovation Callfornla Management
Revlew, 28(3), 74-92, 1986
Tyebjee, T.T. and A.V.S Bruno A Modem of Venture Capital Is Infestent
Actlvlty, Management Science vol.30, n.9, 1051-1066, 1984
Van de Vena A.G. and D.K. Ferry Measurlng and Assesslng Organlzatlons,
Wîley, 1980
Von HIppel, E. Successful and Falllng Internai Corporate Ventures: an
Emplrlcal Analysas Industrlal Marketing Management vol.6, 163-174, 1977
Von Wlnterfeld, D. and W. Edwards, Décision Thory and Behavloral Research,
Cambridge Unlverslty Press 1986
Zaltman, G. R.Duncan and J. Holbein Innovations and Organlzatlons, Wlley,
1973
Zentner, R.D.A Scénarios In Forecastlng, CE New Octobre & 1975

& &
B BO IOGRAPHY

217
Abernathy, W.J., A. Shell don and D.K. Prahalad, The Management Of Health
Care Ballfnger Publlshlng Compans Cambridge Massachussets, 1974.
Abernathy, G.S. and G.M. Utterback, patterns of Industriel Innovation & &
Technologie Revlew, June-July 1978, pp*41-47.
Ackoff, R. Redeslgnlng the Future WIley, New York 1974
Ader E. L'Analyse Stratégique et ses Outil Futurlbles, 72:3-22, 1983
Adîzes, I. Organîzatlonal Passage Dlagnoslng and Treatlng Life Cycle
Problème In Organlzatlons, Organîzatlonal Dynamisa Summer 1979, pp.3-24
Agullar, F.S.E Scannîng the Business Environment, MacMIIIan, 1967
Aldrlch, G.E. Organlzatlons And En Ironments, Prentlce Hall Inc New
Jersey 1979.
Allalre, Y. structure and strategy: the G-form organlzatlon for the
unrelated diversification strategy', unpubllshed Paper 1984.
Allalre, Y. persona communication 1985
Allalre, Y. and G.E. Flrslrotu, 'Theorles of organîzatlonal culture
Organlzatlon Studles, 1984, vol.5, n. pp.193-226.
Allalre, Y. and G.E. Flrslrotu, Dow to amplement radical stratégies l
large organlzatlons', Slogan Management Revlew, Spring 1985, pp.19-34.
Allalre, Y. and F. Salnfort, Organlzlng for Innovation the Quet for the
Innovatlve Organlzatlon, Workfng Paper Uni vers City of Chebec At Montréal
Montréal Canada 1985
Allen S.H. Assesslng Industriel Research Projects, Science Journal vol
1965
Allen T.S.B Managent The Flow Of Technologie Technologie Transfert And
The Dissémination Of Technologlcal Innovation Wlthln The RAD
Organlzatlon, MIT Press Cambridge Massachussets, 1977.
Anderson C. and F. Peine Managera Perceptions and Stratégie Behavlor,
Academy of Management Journal 18:811-823, 1975
Anderson J. and R. Naraslmhan, Assesslng Projet Impl pentathlon Rlsk: a

218
Me+hodologfcal Approcha Management Science 25(6), 512-521, 1979
Andres K. The Concept of Corporate Strategy, Dow Jones Irwln, 1971
Angle H.L.M C.C.D Mant and A.G. Van de Vena Intégrât hg Humant Ressource
Management ana Corporate Strategy: a Pre lew of the M Story, Humant Ressource
Management 24(1), 51-68, 1985
Ansoff, G.I.E Corporate Strategy, An Analytlcal Approche To Business
Pol Ichy For Goth And Expansion MacGraw H & & & & New-York 1965.
Aram, S.D.F innovation via the RAD underground', Research Management
Jully 1973, pp.24-26.
Argyrose C. Organlzatlon And Innovation R. Irwln, Inc. and the Dorset
Press Homewood, Illinois 1965.
Arrow K.J., Économie Wele fare and the Allocation of Ressources of Invention
In The Rate and Direction of Inventive Actîvlty: Économie and Social
Factor edlted by the National Bureau of Économie Research, Princeton
Unlverslty Press Princeton 1962
Achery D.I.A A Clear Programmant Modem for Allocation of RAD Effort IRE
Transaction Engineering Management EM-9, 1962
Astley, A.G. and A.G. Van de Vena Central Perspectives and Debat In
Organlzatlon Theory, Administrative Science Quarter y 28:245-273, 1983
Baler N J. Slegmann and A. Rubensteln, Effet of Percevez Leeds on the
Génération of Idéas In RAD Projects, IEEE Transactions on Engineering
Management 14:156-163, 1967
Baranger, P. Une Méthodologie d'Analyse des Stratégies et Structures de
l'Entreprise, Direction et Gestion 3:17, 1979
Bagnard C. The Functlons of the Exécutive Harare Unlverslty Press
Cambridge MA 1938
Barbette H.B.M Innovation The Basle of Culture Change McGraw Hall New
York 1953
Barbey D.B. and A.G. Ouche Information Cast and Organlzatlonal Forma
Unpubllshed Paper UCLA, 1983

& &
Barnfather, M. an M Fund happfness In the 1980's?', Fores &
March 1982, pp.113-116.
Barrerez P. Y. and M. Bouche Pour une Meilleure Compétitivité fondée sur la
Solidarité Inter-entre prisse les Politiques d & Impartit Ion Revue Française
de Gestion Septembre^Octobre 1982
Baumol, W.J., Entrepreneurs!! I In Économie Theory, American Économie Revlew,
May 1968
Baumol, W.J., S.C Pangar and R.D.S Wlllfg, Contestable Marcet And The
Thory Of Industry Structure Harcourt Brac Jovanovltch, Inc New-
York 1982.
Becket S.A. and J.O. Whlsler, he Innovatlve organlzatlon: a -selectlve
vlew of Current Thory and research & & Journal of Business 1967, vol.40,
pp. 462-469.
Bermont S.I.M 'Intégrât! hg the RAD départent Intl the business
team', Research Management Jully 1973, pp.16-19.
Blenayme, A. La Croissance des Entreprisse Bordas Paris 1971
Btggadlke, E.E.E he rlsky business of diversification Harare
Business Revlew, May-June 1979, pp. & 03—1 A.
Blggadlke, E.E.E he contributions of marketing to stratégie management
Academy of Management Revlew, 1981, vol.6, n.4, pp.621-632.
Blau P.M.A The Dynamie of Bureaucracy, Chicago Unlverslty Press 1955
Blackman, A. The Marcet Dynamie of Technologlcal Substitution
Technologlcal Forecastlng and Social Change vol.6, 41-63, 1974
Blackman, A. The Use of Innovation Diffusion Modems In New Venture Planning
and Évaluation Technologlcal Forecastlng and Social Change 29(2), 173-182,
1986
Blackwel I N. Dow to Marcet technology', Management Tokay December 1982,
pp. 70-75.
Bolllnger At a. A reflex of I Iterature on new technologiebase
fîrms', Research Pollcy, 1983, n.12, pp.1-14.

220
Boston Consulting Group Perspectives on Expérience Boston Consulting Group
Compans 1968
Bouldlng, C.E.A General System Theory: the Skeleton of a Science Management
Science April 1956, pp.200-202
Bouvier M. and M. Olivier La Planification Stratégique à Shell Française
Futurlbles, 72:23-28, 1983
Bawerk S.L.S Strate as a Problème Dolving Thory of Business Planning
Boston & 967
Braybrooke, D. and C.D. LIndblom, A Strate of Décision Free Press 1963
Bulgues, P.A.C Méthodes et Mises en Œuvre de la Planification Stratégique
Futurlbles, 72:29-42, 1983
Bultenhuls, C. Organlzatlon In Innovation Innovation In Organlzatlon,
Von Garum and Corn p. Netherlands, 1979.
Burgelman, R.A.G A procès s modem of Internai corporate venturlng in
the dlverslfled major flrms', Administrative Science Quaterly, Hune 1983,
pp. 223-244.
Burgelman, R.A.G A modem of the interaction of stratégie behavlor,
corporate Contest and the concept of strategy', Academy of Management
Revlew, 1983, vol.& n. pp.61-70.
Burgelman, R.A.G 'Managing the Internai corporate venturlng process
Slogan Management Revlew, Conter 1984, pp.33-50.
Burgelman, R.A.G designs for corporate entrepreneurI In establlshed
flrms', Callfornla Management Revlew, Spring 1984, vol. 26, n. pp.154-
167.
Burgelman, R.A.G 'Managing the New Venture Division research flndîngs and
Implications for stratégie management Stratégie Management Journal
1985
Burns, T. and G.M. Stalker, The Management of Innovation Tavlstock
Publication London 1961
Burrel I G. and G. Morgan Soclologlcal Paradigme and Organlsatlonal
Analysas Helnemann, London 1979

221
Business Week 1984, two corporate glants venture together', & Octobre
1984, p. & A.
Business Week 1985a, hobby Iman the Hugh technocrate of R&D', &
February 1985, pp.76-80.
Business Week 1985b, or chtpmakers, na+lonal boundarles Begin to
blue & & & May 1985, p. & & A.
Business Week 1985c, Health care Coulx put new lofe In Kodak & May
1985, pp.28-30.
Burler J.E.I Tocards a Stratégie Modem of Entrepreneur All Behavlor, FIfth
Annula Stratégie Management Society Conférence Barcelona Spaln, Octobre
1985
Buzzel I et a. Marcet Charey a Chey to Prof tabi I Ita Harare Business
Revlew, Jan-Feb 1975
Cal Ion M. Comment Gérer l'Innovation? Séminaire ŒRCHAR, Avril 1985
Cal Ion M. La Recherche Industrielle le Mal Français La Recherche
Économie Supplément an No 183, 1982
Cal orI R. Stratégies d'Entreprises dans une Industrie Émergente
Enseignement et Gestion 24:69, Hiver 1982-83
Cal orI R. and R. Noël Management Stratégique dans les Industries
Émergentes à Haute Technologie Revue d'Economie Industrielle 37:15, 1986
Crayon P. and M.J.C Smith Office Ergonomîcs: an OvervIew, V Annula
Conférence of the American Psychologlcal Association Washington D.C.
August 1986
Cari sson, B. P. Leone and D.B. Martin ORD organlzatlons as learnlng
systems', Slogan Management Revlew, 1976, vol. 17, pp.1-15.
Caves, R. American Industrie Structure Conduit Performance Prentlce
Hall Englewood Cllffs, New Jersey 1977
Caves, R. 'Industrlal organlzatt on corporate strate and structure
Journal of Économie Llterature, 1980, vol. 18, pp.64-92.

222
Chandler A.D.F Strate And Structure MIT Press Cambridge Massachussets,
1969.
Chandler A.D.F The Visible Hand The Managera Révolution In American
Business The Belknap Press of Harare Unlverslty Press Cambridge
Massachussets, 1977.
Chlld, J. Organlzatlonal Structure Environnent and Performance the Rôle
of Stratégie Cholet Soctology, 6:1-22, 1972
Chlld, J. Managera and Organlzatlonal Factor assoclated wlth Company
Performance Journal of Management Stud les 11:175-189, 1974
Chlld, J. Managera and Organlzatlonal Factor assoclated wlth Company
Performance Journal of Management Stud les 12:12-27, 1975
Chlld, J. Organlzatlonal Design and Performance Conttngency Thory and
Beyond, Organlzatlon and Administrative Science 8:169-183, 1977
Coasse R.S. The Nature of the Forma Eco nom Ica 4:386-405, 1937
Cocha L. and J.A.P. French Overcomlng Résistance to Change In S.C. Houlette
(Ed.), Humant Factor In Management Harper and Brothers New York 1951
Commons, S.R. Instltutlonal Economies; I Place In Polltlcal Economy,.
MacMIIIan, New York 1934
Cooper A.C.P and D. Schendel, stratégie responsif to technologlcal
threats & & Business Horizon February 1976.
Castel Loa C.R. New Venture Analysas Dow Jones Irwln, 1985
Cota A. Les Choix Économiques de la Grande Entreprise Dynode Paris 1970
Crawford, R.P.C The Techniques of Créative Thînklng, In G. A. Davis and J.O.
Scott (eds) Tralnlng Créative Thînklng, Krleger, Huntlngton, N.T.T 1978
Creton L. Stratégies et Maîtrise du Transfert Technologique Revue
Française de Gestion Nov-Dec 1984
Crouler M. Le Phénomène Bureaucratique Éditions du Seuil Paris 1963
Crouler M. La Stratégie et le Changement Direction et Gestion 3:95-100,
1978

223
Cherté R.M.S and A.G. March A Behavîoral Thory of Fe Forma Prentîce Hall
Englewood Cllffs, N.S.C 1963
Dan II a N. Le Management de la Recherche-Developpement, Revue Française de
Gestion 56-57:34-46, 1986
Data Y. Compétitive Strate and Performance of Forme In the U.S. TV set
Industrie 1950-60, Proceedlngs of the Academy of Management Atlanto 1979
Davis B.A. Creatlvlty Is Forever, Cendal l/Hunt Pub. Compans Dubuque,
lowa, 1983
Davis R.C.B The Fondamental s of Top Management Harper and Brothers New
York 1951
Dan N.V. and M.J.C Nlshry, Soreng and Prof Itabl I City Modems for Evaluatlng
and Selectlng Engineering Projects, Opérations Research, vol. 13, 1965
Dan N.V. and J.O. Goldhar, Management Of Research And Innovation
North Holland Publlshlng Compans Amsterdam 1980.
Relecq et a. Group Techniques for Pogrom Planning a Guide to Nominal
Group and Delphi Processes, Scott Foresman, 1975
Denlson, E. The Sources of Économie Goth In the United State Commette
for Économie Development, 1962
Detrle, H.P. et B. Ramanantsoa, Stratégies de l'Entreprise et
Diversification Nattant Paris 1983
DIOIS W. Environnent as an Influence on Managera Autonomie Administrative
Science Quarterly, 2:409-443, 1958
DIsman, S. Selectlng RAD Projets for Profit Chemical Engineering vol.69,
1962
Dasle G. 'Technologlcal paradigme and technologlcal trajectoire les
Research Pollcy, Hune 1982, pp.147-162.
Dons A. Inslde Bureaucracy, Llttle, Brown and Company and Rond
Corporation San Francisco CA 1967
Dazé Y. G. Hamel and D.K. Pradal ad Stratégie Partner I ps: Succès or

224
Surrender?, AIB-EIBA Joint Annula Meeting London Novembre 1986
Drucker, P.F.C The Practlce of Management Harper&Row, New-York 1954.
Drucker, P.F.C Management Tassa Responslbll Itles- Pratlces, Harper New-
York 1973.
Drucker, P.F.C Howard The Nexe Économies And Otter Essay Harper&Row,
New-York 1981.
Drucker, P.F.C 'Shumpeter and Keynes', Fores & May 1983, pp.124-128.
Dunant R. The Ambldextrous Organ Izatlon: Deslgnlng Dual Structures For
Innovation In R.N. Kllmann, B.R. Pondy and D.P.E Slavon (Eds), The
Management of Organ Izatlonal Design North Holland New York 1976
Dundas, KM. and P.R.E Rlchardson, Implementîng the Unrelated Produit
Strategy, Stratégie Management Journal 3(4)287-302, 1982.
Durand T. Les Entreprises Expérimentent de Nouvel les Stratégies d'Accès
aux Ressources Technologique Worklng Paper Ecole Centrale Paris France
1986
Durand T. Quel Management pour la Technologie Proceedlngs,
Europrospectlve, Paris Avril 1987
Durand T. and T. Bonard Management de la Technologie Stratégie des Firmes
face à une Rupture Technologique dans l'Industrie de l'Insuline, Revue
Française de Gestion Noy-Déc 1986
Durkhelm, E. The Ruches of Soclologlcal Méthode Free Press Glencoe,
& & & Inols, 1938
Dussauge, P. and B. Ramanantsoa, Technologies et Strategle, Harare
l'Expansion, Été 1986
Elsenhower, E. interactions between produit RAD and process technology',
Research Management January-February 1981, pp.22-27.
Embry F.E.C and E.A. Trust The Causal Texture of Organ Izatlonal
Envlronments, Humant Relation 18:21-32, 1967
Embry F.E.C and E.A. Trust Howard a Social Ecology, Contextuel
Appréciations of the Future In the Pressent Plénum New York 1973

225
Etienne, E.C.N Produit et Procédé Quelle Stratégie d'Innovation pour
l'Entreprise?, Revue Française de Gestion Juln-Jul I let^Août 1983
Etzlonl, A. A Comparative Analysas of Complet Organlzatlons, FRR Press
Glencoe, Illinois 1961
Evans G.M. The Organlzatlon-Set: Howard a Thory of Interorganîzatlonal
Relation In C.D. Thompson (Ed.), Approches to Organlzatlonal Design
Unlverslty of PIttsburgh Press PIttsburgh, 1966
Evans G.M. Interorganîzatlonal Relation Penguln Book Harmondsworth,
1976
Fahey, L. and B.R. King En Iron mental Scannlng for Corporate Planning
Business Horizon 1977
Fast M new venture departments: organlzlng for Innovation
Industrtal Marketing Management 1978, pp.77-88.
Fast N. 'Pîtfalls of corporate venturlng', Research Management
Sanary 1982, p.A.
Rayol H. General and Industrlal Management PItman, London 1949
Fard D. and C. Ruan 'Taklng technologie to market', Harare Business
Revlew, 1981.
Fortune 'Meet the new lean, Lean IBM', & Hune 1983, p.78.
Fortune 'Managing Innovators', & March 1985, pp.181-182.
Foster R.N. 'LInkIng RAD to strategy', The McKInsey Quarterly,
enter 1981, pp.35-52.
Foster R.N. 'BoostI hg the pay-off Drom R&D', Research Management
Sanary 1982, p.22.
Foster R.N. A cal I for vision In managent technology', The McKInsey
Quaterly, Summer 1982, pp.26-36.
Freeman, C. The Économies Of Industrlal Innovation Penguln Book
Harmondsworth, England, 1974.

M6
Freeman, C. he determlrtënts of Innovation Future Hune 1979, pp.206-
215.
Freeman, C. Long Aves In The World Economy, Frances Ponter London 1984.
Freeman, J. and W. Boeker, he ecologlcal analysas of business
strategy', Cal Ifornla Management Revlew, Spring 1984, vol.26, n.
pp. 73-86.
Freeman, J. and M.T. Hannah Tiche luth and the dynamlcs of organlzatlonal
populations', American Journal of Soclology, August 1983, vol 38, n.
pp. & 116-1 145.
Frohman, A.L.S 'Puttlng technologie Intl stratégie planning Cal Ifornla
Management Revlew, Conter 1985, vol.27, n. pp.48-59.
Frontlnl, G.S. and P.R.E RIchardson, design and démonstration
the Chey to Industrlal Innovation Slogan Management Revlew, Summer
1984, pp.39-49.
Frost, S.H. and E.A. Thlétard, Des Stratégies pour les Secteurs en Déclin
Revue Française de Gestion Mars-Avril 1981
Fruhan, W. The FIght for Compétitive Avantage a Stud of the United
States Domestlc Trun Air Carrier Division of Research, Harare
Uni vers Ita Boston 1972
Fusfeld, A.R.S and R.N. Foster The Delphi Technique Surve and Comment
Business Horizon Hune 1969
Galbralth, S.R. 'Deslgnlng the Innovatlng organlzatlon' In Compétitive
Stratégie Management pp.297-318, 1973
Galbralth, S.R. Organlzatlonal Design Addlson-Wesley, 1977
Galbralth, S.R. he stages of growth', Journal of Business Strategy,
1983, vol. O pp.70-79.
Galbralth, S.R. and C.A. Nathanson, Strate Implementatlon: The Rôle Of
Structure And Process West Publlshlng C. St Paul Mlnnessota, 1978.
Galbralth, S.R. and C.A. Nathanson, The Rôle of Organlzatlonal Structure and
Process In Strate Implementatlon, In D.Z. Schendel and C.A. Hofei (Eds),
Stratégie Management LIttle, Brown and Compans Boston 1979

227
Garglulo, B.R. et a. Developfng Sytematîc Procédures for Dîrectlng
Research Programs, IRE Transaction Engineering Management EM-8, 1961
Garvîn, D. 'Spln-offs and the new Farm formation process Californie
Management Revlew, Sanary 1983, vol.25, n. pp.3-20.
Gellnler, 0., Nouvelle Direction de l'Entreprise Personnaliste et
Compétitive Hommes et Technique Suresnes 1979
Gellnler, 0., Stratégies Externes et Internes de l'Entreprise Compétitive
Harare l'Expansion, pp. 78-90, Hiver 1981-82
Gershefskl, T.W.M Building a Corporate Financial Model. Harare Business
Revlew, July-Aug. 1969
Gllbreth, D.B. Primer of Sclentlflc Management Van Nostras Compans New
York 1912
Globe S. G.E. Levy and c.m. Schwartz, Fey factor and évents In the
Innovation process Research Management Jully 1973, pp.8-15.
Gluck, F. and R.N. Foster 'Managing technologlcal change Harare
Business Revlew, 1975
Gibel l S.H. and W. Rude I lus Managent Innovation Bessons Drom the Carda-
Pacant Industrie Slogan Management Revlew, Summer 1985, pp.29-43
Godet M. Veille Prospective et Flexibilité Stratégique Futurtbles, p.-
P Septembre 1985
Godet M. La Métamorphose des Entreprisse Revue de l'Industrie, No.1, 1986
Gold B. Strengthenîng Managera Approche to Improvlng Technologlcal
Capable Itles, Stratégie Management Journal vol. O 29-40, 1983
Gordon W.J.J., Synectlcs, Harper & Town New York 1961
Gouldner, A.G. Patterns of Industrlal Bureaucracy, Free Press 1954
Granstrand, 0., Technologie Management And Markets, Frances Ponter
London 1982.
Brant S.H. and B.R. King Strate Formulation Analytlcal and Normative

228
Modem s In D.B. Schendel and C.A. Hofei Stratégie Management Llttle, Brown
and Compans 1979
Greenwood, P. and H. Tomas A Reflex of Analytlcal Modem s In Stratégie
Planning Oméga 9(4), 397-417, 1981
Grelner, L. Évolution and Révolution as Organlzattons Brown Harare
Business Revlew, July-August 1972, pp.37-46
Grossman, S.B.R The Suprême Court and Social Change American Behavloral
Sclentls, vol. 13, 1970
Gruger Q.H.S S.H. Poensgen and F. Prakke, he Isolation of RAD Drom
corporate management Research Management Novembre 1973, pp.27-32.
Gullford, J.P.L The Nature of Humant Intelligence McGraw H & & & & New York
1967
Gustafson, S.H. A.L.S Cats-Barll and F. Aleml, Développent and Teston of a
Bayes I an and a MAU Modem s to Predlct and Explant Implémentation Success,
Hune 1985
Hagen J. and M. Allen Eel atlonshI of Central IzatI on to Otter Structural
Propertles, Administrative Science Quarter y 12:72-92, 1967
Hall M. and L. Welss, Farm Saze and Prof Itabî I Ita Reflex of Eco nom les and
StatI stlcs, 49:319-331, 1967
Hall W.K., Stratégie Planning Modes Are Top Managers Real I y FIndIng Them
Useful?, Journal of Business Pollcy, Conter 1973
Hamllton, G.S. and M.A.D Modes An Optlmlzatlon Modem for Corporate Financial
Planning Opérations Research, vol.21, 677-692, May-June 1973
Hannah M.T. and J. Freeman, he population ecology of organlzattons',
American Journal of Soclology, 1977, vol.82, n.5, pp.929-964.
Hannah M.T. and J. Freeman, structural Inerte and organlzatlonal
change American Soclologlcal Revlew, 1984, vol.49, pp. 149— & A.
Har lgan,K.R., 'Strategy for Joint ventures', Columbia Uni vers Ita
Worklng Paper Septembre 1984.
Hart A. A Char for Evaluatlng Produit RAD Projects, Operatlonal Research

Quarterly, vol. 17, 1966
229
Harvey, E. and R. Mill Patterns of Organ fzatlonal Adaptation a Pol Itlcal
Perspective In MN. Zald, (Ed.), Power RN Organlzatlons, Vanderbîlt
Unîverslty Press Nashvîlle, Tenna 1970
Hatten K. D. Schendel and A. Copper A Stratégie Modem of the U.S. Brewfng
Industrie Academy of Management Journal 21:592-610, 1978
Hatzlchronoglou, T. Mutations Technologiques et Compétitivité de
l'Industrie Française Dix Constatation Revue d'Economie Politique 5:578-
595, 1985
Haye R.N. and S.H. Week wrlght, 'LInk manufacture ING process and produit
I Ise cycles& & Harare Business Revlew, January-February 1979, pp.133-
140.
Haye R.N. and S.H. Week wrlght, he dynamlcs of processproduit
I Ise cycles', Harare Business Revlew, March-Aprll 1979,
pp. 127-136.
Heenan, D.A.P and R.B.E Addleman, Quantitative Techniques for Tokays
Décision Maersk Harare Business Revlew, 1976
Hertz D. and A.G. Cari son Selectton, Évaluation and Control of RAD
Projects, In N.V. Dean (Ed), Opérations Research In RAD Wlley, 1963
Hertz D. and H. Tomas RIsk Analysas and I Application 1984
Hess S.A. A Dynamo Programmant Approche to RAD Budgettlng and Produit
Selectton, IRE Transaction Engineering Management EM-9, 1962
Hlppel, E. von he dominant rôle of user In the sclentlflc Instrument
Innovation process Research Pol Ici 1976, vol.5, pp.212-239.
Hlppel, E.V.S 'Successful and fatlîng Internai corporate ventures: an
emplrlcal analysls', Industrlal Marketing Management 1977, vol.6,
pp. 163-174.
Hlavacek, S.D.F Howard more successful venture management Journal of
Marketing Octobre 1974, pp.56-60.
Hamel I W.C. and R.N. DIpboye, Essentiels of Industrlal and Organlzatlonal
Psychologie The Dorset Press Homewood, Illinois 1976

230
Hubert G.P.U Méthode for Quantlfyîng Subjective Probable tes and Multiattribut
Utilities, Décision Science 5:430-458, 1974
Hughes, T.P.G conservât Ive and radical technologies', In Lundstedt,
D.B. and E. Jr. Colglazler (éd.), Managent Innovation New-York
1982.
Hunslcker, H.Q.E Dow Industry Gol lats lofe Thel once Seure markets
to Innovât Ive Davos & & Management Revlew, Hune 1984, pp.39-41.
Hunt M. Compétition In the Major Home Appl lance Industrie Doctoral
Dissertation Harare Unlverslty, Boston 1972
Intel Igator, M.D.F Econometrlc Modes Techniques and Application
Prentlce Gal I 1978
Jans I.L.M Groupthlnk, Psychologie Tokay 5(6):43-46, 1971
Jarnfou, P. L'Entreprise comme Système Politique PUFF Paris 1981
Sel Inek, M. 'Organlzatlon structure the Basle
conformations', In Jelinek, M. J.O. Latterez and R.E.S Moles Organ Izatlons
By Design Thory And Practlce, Business Publication Inc Piano
Taxas 1981.
Jemlson, D.B. he Importance of an Intégrative approche to stratégie
management research', Academy of Management revlew, 1981, vol.& n.4,
pp.601-608.
Jemlson, D.B. he contributions of administrative behavlor to stratégie
management Academy of Management Revlew, 1981, vol.6, n.4, pp.633-642.
Jemlson, D.B. and D.B. Sltkîn, Acquisitions Con Be a Problème Harare
Business Revlew, March-Aprll 1986, pp. 107-110
Jennergen, O.P.A n the design of Inventives In business flrms, a
surve of Som research', Management Science 1980, vol.26, pp.180-201.
Jons C.A. and D.K. Wllemson, 'Emerglng patterns In new venture
management Research Management 1972, vol. 15.
Kahn, H. and A.G. Wiene The Bear 2000, MacMîllan, 1967

231
Kamlen, M. I. and ML. Schwartz, 'Market structure and Innovation a
survey', Journal of Économie Llterature, 1975, vol. 13, pp.1-37.
Canter R.M.A 'Innovation, the Onay Hope for tomes Ahmad & & Slogan
Management Revlew, Summer 1984, pp.51-55.
Kantrow, A. he strategy-technology connections Harare Business
Revlew, July-August 1980, pp.6-21.
Kata D. and R.N. Kahn, The Social Psychologie of Organlzatlons, WIley, New
York & 966
Kata D. and R.N. Kahn, Organlzatlons as Social System In E.E.E Lower II
C.A. Nadler and C. Cammann, Organlzatlonal Assessment, WIley, New York 1980
Kazanjlan, D.K. and R.0razfn, Implementlng Manufacture ING Innovation
Crltlcal Chalcis of Structure and Staff ING Rôle Humant Ressource Management
25(3)385-403, 1986
Keeney, R.N. and H. Ralffa, Décisions wlth Multiple Objective WIley, 1976
KImberly, S.R. Issues In the Création of Organlzatlons: Initiation
Innovation and Instltutlonal Izatlon, Academy of Management Journal 22:437-
457, 1979
Klrkland, R.I.Jr, a Blue IBM's love Intl communication Fortune &
Octobre 1984, pp.52-62.
(Knlght, C.E.A A. descriptive modem of the întra-flrm Innovation
process Journal of Business vol.40, 1967, pp.478-496.
Kotler, P. Compétitive Stratégies for New Produit Marketing over the Life
Cycle Management Science Dec. 1965
Kotter, J. The Psychologlcal Contracta Managent the Joîn-up Process
Callfornla Management Revlew, 15(3)91-99, 1973
Kotter, J.P.L An Intégrative Modem of Organlzatlonal Dynamisa In E.E.E
Lawler, C.A. Nadler and C. Cammann, Organlzatlonal Assessment, WIley, New
York 1980
Larcin H.P. et R. Relater Structures de Pouvoir et Identité de
l'Entreprise, Nattant Paris 1979

232
Lauensteln, M.C.M Dîverslf Icsatlon, +he HIdden Explanatlon of Success, Slogan
Management Revîew, Fal 1985, pp. 49-55
Laurer R. et C. Paradeuse Le Prince Bureaucrate Flammarion Paris 1982
Lavole, D. and S.A. Colbert Stages In Organlzattonal Development, Humant
Relation 31:417-438, 1978
Lawrence P.R.E and J.O. Lorsch, Organlzatlon and Environment, Harare
Unlverslty Press 1967
Learned, E.P.S et al. Business Pol Ici Test and Casse Richard D. Irwln, 1965
Leavltt, H.P. Manager I al Psychologie Unlverslty of Chicago Press 1965
Le Mogne S.L.S Les Systèmes de Décision dans les Organisation PUFF
Paris 1974
Lena R.T.E Déterminants of Organlzatîonal Performance an Interdlscîpl Inard
Revîew, Stratégie Management Journal vol.2, 131-154, 1981
Lena R.T.E and H.P. Lanford, The Substitution Phenomenon, Business Horizon
Fev. 1972
Levlne, S. and P.E.E White Ex change as a Conceptuel Framework for the Sucy
of Interorganlzatlonal Relatlonshlps, Administrative Science Quarterly,
5:583-601, 1961
Levlne, S.S. and MS. Yalowltz, 'Managing technologie the Chey to successful
business growth', Management Revîew, Septembre 1983, pp.44-48.
Levlnson, H. C.R. Prlce, G.S. Munden, H.P. and and C.M.T Colley Men
Management and Mental Health Harare Unlverslty Press Cambridge MA 1962
Levttt, T. marketing myopla', Harare Business Revîew, July-August
1960, pp.45-56.
Levttt, T. Exploit the Produit Life Cycle Harare Business Revîew, Nov-Dec
1965
Lewln, AY. and J.O. MInton, Determlnlng Organlzatîonal Es fectlveness:
aboter Look and an Agenda for Research, Management Science 32(5)514-538,
1986

233
Llberatore, M.J.C and G.S. Titus The Practtce of Management Science In RAD
Projet Management Management Science 29(8), 962-974, ,1983
LIntner, J. Securlty Process RIsk and Maximal Gains Drom Diversification
Journal of Finance Dec. 1965
LIppItt, G.M. and S.H. Schmldt, Crises In a Developîng Organlzatton, Harare
Business Revlew, 45:102-112, 1967
LItwak, E. and L.G. Hylton, Interorganlzatlonal Analysas a Hypothèses on
Coordlnatlng Agencles, Administrative Science Quarter y 6:395-420, 1962
Lltterer, J.A.M Organlzatlons: Structure and Behavlor, WIley, New York 1963
Lovdal, M.M.G 'Developîng venture pogroms wlthln large corporations',
Management Revlew, Hune 1984, pp. 18-24.
Lussato, B. Introduction Critique aux Théories des Organisation Dynode
Paris 1977
Lysent F.S.E Uslng Parsons' Functlonal Analysas In the Stud of Public
Organlzatlons, Administrative Science Quarter y 20:59-70, 1975
MacNulty, C.A.R. Scénario Développent for Corporate Planning Future
April 1977
Mahajan, V. and M.D.F. Schiemann General Ized Mode I s for the Time Pattern of
the Diffusion Process IEEE Transaction Engineering Management 24:12-19,
1971
Maldlque, M.A.B 'Entrepreneurs, champions and technologlcal Innovation
Slogan Management Revlew, Conter 1980, pp.59-76.
Maldlque, M.A.D and R.N. Haye he art of hlgh-technology management
Slogan Management Revlew, Conter 1984, p p. & 9—3 & &
Maller N.R.F., Assais and LIabllItles In Group Problème Solvlng,
Psycho ogival Revlew, 74:239-249, 1967
Malsorrouge, S.G.I Réflexions sur la Gestion des Entreprises dans les Années
1980, Humanisme & Entreprise uniate
Mansfleld, E. Technologlcal Change and the Rate of Imitation Econometr Ica
Oct. 1961

234
Mansfleld, E. Dow economlsts Dee R&D', in Management Of Technologie cal
Innovation Harare Business Reflex (éd.), Boston 1982.
March J. and H. Simon Organlzatlons, John WIley, New-York 1958.
MarchettI, C. Society as a learnlng system dlscovery, Invention and
Innovation cycles revlslted', Syracuse Schola pp.21-37.
Marcus M. Prof tabi I City and Elze of FIrm, Som Farter Évidence Reflex of
Économies and Statlstlcs, 51:104-107, 1969
Markowltz, H. Pontfol la Sel ectlon, WIley, 1959
Marrett, D.B. On the Spécification of I nterorganlzatlonal Dimension
Soclology and Social Research, 61:83-99, 1971
Martinet A.C.M Stratégie Vilbert Paris 1983
Martino J.P.L Technologlcal Forecastlng for Décision Maklng, Elzevier North
Holland 1983
Madon E. Price and Production Pol Icles of Large-scale Enterprises,
American Économie Revlew, 29:61-74, 1939
Mayo E. The Humant Problème of an Industrlal Civilisation MacMIIIan, New
York 1933
McGlnnls, M.A.D and R. Ackelsberg, affective Innovation management
mlsslng I T NC In stratégie planning Journal of Business Strategy, Summer
1983, vol.O n. p.59.
McKelvey, B. Organlzatlonal Systematlcs, Unlverslty of Callfornla Press
Berkeley 1982
Mechlln, G.S. and D. Berg 'Evaluatlng research-ROI Is Nat enough',
Harare Business Revlew, 1980, pp.79-85.
Mensch, B.O.P Sal mate In Technologie Ballînger, 1973
Mensch, B.O.P innovation management In dlverslfled corporation
problème of organlzatîon', Humant Systems Management 1982, vol.3,
pp. 10-20.

235
Mendel H. Innovation Intégration and Marginal & Ry s a Surve of Physlclans,
American Soclologlcal Revîew, vol.25, 1960
Merlot S.G.I et A. Labourdette, Éléments de Gestion Stratégique des
Entreprisse Cuja Paris 1980
Metton R.C.B Social Thory and Social Structure New York Free Press 1968
Metcalfe, S.L.S Systems Mode I s Économie Mode I s and the Causal Texture of
Organlzatîonal En Ironments: an Approche to Macro-organlzatlon Theory, Humant
Relation 27:639-663, 1974
Metcalfe, S.S. impulse and diffusion In the Tudy of technîcal
change Future Octobre 1981, pp.347-359.
Moles R.N. The Rôle of Organlzatîonal Learnlng In the Zarly Création and
Développent of Organtzatlons, In S.R. Klmberly and R.N. Moles The
Organlzatîonal Life Cycle Jossey Bass San Francisco CA 1980
Miller R.E.R Innovation Organlzatlon And Environment, Université de
Sherbrooke 1971.
Minnesota Mining and Manufacture ING Compans Our Tory So Far Notes Drom the
Firat I Yeats of M Compans M Compans St Paul MN 1977
Minnesota Mining and Manufacture ING Compans Annula Report Farm 10K,
December 1985
MIntzberg, H. The Structurant Of Organîzatlons, Prentlce Hall
Englewood Cllffs, New Jersey 1979.
MIntzberg, H. Persona Communication McGIII Unlverslty, Montréal Canada
1985
MIntzberg, H. and J.O. Water Tracklng Strate In an Entrepreneur lai Forma
Academy of Management Journal 25(3), 465-499, 1982
MIntzberg, H. and J.O. Water The and of Strateglsts, In S. Srlvastva and
Associates The Exécutive Monda Jossey-Bass Publlshers, New York 1983
Moore W. and ML. Tushman, 'Managing Innovation over the produit lofe
cycle In Moore W. and ML. Tuchan (éd.), Readlngs In The Management
Of Innovation Pltman, Boston 1982, pp.131-150.

M6
Motton J.A.M Organlzlng For Innovation McGraw HIIS New-York
1971.
Mottley, C.M.T and R.D.S Newton The Sélection of Projets for Industrlal
Research, Opérations Research, vol.O 1959
Mowery, D. and N. Rosenberg, he Influence of Marcet demande upon
Innovation a crltlcal reflex of Som redent emplrlcal studles', Research
Pollcy, April 1979, pp.103-153.
Munsterberg, H. Psychologie and Industrlal Efflcîency, Houston MIfflIn
Compans Boston 1913
Mers S. and D.B. Marquis Successful Industrlal Innovation National
Science Fondation NFS 69-17, 1969
Mers S. and E.A. Sweezy, 'Why Innovations faII Technologie Revlew, March-
April 1978, pp.40-46.
Nason, G.K.S American Perceptions of Barles to Innovation In Innovation
Économie Change and Technologie Pollcles, Proceedlngs of a Semînar on
Technologîcal Innovation Bonn West Germania 1977
Taylor TH. and F. Tapon The Capital Asset Prlclng Model. Management
Science vol.28, 1166-1173, Oct. 1982
NegandhI, A.R.F Interorganlzatlon Theory, Kent State Unlverslty Press 1975
Nelson R. The Simple Économies of Basic Sclentlflc Research, Journal of
Pol Itlcal Economy, Hune 1959
Nelson F.R.R A.P. Pec and ED. Kalachek, Technologie Économie
Goth And Économie Pollcy, Brooklngs Institution Washington 1967.
Nelson B.R. and S.H. WInter, n search of a seul Thory of
Innovation Research Pollcy, Sanary 1977, pp.36-76.
Nelson R. and S.H. WInter, An Evolutlonary Thory Of Économie
Change The Belknap Press of Harare Unlverslty Press Cambridge
Massachussets, 1982.
Newman H. Stratégie Groups and the Structure-Performance Eel atlonsh Io
Business Eoonomlcs Commlttee, Harare Unlverslty, Boston 1973

237
Nlelsen, R. A.P. Peter and R.D.S Hlsrlch, 'Intrapreneurshlp sirategy for
Internai markets: corporate non-profit and government Institution
cases', Stratégie Management Journal 1985, vol.& pp.181-189.
Norman R. 'Organlzatlonal InnovatI Nessa produit variation and
reorientation', Administrative Science Quaterly, 1971, vol. 16, pp.203-215
North H.Q.E and D.K. Dyke Probes of the Technologlcal Future Harare
Business Revlew, MayJ une 1969
Nystrom, H. Creatlvlty And Innovation John WIley and Sons Toronto 1979
& d B.S.A corporate dtrectors choule rethlnk technology', Harare
Business Revlew, 1982.
& leros, F.S.E he process lofe cycle and the technologlcal and
compétitive évolution of Industries', Université de Montréal HECQ
Worklng Paper n.84-12, Novembre 1984.
& leros, F.S.E 'Emerglng technologies and the burnous of ploneers',
Université de Montréal HECQ AJAC Conférence 1985.
& mo B. Retraduit Ion the Chey to Creatlvlty, Journal of Créative
Behavlor, 11:216-221, 1977
>|)sborn, A.F.A Amplie Imagination Scrlbners, New York 1963
OuchI, A.G. Markets, Bureaucracles, and Clans Administrative Science
Quarter y 24:129-141, 1980
Papin R. Nature Importance et Limites de la Stratégie d'Entreprise,
Direction et Gestion 2:27-20, 1979
Paris F. Missions Stratégiques de l'Equipe Dirigeante Dynode Paris 1980
Parsons, T. The Social System Free Press Glencoe, Illinois 1951
Parsons, T. Suggestions for a Soclologlcal Approche to the Thory of
Organlzatlons, Administrative Science Quarter y 1:63-85, 1956
Parsons, T. Structure and Process In Modem Society Free Press Glencoe,
Illinois 1960
Matton A. Stretch tour Productif Earnlng Years: Top Managements Shake In

238
+he Produit Life Cyclet Management Revlew, Hune 1959
Pavana R. Strate and Structure of Ita Lon Enterprise, Doctoral
Dissertation Graduât Schéol of Business Harare Unlverslty, Boston 1972
Pennlngs, J. The Relevance of a structural -contl Agency modem for
Organlzatlonal Effectlveness, Administrative Science Quarterly, 20:393-410,
1975
Perron C. Organlzatlonal Analysas a Soc loi ogl cal Vie Wadsworth
Bel mont CA 1970
Perron C. Complet Organlzatlons: a Crltlcal Essay 3rd Édition Randon
House New York 1986
Peterson, E.A. and D.B. Berger 'Entrepreneurshlp In organlzatlons:
évidence Drom the Poplar musc Industry', Administrative Science
Quarterly, 1971, vol.16, pp.97-106.
Pfeffer, J. and B.R. Salanctk, The Externat Control Of Organlzatlons,
A Ressource Dépendance Perspective Harper&Row, New-York 1978.
Pooley-Dyas, G. Strate and Structure of French Enterprise, Doctoral
Dissertation Harare Unlverslty, Boston 1972
Porter L.E.D Compétitive Strategy, The Free Press New-York 1980.
Porter L.E.D he contribution of Industrlal organlzatlon to stratégie
management & & Academy of Management Revlew, 1981, vol.6, n.4, pp.609-620.
Porter L.E.D he technologlcal dimension of compétitive strategy',
Research On Technologlcal Innovation Management and Pol Ici 1983, vol.1,
pp. 1-33.
Porter L.E.D Compétitive Avantage Cream hg And Sustalnlng Super lor
Performance The Free Press New-York 1985.
Pugny D.S.I D.K. Hlckson, C. Hlnnlngs and C. Tuner Dimensions of
Organlzatlonal Structure Admlnl strate Science Quarterly, 13:65-105, 1968
Qulnn, S.B.R 'Technologlcal Innovation entrepreneurshlp and strategy',
Slogan Management Revlew, 1979, vol.20, n. pp.19-30.
Qulnn, S.B.R Managent Innovation Control led Chais Harare Business Revlew,

MayJ une 1985, pp.73-83
239
Qulnn, R.E.S and K. Cameron Organîzatlonal Life Cycles and Shîftîng Crêtera
of Effectfveness: Sole Prellmlnary Évidence Management Science 29(1)33-51,
1983
RInd, L.W.C he rôle of ven+ure capital In corporate development',
Stratégie Management Journal 1981, vol.2, pp.169-180.
Roberts D.B. internai entrepreneur Io strate for growth',
Business Quaterly, 1972, vol.37, pp.71-78.
Roberts D.B. new ventrues for growth', Harare Business Revlew, Jully-
August 1980, pp.134-142.
Roberts D.B. and C.A. Berru enter ING new buslnesses: selectlng
stratégies for success', Slogan Management Revlew, Spring 1985, pp-3— & P
Roberts D.B. and A.L.S Frohman, Internai Entrepreneur J p Strate for
Growth, The Business Quarterly, Spring 1972, pp.71-78.
Roberts D.B. and A.R.S Fusfeld, staff ING the Innovatlve technologiebase
Organ Izatlon', Slogan Management Revlew, Spring 1981, pp.19-34.
Robins J.A.M Ecology and Society a Lesson for Organ Izatlon Theory, Drom
the Logic of Economies, Organlzatlon Studîes, 6(4)335-348, 1985
Robinson D.A.P The Business Environnent In 1975-1985, The Hudson Instltute,
1974
Rochet C. Diversification et Redéploiement de l'Entreprise, Éditions
d'Organisation, Paris 1981
Rockart, J.F.E and MS. Scott Motton implications of changes In Information
technologie for corporate strategy', Interface vol. 14, n. pp.84-95.
Rockart, J.F.E and A.D.P Crescenzl, 'Engagtng top management In Information
technology', Slogan Management Revlew, Summer 1984, pp.3-16.
Roehrlch, R. he relatlonshlp between technologlcal and business
Innovation Journal of Business Strategy, Fal I 1984, vol.5, pp.60-73.
Roth Isberger, S.S. and G.S. Dickson, Management and the Worker, Harare
Unlverslty Press Cambridge MA 1939

240
Roger E.A. and F. Shoemaker, Communication of Innovation a Cross Cultural
Approcha Free Press 1971
Rohrbaugh, J. Improvlng the Quai City of Group Jlidgments: Social Jugent
Analysas and the Delphi Technique Organlzatlonal Beautor and Humant
Performance 24:73-92, 1979
Rosenberg, N. Technologlcal Interdépendance In the American Economy,
Technologie and Culture Sanary 1979, pp.29-50
Rosenbloom, R. and A. Kantrow, he nurturlng of corporate strategy',
Harare Business Revfew, Sanary 1982, p.115.
Ross S.A. The Arbitrage Chevry of Capital Asset Prlclng, Journal of
Économie Theory, Dec. 1976 & 341-360
Rethel I R. rom Invention to new business via the new venture
approach', Management Décision 1975, vol. 13, pp.10-21.
Rethel I R. and W. Zegveld, Industrlal Innovation And Public Pol Ici
Frances Ponter London 1981.
Rethel I R. and W. Zegveld, Relndustrlal Izatlon and Technologie Longmont
Esse United Ktngdom, 1985
Rumelt, R.P.C Startegy, Structure and Financial Performance of the Fortune
500, 1950-1970, Doctoral Dissertation Graduât Schéol of Business Harare
Unlverslty, Boston 1972
Rumelt, R.P.C Strategy, Structure and Économie Performance Harare
Unlverslty Press 1974
Saln-h-Paul, R. and P.F.C Tenlere-Buchot, Innovation et Évaluation
Technologique Entreprise Moderne d'Edition, Paris 1974
Sal lenave, J.P.L La Stratégie de l'Entreprise Face à la Concurrence
Éditions d'Organisation, 1973
Sapolskl, G.M. 'Organlzatlonal structure and Innovation Journal of
Business 1967, vol. 40, pp.497-510.
Sache K. Sole Action Impl îcatlons of Corporate Culture a Managers Guide
to Action Organlzatlonal Dynamisa 12(2), 1983

Scheln, E.N.A Organtzatlonal Psychologie Pren+fce Hall Englewood Cllffs,
NSC 1980
&
Scheln, E.N.A Coing to a New Awareness of Culture Slogan Management Revlew,
25(2), Conter 1984
Scherer F.M.F Industrlal Marcet Structure And Économie Performance
Rond cal Ly and Compans Chicago 1970.
Schmookler, J. Invention And Économie Growth, Harare Uni vers City
Press Cambridge Massachussets, 1966.
Schoeffler et a. Impact of Stratégie Planning on Profit Performance
Harare Business Revlew, March-Aprll 1974
Schon, D.A.P Beton the Stable State Basic Book New York 1971
Schon, D.A.P champions for radical new inventions', Harare Business
Revlew, April 1963, pp.77-86.
Schumpeter J. The Thory of Économie Development, Harare Unlverslty
Press 1932
Schumpeter J. Business Cycle McGraw Hall New York 1939
Scott B.R. Stages of Corporate Development, Interpol legato Case Clearing
Houde Boston MA 1971
Scott B.R. The Industrlal State Old Mythe and New Real Iles Harare
Business Revlew, 1973
Scott A.G. Organîzatlonal Ste Sole Theoretlcal Issue Management
International 5-6, 1961
Selznlck, P. Fondations of the Thory of Organlzatlon, American
Soclologlcal Revlew, 13:25-35, 1948
Selznlck, P. An Approche to a Thory of Bureaucracy, American Soclologlcal
Revlew, 28(5), 116-135, 1949
Selznlck, P. Leadership In Administration Town Peter son and Compans
Evanston, Illinois 1957.

242
Charpey W.F., ASImplIfled Modem for Pontfol la Analysas Management Science
277-293, Jan. 1965*
'éhepard, H.A.S innovation reslstlng and Innovation produclng
Organ Izatlons & & Journal of Business 1967, vol.40, pp.470-477.
Sherman, S.P.A 'Elght Big masters of Innovation& & Fortune & Octobre 1984,
pp.66-84.
Shilling C. and J.Bernard, Informai Communication amont B lo-slentl tss
Report 16A, George Wahlngton Unlverslty, Washington D.C. 1964
Sllberston, A. impact of the patent system on the création and
diffusion of new technology', Oméga 19*75, vol .3, pp.9-22.
Simon H. ADM Inlstratlve Behav Lor MacMIIIan, New York 1957
Sklnner, W. opérations technologie blond spot In stratégie management
Interface vol. 14, n. pp.116-125.
Smith A. An Inquart Intl the Nature and Causes of the Health of Nation
Modem Llbrary, New York 1937, original Ly publlshed In 1776)
Snow C. The Rôle Of Manager I al Perceptions In Organ Izatlonal Adaptation
an Explora tory Stud Worklng Paper Graduât Schéol of Business the
Pennsylvanie State Unlverslty, Unlverslty Park PA 1976
Souder G.E. 'Organlzlng for modem technologie and Innovation a
revtew and synthesîs', TechnovatI on 1983, n. pp.27-44.
Stevenson, H.P. and D.Z. Gumpert, he Heart of entrepreneurshlp', Harare
Business Revlew, March-Aprll 1985, pp.85-94.
Stlnchcombe, A.L.S Social Structure and Organ Izatlons, In A.G. March (Ed.),
Hand book of Organ Izatlons, 142-193, Rond cal Ly Chicago 1965
Stogdlll, R.M.A Dimensions of Organlzatlon Theory, In C.D. Thompson (Ed.),
Approches to Organ Izatlonal Design Unlverslty of Pittsburgh Press 1966
Stopford, J. and L. Wells J. Managent the Multldlvlslonal Enterprise,
Basic Book New York 1972
Strlngler, J. Operatlonal Research for Mu Itl-Organ Izatlons, Operatlonal
Research Quarterly, vol. 18, 1967

243
Tabatonl, B. et P. Jarnlou, Les Systèmes de Gestion Politique et
Structure PUFF Paris 1975
Tarondeau, S.C. Produits et Technologie Choix Pol Tilques de l'Entreprise
Industrielle Paris Dal loz-Gestlon, 1982
Tasse J. La Méthode SRI d'Analyse Stratégique Futurlbles, 72:43-50, 1983
Taylor R.W.E The Prlnclples of Sclentlflc Management Harper & Town London
1911
Terce D. économie analysas and stratégie management Cal Ifornla
Management Revlew, Spring 1984, vol.26, N.C.
Thlétard, R.A.G La Stratégie Mixte et ses Syndrome Harare l'Expansion,
Automne 1981, pp. 46-56
Thlétard, R.A.G La Stratégie d'Entrepr Ise McGraw Hall Paris 1984
Thlétard, R.A.G S-frat^gles de Revitalisation pour les Activités en
Difficulté Revue Française de Gestion Mars-Avrilal 1986, pp. 111-118
Thompson S.D.F Organ Izatlons In Action New York McGraw Hall 1967
Thompson C.D. and G.S. McEwan, Organtzatlonal Goal s and Envtronmentî Goal-
Settons as an Interactlng Process American Soclologlcal Revlew, 23:23-31,
1958
Thompson P.H.S and G.E. Dal ton d'Arc RAD organlzatlons obsolete?',
Harare Business Revlew.
Thompson V.A.E Modem Organlzatlon, Alfred A. Knopf, New York 1961
Thompson V.A.E Bureau crocy and Innovation Unlverslty of Alabama Press
Alabama 1969
Torbert, B.R. Pre-bureaucratlc and Post-bureaucratlc Stages of
Organîzatlonal Development, Interpersonnel Development, 5:1-25, 1974
Townsend J. et al.. Innovations In Brutal slice 1945, Worklng Paper #16,
Science Poly Research Unit Unlverslty of Susse 1981
Turoff, M. Delphi and I Potentat Impact on Information Systems,' ADI PF

244
Conférence Proceedlnâs, 39017-326, 1971
Tushman, ML. and P. Anderson 'Technologîcal dîscontl nul fies and
Organ Izatlonal envlronmertts', Graduât Schéol of Business Columbia
Unlverslty, Worklng Papes #47, March 1985.
Tushman, ML. and R. Kata Externat Communication and Projet Performance
an Investigation Intl the Rôle of Gatekeepers, Management Science
26(1 1):1 071-1 085, 1980
Tushman, M. and D. Nadler, Organlzlng for Innovation Californie Management
Revlew, 28(3), 74-92, 1986
Tyebjee, B.T. and A.V.S Bruno A Modem of Venture Capital Is Infestent
Actlvlty, Management Science vol.30, n.9, 1051-1066, 1984
Ulrich D. and D.B. Barbey Perspectives In Organ Izatlons: Ressource
Dependence, Efflclency, and Population Academy of Management Revlew,
9(3)471-481, 1984
Ulrich D. and B. McKelvey, The Population Perspective Taxonomie and
Sélection RN Envlronmental Niche Unpubllshed Paper UCLA, Graduât Schéol
of Management 1983
Urban, G.M. and S.R. Hausser Design And Marketing Of New Products,
Prentlce Hall Englewood Cllffs, New Jersey 1980.
Utterback, S.M.A he process of technologîcal Innovation wlthln the
flrm', Academy of Management Journal 1971, vol. 14, pp.75-88.
Utterback, S.M.A A dynamo vlew of Innovation In flrms', In Smith R.N.
and C.D. Lardon (éd.), Innovation And US Research: Problème And
Recommendatlons, The American Chemical Society Washington DC 1980.
Utterback, S.M.A persona communication 1986
Utterback, G.M. and G.S. Abernathy, A dynamo modem of process and
produit Innovation Oméga 1975, vol.& pp.639-656.
Utterback, G.M. and E.A. Burack, identification of technologîcal
threats and opportunltles by flrms', Technologîcal Forecastlng and
Social Change 1975, vol.& pp.7-21.
Van de Vena A.G. Zarly Planning Impl ementatlon and Performance of New

245
Organlzatlons, In S.R. Klmberly and R.N. Moles (Eds), T Organlzatlonal
Life Cycle Jossey-Bass, San Francisco CA 1980
Van de Vena A.G. and A.L.S Delbecq, Nominal verjus Interactlng Groups for
Commette Décision Makong Effectlveness, Academy of Management Journal
14:203-212, 1971
Van de Vena A.G. D.C. Emmett and R. Kong J. Frameworks for
Interorganlzatlonal Analysas In A.R.S Negandhl (Ed.), Interorganlzatlon
Theory, Kent State Unlverslty Press 1975
Van de Vena A.G. and D.K. Ferry Measurlng and Assesslng Organ Izatlons,
Wîley, 1980
van Duljn, J.J., The Long Ave In Économie Cycle Van Gorcum, Assen
Netherlands, 1983
Vesser S.H. and A.G. Holmdahl, Dow venture management fares In
Innovât Ive companles', Research Management 1973, vol.1973.
VIcere, A. 'Managing Internai entrepreneurs', Management Revlew,
Sanary 1985, pp.31-32.
Von Bertalanffy, L. General System Theory, General System & pp.1-10,
1956
Von Wlnterfeld, D. and W. Edwards, Décision Thory and Behavloral Research
Cambridge Unlverslty Press 1986
Wall Street Journal l I led unit free of Red tape jerks to develop Orphe
technologies', & Septembre 1984.
Wall Street Journal compétition leads Securlty Pacifie to Farm inusuel
Infestent unit & Septembre 1984.
Wall Street Journal 'Tektronix new-venture subsldlary brlngs BenesI to
parent splnoffs' & Septembre 1984.
Wall Street Journal 'Dlfflcult swltch: smokestack managers movlng to
htghtech flnd the gong tough', & Sanary 1985.
Wal las G. The Art of Thought, New York Harcourt Brac Jovanovltch, 1926
Watson G. Résistance to Change In G. Zoltan (Ed.), Process and

246
Phenomena of Social Change WIley, New York 1973
Weber M. The Thory of Social and Économie Organlzatlon, Free Press
Glencoe, Illinois 1947
Welche K. The Social Psychologie of Organlzlng, Addlson-Welsley, Readlng,
MA 1969
Whl+e, B.R. and B.A. Graham How to Spot a Technologlcal WInner, Harare
Business Revlew, March-Aprll 1978, pp.146-152
Whlttlngton, G. The Prédiction of Prof Italo Ita Cambridge Unlverslty
Press Cambridge 1971
Wllllamson, A.E.R Corporate Control And Bus nefs Behav Lor An Inquart Intl
The Effets Of Organlzatlon Farm On Entreprise Behavlor, Prentlce Hall
Englewood Cllffs, New Jersey 1970.
Wllllamson, A.E.R Marcet And Hiérarchise Analysas And Antitrust
Implication The Free Press New-York 1975.
Wllllamson, A.E.R 'Transactlon-cost économise the gouvernance of
coniractual relations', The Journal of Law Economies, 1979, vol.22,
pp. 233-261.
Wllllamson, A.E.R he modem corporation Journal of Économie
Lfterature, 1981, vol. 10, p. 537-1 568.
Wllllamson, G.E. and A.G. Ouche The Marcet and Hiérarchies and Visible
Hand Perspective The Marcet and Hiérarchies Pogrom of Research: Orlglns,
Implication Prospect In A. Van de Ben and J. Joyce (Eds), Perspectives
on Organlzatlon Design and Behavlor, Wlley, New York 1981
W II son H.Q.E Innovation In Organlzatlon: Notes Howard a Theory, In C.D.
Thompson (Ed.), Approches to Organ Izatlonal Design Unlverslty of
Pittsburgh Press Plttsburgh, 1966
Woodward, J. Management and Technologie HMSO, London 1958
Woodward, J. Industrlal Organlzatlon, Thory and Practlce, Oxford
Unlverslty Press London 1965
Yang S.S. and P. Lasserez La Modalité d'Acquisition de Technologie dans
les Entreprises de Pays en Vole de Développement Revue Française de

Gestion Sept-Oct 1982, pp.85-95
247
('Zaltman, G. R.Duncan and J. Holbein Innovations and Organlzatlons, Wlley,
1973
Zentner, R.D.A Sœnarlos In Forecastîng, CE New Octobre & 1975