Bessant John. High Involvement Innovation. Building and Sustaining Competitive Advantages Through Continuous Change
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HIGH-INVOLVEMENT INNOVATION
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HIGH-INVOLVEMENT
INNOVATION
BUILDING AND SUSTAINING
COMPETITIVE ADVANTAGE THROUGH
CONTINUOUS CHANGE
John Bessant
School of Management
Cranfield University
Copyright 2003 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester,
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Library of Congress Cataloging-in-Publication Data
Bessant,J.R.
High involvement innovation : building and sustaining competitive advantage through
continuous change / John Bessant.
p. cm.
Includes bibliographical references and index.
ISBN 0-470-84707-7 (pbk. : alk. paper)
1. Competition. 2. Organizational change. I. Title.
HD41.B378 2003
658.4
06—dc21
2003041083
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0-470-84707-7
Typeset in 10/12pt Palatino by Laserwords Private Limited, Chennai, India
Printed and bound in Great Britain by TJ International, Padstow, Cornwall
This book is printed on acid-free paper responsibly manufactured from sustainable forestry
in which at least two trees are planted for each one used for paper production.
CONTENTS
Acknowledgements ix
1 ‘Many Hands Make Light Work!’ 1
1.1 Innovation—A Survival Imperative 1
1.2 The Range of Innovation 2
1.3 ‘But That’s Not Really Innovation...’3
1.4 Managing the Innovation Agenda 4
1.5 Learning, Knowledge Management and Innovation 6
1.6 The Innovation Paradox 7
1.7 From Doing to Thinking Organizations 10
1.8 High-Involvement Innovation 11
1.9 What’s in a Name? 12
1.10 What’s Not in the Book? 12
1.11 Structure o f the Book 13
References 15
2IsitWorthit? 17
2.1 Do People Really Matter? 17
2.2 Learning about the Learning Curve 18
2.3 Performance Improvement through People 19
2.4 Mobilizing High-Involvement Innovation 23
2.5 Case Studies 27
2.6 Summary 29
References 29
3 What’s the Problem? 33
3.1 Cogs in the Machine? 33
3.2 What Makes an Innovative Culture? 34
3.3 Organizing for Innovation 35
3.4 The Question of ‘Culture’ 37
3.5 The Concept of Behavioural Routines 38
vi CONTENTS
3.6 Building an Innovation Culture 39
3.7 Learning to Manage Innovation 41
3.8 High Involvement vs. Focused Development of Innovation
Culture 43
3.9 High-Involvement Innovation 46
3.10 Summary 49
References 49
4 A Model for High-Involvement Innovation 53
4.1 Measuring Innovation Culture 53
4.2 Developing a Model 54
4.3 Creating the Model 56
4.4 Developing High-Involvement Practice 64
4.5 Components of High-Involvement Capability 65
4.6 Towards a ‘Reference Model’ for High-Involvement Innovation 67
4.7 Enabling Development of High-Involvement Innovation 70
4.8 Contingency Issues 71
4.9 Summary 71
References 72
5 Getting the Innovation Habit 73
5.1 Unlocking High-Involvement Innovation 73
5.2 To Boldly Go ... 75
5.3 Some Examples 76
5.4 Characterizing Level 1 Innovation Capability 76
5.5 What’s the Problem? 78
5.6 ... and How to Deal with it 81
5.7 Summary 87
5.8 An Extended Example—The Case of Friday Motors Ltd 88
References 90
6 Systematic High-Involvement Innovation Capability 91
6.1 Taking High-Involvement Innovation Seriously 91
6.2 Making High-Involvement Innovation a Part of the Culture 94
6.3 Characterizing Level 2 Innovation Capability 95
6.4 What Stops Us Getting There? 97
6.5 Barriers to High-Involvement Innovation
and How to Overcome them 99
6.6 Some Case Examples of Level 2 Capability 121
6.7 Summary—Reaching the Limits of Level 2 127
References 128
7 Strategic Innovation 129
7.1 ‘Pretty in Pink’ 129
7.2 What Is the Problem with Level 2? 130
7.3 Moving to Level 3—Strategic Innovation 131
7.4 Level 3 in Practice—A Brief Example 132
7.5 Two Keys to Level 3—Strategy Deployment and Measurement 133
CONTENTS vii
7.6 Characterizing Level 3 Innovation Capability 135
7.7 Some Detailed Examples 139
7.8 It Is not just Japan 153
7.9 Making it Happen 158
7.10 Monitoring and Developing High Involvement 159
7.11 Inter-Firm Implications 160
7.12 Summary—The Limits of Level 3 161
References 161
8 Autonomous Innovation 163
8.1 The Limits of Continuous Improvement 163
8.2 Patterns of Innovation 165
8.3 Handling Different Innovation Types 168
8.4 R&D for All? 169
8.5 High Involvement in High-Impact Innovation? 170
8.6 Some Case Examples 171
8.7 Characterizing Level 4 Innovation Capability 174
8.8 Barriers to Moving to Level 4 174
8.9 Enablers for Developing Level 4 Capability 177
8.10 Summary 178
References 178
9 Learning Organizations 179
9.1 Learning Matters 179
9.2 Into the Stratosphere 180
9.3 Why Knowledge Matters 182
9.4 How Learning Happens 184
9.5 Learning and High-Involvement Innovation 185
9.6 Enabling Learning in Organizations 186
9.7 Moving On—Extending the Learning Organization 191
9.8 Summary 193
References 193
10 Doing It! 197
10.1 To Recap ... 197
10.2 Some Journeys 199
10.3 A Generic Organizational Development (OD) Model 206
10.4 The Role of Framework Approaches 207
10.5 The High-Involvement Innovation Model 209
10.6 Implementation in Practice 210
10.7 Roads to Rome 212
10.8 Summary 213
References 213
11 Further C hallenges 215
11.1 Introduction 215
11.2 Challenge 1. Further on up the Road 215
11.3 Challenge 2. Developing ‘Do Different’ Innovation Routines 216
viii CONTENTS
11.4 Challenge 3. Inter-Organizational Innovation 217
11.5 Challenge 4. Focus of Innovation 220
11.6 Challenge 5. Inter-Cultural Learning 220
11.7 Conclusions 221
References 222
Appendix Details on the High-Involvement Innovation Reference Model 225
A.1 Research Base and Problem Statement 225
A.2 Key Findings 225
A.3 Towards a ‘Reference Model’ for Continuous
Improvement 226
A.4 Detailed Behaviour/Capability Analysis 229
Index 239
ACKNOWLEDGEMENTS
This book is an excellent demonstration of the principles of high-involvement
innovation—quite simply, without the help of a great many people it would not
have been possible to produce it! I am grateful to many friends and colleagues for
their help and encouragement and would like to take this opportunity to say a
large ‘thank you’ to all of them.
In particular I would like to mention the various members of the CIRCA team
at the University of Brighton—Steve Webb, John Gilbert, Jane Burnell, Sarah
Caffyn, Maeve Gallagher, Sarah Austin, Jeff Readman, Michael Vaag and, of
course, Pauline Nissen, who held the whole project together, ran the Network
and was always around to ensure that the project stayed on a continuously
improving trajectory. In the same vein, I owe a debt to the many members of
the CIRCA and CENTRIM networks who shared the company perspective on
high-involvement innovation and who taught me a great deal about how the
problems of implementation emerge and are handled in practice.
I would also like to thank many colleagues in the Euro—and now global—CINet
for all their helpful comments and heroic efforts to put CI on the map—especially
Harry Boer, Jens Riis, Frank Gertsen, Ritta Smeds, Ross Chapman, Mariano
Corso, Paul Hyland, Jose Gieskes and Paul Coughlan. Thanks too are due to
Kristian Stokbro and colleagues at the Confederation of Danish Industries for their
long-standing interest in and support of our work on continuous improvement.
I am very grateful to several friends who patiently read the manuscript and
gave me some helpful suggestions to improve it—especially Dave Francis, Raphie
Kaplinsky, Carlota Perez and Howard Rush. In similar vein, my thanks go to the
anonymous reviewers who provided some clear guidance on the overall shape
and direction of the book, as well as encouragement to go ahead. And to the team
at John Wiley—especially Steve Hardman and Sarah Booth—for steering the book
through to eventual publication.
In the final stages of putting this book together in late 2002 we learned of the
sudden and tragic death of Keith Pavitt, a friend and colleague at Sussex and co-
author, with Joe Tidd and myself, of the textbook Managing Innovation.Keithhada
deep understanding of the challenges in innovation and had a major influence on