Knots in the Discourse of Innovation: Investigating Multiple Tensions in a Reacquired Spin-off

Abstract

We examine the case of a corporate spin-off, in which its reacquisition by the parent firm radically changed its structure and culture. Employing a discourse lens, we study paradoxical tensions of innovation as key members "talk into being" the paradoxical circumstances of their environment. From our analysis, we develop the concept of tensional "knots," discursive formulations in which members construct tensions, not only as co-occurring, but as Gordian (inseparable) entanglements of interdependence. Knotted tensions can be amplifying (exacerbating) or attenuating (improving) in their effects on one another, but with very different consequences to innovative action. Specifically, knotted tensions and the way in which members manage them set up counter-intuitive logics that serve to justify courses of innovative action or inaction. We propose a process model advancing understanding of interlinked tensions in more complex ways than current paradox theory allows. We conclude with a discussion of our contributions to paradox theory in innovative contexts, along with suggestions for future research.

Paradoxes and Dual Processes: A Review and Synthesis

“…These nested tensions can create ‘tensional knots’ that can amplify the effects of tensions triggered from the environment (Sheep et al . ).…”

“…These nested tensions can create tensional knots that can amplify the effects of tensions triggered from the environment (Sheep et al . ). This further suggests that examinations into the way managers respond to paradoxes should also include how they respond to the interplay between environmentally derived tensions and any tensions embedded within their own thinking and decision‐making process.…”

On the Use of Paradox for Generating Theoretical Contributions in Management and Organization Research

“…One example of research that explicitly adheres to this logic can be found in the work by Sheep et al . (). Inherently addressing the theoretical debate regarding the discourse of innovation, the authors hinge on established paradox theory to advance new levels of understanding in their field of inquiry.…”

“…; Jay ; Kodama ; Sheep et al . ; Tse ), organizational interaction (e.g. Le Roy and Fernandez ; Stadtler and Van Wassenhove ), change management (e.g.…”

“…): scanning the area of management and organization research, it seems that paradox has paved the way for progress, giving forth a wide plethora of theoretical contributions in fields such as change management (Luscher and Lewis ), innovation management (Sheep et al . ), organizational identity (Ashforth and Reingen ), sensemaking (Hahn et al . ), decision‐making (Costanzo and Di Domenico ), and leadership (Denison et al .…”