Micro-Institutional Affordances and Strategies of Radical Innovation

Abstract

Institutional theory emphasizes the institutional constraints that render radical innovations illegitimate, but fails to explain how such innovations might succeed. Adopting a micro-institutional perspective, this paper addresses why and how embedded agency may overcome legitimacy crises within established systems. Drawing on a sample of 20 legitimacy problems identified in five radical innovation trajectories at two mature companies, we develop an empirically grounded theory of the institutional work through which proponents legitimize radical innovations within established firms. This theory describes a variety of micro-institutional affordances that enable different strategic responses to legitimacy crises. We thus extend institutional theory by explaining embedded agents' use of a range of options to pursue radical innovation, providing a robust explanation of both institutional stability and radical change.

Learning while (re-)configuring: Business model innovation processes in established firms

“…Any innovation effort that deviates from an organization's existing businesses likely faces internal resistance, dealing with which requires leadership (Chesbrough, 2007) and political maneuvering (Van Dijk et al, 2011). While drifting may potentially help alleviate some of the resistance, additional research is needed to investigate how intra-organizational dynamics shape BM learning processes.…”

How to Design for Strategic Resilience: A Case Study in Retailing

“…Second, the company had been relatively successful for a long period of time and was one of the top performers in the U.S. stock market. Consequently, it had developed organizational slack, a potential enabler of innovative activity (Cyert & March, 1963;Van Dijk et al, 2011). Organizational slack allows the firm to forego short-term gains in favor of enhancing long-term viability and performance (Sharfman et al, 1988).…”

Innovative and Traditional Elements in the Work of Academic Staff: The Views of Pre-service Teachers

“…Incremental innovations can be introduced with a few changes in the existing organizational practice; they fit in the context of the current norms and values, while radical innovations require major changes both in the institutional practice and the norms and values (McKenzie et al, 2005). A radical innovation disrupts the existing practice and contradicts the institutionalized understanding of what is acceptable, appropriate, and desirable (Van Dijk, Berends, Jelinek, Romme, & Weggeman, 2011). Nevertheless, it has been pointed out that radical innovations are also possible in stable and distinctly institutionalized environments (Zietsma & Lawrence, 2010).…”