Virtually all innovations, certainly major technological innovations such as
pharmaceutical and automobile products, occur within organisations. The
management of innovation within organisations forms the focus for this chapter.
The study of organisations and their management is a very broad subject
and no single approach provides all the answers. The identification of those
factors and issues that affect the management of innovation within organisations
are addressed in this chapter.
When you have completed this chapter, you will be able to:
• Identify the main trends in the development of the management of
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As an applied science it examines the behaviour of organisations and
provides useful information about how organisations respond to different management
techniques and practices, hence its importance in understanding how the
process of innovation is managed.
Given the diversity of the literature in this field, there are few clear prescriptions on
what organisations need to do in order to manage innovation successfully.
Nonetheless, there are numerous analytical frameworks and organisation-specific
models of innovation. The literature can be classified into four dominant strands
(Perrow, 1970) as shown in Figure 2.1.
Figure 2.1: The importance of a multiple-perspective approach
Classical management theory perspective Contingency theory perspective
Activities within the organisation
Human relations theory perspective Systems theory perspective
Theories about organisations and innovation
Part one: The concept of innovation management
Classical or scientific management perspective
The classical view of organisations took hold after the industrial...