This paper consolidates the state of academic research on innovation. Based on a systematic review of literature published over the past 27 years, we synthesize various research perspectives into a comprehensive multi-dimensional framework of organizational innovation - linking leadership, innovation as a process, and innovation as an outcome. We also suggest measures of determinants of organizational innovation and present implications for both research and managerial practice.

A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

This paper identifies a practice turn in current strategy research, treating strategy as something people do. However, it argues that this turn is incomplete in that researchers currently concentrate either on strategy activity at the intra-organizational level or on the aggregate effects of this activity at the extra-organizational level. The paper proposes a framework for strategy research that integrates these two levels based on the three concepts of strategy praxis, strategy practices and strategy practitioners. The paper develops implications of this framework for research, particularly with regard to the impact of strategy practices on strategy praxis, the creation and transfer of strategy practices and the making of strategy practitioners. The paper concludes by outlining the distinctive emphases of the practice perspective within the strategy discipline.

https://journals.sagepub.com/doi/pdf/10.1177/0170840606064101

Completing the Practice Turn in Strategy Research

While the strategy-as-practice research agenda has gained considerable momentum over the past five years, many challenges still remain in developing it into a robust field of research. In this editorial, we define the study of strategy from a practice perspective and propose five main questions that the strategy-as-practice agenda seeks to address. We argue that a coherent approach to answering these questions may be facilitated using an overarching conceptual framework of praxis, practices and practitioners. This framework is used to explain the key challenges underlying the strategy-as-practice agenda and how they may be examined empirically. In discussing these challenges, we refer to the contributions made by existing empirical research and highlight under-explored areas that will provide fruitful avenues for future research. The editorial concludes by introducing the articles in the special issue.

/pdf/strategizing-the-challenges-of-a-practice-perspective-4z7dozc745.pdf

Strategizing: The challenges of a practice perspective

'Institutionalized Organizations: Formal Structure as Myth and Ceremony', American Journal of Sociology, 83, pp. 340-63.

 Although strategy process research has provided careful and in-depth descriptions and examinations of strategy, micro-level processes and activities have been less commonly evaluated, especially as regards strategy creation and development. This paper examines how managers create and develop strategy in practice. A dual longitudinal case methodology, including a single in-depth study combined with a multiple retrospective study is used, involving four multinational companies. The findings show a twofold character of strategy creation, including fundamental different strategy activities in the periphery and centre, reflecting their diverse location and social embeddedness. Strategy making in the periphery was inductive, including externally oriented and exploratory strategy activities like trial and error, informal noticing, experiments and the use of heuristics. In contrast, strategy making in the centre was more deductive involving an industry and exploitation focus, and activities like planning, analysis, formal intelligence and the use of standard routines.

Strategy Creation in the Periphery: Inductive Versus Deductive Strategy Making*

This article identifies an essential research area where a strategy-as-practice approach can make important contributions to the strategic management field: the dynamic process through which organizational assets are developed. It compares strategy-as-practice and dynamic capabilities perspectives and demonstrates how the former may complement the latter in analyzing activities that underpin and may create and modify organizational assets. Several distinct features of the practice approach are identified as fertile ground for examining the micro-foundations of strategy dynamics. It is demonstrated how activity configurations, socio-cultural embeddedness, co-evolution, social interactions, the inclusion of multiple strategists and an awareness of the importance of imagination can complement the dynamic capabilities perspective and may provide suggestions for a dynamic view more generally.

Strategy-as-practice and dynamic capabilities: Steps towards a dynamic view of strategy

Scholars increasingly emphasize the impact of institutions on multinational enterprises (MNEs), but the opposite relationship has attracted less research – that is, MNE agency in relation to institutions. Based on a comparative case study of six MNEs from the United States and Sweden, this paper remedies this. It explores and explicates MNE subunits’ strategic responses to host country institutional constraints and opportunities in five different regions. A new-institutional approach is adopted, which allows for an investigation of MNE subunit agency in relation to normative and cognitive institutions, as well as regulative ones. This fine-grained analysis reveals not only what kinds of responses MNE subunits invoke, but why and how they are able to respond. We identify four strategic responses by which subunits shape, transpose and evade institutions in the pursuit of competitive advantage: Innovation, Arbitrage, Circumvention and Adaptation. These responses are driven by three key enablers: multinationality, foreignness and institutional ambiguity – that serve to enhance and heighten three mechanisms: reflexivity, role expectations and resources. By linking the enablers and the mechanisms to specific types of strategic responses in a framework and typology, the paper not only contributes to emerging research on the interplay between MNEs, institutions and strategy, but to strategy practice.

https://link.springer.com/content/pdf/10.1057%2Fjibs.2013.66.pdf

MNE institutional advantage: How subunits shape, transpose and evade host country institutions

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Exploring Strategy: Text and Cases

Imperfectly imitable resources are central in contemporary analysis of sustainable competitive advantage. While prior work has focused on limitations on the ability to imitate, we argue that it is only a third step in an imitation procedure that also involves the identification of what to imitate and the willingness to imitate. In this study we focus on this last step of unwillingness to imitate due to institutionalized professional norms on product appropriateness. Drawing on institutional theory, we test hypotheses and discuss the complex relationship between institutionalized norms, core competences, and systematic differences in the willingness to imitate. Copyright © 2008 John Wiley & Sons, Ltd.

https://www.jstor.org/stable/pdfplus/20536057.pdf

Patrick Regnér

Papers

Strategy Creation in the Periphery: Inductive Versus Deductive Strategy Making*

Strategy-as-practice and dynamic capabilities: Steps towards a dynamic view of strategy

MNE institutional advantage: How subunits shape, transpose and evade host country institutions

Exploring Strategy: Text and Cases

Normative barriers to imitation: social complexity of core competences in a mutual fund industry