Management Innovation: Management as Fertile Ground for Innovation

Innovation is considered to be the primary driving force of progress and prosperity. Consequently, much effort is put in developing new technological knowledge, new process technologies and new products. However, evidence from both SMEs and large firms shows that successful innovation is not just the result of technological innovation, but is also heavily dependent on what has been called management innovation'. Management innovation consists of changing a firm's organizational form, practices and processes in a way that is new to the firm and/or industry, and results in leveraging the firm's technological knowledge base and its performance in terms of innovation, productivity and competitiveness. Recent research shows that management innovation explains a substantial degree of the variance of innovation performance of firms. More active stimulation of management innovation and its leverage of technological innovation will be crucial to improve the competitiveness of firms. However, only solid research can increase our understanding of what matters in various kinds of management innovations. Just as technological change requires systematic R&D, the development and diffusion of management innovations require systematic research on the crucial determinants of success. In this paper we will define management innovation, discuss the multidirectional causalities between technological and management innovation, and develop a framework that identifies common areas of research in terms of antecedents, process dimensions of management innovation, outcomes and contextual factors. Moreover, we will position the papers of this special issue in this framework and develop an agenda for future research into management innovation. We conclude this introductory paper by specifying the most important research priorities for further advancing the emerging field of management innovation.