Organizational Culture and the Entropic Model of Innovation

Purpose - The purpose of this paper is to present a new paradigm for innovation, based on the multifield theory of organizational knowledge and on the entropic model of the organizational intellectual capital. In this new perspective, organizational culture is one of the nonlinear integrators that contributes directly to the transformation of the potential innovation capital into the operational innovation capital. Design/methodology/approach - My approach is based on a metaphorical interpretation of knowledge and intellectual capital as being organizational fields, and by considering the hypothesis of thermodynamic transformation of the potential of innovation capital into the operational innovation capital, which is generating through the innovation process a competitive advantage. That means a conceptual analysis supported by a literature search and adopting an entropic perspective. The great majority of knowledge and intellectual capital interpretations are based on metaphors that use a Newtonian perspective. Based on the new thermodynamic paradigm I propose a new interpretation of knowledge and intellectual capital as fields, which constitutes a better representation of their intangible nature. Also, by using the theory of nonlinear integrators, I can evidence the role of organizational culture in promoting innovation. Organizational culture is not a simple key success factor but a nonlinear integrator able to influence both the inputs and outputs of the innovation process. Originality/value - The proposed entropic model of innovation is based on the previous research of metaphorical analysis of knowledge and intellectual capital, and it is integrated into a more general perspective of thermodynamic transformations of the potential of innovation capital into the operational innovation capital through the work of nonlinear integrators. Cultural values play an important role in creating a shared vision and a successful corporate strategic thinking. Practical implications - The proposed entropic model of innovation contributes to a better understanding of the innovation process within the organizational intellectual capital, and allows new interpretations for the entropic transformations of rational, emotional, and spiritual knowledge and intellectual capital from one form into another. Also, managers can understand better the role played by organizational culture as a nonlinear integrator in stimulating innovation.