Evaluating and developing innovation capabilities with a structured method

Abstract

Even though the demand for innovation is widely articulated in both professional and academic press, there is still a lack of validated metrics for assessing organizational capacities for innova-tion as well as systematic methods for developing them. To bridge these gaps in the current litera-ture, this paper presents a method for evaluating and developing innovation capabilities in organi-zations. The theoretical model underlying the method conceptualises innovation potential as or-ganizational renewal capability, consisting of strategic competence, exploiting time, leadership, connectivity, learning orientation, and knowledge management. These can be quantitatively as-sessed with the ORCI (Organizational Renewal Capability Inventory) method, which enables a reliable diagnosis of the main organizational strengths and weaknesses in terms of innovation. The utilisation of the ORCI method and the related development process is illustrated with an in-depth case study of an industrial organization.