The development of an innovation culture

Abstract

Considers the factors which encourage innovation in a business organization, listing some characteristics observed by other writers and internal/external sources of innovative ideas. Discusses various approaches to the innovation process, e.g. gradations of acceptance, rewards, links with local universities, etc. Compares the screening process for ideas with 'investment appraisal under extreme uncertainty' and identifies the features encouraging new product success in four key areas: the market, product advantages, project-company fit and project size/complexity. Argues that since strict control systems deter innovation, the most favourable organizational strategy type is the prospector-differentiator-entrepreneur. Urges management accountants to ensure that the four stages of innovation (adoption, preparation, implementation and routinization) are supported by the organization's control/reward systems and performance measures.