Innovation Management -How does it work in practice in different organisational structures?

Abstract

Many authors subscribe to the importance of innovation for modern companies. Yet, the meaning of this term seems rather evasive. It is even more challenging to capture the meaning of innovation management. In this study, we try to answer to What innovation management is and how it works in two different organisational structures. To this aim, we studied how innovation process is managed in Vattenfall AB and Bioprocess Control AB. The task was approached with a qualitative method using interviews, completed with company publications. The results gathered from this were analysed against a theoretical framework about innovation processes, its management and the importance of (organisational) structure. The study concludes that there are discrepancies between theory and practice partly due to the unarticulated approach to innovation in the companies selected. Without labelling activities as part of an innovation process, both companies work with innovation management on a daily basis. A set of management tasks crucial for the innovative capacity of the two companies were identified. Although present in both companies, these tasks were carried out differently due to different organisational structures. The organisational structure in turn reflected on to what extent innovation management was formalised in Vattenfall and Bioprocess Control.