Environmental Constraints, Management Innovation and Organizational Renewal

Abstract

Management or organizational innovation is a crucial component of service firms’ innovation dynamics. In this research we aim to decipher the role of management innovation in overcoming environmental constraints of increasing complexity and economic downturn. Based on a longitudinal case study of commercial archaeology, an emerging, highly dynamic service activity, this paper illustrates that management innovation can serve as an important enabler of organizational renewal in turbulent times. It also shows that innovation dynamics in the formal structure and work practices may facilitate further business model innovations by providing new organizational capabilities. The relevance and generalizability for managerial research is discussed and future research is addressed

Keywords: management innovation, organizational renewal, environmental constraints, service firms, archaeological companies

JEL Classification: O32, O33, L84