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 innovation as well as systematic methods for developing them. To bridge these gaps in the current literature, this paper presents a method for evaluating and developing innovation capabilities in organizations. The theoretical model underlying the method conceptualises innovation potential as organizational renewal capability, consisting of strategic competence, exploiting time, leadership, connectivity, learning orientation, and knowledge management. These can be quantitatively assessed 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.