What is managerial innovation Generation of the approach

What is managerial innovation? Generation of the approach to definition and classification Sovetkin Yaroslav SIBUR LLC Higher School of Economics , Moscow, 2020 www. hse. ru 1

Structure of the presentation • Urgency of the research (sl. 3) • Research methodology (sl. 4) • Evolution of managerial innovation concept (sl. 5) • Interconnection between “Managerial innovation” and “Innovation” terms (sl. 6) • Definition of managerial innovations (sl. 7) • Classification of managerial innovations (sl. 8 -9) • Limitations, results & further directions for research (sl. 10) photo Higher School of Economics , Moscow, 2020 2

Urgency of the research Practical background of the interest to the topic Experience in different functions in several Multinational and Russian companies working on the territory of Russian Federation formed an open question: how does managerial innovations’ implementation works in companies operating in Russia and what’s the difference with experience in other countries? photo To answer this question it was decided to start with understanding the sense of managerial innovation concept Theoretical background of the interest to the topic Analysis of the number of articles reflecting the topic of managerial innovations by Scopus database showed the significant increase in it for the last decade. Moreover this dynamic is due to China, US and UK, which are largest on the largest economies in the world photo Higher School of Economics , Moscow, 2020 3

Research methodology Three-stage bibliographic analysis 1. By keywords Innovation, Management innovation, Managerial Innovation, Управленческие инновации were selected articles with highest citation index by databases Web of Science and Scopus. Sampling period was not restricted. Key words have been selected based on author’s perception 2. By keywords Innovation, Management innovation, Organizational innovation, Administrative innovation, Innovation diffusion, Innovation Implementation, Management fashion, Organizational Innovation were selected articles with highest citation index by databases Web of Science and Scopus. Sampling period was not restricted. Keywords have been selected based on the analysis of the articles on the stage 1 3. By keywords from 1 and 2 stage were selected articles for the period from 2014 to 2018 with highest citation index by databases Web of Science and Scopus As the result 120 scientific publications were identified and collected for the period from 1975 to 2018 years, covering citation indexes from 0 to 12 476 by Web of Science citation database and from 4 to 2 185 by Scopus database. Higher School of Economics , Moscow, 2020 4

Evolution of managerial innovation concept Different approaches to naming of managerial innovations Terms describing innovations related to management practices, processes, structures and techniques General usage of the terms Scientific sources Organizational innovations Used in some scientific sources to distinguish this type of innovations [Schumpeter, 1911; Chandler, 1962; Edquist, from tecnologic innovations. Mainly describing organization of Hommen, Mc. Kclvey, 2001; Sanidas, 2005] business-processes Administrative innovations Used in some scientific sources to distinguish this type of innovations [Kimberly, Evanisko, 1981; Damanpour, Evan, from tecnologic and product innovations. Mainly describing innovations related to performance and effectiveness of management 1984; Bantel, Jackson, 1989] processe of the company and it's administrative systems Managementmanagerial innovations Firstly mentioned by [Kimberly, 1981]. Describing how managers do their job [Hamel, 2006] [Kimberly, 1981; Hamel, 2006; Hamel, Breen, 2007; Vaccaro, 2010; Walker, Damanpour, Devece, 2011; Damanpour, Aravind, 2011; Hamidi, Benabdeljlil, 2015; Gobble, 2018] Selected approach Additional analysis revealed, that term managementmanagerial innovations is being used more frequently than the others. Taking into account more generality and more frequency of usage it was decided to use term managementmanagerial innovations further in the research Higher School of Economics , Moscow, 2020 5

Interconnection between “Managerial innovation” and “Innovation” terms Existing approaches to classification of innovations Proposed approach is based on the analysis of existing approaches presented in the scientific sources. The general ones are as follows: • [Schumpeter, 1911] proposed to endorse product and process innovations • [Abernathy, Utterback, 1978] higlighted difference between radical and incremental innovations • [Kimberly, Evanisko, 1981] proposed to separate technologic and managerial innovations New approach to classification of innovation Proposed approach is aimed to establish clear interconnection between managerial innovations and innovations generally. Its newness in separating process innovations on those, related to technology (processes of product creation) and to management practices (processes for the whole organization) Higher School of Economics , Moscow, 2020 6

Definition of managerial innovations Two main components of definitions detected in scientific sources • «New managerial practices, processes, structures or techniques for organization [Kimberly, 1981; Damanpour, Evan, 1984; Гребнев, 1985; Abrahamson, 1996; Mc. Cabe, 2002; Birkinshaw, Mol, 2006; Hamel, Breen, 2007; Birkinshaw, Hamel, Mol, 2008; Walker, Damanpour, Aravind, 2011; Damanpour, Devece, 2011; Evans, 2013; Volberda, Van den Bosch, Heij, 2013]; • Advancing organizational targets [Hamel, Breen, 2007; Birkinshaw, Hamel, Mol, 2008; Damanpour, Aravind, 2011; Vaccaro, Jansen, Van Den Bosch, Frans (2012), Volberda, Van den Bosch, Heij, 2013; Evans, 2013], Proposed definition Managerial innovation is the process of implementation of management practices, processes, structures and techniques, which are new to the subject of implementation, defined by the level of analysis Newness of the proposed definition • Managerial innovation is being treated as a process; • It is “new” depending on the subject of analysis, • It is not necessary, that managerial innovation advances organizational targets Higher School of Economics , Moscow, 2020 7

Classification of managerial innovations Existing approaches to classification of managerial innovations and their limitations Analysis of the existing approaches presented in the scientific sources revealed some limitations of them: Approach to classification Limitations “Labor-saving” and “capital saving” managerial innovations [Nyholm, 1995; Edquist, Hommen, Mc. Kclvey, 2001], • It is quite complex task to provide accurate estimation of managerial innovation implementation effect • The same position can be found in [Evan, Black, 1967; Teece, 1980; Kimberly, Evanisko, 1981; Damanpour, 1991; Birkinshaw, Mol, 2006; Keupp, 2012] Managerial innovations with and w/o IT component [Wang, 2010; Walker, Damanpour, Devece, 2011], • IT component seems to be more as an attribute of managerial innovation than classification criteria, • Distinction between analogue and digital component of managerial innovation can be vague, Managerial innovations in an organization's strategy vs. its structure [Chandler, 1962; Mintzberg, 1979; Wischnevsky, Damanpour, 2008], • Not taking into account process component of managerial innovation, that can have no affect in strategy and structure, but have a significant effect on business operations (e. g. new approach to stock management) “Explorative” and “exploitative” managerial innovations [March, 1991; Damanpour, Aravind, 2011], • Near the same sense to distinction between radical and incremental innovations (slide 6) Higher School of Economics , Moscow, 2020 8

Classification of managerial innovations New approach to classification of managerial innovations Proposed approach is based on the analysis of existing approaches presented in the scientific sources Newness of the proposed approach • Considering managerial innovation from the perspective of impacting object, • Assigning of process managerial innovations; • Splitting each type on incremental and radical subtypes, Higher School of Economics , Moscow, 2020 9

Limitations, results & further directions for research Limitations • Theoretical framework, • Few articles in Russian, Results Current study provided following outcomes: • the evolution of managerial innovation term and the difference between different naming was showed, • Established interconnection between innovation and managerial innovation concepts, • Proposed new definition for managerial innovations, • Proposed new approach to classification of managerial innovations Further directions for research Current research provides background for further studies on the topic of managerial innovations, forming the basis of definitions and classification to have the same understanding of the issue Higher School of Economics , Moscow, 2020 10

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