IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v14y1993i2p77-101.html
   My bibliography  Save this article

The three faces of corporate renewal: Institution, revolution, and evolution

Author

Listed:
  • Stephen J. Mezias
  • Mary Ann Glynn

Abstract

We examine corporate renewal by taking a structural approach and focusing on the routines and rules that are part of large, established, bureaucratic organizations. We characterize approaches to the management of innovation in terms of three different themes–institutional, revolutional, and evolutional strategies. The first two approaches involve intentional efforts to encourage innovation, either within the current organizational paradigm (institutionalizing innovation) or moving away from it (revolutionary innovation), while the evolutional approach involves less conscious efforts to manage what is viewed as a random, probabilistic process. This paper uses simulation methodology to explore the effectiveness of these strategies on organizational innovation, performance, and resources. The behavior of the simulated organizational units is guided by assumptions of a learning model. Results indicate that innovation strategies sometimes have unintended effects that are both positive and negative in nature. Several lessons on managing innovation are offered.

Suggested Citation

  • Stephen J. Mezias & Mary Ann Glynn, 1993. "The three faces of corporate renewal: Institution, revolution, and evolution," Strategic Management Journal, Wiley Blackwell, vol. 14(2), pages 77-101, February.
    • Handle: RePEc:bla:stratm:v:14:y:1993:i:2:p:77-101
    DOI: 10.1002/smj.4250140202
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.4250140202
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.4250140202?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mezias, Stephen J., 1988. "Aspiration level effects: An empirical investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 10(4), pages 389-400, December.
    2. March, James G., 1988. "Variable risk preferences and adaptive aspirations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 5-24, January.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. John D. W. Morecroft, 1984. "Strategy support models," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 215-229, July.
    5. Van de Ven, Andrew R., 1986. "Central Problems in the Management of Innovation," Agricultural Research Policy Seminar 139708, University of Minnesota Extension.
    6. Andrew H. Van de Ven, 1986. "Central Problems in the Management of Innovation," Management Science, INFORMS, vol. 32(5), pages 590-607, May.
    7. James G. March & Lee S. Sproull & Michal Tamuz, 1991. "Learning from Samples of One or Fewer," Organization Science, INFORMS, vol. 2(1), pages 1-13, February.
    8. John D. Sterman, 1987. "Testing Behavioral Simulation Models by Direct Experiment," Management Science, INFORMS, vol. 33(12), pages 1572-1592, December.
    9. Theresa K. Lant & Stephen J. Mezias, 1992. "An Organizational Learning Model of Convergence and Reorientation," Organization Science, INFORMS, vol. 3(1), pages 47-71, February.
    10. Levinthal, Daniel & March, James G., 1981. "A model of adaptive organizational search," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 307-333, December.
    11. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    12. Roy Radner, 1975. "A Behavioral Model of Cost Reduction," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 196-215, Spring.
    13. Dennis Epple & Linda Argote & Rukmini Devadas, 1991. "Organizational Learning Curves: A Method for Investigating Intra-Plant Transfer of Knowledge Acquired Through Learning by Doing," Organization Science, INFORMS, vol. 2(1), pages 58-70, February.
    14. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    15. Herriott, Scott R & Levinthal, Daniel & March, James G, 1985. "Learning from Experience in Organizations," American Economic Review, American Economic Association, vol. 75(2), pages 298-302, May.
    16. Robert D. Dewar & Jane E. Dutton, 1986. "The Adoption of Radical and Incremental Innovations: An Empirical Analysis," Management Science, INFORMS, vol. 32(11), pages 1422-1433, November.
    17. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    18. Linda Argote & Sara L. Beckman & Dennis Epple, 1990. "The Persistence and Transfer of Learning in Industrial Settings," Management Science, INFORMS, vol. 36(2), pages 140-154, February.
    19. John E. Ettlie & William P. Bridges & Robert D. O'Keefe, 1984. "Organization Strategy and Structural Differences for Radical Versus Incremental Innovation," Management Science, INFORMS, vol. 30(6), pages 682-695, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jerker Denrell & James G. March, 2001. "Adaptation as Information Restriction: The Hot Stove Effect," Organization Science, INFORMS, vol. 12(5), pages 523-538, October.
    2. Linda Argote & Ella Miron-Spektor, 2011. "Organizational Learning: From Experience to Knowledge," Organization Science, INFORMS, vol. 22(5), pages 1123-1137, October.
    3. Christina Fang & Daniel Levinthal, 2009. "Near-Term Liability of Exploitation: Exploration and Exploitation in Multistage Problems," Organization Science, INFORMS, vol. 20(3), pages 538-551, June.
    4. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    5. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    6. Linda Argote & Henrich R. Greve, 2007. "A Behavioral Theory of the Firm ---40 Years and Counting: Introduction and Impact," Organization Science, INFORMS, vol. 18(3), pages 337-349, June.
    7. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    8. Jerker. Denrell & Christina. Fang & Daniel A. Levinthal, 2004. "From T-Mazes to Labyrinths: Learning from Model-Based Feedback," Management Science, INFORMS, vol. 50(10), pages 1366-1378, October.
    9. Jongseok Lee & Jeho Lee & Habin Lee, 2003. "Exploration and Exploitation in the Presence of Network Externalities," Management Science, INFORMS, vol. 49(4), pages 553-570, April.
    10. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    11. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    12. Sébastien Brion & Caroline Mothe & Maréva Sabatier, 2010. "The Impact Of Organisational Context And Competences On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 151-178.
    13. Sandra Charreire, 2003. "Les rôles de la migration et de la légitimation des savoirs dans l'apprentissage organisationnel:études de cas," Revue Finance Contrôle Stratégie, revues.org, vol. 6(2), pages 115-153, June.
    14. Thorsten Grohsjean & Tobias Kretschmer & Nils Stieglitz, 2011. "Performance Feedback, Firm Resources, and Strategic Change," DRUID Working Papers 11-02, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Mooweon Rhee & Tohyun Kim, 2015. "Great Vessels Take a Long Time to Mature: Early Success Traps and Competences in Exploitation and Exploration," Organization Science, INFORMS, vol. 26(1), pages 180-197, February.
    16. Bernardo Batiz-Lazo & Kassa Woldesenbet, 2006. "The dynamics of product and process innovations in UK banking," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 1(4), pages 400-421.
    17. Iansiti, Marco, 1995. "Technology integration: Managing technological evolution in a complex environment," Research Policy, Elsevier, vol. 24(4), pages 521-542, July.
    18. Qu, Guannan & Chen, Jin & Zhang, Ruhao & Wang, Luyao & Yang, Yayu, 2023. "Technological search strategy and breakthrough innovation: An integrated approach based on main-path analysis," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    19. Henrich R. Greve, 2002. "Sticky Aspirations: Organizational Time Perspective and Competitiveness," Organization Science, INFORMS, vol. 13(1), pages 1-17, February.
    20. Stephen J. Mezias & Ya-Ru Chen & Patrice R. Murphy, 2002. "Aspiration-Level Adaptation in an American Financial Services Organization: A Field Study," Management Science, INFORMS, vol. 48(10), pages 1285-1300, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:14:y:1993:i:2:p:77-101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.