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Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey
Managers of Innovation Insights into Making Innovation
Happen Management Organizations and Business 1st
Edition John Storey Digital Instant Download
Author(s): John Storey, Graeme Salaman
ISBN(s): 9781405178525, 1405178523
Edition: 1
File Details: PDF, 1.68 MB
Year: 2004
Language: english
MANAGERS OF INNOVATION
MOIA01 2/6/06 10:49 AM Page i
MANAGEMENT, ORGANIZATIONS AND BUSINESS SERIES
Series Editor: John Storey
This wide-ranging series of texts, surveys and readers sets out to define the study
of the management of people and organizations. Designed for both postgraduate
and undergraduate students of business and management, it draws on the leading
authors from the various contributing disciplines, including organizational
psychology, sociology and industrial economics. A distinctive characteristic of the
series is that these subject specialists make their work available to the general
business and management student in a highly accessible way.
Published
Human Resource Management: A Strategic Introduction, Second Edition
Christopher Mabey, Graeme Salaman and John Storey
Changing Patterns of Management Development
Andrew Thomson, Christopher Mabey, John Storey, Colin Gray and Paul Iles
International Management: Cross-Boundary Challenges
Paul N. Gooderham and Odd Nordhaug
Strategy and Capability: Sustaining Organizational Change
Graeme Salaman and David Asch
Learning by Design: Building Sustainable Organizations
A. B. (Rami) Shani and Peter Docherty
Managers of Innovation: Insights into Making Innovation Happen
John Storey and Graeme Salaman
MOIA01 2/6/06 10:49 AM Page ii
Managers of Innovation
Insights into Making
Innovation Happen
John Storey and Graeme Salaman
MOIA01 2/6/06 10:49 AM Page iii
© 2005 by John Storey and Graeme Salaman
BLACKWELL PUBLISHING
350 Main Street, Malden, MA 02148-5020, USA
108 Cowley Road, Oxford OX4 1JF, UK
550 Swanston Street, Carlton, Victoria 3053, Australia
The right of John Storey and Graeme Salaman to be identified as the Authors of this Work has been
asserted in accordance with the UK Copyright, Designs, and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the
prior permission of the publisher.
First published 2005 by Blackwell Publishing Ltd
Library of Congress Cataloging-in-Publication Data
Storey, John, 1947–
Managers of innovation : insights into making innovation happen / John Storey and
Graeme Salaman.
p. cm. – (Management, organizations, and business series)
Includes bibliographical references and index.
ISBN 1-4051-2462-8 (hardcover : alk. paper) – ISBN 1-4051-2461-X (pbk. : alk. paper)
1. Technological innovations–Management. 2. Creative ability in business.
I. Salaman, Graeme. II. Title. III. Series.
HD45.S845 2005
658.4′063–dc22 2004007685
A catalogue record for this title is available from the British Library.
Set in 10/12pt Galliard
by Graphicraft Limited, Hong Kong
Printed and bound in the United Kingdom
by TJ International, Padstow, Cornwall
The publisher’s policy is to use permanent paper from mills that operate a sustainable forestry policy,
and which has been manufactured from pulp processed using acid-free and elementary chlorine-free
practices. Furthermore, the publisher ensures that the text paper and cover board used have met
acceptable environmental accreditation standards.
For further information on
Blackwell Publishing, visit our website:
www.blackwellpublishing.com
MOIA01 2/6/06 10:49 AM Page iv
Contents
List of Figures and Tables vi
Preface vii
About the Authors x
Part I Introduction 1
1 Innovation: Problems and Possibilities 3
2 The Current State of Knowledge about Innovation 15
Part II Managers’ Accounts of Innovation 35
3 From Tight Control to the Edge of Anarchy: Managing
Innovation in Telecommunications 37
4 Managing Creative Workers in an Innovative Way 61
5 Contrasting Approaches to Innovation in Engineered
Manufactured Goods 88
6 Innovation in the Voluntary Sector 115
Part III Synthesis 141
7 Conclusions 143
Appendix: Research Methods 177
Bibliography 185
Index 191
MOIA01 2/6/06 10:49 AM Page v
Figures and Tables
Figures
7.1 The association between evaluation and scope of
interpretation of innovation 152
7.2 Implications and definitions of innovation 153
7.3 Clarity versus confusion 154
7.4 Moral and affective differences 155
7.5 Control versus openness 156
7.6 Patterns of formal and informal activity 160
Tables
1.1 A list of the main case organisations 12
3.1 Summary comparisons between GPT and Nortel 57
4.1 Summary comparisons between Zeneca and the BBC 85
5.1 Summary comparisons between Hewlett-Packard
and GDA 113
6.1 Summary comparisons between Oxfam and Age Concern 138
7.1 Managers’ explicit theories of innovation 148
7.2 Managers’ implicit theories of innovation 150
Appendix 183
MOIA01 2/6/06 10:49 AM Page vi
Preface
Innovation is increasingly identified as the critical factor in ensuring economic com-
petitiveness and a range of other beneficial social outcomes. It has been widely noted
that, as trade of all kinds becomes more and more globalised, then the advanced,
high-wage economies, in particular, must rely on their applied inventiveness to main-
tain their future prosperity. Companies, nation-states and whole regions such as the
European Union face a similar challenge. New products (to ensure markets) and new
processes (to ensure productivity) are required, and innovation is seen as key to both.
The innovation challenge is heightened under current conditions. Rapid tech-
nological change, the liberalisation of trade, intense competition from low-wage
economies, the reduction in communication and transport costs, shorter product life
cycles and consumers switching between products and providers at an accelerated
rate – all these factors, and more, render whole rafts of products and services highly
vulnerable if they do not lead the way or at the very least keep pace.
Governments and influential observers throughout the world have emphasised these
messages. Departments of state and quasi-governmental organizations in Austria,
Australia, Canada, France, Germany, the Netherlands, Sweden and the UK, to name
but a few, have issued reports and calls to action (see, for example, OECD 2004).
The common objective of the innovation policies devised and adopted by these coun-
tries is to produce ‘innovation-driven’ economies.
Various facets of this imperative are variously explored in numerous official
reports: compensating for market and systems failure; state policy to provide posit-
ive conditions for innovation and competition – including, for example, removing
unnecessary regulation and tax breaks for investment in R&D; reassessments of owner-
ship of intellectual property rights; the link between innovation and productivity;
building and exploiting the science base; exploiting developments in ICT and the
Information Society; facilitating the growth of innovation clusters; education, train-
ing and development of the workforce, including the managerial cadre; finance and
the availability of risk capital; promoting an entrepreneurship culture and facilitating
the growth of small and medium-sized enterprises. Across the countries, the themes
at public policy level are broadly the same: knowledge, creativity, diversity, learning,
new forms of inter-company and inter-agency co-operation, and so on.
For example, in 2002 the Federal Ministry of Education and Research in
Germany issued a report detailing – and promoting – new forms of work in order
to foster creativity and innovation. The ‘innovative development of work’ is both a
product of and a driver of product, services and process innovations. Innovation is
thus recognised as carrying huge social as well as economic implications. The
Ministry reaches the conclusion that ‘The competence, creativity and motivation of
staff are the source of the capacity for innovation and transformation in companies
MOIA01 2/6/06 10:49 AM Page vii
viii PREFACE
and public administration. In other words, human resources are the most important
factor for innovation’ (2002: 6). Likewise, the Federal Republic of Germany has
pressed for changes in the interlocking areas of patenting, venture capital, science,
knowledge transfer and entrepreneurship as ways of promoting innovation
(Bundesministerium für Wirtschaft und Technologie 2001; Federal Ministry of
Economics and Technology 1999; Federal Ministry of Economics and Technology/
Federal Ministry of Education and Research 2002). In these and other reports, the
German government shows itself alert to the critical role of innovation. A joint report
on innovation policy by the ministries of economics, technology and education makes
the federal government’s position abundantly clear: ‘Innovation secures the future.
New products, services and processes make companies more competitive in global
markets and so secure jobs for the future in Germany. That is why innovation
policy is a central component of a forward-looking policy for more growth and
employment’ (Federal Ministry of Economics and Technology/Federal Ministry of
Education and Research 2002: 3).
Statements and approaches of a similar kind can be found emanating from gov-
ernment departments and agencies in many other countries. Australia, for example,
has a A$2.9 billion innovation strategy cross-cutting the Departments of Trade and
Industry (DTI) and Science and Education. One especially clear example is the UK
government’s recent analysis and policy statement Competing in the Global Economy:
The Innovation Challenge (Department of Trade and Industry 2003). This explains
how the UK government is ‘creating the environment’ to enable innovation but it
also makes clear that ‘ultimately innovation depends on the knowledge, skills and
creativity of those working in business’ (2003: 26). It is this latter set of problem-
atics that forms the focus of this book.
The DTI report explores the opportunities for macro-environmental sculpting.
Suggested interventions include: building the science and technology base; promoting
regional development; raising awareness of and by the Patent Office; increasing
assistance through Business Link; improving access to finance; improving skills
development; further encouragement of collaboration and networks; and the govern-
ment itself acting as a more intelligent customer. Helpful as these sorts of measures
may be, we suggest in this book that what also need close attention and yet have been
largely neglected are the attitudes, understandings, assumptions and interpretations
of managers – the ultimate decision-makers in so many aspects of innovation or
non-innovation.
Managers are vitally important to the prospects for organisational innovation for
a variety of key reasons. Even if they themselves are not necessarily the prime ‘innov-
ators’, their attitudes and actions largely determine the degree, nature and impact
of innovative activity. They set the priorities and the strategies for organisations;
they control the allocation of resources; they filter ideas, information and theories
deriving from external sources such as academic research results, government and
consultants. Managers’ sense-making repertoires set the tone for much of the dis-
cussion and action in organisations. As the DTI moves forward into action mode
with a range of partners – including, for example, in the workforce domain, a joint
body representing employers and trade unions (in this instance, represented by the
Confederation of British Industry [CBI] and the Trades Union Congress [TUC],
MOIA01 2/6/06 10:49 AM Page viii
PREFACE ix
respectively) in order to explore the implementation of innovation policies at firm
level – we seek to highlight the vital importance of attending to managers’ percep-
tions and attitudes towards innovation. As we explain and illustrate in the body of
this volume, managers are the gatekeepers who can determine the fate of innovation
within organizations. Despite the central role they actually play, they have to date
been relatively neglected. This book seeks to show:
• how important they are
• how their perceptions and attitudes crucially influence the innovative capability
of firms
• what might be done to reorient their perceptions and cognitions.
We wish to acknowledge the financial support of the Economic and Social Research
Council (ESRC). The ESRC research grant, reference number L125251053, facil-
itated the programme of research which underpins the analysis made in this book.
John Storey was the principal investigator and leader of that programme, which is
why his name appears as the first of the two authors, although both authors con-
tributed equally to the writing of this book. In addition, we wish to acknowledge
the contribution of a very large number of people without whose assistance and
help this book would not have been possible. Vital to the enterprise were the 350
managers who agreed to be interviewed at length. We are also especially grateful
to Dr Elizabeth Barnett, who was the Research Fellow on the ESRC project. She
brought tremendous energy, enthusiasm and creativity to the work of the research
team. We also want to thank Professor David Buchanan of Leicester de Montfort
University, who read and commented in great detail upon a complete draft of
the manuscript. In addition, Dr Thomas Diefenbach and Dr Richard Holti of the
Open University Business School likewise read and made useful comments on the
whole manuscript. We also thank Professor Rod Coombs of the University of
Manchester, Professor Joe Tidd of the Science Policy Research Unit (SPRU) at
the University of Sussex, Professor Paul Quintas of the Open University, Professor
Craig Littler of the University of St Andrews, and Professor Ian McLoughlin of the
University of Newcastle for their reading of an earlier version of Chapter 2. Finally,
we wish to thank our publisher, Rosemary Nixon, of Blackwell Publishing for her
helpful suggestions.
John Storey and Graeme Salaman
2004
MOIA01 2/6/06 10:49 AM Page ix
About the Authors
John Storey is Professor of Management at the Open University Business School
and a consultant to leading corporations. He has written and edited 16 books
on business, management and organizations. He is a non-executive director on two
management boards.
Graeme Salaman is Professor of Organizational Studies at the Open University Business
School. He has worked as a consultant in eight countries for clients such as Sun
Microsystems, Willis, BAT, the government of Ethiopia, Fujitsu, Allianz, Ernst &
Young, Rolls-Royce and Morgan Stanley.
MOIA01 2/6/06 10:49 AM Page x
PART I
Introduction
1 Innovation: Problems and Possibilities
2 The Current State of Knowledge about Innovation
MOIC01 2/6/06 10:50 AM Page 1
MOIC01 2/6/06 10:50 AM Page 2
CHAPTER 1
Innovation: Problems and
Possibilities
OB J E C T I V E S
At the end of this chapter readers will be able to:
• explain why innovation is viewed as so important at the firm and societal
level
• explain different types of innovation
• list some hypotheses why performance at innovation falls short of aspiration
• understand why it is important to attend to managers’ interpretations.
CH A P T E R OV E R V I E W
Objectives
Introduction: Towards a Better Understanding of Innovation
The Importance of Innovation
What Is Already Known?
What Needs to be Known?
The Value of Attending to Managers’ Insights
Research Design and Methodology
A Reconnoitre of Key Findings
Plan of the Book
Key Learning Points
MOIC01 2/6/06 10:50 AM Page 3
4 INNOVATION: PROBLEMS AND POSSIBILITIES
Introduction: Towards a Better Understanding of Innovation
Innovation is widely proclaimed as one of the most vital requirements – if not indeed
the most vital requirement – for firms, public-sector organisations and whole eco-
nomies under contemporary conditions. Governments, economists, business professors
and many top boards declare it to be so. One of the most fundamental arguments
is that, in the global economy, where economic activities can be more cheaply con-
ducted in low-wage economies such as China, then the main way, possibly even the
only way, in which the traditional advanced economies can compete is to is to find
new and better products and new and better processes. In other words, to innovate.
In response to such insistence, managers of organisations, it would seem, are being
asked to behave in different ways: to rearrange certain priorities; to allocate resources
with this requirement in mind; to adjust organisational forms; to try to change organ-
isational cultures; to collaborate throughout the value chain; and to respond in a
number of other ways which are deemed appropriate.
But what actions are appropriate? What should managers do when faced with a
call for more and better innovation? What forms of innovation should be pursued,
and how? What are the main obstacles that have to be faced, and how can these be
surmounted? As we will see later, a wide range of prescriptions are on offer – from
academic researchers, from quasi-government agencies and from management con-
sultants. But in this book we take a very different approach. We seek to answer such
questions by listening very closely to large numbers of managers who have person-
ally grappled with them.
This introductory chapter is organised into six main sections: (1) The importance
of innovation (Why is it important? In what ways is it important?) (2) What is already
known? (What is already recorded in the literature on the subject? What are the cur-
rent received views and interpretations?) (3) What needs to be known? (The ques-
tions that need answering.) (4) The value of attending to managers’ insights (What
can managers’ interpretations add and contribute? What, in summary are the main
insights to be gleaned from their accounts?) (5) The research design and methodo-
logy of the study upon which this book is based. (6) A reconnoitre of the key findings.
Each of these themes is elaborated more fully in subsequent chapters, but in this
introductory chapter it will be useful to gain an overview and to see the underlying
linkages between them.
The Importance of Innovation
The critical importance of innovation as a driver of economic competitiveness and
human well-being and development has long been recognised at national, regional,
sectoral and individual organisational levels. Nowadays, the need for innovation is
frequently promulgated by government. It provides the focus of attention for
numerous business analysts and for national and regional economic policy-makers.
It constitutes the raison d’être of many quasi-government agencies, and it is also
regarded as one of the fundamental strategic bases of competitive advantage.
Innovation, in other words, is regarded by policy makers as one of the most critical
MOIC01 2/6/06 10:50 AM Page 4
INNOVATION: PROBLEMS AND POSSIBILITIES 5
– if not, indeed, the most critical – element influencing organisational and national
economic performance. It is said to be especially important in the contemporary con-
text. A string of interconnecting factors and forces impel attention towards it: hyper-
competition and globalisation, over-capacity in many product markets, rapidly
changing technologies, deregulation, the proliferation of new entrants into existing
mature markets, and shorter product life cycles.
Perhaps most compelling of all for practitioners is the evident impact of new innov-
ating entrants such as Amazon, Dell, Dyson, Egg, Direct Line, and Wal-Mart. These,
and many other ventures, have not only wrested market share from existing incum-
bents but have redrawn and redefined the nature of whole industries. The popular-
ity of the adage ‘Innovate or Die’ is easily understandable under such conditions.
But how can managers respond? Just what precisely are managers supposed to do?
The answer is increasingly being sought in the internal capabilities of the organisa-
tion. For example, Teece, Pisano and Shuen argue: ‘Winners in the global market-
place have been firms that can demonstrate timely responsiveness and rapid and flexible
product innovation, coupled with management capability to effectively co-ordinate
and redeploy internal and external competences’ (1997: 183). These authors refer
to this ability to achieve and sustain new forms of competitive advantage as ‘dynamic
capabilities’ – that is, the capacity to renew the organisation and its competences to
be consistent with changing environmental demands (ibid.).
So, there appears to be a problem (or a challenge), and there appears to be the
outline of a ‘solution’. And yet, despite the pervasiveness and power of the advocacy,
the record of actual innovation performance appears deficient in so many countries
and so many sectors – as the governmental and quasi-governmental reports from
Germany, Britain, and so on, quoted in the Preface, make clear.
The problem of innovation is particularly apparent in new product development,
but is not limited to this crucial area. Judging from the continuing complaints about
the ‘productivity gap’ between the UK and its leading competitor economies, the
problem extends into the area of process innovation and organisational innovation.
These are areas which we also explore.
Despite the fact that innovation is currently a priority on the agenda of policy
makers, academic researchers and managers, the impact of academic analyses of innova-
tion on practice is, however, apparently limited. The literature on innovation is
very extensive (for summaries see Storey 2004; Van de Ven 1986; Wolfe 1994). But
the influence of the body of literature and of policy prescription on actual manage-
rial behaviour is uncertain. There is a discrepancy between what is ‘known’, in so-
called ‘Mode I’ knowledge terms (see Gibbons et al. 1994) about innovation, and
what in practice managers do. And with respect to the organisation of innovation
there are other discrepancies. One is the gap between senior managers’ espoused
claims for the strategic importance of innovation and their actions (or lack of action)
to encourage innovation within their organisation. One potential explanation for this
discrepancy might be found by attributing it to managers’ use of rhetoric or mere
public relations spin. But such explanations in terms of bad faith are too easy, and
are anyway untested. The research reported here was designed to advance our under-
standing of this gap between words and deeds. Is it deliberate: simply an attempt
to claim the PR advantages of a focus on innovation without a willingness to invest
MOIC01 2/6/06 10:50 AM Page 5
6 INNOVATION: PROBLEMS AND POSSIBILITIES
and take the risks necessary to achieve it? Or is it, in its own way, quite consistent?
For example, could it be that managers who espouse innovation, while tolerating
their organisations’ apparent lack of encouragement for it, may have designed
organisations which, in the light of their theories of innovation, are effective at man-
aging the sort of innovation they value? The exploration of this kind of link between
managers’ aspirations, interpretations and organisational designs is one of the object-
ives of the study.
Another fundamental aspect of the ‘gap’ between organisational practice and aca-
demic prescriptions is that noted by Cooper and Kleinschmidt, who observe: ‘what
the literature prescribes and what most firms do are miles apart’ (1986: 73). This gap
between available knowledge and organisational practice was also one of the departure
points for our research. It requires outline and analysis. Managers are presumably
aware in some shape or form of the importance of innovation (this is something
we investigate). If they do treat it as a priority, then what interpretations do they
construe about organisational prerequisites and supports for innovation? If there
is a gap, how does it originate? To what extent do managers draw upon and use
academic frameworks and prescriptions? Are managers unaware of the relevant
literature, or aware of it and opposed to it – or indifferent to it? These questions,
too, inform our study.
What Is Already Known?
As the next chapter will reveal in more detail, there are some things which are already
known or accepted about innovation and quite a number of things which are not
known about it. A few points can be stated with some confidence. First, that innova-
tion is vital to economic growth and national competitiveness. This is especially
the case under contemporary conditions of globalisation, the ever-increasing avail-
ability and use of information technology, and the intensification of competition.
This system-level observation may not extend to every individual enterprise because
some organisations can sustain themselves on a high-efficiency or fast-follower
basis, but most organisations in advanced turbulent economies will find themselves
vulnerable without a capacity to innovate. Second, even the organisations which do
prioritise innovation must nonetheless cater for the ongoing operational demands
of today as well as the transformative demands of tomorrow. This presents a huge
managerial challenge. Leading and managing change is part of the challenge. Third,
grappling with the management of innovation entails engagement across a broad
front. It is not just about technology strategy and R&D. It requires, among other
things, simultaneous attention to markets, design, operations, supply chains and inter-
organisational networks. The functional areas must be managed in an integrated way.
Moreover, on top of this, building and sustaining the capability for sustained innova-
tion require orchestrated attention to organisational learning, organisational culture,
organisational structure and organisational leadership. Fourth, to some degree or
other, innovation is influenced and shaped by prior experience. In other words, it is
path-dependent. Innovative potential is enhanced or stymied by the learning which
has preceded it.
MOIC01 2/6/06 10:50 AM Page 6
INNOVATION: PROBLEMS AND POSSIBILITIES 7
There is a vast literature on innovation. It can be segmented in various ways. For
example, contributions have been made from a wide range of positions: from eco-
nomics, from an economic cycles and technological trajectories perspective, from a
technology policy and technology diffusion stance, from marketing, new product devel-
opment, and organisational analysis and other perspectives. Innovation has also been
studied at the national systems level, the regional clustering level, the level of inter-
form networks and supply chains, the organisational level and the team and indi-
vidual level. Most of the studies within these multiple traditions and paradigms adopt
a positivist stance. That is, they treat innovation as a dependent variable and they
seek to draw out, identify and measure the influence of a series of independent vari-
ables as a way of ‘explaining’ patterns and degrees of innovation. In consequence,
as the next chapter reveals, there are now numerous sets of variables which have
been identified. Again, as the next chapter will show, a number of attempted meta-
analyses of the multiple studies have concluded that many of the explanatory
accounts reached by such methods have often resulted in conflicting conclusions.
For example, Downs and Mohr observe: ‘Perhaps the most alarming characteristic
of the body of empirical studies of innovation is the extreme variance among its findings.
Factors found to be important for innovation in one study are found to be consider-
ably less important, not important at all, or even inversely important in another study’
(1976: 700). Similarly, following a wide-ranging review of the conventional literature
on innovation, Wolfe concluded that ‘Our understanding of innovative behaviour
in organisations remains relatively under-developed’ (1994: 405).
A number of these reviewers have suggested that, in part, this state of affairs arises
from a failure to study innovation within the context of meaning, knowledge and
understanding of the organisation as a key unit of analysis. And they trace inconsist-
ency of findings to a lack of clarity on several conceptual issues. A key example is
the need to understand the meaning accorded by actors themselves to innovation –
both as a strategic priority and as an issue of organisational structure and dynamics.
Matters of this kind cannot be simply assumed. They will depend on the organisa-
tion involved: ‘the classification of the innovation depends on the organisation that
is contemplating its adoption’ (Downs and Mohr 1976: 702). Thus, an innovation
‘might be seen as minor or routine by some organisations but as major or radical
by others’ (1976: 704). Hence, those senior executives accused of hypocrisy or rhetoric
because of the gap between their claims and their organisations’ actions may be entirely
consistent, given their particular narrow definition of innovation. Hence this issue
of meaning lies as an unexplored black box at the very heart of the limited impact
of survey research using correlation and regression analysis. Downs and Mohr sug-
gest that one way of ‘coming to grips with secondary attributes is to think of them
not as being composed wholly of characteristics of the innovation or the organisa-
tion but as characterising the relationship between the two. The unit of analysis is no
longer the innovation, but the innovation with respect to a particular organisation’
(1976: 706). If this aspect is neglected, then correlation and regression coefficients
using such variables will be unstable where multiple innovations are aggregated.
Hence, as the same authors also point out, the results of the studies ‘will fluctuate
mysteriously around the true micro-level values that they are supposed to represent’
(1976: 708). It was in order to find a way to circumvent such problems that we
MOIC01 2/6/06 10:50 AM Page 7
8 INNOVATION: PROBLEMS AND POSSIBILITIES
designed an alternative research approach for our studies of innovation in organisa-
tional settings.
We seek to contribute to knowledge about innovation by approaching the sub-
ject in a rather different way. Our focus is upon how the key actors in the drama
themselves define and view the challenges and the variables. We try to provoke and
then highlight their interpretations. We seek to identify patterns in their accounts
and to surface the incipient or explicit theories that they hold. And we seek to draw
out underlying cognitive models and how these models relate to organisational
performance with regard to innovation.
To set the scene further, it should also be noted that while there is a very large
literature on innovation, only a small segment of it attends to the specific issues of
the ‘management of innovation’. Moreover, much of the literature is technology-
focused and bounded within particular concerns such as R&D, entrepreneurship, dif-
fusion and similar segments. Yet when one approaches the problem of ‘managing
innovation’ it is the integrative nature of the challenge which is the most notable
aspect. These observations introduce the other side of the coin – that is, the things
which are not known about innovation.
In what, even today, is one of the most notable articles on the management
of innovation, Andrew Van de Ven observed: ‘While research has provided many
insights into specific aspects of innovation, the encompassing problems confronting
general managers in managing innovation have been largely overlooked’ (1986: 591).
The kind of key questions which Van de Ven had in mind as a result of his con-
versations with chief executives were: how to develop a culture of innovation in organ-
isations, how to prepare for innovation while organising for efficiency, how to direct
attention away from the protection of existing practices, and how to institutionalise
leadership and create an infrastructure conducive to innovation. He proceeded to
try to address these kinds of questions (which he terms the central problems in the
management of innovation), and a number of other researchers and authors have
sought to tackle these issues also. It is important to note that our own attempt is
very different from the norm and rather more oblique. But we, too, seek to go to
the heart of the series of questions concerning the management of innovation in
organisations which Van de Ven sought to tackle. We do so, however, on a larger
scale and in a distinctive way.
The path taken by this book is one which has been curiously neglected by most
conventional accounts of innovation. The book is primarily about how managers think
and talk about innovation. It is about their theories and accounts of how organisa-
tions – specifically their own – encourage and discourage innovation. Most research
into innovation seeks in one way or another to develop and test the academic
researcher’s theories about the enablers and the blockages to innovation. But this
book focuses instead on managers’ own theories of innovation. This, we believe, is
important and worthwhile because in the end it is their sense-making and inter-
pretations which determine how organisational priorities are arranged and how
resources are allocated. As Silverman emphasised, ‘People act in terms of their own
and not the observer’s definition of the situation’ (1970: 37).
The implications of this kind of perspective have been explored in various realms
of social action but not thus far very much in relation to the question of innovation.
MOIC01 2/6/06 10:50 AM Page 8
INNOVATION: PROBLEMS AND POSSIBILITIES 9
Hence, this book and the research it describes explore practising managers’ own ana-
lyses of the difficulties and the possibilities of promoting and using innovation within
organisational contexts. Innovation is something managers in many organisations want
to achieve (although how they define innovation and how they value it vary in significant
ways). For some it is a priority, a strategic and explicit purpose. In such cases we
listened carefully to how they thought about the different ways in which they tried
to shape their organisations in order to accomplish these ends. And so our theme
is managers’ thinking about innovation. This does not mean, of course, that we
simply accepted at face value the veracity of all accounts. We were and are aware
that accounts are embellished and made socially acceptable. What we were looking
for were the patterns which emerged within and across different organisations, inso-
far as the emergent narrative lines were part of that socially constructed reality that
was our ‘data’. If we are to gain a better understanding of how and why organisa-
tions succeed or fail in achieving innovation, we suggest that it is valuable to listen
closely to those actors who have frequent and direct experience and responsibility
for handling it. It was their ways of thinking (and feeling) that we wanted to sur-
face and analyse. Thus it is actors’ theories which constitute the focus of this book.
We believe that these revealed patterns are of interest and significance in their
own right – irrespective of how they may, or may not, match up against some other
version of the ‘objective reality’ of the situations which they tried to describe.
What Needs to be Known?
There is arguably no single, central problem of innovation, although some observers
have made valiant attempts to locate one. Different debates which focus on innova-
tion constitute the problems of innovation by framing the process and its context
in distinctive ways. For example, it has been suggested that the central problem
of innovation is how to maintain current market advantages, current routines, and
current structures while also aspiring to disrupt these by introducing technologies,
products and processes which, by their nature, challenge the status quo. As
Noteboom asks, ‘How can stability and change be combined?’, and how can an organ-
isation combine ‘exploitation’ and ‘exploration’ (2000)? These are important
questions and we find that they preoccupy many of our respondents’ thinking. But
they are not the only ones. The ones we are most interested in are those which our
respondents construct, and towards the end of the book we compare these with the
preoccupations found in the literature.
As we will see in the following chapter, there are a number of interrelated themes
and literatures which have a bearing upon innovation. The research-based analysis
which follows in the subsequent chapters which form Part II of the book con-
stitutes our main assault on the range of questions which arise as far as managers of
organisations are concerned. These questions include some very basic, yet fundamental,
issues. For example, what degree of attention should managers accord to innovation
when set alongside many other competing demands on a manager’s time – that is,
what kind of priority does it and should it enjoy? Just what are managers supposed
actually to do when their corporate board announces innovation as a ‘corporate value’?
MOIC01 2/6/06 10:50 AM Page 9
10 INNOVATION: PROBLEMS AND POSSIBILITIES
Other considerations also arise, such as what processes and organisational arrange-
ments are thought to be desirable in order to promote and implement innovation;
the role of knowledge and learning; and the influence of organisational cultures and
embedded assumptions. Crucially affecting each of these are the cognitions, inter-
pretations and perspectives of managers.
So, to summarise so far, the key questions we will be exploring throughout this
book with the aid of a large number of organisational managers are:
1 How do managers define, value, and comprehend innovation?
2 How do managers explain the ways in which their organisations encourage or
discourage innovation?
3 Which aspects of organisation do they identify as critical to the achievement, or
conversely the obstruction, of innovation, that is, what do managers themselves
see as the enablers of, and the barriers to, innovation?
4 What pattern of findings can be discerned from the answers to the above ques-
tions, and how do these patterns help us better to understand the nature of truly
innovative organisations when compared with poorly innovating organisations?
The core case chapters in Part II of this book reveal and build the relevant data and
insights necessary in order to answer these questions, and the concluding chapter
brings all the strands together into a new framework. Before attending to the cases
we need to say a little more about why it is worth paying close attention to man-
agers’ attitudes, thoughts, experiences and theories in relation to innovation.
The Value of Attending to Managers’ Insights
Why does it matter what managers think – and feel – about innovation? Managers
are by no means the only actors who can play crucial roles in relation to innovation.
Employees at all levels, customers, suppliers and contractors have the potential to
drive innovation and to contribute to it. As the literature review in the next chapter
reveals, there have been a number of significant explorations of the roles of these
various actors. And much of our own previous work has explored these other con-
tributions (Storey 1992, 2001, 2004). It is, nonetheless, important and useful to
focus particularly on managers’ thinking about innovation for four main reasons:
• managers set the priorities and strategies for organisations
• managers control resources
• managers filter ideas, information and theories deriving from external sources such
as academic research results, government and consultants
• managers’ sense-making repertoires set the tone for much of the discussion and
action in organisations.
The first point, that managers determine priorities and strategies, is fundamental.
They are the ones who debate and decide, for example, whether the firm is to be a
pioneer in new products and services; whether it will seek new markets or whether
it will content itself with being a fast-follower or try to compete on price.
MOIC01 2/6/06 10:50 AM Page 10
Random documents with unrelated
content Scribd suggests to you:
His Excellency, Viscount S. Aoki, Ambassador Extraordinary and
Plenipotentiary, Japanese Embassy, Washington, D. C.
That, after the great expense incurred by the late war and the
need of relief at home on a large scale for the famine stricken
provinces, so generous an expression of sympathy for the sufferers
in California was made by the people of Japan, is most deeply
appreciated by the American National Red Cross and the American
people.
Up to the date of going to press the Red Cross has received from
the State Branches and from other sources $2,275,489.56. Four
hundred thousand dollars of this amount has been transmitted to Mr.
James Phelan, as Chairman of the Finance Committee of the
consolidated Relief Committee and Red Cross, and the remainder is
subject to the call of this committee, any sum being at its request
immediately forwarded by telegraph to San Francisco through the U.
S. Sub-Treasuries, and placed to Mr. Phelan’s credit.
As the general principle of the Red Cross is that money is most
wisely expended as far as possible, near the scene of disaster so as
to stimulate the somewhat paralyzed business-life, and expended by
those, who—taking part in the actual relief work, best understand the
needs, the Red Cross Executive Committee made no purchases
save one carload of condensed milk and ten thousand blankets. In
both cases these purchases were made with the kindly assistance of
Army Officers who pronounced on the prices and inspected the
articles before they were shipped, transportation having been given.
The Commissary officers of the U. S. Army throughout the West
kindly consented to act as Purchasing Agents for the Red Cross, and
Dr. Devine who with Mr. Pollok of the Relief Committee was
appointed on a purchasing committee, was notified of their names
and addresses.
On April 26th the following telegram was received from Judge
Morrow, President of the California Branch:
Hon. W. H. Taft, President Red Cross, Washington, D. C.
Have arranged for full historical record of all matters connected with
disaster for Red Cross purposes.
WM. W. MORROW, President.
The distinguished historian, Professor H. Morse Stephens, is on
this historical committee and associated with him are some of the
most capable young men who were intimately connected with the
relief work from the first.
This record will be published later and will not only prove of
historical interest, but of great value in any future relief work of a like
nature.
The importance of having the accounts of the expenditures of Red
Cross money contributions so kept as to render auditing by the War
Department possible, as required by law, was fully realized, and
General A. E. Bates, Retired Paymaster-General of the U. S. Army,
kindly volunteered his services to proceed to San Francisco and
arrange some simple plan for the keeping of these accounts. His
offer was accepted, and at the request of the President of the Red
Cross he left for San Francisco, and on May 9th the following
telegram was received by the President of the Red Cross:
The Secretary of War, Washington, D. C.:
Arrived Monday evening and yesterday had an interview with the
Finance Committee by whom I was most pleasantly received. Examined
their system of auditing which I approve. Suggest an addition to their
system by which the Red Cross funds will be treated like an appropriation
for a specific purpose and accounted for to you by vouchers and
accounts similar to money of Army appropriation. My suggestion
approved and adopted by Committee and Dr. Devine with thanks. Relief
work here is perfectly organized and organization apparently working
effectively and smoothly. Expenses being reduced daily. This morning I
appeared by request before the full Committee and explained my position
here. Shall remain here until system is working and one set of accounts is
forwarded.
A. E. BATES, Major-General, retired.
The following communication was received by the Secretary of the
Red Cross from Judge Morrow, enclosing the literature referred to:
California Branch, San Francisco, Cal., May 12, 1906.
Mr. Charles L. Magee, Secretary, American Red Cross:
Dear Sir:
The distribution of food to the nearly three hundred thousand sufferers
in San Francisco has been a difficult problem for solution, but we think a
system has been adopted that will make the distribution as nearly perfect
as possible, and as the subject may be of some interest to the National
Society, I enclose herewith the plan of registering of persons desiring
food, the directions for registering applicants at relief stations; also a
registration card and a food card.
You may, perhaps, find it interesting, and I would suggest that you
show it to Mr. President Taft. The plan was devised by Professor C. C.
Plehn of our State University, and we think it would be well to have it
made a matter of record for future reference. The plan goes into effect
immediately.
Very truly yours,
WM. W. MORROW,
President, State Branch Society.
A reproduction of the registration and food cards are given and it is
especially interesting to note that in the Japanese Famine Relief
work, as seen by Baron Ozawa’s report contained in the Bulletin,
that the Japanese Red Cross also used a system of registration.
NATIONAL RED CROSS
General Register of Applicants for Relief, San Francisco, 1906
Food Station No. ....
Surname and
given names of
head of family:
Total number of
persons for whom
rations are asked: ....
Food
Card
No.
Date of this
registration:
Men .... Children .....
Women ....
Aged,
etc. ....
Present location: Former home, or address on April 17:
Trade or
occupation of
head of family:
Age: Nationality: Union:
Former
employer:
References, or other memoranda relating to employment:
Membership in (1) fraternal orders; (2) churches; (3) clubs:
Address of friends to be communicated with:
Present
employment:
Is it
steady?
Is applicant owner of real estate?
If so, where?
Plans for future:
Relief supplied (other than rations, including transportation):
Remarks:
Food Card Issued.
No. Date.
Data as to adult bread winners in family or party (not the
applicant named on face of card).
m. f. m. f. m. f. m. f.
Name and sex
Age and nationality
Trade or occupation
Union
Former employer
References
Present employment
Future plans
Remarks:
1 NATIONAL RED CROSS. (See
other
side.)
2 Food Card.
3
4 C. No. .........
R. S. No.
..............
5
6
7 This card is issued on.....................................(date)
8
9
It will be good for 10 days ending..........................
(date)
31
10 30
11
.........................................(Signature of Issuing
Officer.)
29
12 28
13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
TAKE NOTICE.
This card must be presented whenever rations are drawn. When
drawing rations keep it always in plain sight.
This card is not transferable, and will be honored only when
presented by the person to whom it is issued, or by some member of
his family or party.
Good only for 10 days.
Renewable after 10 days at the discretion of the registration
officer.
Good only at the Relief Station of issue.
If any fraudulent use of this card is attempted it will be taken up
and no rations will be issued to the offenders.
“AMERICAN NATIONAL RED CROSS
“Instructions for Registering Applicants at Relief Stations
“The primary purpose of this registration is to provide a record that
will show how many persons are applying for relief from the National
Red Cross. Since relief is granted through a large number of sub-
stations, it is necessary not only that each station should keep a
register of its own applicants, but also that the headquarters should
have complete records for all stations.
“When any one applies for relief, therefore, a Registration Card
should be at once made out showing so far as pertinent and
ascertainable the information asked for concerning the applicant.
When rations are issued to a family or party both the Food Card and
the Registration Card should be made out at the same time.
Registration may—and in many cases will—be done by the
canvassers who visit each family. These canvassers may be: (1)
officers of the Relief Station; (2) workers of the Associated Charities;
(3) representatives of the Central Registration Bureau. The utmost
care should be exercised to see that the persons registered for relief
are within the district assigned to the station issuing relief. If any
question as to boundaries arises refer the same to the Central
Registration Bureau.”
Among the directions for making out the Registration Card are the
following:
“(1) Surname and initial of applicant.
“Write legibly the name of the head of the family or party applying
for relief.
“(5) Present location.
“Give the best possible indication of where applicant can be found
on visit or by letter.
“(6) Former address or home on April 17th.
“What is wanted is the address that will be most useful in tracing
the applicant or his family in case inquiry is made by distant friends
or others.
“(7) Trade or occupation.
“In case the applicant has a recognized trade enter it; otherwise
give best indication possible of how he made his living.
“(13) Address of friends to be communicated with.
“Enter here any names and addresses of people to whom
applicant desires the National Red Cross to write in his behalf.
“(17) Plans for future.
“State any plans applicant says he has for future work, for leaving
town, etc., and any fact which may help in putting him on his own
feet again.
“Treat all applicants with the utmost consideration. The relief
afforded is not a charity and is needed most by respected and
honorable citizens. More than nine out of every ten of the applicants
will be self-supporting in a few weeks. The few lazy imposters will be
speedily detected and dealt with separately. Assume every one to be
entitled to relief until clearly proven unworthy.”
Under the directions for the issue of Food Cards the purposes for
which Food Cards are issued are stated to be:
“(1) To make sure that every one entitled to draw rations secures
an amount proportionate to the size of his family or party.
“(2) To prevent imposters from drawing more than their
proportionate share of rations.
“(3) To furnish a record of the number of persons being fed at the
several relief stations, for the use of stations, and of the central
distributing authorities.”
In connection with the Food Cards the following cards have been
issued to provide for the giving out of other supplies:
FOOD CARD No. ......... DATE ..................
To Supply Station:
Give bearer the number of Articles punched out below.
FOR MEN.
Hats 1 2 3 4 5 6
Shoes 1 2 3 4 5 6
Shirts 1 2 3 4 5 6
Undershirts 1 2 3 4 5 6
Drawers 1 2 3 4 5 6
Socks 1 2 3 4 5 6
Stockings 1 2 3 4 5 6
FOR WOMEN.
Waists 1 2 3 4 5 6
Skirts 1 2 3 4 5 6
Under Skirts 1 2 3 4 5 6
Under Vests 1 2 3 4 5 6
Diapers 1 2 3 4 5 6
Drawers 1 2 3 4 5 6
HOUSEHOLD ARTICLES.
Tents 1 2 3 4 5 6
Cots 1 2 3 4 5 6
Mattresses 1 2 3 4 5 6
Blankets 1 2 3 4 5 6
Towels 1 2 3 4 5 6
Wash Basins 1 2 3 4 5 6
Stoves 1 2 3 4 5 6
Buckets 1 2 3 4 5 6
Pots and Pans 1 2 3 4 5 6
Knives and Forks 1 2 3 4 5 6
Spoons 1 2 3 4 5 6
Plates 1 2 3 4 5 6
Cups 1 2 3 4 5 6
Lanterns 1 2 3 4 5 6
Chairs 1 2 3 4 5 6
Soap 1 2 3 4 5 6
The issuing of these cards has reduced the number of repeaters
and has been of great assistance in the systematizing of the relief
work.
General Bates in his report to the President of the American
National Red Cross states later that a further economic and salutary
measure has been adopted in the establishment at the different
camps and relief stations of large kitchens and dining halls or sheds
where a contractor buying the supplies from the relief committee
furnishes three cooked meals a day, and in case of all persons,
excepting those who are entirely destitute, these meals are sold at
ten or fifteen cents each. It is the opinion of the officers in charge of
this work, which is just inaugurated, that within a few days, the
greater majority of the people getting relief from the Committee in
this manner will pay for it. General Bates also says, “I think it would
be quite impossible for any one, without having been on the ground
or having had a similar experience in some other place, to
appreciate the enormous difficulties that these people have had to
contend with. In the first place their three days’ battle with the fire
was as horrible, excepting as to loss of life, as any of the critical
battles of the world. During that time, with the water cut off from the
city, the impossibility to arrest fire by means of dynamiting and
blowing up districts so that the fire should have nothing to feed upon,
the suffering and horror of turning two hundred thousand or more
people from their homes into the streets, with nothing to eat and
nothing to drink was simply appalling and notwithstanding the
gigantic task that lay before them, I think from what I learn, that it is
safe to say that no one has suffered from hunger or neglect.”
This is only a brief and partial report of the beginning and progress
of the relief in California, but it conveys some idea of the methods
adopted in the accomplishing of this great work.
Up to the date of going to press the various State Branches have
contributed the following amounts:
Connecticut $119,094.74
Delaware 18,900.00
District of Columbia 58,911.01
Georgia 200.00
Illinois 144,818.55
Indiana 34.032.16
Maine 5,607.02
Maryland 100,000.00
Massachusetts 64,877.25
Michigan 27,500.00
Missouri 143,000.00
New York 510,000.00
Ohio 62,967.45
Pennsylvania 129,600.00
Rhode Island 87,000.00
South Carolina 1,000.00
Wyoming 1,694.60
Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey
THE EIGHTH INTERNATIONAL
CONGRESS OF THE RED CROSS
SOCIETIES
To the Presidents and Members of the Central Committees of the
Red Cross:
Geneva, March 20, 1906.
Gentlemen:
In accordance with an established tradition, duly confirmed by the
last Congress held in St. Petersburg, it is the duty of the International
Committee to concern itself in due time with the reunion of the
International Meetings, which periodically bring together the
delegates of all the National Societies of the Red Cross.
The British Society not having heretofore been called upon to
entertain the sister organizations of other countries, we addressed
ourselves to the London Committee: We have the pleasure of
announcing to our honorable correspondents that this Committee
accepted the mandate which we proposed it should assume.
The next International Congress of the Red Cross Societies will
therefore convene in London, 1907, during the week beginning June
10th.
You will unite with us Gentlemen, will you not, in addressing
publicly to the British Society, the expression of our sincere gratitude
for the invitation extended to us, assuring it at the same time of the
zeal with which we will favorably respond.
It is important that these periodical occasions, the only ones which
afford to our Societies the opportunity to strengthen the bands which
unite them, by personal and instructive intercourse, should be as
largely attended as possible and that no Society, however modest it
be, should fail to have itself represented.
The British Society which has so recently been called upon to reap
such a rich harvest in the field of Volunteer Aid, will doubtless have
important communications to make to its guests; moreover its
organization and peculiar workings, will offer an ample subject of
study to delegates assembled to perfect their knowledge in the line
of aid to wounded soldiers.
It seems of interest to us, to trace in a few lines, the origin of this
Society, thereby learning to know it in advance, because few
countries have shown as much zeal and expended as much money
in succoring wounded soldiers, as Great Britain. This Society owes
its existence to the Members of the Order of St. John of Jerusalem,
who conceived the idea in April, 1869. It was regularly incorporated
August 4, 1870. Its operations were confined at the outset, in time of
peace, to the training of nurses, but in time of war, it played an
important and beneficent part in sending aid in money, or in kind, by
furnishing detachments of nurses, not only for the wars in which
England participated, but also for those in which she was not
engaged.
In 1899 a British Central Committee of the Red Cross was
created, uniting the delegates of the National Society for Aid to the
Wounded, the Ambulance of St. John and the Reserve Corps of
Army Nurses, to serve as a bond between these three institutions
and for the purpose of distributing in time of war, all voluntary relief
contributions, whether made in personal service, in materials or in
funds. It was destined to enlarge the sphere of action and of
influence of the British Red Cross, and to neutralize the efforts of all
the Relief Societies of the country. The Chairman of the National
Society, Lord Wantage, was placed at the head of this Central
Committee, and the new combination proved efficacious and useful
in the Anglo-Boer War, where the Volunteer Sanitary Service played
such an important part.
Finally in 1905 a new transformation became operative. Lord
Wantage, deceased in 1901, was succeeded by Lord Rothschild. A
committee presided over by the latter, under the auspices of the
Queen and in response to an appeal made by her, was charged with
the work of rendering more effective the concentration of all British
Societies concerned with Relief Work amongst the sick and
wounded in the Army. The efforts of this committee of organization
have resulted in an association which assures to the Red Cross in
Great Britain, the position it should occupy. Lord Rothschild is
Chairman of the Executive Committee. We will undoubtedly be able
in the next issue of the “Bulletin” to give more complete details
concerning this entirely recent institution.
The Headquarters of the British Red Cross Society are at 9
Victoria St., London, S. W.
The program of each Congress is as you know, finally arranged by
the Committee of the Country acting as host, according to the
subjects suggested by the other National Societies and also by those
which it desires itself to discuss. We therefore request you to inform
the British Society directly and at your earliest convenience, of the
questions you would wish to see appear on the program for
deliberation. The British Society in transmitting to you the final
program, will give full, practical and necessary directions.
In accordance with resolutions passed at St. Petersburg, an
exhibition will be held in connection with the next Congress, with the
object of showing the technical progress made in relief methods.
Moreover the prize founded by the Empress Marie-Feodorovna, will
be awarded for the first time, to the authors of the best inventions for
alleviating the sufferings of sick and wounded soldiers.[1] The
inventions to be shown at the aforesaid exhibition. The jury charged
with awarding the prize is composed of eight members, of which two
are named by right, one by the Russian Central Committee, the
other by the International Committee; besides these, the Central
Committees charged with designating in 1907, each a member of the
jury, are those of Germany, Austria, Great Britain, France, Italy and
Holland.
Finally, and in conformity with a decision of the last Congress, we
invite those of the Red Cross Societies which have not yet informed
us of how far they have been able to carry out the wishes and the
resolutions adopted in St. Petersburg, to do so at once, or at least to
notify the London Committee in time to enable them to present a
report on the matter to the Eighth Congress.
Having given ourselves the pleasure of announcing the gracious
invitation which the British Red Cross Society intends addressing to
you, with the special communications which it will send to you
directly, we beg to renew to that Society the expression of our
gratitude and to present to you, Gentlemen, the assurance of our
most distinguished sentiments.
For the International Committee of the Red Cross:
G. MOYNIER, President.
E. ODIER, Secretary.
GUSTAVE ADOR, Vice-President.
[1] Article 2 of the regulations of the Empress’ Fund. See Bulletin
of the International Red Cross Committee, xxxiii, p. 143.
Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey
THE ABUSE OF THE RED CROSS
INSIGNIA
The rapidly increasing prominence and importance of the Red
Cross will still further tend to the abuse of its insignia. Unfortunately
in the United States the use of this insignia, created for the special
purpose of identifying and protecting in time of war those caring for
the sick and wounded, ambulances, hospitals and hospital
equipments, has never been properly safeguarded as has been
done in most other countries which are signatory powers of the
treaty of Geneva, and which recognize the necessity for the
protection of this insignia.
A number of manufactured articles bear as a trademark this
insignia, their manufacturers having obtained from the Patent Office,
previous to the reincorporation of the Red Cross, a legal right to such
use. Others using that mark claim a right to use it because they had
used it previous to the granting of the charter. In a number of cases
their attention being called to the clause of the charter intending to
prevent as far as possible this use of the Red Cross for purposes of
trade, manufacturers and others have kindly and promptly
abandoned their use of it. In other cases the request to desist from
its use—it might be called its abuse—was refused.
In two cases that have been brought to the notice of the Executive
Committee so-called training schools for nurses that provide, in one
case a course of a few weeks with no hospital experience, and in
another a training by correspondence only, called their nurses Red
Cross nurses. As it is the object of the National Red Cross to enroll
among its nurses only such as have had a regular two or three
years’ course with hospital training, and whose efficiency and
character have been thoroughly vouched for so that our American
National Red Cross nurses will rank as highly as do the Red Cross
nurses in many of the other countries, this use of the Red Cross by
such institutions as those mentioned above must act as a strong
detriment to the National Red Cross and prove especially injurious to
its efforts to secure the enrollment of the highest class of trained
nurses.
Red Cross nurses are enrolled for service in time of war or of great
calamity as provided in the charter and a false impression is
conveyed when nurses not enrolled by the National Red Cross make
use of this name of Red Cross nurse. There can be in each country
but one Red Cross Society as recognized by the International Red
Cross Committee of Geneva upon proof that the Society has
received official recognition from the Government of its own country
and only its nurses are really Red Cross nurses, so that all others
using this name convey to the public a false impression that they are
nurses of the Red Cross.
Public opinion should most strongly oppose the abuse of the Red
Cross insignia, and its use, save for the purposes for which it was
created, earnestly discountenanced. The members of the Red Cross
are requested to report to the Executive Committee all such use of
the Red Cross, not connected with the National Society, that may
come within their cognizance. The Society has a list of those
manufacturers who obtained the Red Cross as a trademark previous
to its reincorporation under the present charter in January, 1905. It
should be the duty of every American to see to it that in our country
this Red Cross insignia, created for so beneficient a purpose, is
protected as far as possible from the degradation of becoming a
mere advertisement for money making designs.
Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey
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Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey

  • 1. Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey download pdf https://ebookfinal.com/download/managers-of-innovation-insights-into- making-innovation-happen-management-organizations-and-business-1st- edition-john-storey/ Visit ebookfinal.com today to download the complete set of ebook or textbook!
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  • 5. Managers of Innovation Insights into Making Innovation Happen Management Organizations and Business 1st Edition John Storey Digital Instant Download Author(s): John Storey, Graeme Salaman ISBN(s): 9781405178525, 1405178523 Edition: 1 File Details: PDF, 1.68 MB Year: 2004 Language: english
  • 6. MANAGERS OF INNOVATION MOIA01 2/6/06 10:49 AM Page i
  • 7. MANAGEMENT, ORGANIZATIONS AND BUSINESS SERIES Series Editor: John Storey This wide-ranging series of texts, surveys and readers sets out to define the study of the management of people and organizations. Designed for both postgraduate and undergraduate students of business and management, it draws on the leading authors from the various contributing disciplines, including organizational psychology, sociology and industrial economics. A distinctive characteristic of the series is that these subject specialists make their work available to the general business and management student in a highly accessible way. Published Human Resource Management: A Strategic Introduction, Second Edition Christopher Mabey, Graeme Salaman and John Storey Changing Patterns of Management Development Andrew Thomson, Christopher Mabey, John Storey, Colin Gray and Paul Iles International Management: Cross-Boundary Challenges Paul N. Gooderham and Odd Nordhaug Strategy and Capability: Sustaining Organizational Change Graeme Salaman and David Asch Learning by Design: Building Sustainable Organizations A. B. (Rami) Shani and Peter Docherty Managers of Innovation: Insights into Making Innovation Happen John Storey and Graeme Salaman MOIA01 2/6/06 10:49 AM Page ii
  • 8. Managers of Innovation Insights into Making Innovation Happen John Storey and Graeme Salaman MOIA01 2/6/06 10:49 AM Page iii
  • 9. © 2005 by John Storey and Graeme Salaman BLACKWELL PUBLISHING 350 Main Street, Malden, MA 02148-5020, USA 108 Cowley Road, Oxford OX4 1JF, UK 550 Swanston Street, Carlton, Victoria 3053, Australia The right of John Storey and Graeme Salaman to be identified as the Authors of this Work has been asserted in accordance with the UK Copyright, Designs, and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs, and Patents Act 1988, without the prior permission of the publisher. First published 2005 by Blackwell Publishing Ltd Library of Congress Cataloging-in-Publication Data Storey, John, 1947– Managers of innovation : insights into making innovation happen / John Storey and Graeme Salaman. p. cm. – (Management, organizations, and business series) Includes bibliographical references and index. ISBN 1-4051-2462-8 (hardcover : alk. paper) – ISBN 1-4051-2461-X (pbk. : alk. paper) 1. Technological innovations–Management. 2. Creative ability in business. I. Salaman, Graeme. II. Title. III. Series. HD45.S845 2005 658.4′063–dc22 2004007685 A catalogue record for this title is available from the British Library. Set in 10/12pt Galliard by Graphicraft Limited, Hong Kong Printed and bound in the United Kingdom by TJ International, Padstow, Cornwall The publisher’s policy is to use permanent paper from mills that operate a sustainable forestry policy, and which has been manufactured from pulp processed using acid-free and elementary chlorine-free practices. Furthermore, the publisher ensures that the text paper and cover board used have met acceptable environmental accreditation standards. For further information on Blackwell Publishing, visit our website: www.blackwellpublishing.com MOIA01 2/6/06 10:49 AM Page iv
  • 10. Contents List of Figures and Tables vi Preface vii About the Authors x Part I Introduction 1 1 Innovation: Problems and Possibilities 3 2 The Current State of Knowledge about Innovation 15 Part II Managers’ Accounts of Innovation 35 3 From Tight Control to the Edge of Anarchy: Managing Innovation in Telecommunications 37 4 Managing Creative Workers in an Innovative Way 61 5 Contrasting Approaches to Innovation in Engineered Manufactured Goods 88 6 Innovation in the Voluntary Sector 115 Part III Synthesis 141 7 Conclusions 143 Appendix: Research Methods 177 Bibliography 185 Index 191 MOIA01 2/6/06 10:49 AM Page v
  • 11. Figures and Tables Figures 7.1 The association between evaluation and scope of interpretation of innovation 152 7.2 Implications and definitions of innovation 153 7.3 Clarity versus confusion 154 7.4 Moral and affective differences 155 7.5 Control versus openness 156 7.6 Patterns of formal and informal activity 160 Tables 1.1 A list of the main case organisations 12 3.1 Summary comparisons between GPT and Nortel 57 4.1 Summary comparisons between Zeneca and the BBC 85 5.1 Summary comparisons between Hewlett-Packard and GDA 113 6.1 Summary comparisons between Oxfam and Age Concern 138 7.1 Managers’ explicit theories of innovation 148 7.2 Managers’ implicit theories of innovation 150 Appendix 183 MOIA01 2/6/06 10:49 AM Page vi
  • 12. Preface Innovation is increasingly identified as the critical factor in ensuring economic com- petitiveness and a range of other beneficial social outcomes. It has been widely noted that, as trade of all kinds becomes more and more globalised, then the advanced, high-wage economies, in particular, must rely on their applied inventiveness to main- tain their future prosperity. Companies, nation-states and whole regions such as the European Union face a similar challenge. New products (to ensure markets) and new processes (to ensure productivity) are required, and innovation is seen as key to both. The innovation challenge is heightened under current conditions. Rapid tech- nological change, the liberalisation of trade, intense competition from low-wage economies, the reduction in communication and transport costs, shorter product life cycles and consumers switching between products and providers at an accelerated rate – all these factors, and more, render whole rafts of products and services highly vulnerable if they do not lead the way or at the very least keep pace. Governments and influential observers throughout the world have emphasised these messages. Departments of state and quasi-governmental organizations in Austria, Australia, Canada, France, Germany, the Netherlands, Sweden and the UK, to name but a few, have issued reports and calls to action (see, for example, OECD 2004). The common objective of the innovation policies devised and adopted by these coun- tries is to produce ‘innovation-driven’ economies. Various facets of this imperative are variously explored in numerous official reports: compensating for market and systems failure; state policy to provide posit- ive conditions for innovation and competition – including, for example, removing unnecessary regulation and tax breaks for investment in R&D; reassessments of owner- ship of intellectual property rights; the link between innovation and productivity; building and exploiting the science base; exploiting developments in ICT and the Information Society; facilitating the growth of innovation clusters; education, train- ing and development of the workforce, including the managerial cadre; finance and the availability of risk capital; promoting an entrepreneurship culture and facilitating the growth of small and medium-sized enterprises. Across the countries, the themes at public policy level are broadly the same: knowledge, creativity, diversity, learning, new forms of inter-company and inter-agency co-operation, and so on. For example, in 2002 the Federal Ministry of Education and Research in Germany issued a report detailing – and promoting – new forms of work in order to foster creativity and innovation. The ‘innovative development of work’ is both a product of and a driver of product, services and process innovations. Innovation is thus recognised as carrying huge social as well as economic implications. The Ministry reaches the conclusion that ‘The competence, creativity and motivation of staff are the source of the capacity for innovation and transformation in companies MOIA01 2/6/06 10:49 AM Page vii
  • 13. viii PREFACE and public administration. In other words, human resources are the most important factor for innovation’ (2002: 6). Likewise, the Federal Republic of Germany has pressed for changes in the interlocking areas of patenting, venture capital, science, knowledge transfer and entrepreneurship as ways of promoting innovation (Bundesministerium für Wirtschaft und Technologie 2001; Federal Ministry of Economics and Technology 1999; Federal Ministry of Economics and Technology/ Federal Ministry of Education and Research 2002). In these and other reports, the German government shows itself alert to the critical role of innovation. A joint report on innovation policy by the ministries of economics, technology and education makes the federal government’s position abundantly clear: ‘Innovation secures the future. New products, services and processes make companies more competitive in global markets and so secure jobs for the future in Germany. That is why innovation policy is a central component of a forward-looking policy for more growth and employment’ (Federal Ministry of Economics and Technology/Federal Ministry of Education and Research 2002: 3). Statements and approaches of a similar kind can be found emanating from gov- ernment departments and agencies in many other countries. Australia, for example, has a A$2.9 billion innovation strategy cross-cutting the Departments of Trade and Industry (DTI) and Science and Education. One especially clear example is the UK government’s recent analysis and policy statement Competing in the Global Economy: The Innovation Challenge (Department of Trade and Industry 2003). This explains how the UK government is ‘creating the environment’ to enable innovation but it also makes clear that ‘ultimately innovation depends on the knowledge, skills and creativity of those working in business’ (2003: 26). It is this latter set of problem- atics that forms the focus of this book. The DTI report explores the opportunities for macro-environmental sculpting. Suggested interventions include: building the science and technology base; promoting regional development; raising awareness of and by the Patent Office; increasing assistance through Business Link; improving access to finance; improving skills development; further encouragement of collaboration and networks; and the govern- ment itself acting as a more intelligent customer. Helpful as these sorts of measures may be, we suggest in this book that what also need close attention and yet have been largely neglected are the attitudes, understandings, assumptions and interpretations of managers – the ultimate decision-makers in so many aspects of innovation or non-innovation. Managers are vitally important to the prospects for organisational innovation for a variety of key reasons. Even if they themselves are not necessarily the prime ‘innov- ators’, their attitudes and actions largely determine the degree, nature and impact of innovative activity. They set the priorities and the strategies for organisations; they control the allocation of resources; they filter ideas, information and theories deriving from external sources such as academic research results, government and consultants. Managers’ sense-making repertoires set the tone for much of the dis- cussion and action in organisations. As the DTI moves forward into action mode with a range of partners – including, for example, in the workforce domain, a joint body representing employers and trade unions (in this instance, represented by the Confederation of British Industry [CBI] and the Trades Union Congress [TUC], MOIA01 2/6/06 10:49 AM Page viii
  • 14. PREFACE ix respectively) in order to explore the implementation of innovation policies at firm level – we seek to highlight the vital importance of attending to managers’ percep- tions and attitudes towards innovation. As we explain and illustrate in the body of this volume, managers are the gatekeepers who can determine the fate of innovation within organizations. Despite the central role they actually play, they have to date been relatively neglected. This book seeks to show: • how important they are • how their perceptions and attitudes crucially influence the innovative capability of firms • what might be done to reorient their perceptions and cognitions. We wish to acknowledge the financial support of the Economic and Social Research Council (ESRC). The ESRC research grant, reference number L125251053, facil- itated the programme of research which underpins the analysis made in this book. John Storey was the principal investigator and leader of that programme, which is why his name appears as the first of the two authors, although both authors con- tributed equally to the writing of this book. In addition, we wish to acknowledge the contribution of a very large number of people without whose assistance and help this book would not have been possible. Vital to the enterprise were the 350 managers who agreed to be interviewed at length. We are also especially grateful to Dr Elizabeth Barnett, who was the Research Fellow on the ESRC project. She brought tremendous energy, enthusiasm and creativity to the work of the research team. We also want to thank Professor David Buchanan of Leicester de Montfort University, who read and commented in great detail upon a complete draft of the manuscript. In addition, Dr Thomas Diefenbach and Dr Richard Holti of the Open University Business School likewise read and made useful comments on the whole manuscript. We also thank Professor Rod Coombs of the University of Manchester, Professor Joe Tidd of the Science Policy Research Unit (SPRU) at the University of Sussex, Professor Paul Quintas of the Open University, Professor Craig Littler of the University of St Andrews, and Professor Ian McLoughlin of the University of Newcastle for their reading of an earlier version of Chapter 2. Finally, we wish to thank our publisher, Rosemary Nixon, of Blackwell Publishing for her helpful suggestions. John Storey and Graeme Salaman 2004 MOIA01 2/6/06 10:49 AM Page ix
  • 15. About the Authors John Storey is Professor of Management at the Open University Business School and a consultant to leading corporations. He has written and edited 16 books on business, management and organizations. He is a non-executive director on two management boards. Graeme Salaman is Professor of Organizational Studies at the Open University Business School. He has worked as a consultant in eight countries for clients such as Sun Microsystems, Willis, BAT, the government of Ethiopia, Fujitsu, Allianz, Ernst & Young, Rolls-Royce and Morgan Stanley. MOIA01 2/6/06 10:49 AM Page x
  • 16. PART I Introduction 1 Innovation: Problems and Possibilities 2 The Current State of Knowledge about Innovation MOIC01 2/6/06 10:50 AM Page 1
  • 17. MOIC01 2/6/06 10:50 AM Page 2
  • 18. CHAPTER 1 Innovation: Problems and Possibilities OB J E C T I V E S At the end of this chapter readers will be able to: • explain why innovation is viewed as so important at the firm and societal level • explain different types of innovation • list some hypotheses why performance at innovation falls short of aspiration • understand why it is important to attend to managers’ interpretations. CH A P T E R OV E R V I E W Objectives Introduction: Towards a Better Understanding of Innovation The Importance of Innovation What Is Already Known? What Needs to be Known? The Value of Attending to Managers’ Insights Research Design and Methodology A Reconnoitre of Key Findings Plan of the Book Key Learning Points MOIC01 2/6/06 10:50 AM Page 3
  • 19. 4 INNOVATION: PROBLEMS AND POSSIBILITIES Introduction: Towards a Better Understanding of Innovation Innovation is widely proclaimed as one of the most vital requirements – if not indeed the most vital requirement – for firms, public-sector organisations and whole eco- nomies under contemporary conditions. Governments, economists, business professors and many top boards declare it to be so. One of the most fundamental arguments is that, in the global economy, where economic activities can be more cheaply con- ducted in low-wage economies such as China, then the main way, possibly even the only way, in which the traditional advanced economies can compete is to is to find new and better products and new and better processes. In other words, to innovate. In response to such insistence, managers of organisations, it would seem, are being asked to behave in different ways: to rearrange certain priorities; to allocate resources with this requirement in mind; to adjust organisational forms; to try to change organ- isational cultures; to collaborate throughout the value chain; and to respond in a number of other ways which are deemed appropriate. But what actions are appropriate? What should managers do when faced with a call for more and better innovation? What forms of innovation should be pursued, and how? What are the main obstacles that have to be faced, and how can these be surmounted? As we will see later, a wide range of prescriptions are on offer – from academic researchers, from quasi-government agencies and from management con- sultants. But in this book we take a very different approach. We seek to answer such questions by listening very closely to large numbers of managers who have person- ally grappled with them. This introductory chapter is organised into six main sections: (1) The importance of innovation (Why is it important? In what ways is it important?) (2) What is already known? (What is already recorded in the literature on the subject? What are the cur- rent received views and interpretations?) (3) What needs to be known? (The ques- tions that need answering.) (4) The value of attending to managers’ insights (What can managers’ interpretations add and contribute? What, in summary are the main insights to be gleaned from their accounts?) (5) The research design and methodo- logy of the study upon which this book is based. (6) A reconnoitre of the key findings. Each of these themes is elaborated more fully in subsequent chapters, but in this introductory chapter it will be useful to gain an overview and to see the underlying linkages between them. The Importance of Innovation The critical importance of innovation as a driver of economic competitiveness and human well-being and development has long been recognised at national, regional, sectoral and individual organisational levels. Nowadays, the need for innovation is frequently promulgated by government. It provides the focus of attention for numerous business analysts and for national and regional economic policy-makers. It constitutes the raison d’être of many quasi-government agencies, and it is also regarded as one of the fundamental strategic bases of competitive advantage. Innovation, in other words, is regarded by policy makers as one of the most critical MOIC01 2/6/06 10:50 AM Page 4
  • 20. INNOVATION: PROBLEMS AND POSSIBILITIES 5 – if not, indeed, the most critical – element influencing organisational and national economic performance. It is said to be especially important in the contemporary con- text. A string of interconnecting factors and forces impel attention towards it: hyper- competition and globalisation, over-capacity in many product markets, rapidly changing technologies, deregulation, the proliferation of new entrants into existing mature markets, and shorter product life cycles. Perhaps most compelling of all for practitioners is the evident impact of new innov- ating entrants such as Amazon, Dell, Dyson, Egg, Direct Line, and Wal-Mart. These, and many other ventures, have not only wrested market share from existing incum- bents but have redrawn and redefined the nature of whole industries. The popular- ity of the adage ‘Innovate or Die’ is easily understandable under such conditions. But how can managers respond? Just what precisely are managers supposed to do? The answer is increasingly being sought in the internal capabilities of the organisa- tion. For example, Teece, Pisano and Shuen argue: ‘Winners in the global market- place have been firms that can demonstrate timely responsiveness and rapid and flexible product innovation, coupled with management capability to effectively co-ordinate and redeploy internal and external competences’ (1997: 183). These authors refer to this ability to achieve and sustain new forms of competitive advantage as ‘dynamic capabilities’ – that is, the capacity to renew the organisation and its competences to be consistent with changing environmental demands (ibid.). So, there appears to be a problem (or a challenge), and there appears to be the outline of a ‘solution’. And yet, despite the pervasiveness and power of the advocacy, the record of actual innovation performance appears deficient in so many countries and so many sectors – as the governmental and quasi-governmental reports from Germany, Britain, and so on, quoted in the Preface, make clear. The problem of innovation is particularly apparent in new product development, but is not limited to this crucial area. Judging from the continuing complaints about the ‘productivity gap’ between the UK and its leading competitor economies, the problem extends into the area of process innovation and organisational innovation. These are areas which we also explore. Despite the fact that innovation is currently a priority on the agenda of policy makers, academic researchers and managers, the impact of academic analyses of innova- tion on practice is, however, apparently limited. The literature on innovation is very extensive (for summaries see Storey 2004; Van de Ven 1986; Wolfe 1994). But the influence of the body of literature and of policy prescription on actual manage- rial behaviour is uncertain. There is a discrepancy between what is ‘known’, in so- called ‘Mode I’ knowledge terms (see Gibbons et al. 1994) about innovation, and what in practice managers do. And with respect to the organisation of innovation there are other discrepancies. One is the gap between senior managers’ espoused claims for the strategic importance of innovation and their actions (or lack of action) to encourage innovation within their organisation. One potential explanation for this discrepancy might be found by attributing it to managers’ use of rhetoric or mere public relations spin. But such explanations in terms of bad faith are too easy, and are anyway untested. The research reported here was designed to advance our under- standing of this gap between words and deeds. Is it deliberate: simply an attempt to claim the PR advantages of a focus on innovation without a willingness to invest MOIC01 2/6/06 10:50 AM Page 5
  • 21. 6 INNOVATION: PROBLEMS AND POSSIBILITIES and take the risks necessary to achieve it? Or is it, in its own way, quite consistent? For example, could it be that managers who espouse innovation, while tolerating their organisations’ apparent lack of encouragement for it, may have designed organisations which, in the light of their theories of innovation, are effective at man- aging the sort of innovation they value? The exploration of this kind of link between managers’ aspirations, interpretations and organisational designs is one of the object- ives of the study. Another fundamental aspect of the ‘gap’ between organisational practice and aca- demic prescriptions is that noted by Cooper and Kleinschmidt, who observe: ‘what the literature prescribes and what most firms do are miles apart’ (1986: 73). This gap between available knowledge and organisational practice was also one of the departure points for our research. It requires outline and analysis. Managers are presumably aware in some shape or form of the importance of innovation (this is something we investigate). If they do treat it as a priority, then what interpretations do they construe about organisational prerequisites and supports for innovation? If there is a gap, how does it originate? To what extent do managers draw upon and use academic frameworks and prescriptions? Are managers unaware of the relevant literature, or aware of it and opposed to it – or indifferent to it? These questions, too, inform our study. What Is Already Known? As the next chapter will reveal in more detail, there are some things which are already known or accepted about innovation and quite a number of things which are not known about it. A few points can be stated with some confidence. First, that innova- tion is vital to economic growth and national competitiveness. This is especially the case under contemporary conditions of globalisation, the ever-increasing avail- ability and use of information technology, and the intensification of competition. This system-level observation may not extend to every individual enterprise because some organisations can sustain themselves on a high-efficiency or fast-follower basis, but most organisations in advanced turbulent economies will find themselves vulnerable without a capacity to innovate. Second, even the organisations which do prioritise innovation must nonetheless cater for the ongoing operational demands of today as well as the transformative demands of tomorrow. This presents a huge managerial challenge. Leading and managing change is part of the challenge. Third, grappling with the management of innovation entails engagement across a broad front. It is not just about technology strategy and R&D. It requires, among other things, simultaneous attention to markets, design, operations, supply chains and inter- organisational networks. The functional areas must be managed in an integrated way. Moreover, on top of this, building and sustaining the capability for sustained innova- tion require orchestrated attention to organisational learning, organisational culture, organisational structure and organisational leadership. Fourth, to some degree or other, innovation is influenced and shaped by prior experience. In other words, it is path-dependent. Innovative potential is enhanced or stymied by the learning which has preceded it. MOIC01 2/6/06 10:50 AM Page 6
  • 22. INNOVATION: PROBLEMS AND POSSIBILITIES 7 There is a vast literature on innovation. It can be segmented in various ways. For example, contributions have been made from a wide range of positions: from eco- nomics, from an economic cycles and technological trajectories perspective, from a technology policy and technology diffusion stance, from marketing, new product devel- opment, and organisational analysis and other perspectives. Innovation has also been studied at the national systems level, the regional clustering level, the level of inter- form networks and supply chains, the organisational level and the team and indi- vidual level. Most of the studies within these multiple traditions and paradigms adopt a positivist stance. That is, they treat innovation as a dependent variable and they seek to draw out, identify and measure the influence of a series of independent vari- ables as a way of ‘explaining’ patterns and degrees of innovation. In consequence, as the next chapter reveals, there are now numerous sets of variables which have been identified. Again, as the next chapter will show, a number of attempted meta- analyses of the multiple studies have concluded that many of the explanatory accounts reached by such methods have often resulted in conflicting conclusions. For example, Downs and Mohr observe: ‘Perhaps the most alarming characteristic of the body of empirical studies of innovation is the extreme variance among its findings. Factors found to be important for innovation in one study are found to be consider- ably less important, not important at all, or even inversely important in another study’ (1976: 700). Similarly, following a wide-ranging review of the conventional literature on innovation, Wolfe concluded that ‘Our understanding of innovative behaviour in organisations remains relatively under-developed’ (1994: 405). A number of these reviewers have suggested that, in part, this state of affairs arises from a failure to study innovation within the context of meaning, knowledge and understanding of the organisation as a key unit of analysis. And they trace inconsist- ency of findings to a lack of clarity on several conceptual issues. A key example is the need to understand the meaning accorded by actors themselves to innovation – both as a strategic priority and as an issue of organisational structure and dynamics. Matters of this kind cannot be simply assumed. They will depend on the organisa- tion involved: ‘the classification of the innovation depends on the organisation that is contemplating its adoption’ (Downs and Mohr 1976: 702). Thus, an innovation ‘might be seen as minor or routine by some organisations but as major or radical by others’ (1976: 704). Hence, those senior executives accused of hypocrisy or rhetoric because of the gap between their claims and their organisations’ actions may be entirely consistent, given their particular narrow definition of innovation. Hence this issue of meaning lies as an unexplored black box at the very heart of the limited impact of survey research using correlation and regression analysis. Downs and Mohr sug- gest that one way of ‘coming to grips with secondary attributes is to think of them not as being composed wholly of characteristics of the innovation or the organisa- tion but as characterising the relationship between the two. The unit of analysis is no longer the innovation, but the innovation with respect to a particular organisation’ (1976: 706). If this aspect is neglected, then correlation and regression coefficients using such variables will be unstable where multiple innovations are aggregated. Hence, as the same authors also point out, the results of the studies ‘will fluctuate mysteriously around the true micro-level values that they are supposed to represent’ (1976: 708). It was in order to find a way to circumvent such problems that we MOIC01 2/6/06 10:50 AM Page 7
  • 23. 8 INNOVATION: PROBLEMS AND POSSIBILITIES designed an alternative research approach for our studies of innovation in organisa- tional settings. We seek to contribute to knowledge about innovation by approaching the sub- ject in a rather different way. Our focus is upon how the key actors in the drama themselves define and view the challenges and the variables. We try to provoke and then highlight their interpretations. We seek to identify patterns in their accounts and to surface the incipient or explicit theories that they hold. And we seek to draw out underlying cognitive models and how these models relate to organisational performance with regard to innovation. To set the scene further, it should also be noted that while there is a very large literature on innovation, only a small segment of it attends to the specific issues of the ‘management of innovation’. Moreover, much of the literature is technology- focused and bounded within particular concerns such as R&D, entrepreneurship, dif- fusion and similar segments. Yet when one approaches the problem of ‘managing innovation’ it is the integrative nature of the challenge which is the most notable aspect. These observations introduce the other side of the coin – that is, the things which are not known about innovation. In what, even today, is one of the most notable articles on the management of innovation, Andrew Van de Ven observed: ‘While research has provided many insights into specific aspects of innovation, the encompassing problems confronting general managers in managing innovation have been largely overlooked’ (1986: 591). The kind of key questions which Van de Ven had in mind as a result of his con- versations with chief executives were: how to develop a culture of innovation in organ- isations, how to prepare for innovation while organising for efficiency, how to direct attention away from the protection of existing practices, and how to institutionalise leadership and create an infrastructure conducive to innovation. He proceeded to try to address these kinds of questions (which he terms the central problems in the management of innovation), and a number of other researchers and authors have sought to tackle these issues also. It is important to note that our own attempt is very different from the norm and rather more oblique. But we, too, seek to go to the heart of the series of questions concerning the management of innovation in organisations which Van de Ven sought to tackle. We do so, however, on a larger scale and in a distinctive way. The path taken by this book is one which has been curiously neglected by most conventional accounts of innovation. The book is primarily about how managers think and talk about innovation. It is about their theories and accounts of how organisa- tions – specifically their own – encourage and discourage innovation. Most research into innovation seeks in one way or another to develop and test the academic researcher’s theories about the enablers and the blockages to innovation. But this book focuses instead on managers’ own theories of innovation. This, we believe, is important and worthwhile because in the end it is their sense-making and inter- pretations which determine how organisational priorities are arranged and how resources are allocated. As Silverman emphasised, ‘People act in terms of their own and not the observer’s definition of the situation’ (1970: 37). The implications of this kind of perspective have been explored in various realms of social action but not thus far very much in relation to the question of innovation. MOIC01 2/6/06 10:50 AM Page 8
  • 24. INNOVATION: PROBLEMS AND POSSIBILITIES 9 Hence, this book and the research it describes explore practising managers’ own ana- lyses of the difficulties and the possibilities of promoting and using innovation within organisational contexts. Innovation is something managers in many organisations want to achieve (although how they define innovation and how they value it vary in significant ways). For some it is a priority, a strategic and explicit purpose. In such cases we listened carefully to how they thought about the different ways in which they tried to shape their organisations in order to accomplish these ends. And so our theme is managers’ thinking about innovation. This does not mean, of course, that we simply accepted at face value the veracity of all accounts. We were and are aware that accounts are embellished and made socially acceptable. What we were looking for were the patterns which emerged within and across different organisations, inso- far as the emergent narrative lines were part of that socially constructed reality that was our ‘data’. If we are to gain a better understanding of how and why organisa- tions succeed or fail in achieving innovation, we suggest that it is valuable to listen closely to those actors who have frequent and direct experience and responsibility for handling it. It was their ways of thinking (and feeling) that we wanted to sur- face and analyse. Thus it is actors’ theories which constitute the focus of this book. We believe that these revealed patterns are of interest and significance in their own right – irrespective of how they may, or may not, match up against some other version of the ‘objective reality’ of the situations which they tried to describe. What Needs to be Known? There is arguably no single, central problem of innovation, although some observers have made valiant attempts to locate one. Different debates which focus on innova- tion constitute the problems of innovation by framing the process and its context in distinctive ways. For example, it has been suggested that the central problem of innovation is how to maintain current market advantages, current routines, and current structures while also aspiring to disrupt these by introducing technologies, products and processes which, by their nature, challenge the status quo. As Noteboom asks, ‘How can stability and change be combined?’, and how can an organ- isation combine ‘exploitation’ and ‘exploration’ (2000)? These are important questions and we find that they preoccupy many of our respondents’ thinking. But they are not the only ones. The ones we are most interested in are those which our respondents construct, and towards the end of the book we compare these with the preoccupations found in the literature. As we will see in the following chapter, there are a number of interrelated themes and literatures which have a bearing upon innovation. The research-based analysis which follows in the subsequent chapters which form Part II of the book con- stitutes our main assault on the range of questions which arise as far as managers of organisations are concerned. These questions include some very basic, yet fundamental, issues. For example, what degree of attention should managers accord to innovation when set alongside many other competing demands on a manager’s time – that is, what kind of priority does it and should it enjoy? Just what are managers supposed actually to do when their corporate board announces innovation as a ‘corporate value’? MOIC01 2/6/06 10:50 AM Page 9
  • 25. 10 INNOVATION: PROBLEMS AND POSSIBILITIES Other considerations also arise, such as what processes and organisational arrange- ments are thought to be desirable in order to promote and implement innovation; the role of knowledge and learning; and the influence of organisational cultures and embedded assumptions. Crucially affecting each of these are the cognitions, inter- pretations and perspectives of managers. So, to summarise so far, the key questions we will be exploring throughout this book with the aid of a large number of organisational managers are: 1 How do managers define, value, and comprehend innovation? 2 How do managers explain the ways in which their organisations encourage or discourage innovation? 3 Which aspects of organisation do they identify as critical to the achievement, or conversely the obstruction, of innovation, that is, what do managers themselves see as the enablers of, and the barriers to, innovation? 4 What pattern of findings can be discerned from the answers to the above ques- tions, and how do these patterns help us better to understand the nature of truly innovative organisations when compared with poorly innovating organisations? The core case chapters in Part II of this book reveal and build the relevant data and insights necessary in order to answer these questions, and the concluding chapter brings all the strands together into a new framework. Before attending to the cases we need to say a little more about why it is worth paying close attention to man- agers’ attitudes, thoughts, experiences and theories in relation to innovation. The Value of Attending to Managers’ Insights Why does it matter what managers think – and feel – about innovation? Managers are by no means the only actors who can play crucial roles in relation to innovation. Employees at all levels, customers, suppliers and contractors have the potential to drive innovation and to contribute to it. As the literature review in the next chapter reveals, there have been a number of significant explorations of the roles of these various actors. And much of our own previous work has explored these other con- tributions (Storey 1992, 2001, 2004). It is, nonetheless, important and useful to focus particularly on managers’ thinking about innovation for four main reasons: • managers set the priorities and strategies for organisations • managers control resources • managers filter ideas, information and theories deriving from external sources such as academic research results, government and consultants • managers’ sense-making repertoires set the tone for much of the discussion and action in organisations. The first point, that managers determine priorities and strategies, is fundamental. They are the ones who debate and decide, for example, whether the firm is to be a pioneer in new products and services; whether it will seek new markets or whether it will content itself with being a fast-follower or try to compete on price. MOIC01 2/6/06 10:50 AM Page 10
  • 26. Random documents with unrelated content Scribd suggests to you:
  • 27. His Excellency, Viscount S. Aoki, Ambassador Extraordinary and Plenipotentiary, Japanese Embassy, Washington, D. C. That, after the great expense incurred by the late war and the need of relief at home on a large scale for the famine stricken provinces, so generous an expression of sympathy for the sufferers in California was made by the people of Japan, is most deeply appreciated by the American National Red Cross and the American people. Up to the date of going to press the Red Cross has received from the State Branches and from other sources $2,275,489.56. Four hundred thousand dollars of this amount has been transmitted to Mr. James Phelan, as Chairman of the Finance Committee of the consolidated Relief Committee and Red Cross, and the remainder is subject to the call of this committee, any sum being at its request immediately forwarded by telegraph to San Francisco through the U. S. Sub-Treasuries, and placed to Mr. Phelan’s credit. As the general principle of the Red Cross is that money is most wisely expended as far as possible, near the scene of disaster so as to stimulate the somewhat paralyzed business-life, and expended by those, who—taking part in the actual relief work, best understand the needs, the Red Cross Executive Committee made no purchases save one carload of condensed milk and ten thousand blankets. In both cases these purchases were made with the kindly assistance of Army Officers who pronounced on the prices and inspected the articles before they were shipped, transportation having been given. The Commissary officers of the U. S. Army throughout the West kindly consented to act as Purchasing Agents for the Red Cross, and Dr. Devine who with Mr. Pollok of the Relief Committee was appointed on a purchasing committee, was notified of their names and addresses. On April 26th the following telegram was received from Judge Morrow, President of the California Branch: Hon. W. H. Taft, President Red Cross, Washington, D. C. Have arranged for full historical record of all matters connected with disaster for Red Cross purposes.
  • 28. WM. W. MORROW, President. The distinguished historian, Professor H. Morse Stephens, is on this historical committee and associated with him are some of the most capable young men who were intimately connected with the relief work from the first. This record will be published later and will not only prove of historical interest, but of great value in any future relief work of a like nature. The importance of having the accounts of the expenditures of Red Cross money contributions so kept as to render auditing by the War Department possible, as required by law, was fully realized, and General A. E. Bates, Retired Paymaster-General of the U. S. Army, kindly volunteered his services to proceed to San Francisco and arrange some simple plan for the keeping of these accounts. His offer was accepted, and at the request of the President of the Red Cross he left for San Francisco, and on May 9th the following telegram was received by the President of the Red Cross: The Secretary of War, Washington, D. C.: Arrived Monday evening and yesterday had an interview with the Finance Committee by whom I was most pleasantly received. Examined their system of auditing which I approve. Suggest an addition to their system by which the Red Cross funds will be treated like an appropriation for a specific purpose and accounted for to you by vouchers and accounts similar to money of Army appropriation. My suggestion approved and adopted by Committee and Dr. Devine with thanks. Relief work here is perfectly organized and organization apparently working effectively and smoothly. Expenses being reduced daily. This morning I appeared by request before the full Committee and explained my position here. Shall remain here until system is working and one set of accounts is forwarded. A. E. BATES, Major-General, retired. The following communication was received by the Secretary of the Red Cross from Judge Morrow, enclosing the literature referred to: California Branch, San Francisco, Cal., May 12, 1906. Mr. Charles L. Magee, Secretary, American Red Cross:
  • 29. Dear Sir: The distribution of food to the nearly three hundred thousand sufferers in San Francisco has been a difficult problem for solution, but we think a system has been adopted that will make the distribution as nearly perfect as possible, and as the subject may be of some interest to the National Society, I enclose herewith the plan of registering of persons desiring food, the directions for registering applicants at relief stations; also a registration card and a food card. You may, perhaps, find it interesting, and I would suggest that you show it to Mr. President Taft. The plan was devised by Professor C. C. Plehn of our State University, and we think it would be well to have it made a matter of record for future reference. The plan goes into effect immediately. Very truly yours, WM. W. MORROW, President, State Branch Society. A reproduction of the registration and food cards are given and it is especially interesting to note that in the Japanese Famine Relief work, as seen by Baron Ozawa’s report contained in the Bulletin, that the Japanese Red Cross also used a system of registration. NATIONAL RED CROSS General Register of Applicants for Relief, San Francisco, 1906 Food Station No. .... Surname and given names of head of family: Total number of persons for whom rations are asked: .... Food Card No. Date of this registration: Men .... Children ..... Women .... Aged, etc. .... Present location: Former home, or address on April 17:
  • 30. Trade or occupation of head of family: Age: Nationality: Union: Former employer: References, or other memoranda relating to employment: Membership in (1) fraternal orders; (2) churches; (3) clubs: Address of friends to be communicated with: Present employment: Is it steady? Is applicant owner of real estate? If so, where? Plans for future: Relief supplied (other than rations, including transportation): Remarks:
  • 31. Food Card Issued. No. Date. Data as to adult bread winners in family or party (not the applicant named on face of card). m. f. m. f. m. f. m. f. Name and sex Age and nationality Trade or occupation Union Former employer References Present employment Future plans Remarks: 1 NATIONAL RED CROSS. (See other side.) 2 Food Card. 3 4 C. No. ......... R. S. No. .............. 5
  • 32. 6 7 This card is issued on.....................................(date) 8 9 It will be good for 10 days ending.......................... (date) 31 10 30 11 .........................................(Signature of Issuing Officer.) 29 12 28 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TAKE NOTICE. This card must be presented whenever rations are drawn. When drawing rations keep it always in plain sight. This card is not transferable, and will be honored only when presented by the person to whom it is issued, or by some member of his family or party. Good only for 10 days. Renewable after 10 days at the discretion of the registration officer. Good only at the Relief Station of issue. If any fraudulent use of this card is attempted it will be taken up and no rations will be issued to the offenders.
  • 33. “AMERICAN NATIONAL RED CROSS “Instructions for Registering Applicants at Relief Stations “The primary purpose of this registration is to provide a record that will show how many persons are applying for relief from the National Red Cross. Since relief is granted through a large number of sub- stations, it is necessary not only that each station should keep a register of its own applicants, but also that the headquarters should have complete records for all stations. “When any one applies for relief, therefore, a Registration Card should be at once made out showing so far as pertinent and ascertainable the information asked for concerning the applicant. When rations are issued to a family or party both the Food Card and the Registration Card should be made out at the same time. Registration may—and in many cases will—be done by the canvassers who visit each family. These canvassers may be: (1) officers of the Relief Station; (2) workers of the Associated Charities; (3) representatives of the Central Registration Bureau. The utmost care should be exercised to see that the persons registered for relief are within the district assigned to the station issuing relief. If any question as to boundaries arises refer the same to the Central Registration Bureau.” Among the directions for making out the Registration Card are the following: “(1) Surname and initial of applicant. “Write legibly the name of the head of the family or party applying for relief. “(5) Present location. “Give the best possible indication of where applicant can be found on visit or by letter. “(6) Former address or home on April 17th. “What is wanted is the address that will be most useful in tracing the applicant or his family in case inquiry is made by distant friends or others.
  • 34. “(7) Trade or occupation. “In case the applicant has a recognized trade enter it; otherwise give best indication possible of how he made his living. “(13) Address of friends to be communicated with. “Enter here any names and addresses of people to whom applicant desires the National Red Cross to write in his behalf. “(17) Plans for future. “State any plans applicant says he has for future work, for leaving town, etc., and any fact which may help in putting him on his own feet again. “Treat all applicants with the utmost consideration. The relief afforded is not a charity and is needed most by respected and honorable citizens. More than nine out of every ten of the applicants will be self-supporting in a few weeks. The few lazy imposters will be speedily detected and dealt with separately. Assume every one to be entitled to relief until clearly proven unworthy.” Under the directions for the issue of Food Cards the purposes for which Food Cards are issued are stated to be: “(1) To make sure that every one entitled to draw rations secures an amount proportionate to the size of his family or party. “(2) To prevent imposters from drawing more than their proportionate share of rations. “(3) To furnish a record of the number of persons being fed at the several relief stations, for the use of stations, and of the central distributing authorities.” In connection with the Food Cards the following cards have been issued to provide for the giving out of other supplies: FOOD CARD No. ......... DATE .................. To Supply Station: Give bearer the number of Articles punched out below.
  • 35. FOR MEN. Hats 1 2 3 4 5 6 Shoes 1 2 3 4 5 6 Shirts 1 2 3 4 5 6 Undershirts 1 2 3 4 5 6 Drawers 1 2 3 4 5 6 Socks 1 2 3 4 5 6 Stockings 1 2 3 4 5 6 FOR WOMEN. Waists 1 2 3 4 5 6 Skirts 1 2 3 4 5 6 Under Skirts 1 2 3 4 5 6 Under Vests 1 2 3 4 5 6 Diapers 1 2 3 4 5 6 Drawers 1 2 3 4 5 6 HOUSEHOLD ARTICLES. Tents 1 2 3 4 5 6 Cots 1 2 3 4 5 6 Mattresses 1 2 3 4 5 6 Blankets 1 2 3 4 5 6 Towels 1 2 3 4 5 6 Wash Basins 1 2 3 4 5 6 Stoves 1 2 3 4 5 6 Buckets 1 2 3 4 5 6 Pots and Pans 1 2 3 4 5 6 Knives and Forks 1 2 3 4 5 6 Spoons 1 2 3 4 5 6 Plates 1 2 3 4 5 6 Cups 1 2 3 4 5 6 Lanterns 1 2 3 4 5 6 Chairs 1 2 3 4 5 6 Soap 1 2 3 4 5 6
  • 36. The issuing of these cards has reduced the number of repeaters and has been of great assistance in the systematizing of the relief work. General Bates in his report to the President of the American National Red Cross states later that a further economic and salutary measure has been adopted in the establishment at the different camps and relief stations of large kitchens and dining halls or sheds where a contractor buying the supplies from the relief committee furnishes three cooked meals a day, and in case of all persons, excepting those who are entirely destitute, these meals are sold at ten or fifteen cents each. It is the opinion of the officers in charge of this work, which is just inaugurated, that within a few days, the greater majority of the people getting relief from the Committee in this manner will pay for it. General Bates also says, “I think it would be quite impossible for any one, without having been on the ground or having had a similar experience in some other place, to appreciate the enormous difficulties that these people have had to contend with. In the first place their three days’ battle with the fire was as horrible, excepting as to loss of life, as any of the critical battles of the world. During that time, with the water cut off from the city, the impossibility to arrest fire by means of dynamiting and blowing up districts so that the fire should have nothing to feed upon, the suffering and horror of turning two hundred thousand or more people from their homes into the streets, with nothing to eat and nothing to drink was simply appalling and notwithstanding the gigantic task that lay before them, I think from what I learn, that it is safe to say that no one has suffered from hunger or neglect.” This is only a brief and partial report of the beginning and progress of the relief in California, but it conveys some idea of the methods adopted in the accomplishing of this great work. Up to the date of going to press the various State Branches have contributed the following amounts: Connecticut $119,094.74 Delaware 18,900.00 District of Columbia 58,911.01
  • 37. Georgia 200.00 Illinois 144,818.55 Indiana 34.032.16 Maine 5,607.02 Maryland 100,000.00 Massachusetts 64,877.25 Michigan 27,500.00 Missouri 143,000.00 New York 510,000.00 Ohio 62,967.45 Pennsylvania 129,600.00 Rhode Island 87,000.00 South Carolina 1,000.00 Wyoming 1,694.60
  • 39. THE EIGHTH INTERNATIONAL CONGRESS OF THE RED CROSS SOCIETIES To the Presidents and Members of the Central Committees of the Red Cross: Geneva, March 20, 1906. Gentlemen: In accordance with an established tradition, duly confirmed by the last Congress held in St. Petersburg, it is the duty of the International Committee to concern itself in due time with the reunion of the International Meetings, which periodically bring together the delegates of all the National Societies of the Red Cross. The British Society not having heretofore been called upon to entertain the sister organizations of other countries, we addressed ourselves to the London Committee: We have the pleasure of announcing to our honorable correspondents that this Committee accepted the mandate which we proposed it should assume. The next International Congress of the Red Cross Societies will therefore convene in London, 1907, during the week beginning June 10th. You will unite with us Gentlemen, will you not, in addressing publicly to the British Society, the expression of our sincere gratitude for the invitation extended to us, assuring it at the same time of the zeal with which we will favorably respond. It is important that these periodical occasions, the only ones which afford to our Societies the opportunity to strengthen the bands which unite them, by personal and instructive intercourse, should be as largely attended as possible and that no Society, however modest it be, should fail to have itself represented.
  • 40. The British Society which has so recently been called upon to reap such a rich harvest in the field of Volunteer Aid, will doubtless have important communications to make to its guests; moreover its organization and peculiar workings, will offer an ample subject of study to delegates assembled to perfect their knowledge in the line of aid to wounded soldiers. It seems of interest to us, to trace in a few lines, the origin of this Society, thereby learning to know it in advance, because few countries have shown as much zeal and expended as much money in succoring wounded soldiers, as Great Britain. This Society owes its existence to the Members of the Order of St. John of Jerusalem, who conceived the idea in April, 1869. It was regularly incorporated August 4, 1870. Its operations were confined at the outset, in time of peace, to the training of nurses, but in time of war, it played an important and beneficent part in sending aid in money, or in kind, by furnishing detachments of nurses, not only for the wars in which England participated, but also for those in which she was not engaged. In 1899 a British Central Committee of the Red Cross was created, uniting the delegates of the National Society for Aid to the Wounded, the Ambulance of St. John and the Reserve Corps of Army Nurses, to serve as a bond between these three institutions and for the purpose of distributing in time of war, all voluntary relief contributions, whether made in personal service, in materials or in funds. It was destined to enlarge the sphere of action and of influence of the British Red Cross, and to neutralize the efforts of all the Relief Societies of the country. The Chairman of the National Society, Lord Wantage, was placed at the head of this Central Committee, and the new combination proved efficacious and useful in the Anglo-Boer War, where the Volunteer Sanitary Service played such an important part. Finally in 1905 a new transformation became operative. Lord Wantage, deceased in 1901, was succeeded by Lord Rothschild. A committee presided over by the latter, under the auspices of the Queen and in response to an appeal made by her, was charged with the work of rendering more effective the concentration of all British
  • 41. Societies concerned with Relief Work amongst the sick and wounded in the Army. The efforts of this committee of organization have resulted in an association which assures to the Red Cross in Great Britain, the position it should occupy. Lord Rothschild is Chairman of the Executive Committee. We will undoubtedly be able in the next issue of the “Bulletin” to give more complete details concerning this entirely recent institution. The Headquarters of the British Red Cross Society are at 9 Victoria St., London, S. W. The program of each Congress is as you know, finally arranged by the Committee of the Country acting as host, according to the subjects suggested by the other National Societies and also by those which it desires itself to discuss. We therefore request you to inform the British Society directly and at your earliest convenience, of the questions you would wish to see appear on the program for deliberation. The British Society in transmitting to you the final program, will give full, practical and necessary directions. In accordance with resolutions passed at St. Petersburg, an exhibition will be held in connection with the next Congress, with the object of showing the technical progress made in relief methods. Moreover the prize founded by the Empress Marie-Feodorovna, will be awarded for the first time, to the authors of the best inventions for alleviating the sufferings of sick and wounded soldiers.[1] The inventions to be shown at the aforesaid exhibition. The jury charged with awarding the prize is composed of eight members, of which two are named by right, one by the Russian Central Committee, the other by the International Committee; besides these, the Central Committees charged with designating in 1907, each a member of the jury, are those of Germany, Austria, Great Britain, France, Italy and Holland. Finally, and in conformity with a decision of the last Congress, we invite those of the Red Cross Societies which have not yet informed us of how far they have been able to carry out the wishes and the resolutions adopted in St. Petersburg, to do so at once, or at least to
  • 42. notify the London Committee in time to enable them to present a report on the matter to the Eighth Congress. Having given ourselves the pleasure of announcing the gracious invitation which the British Red Cross Society intends addressing to you, with the special communications which it will send to you directly, we beg to renew to that Society the expression of our gratitude and to present to you, Gentlemen, the assurance of our most distinguished sentiments. For the International Committee of the Red Cross: G. MOYNIER, President. E. ODIER, Secretary. GUSTAVE ADOR, Vice-President. [1] Article 2 of the regulations of the Empress’ Fund. See Bulletin of the International Red Cross Committee, xxxiii, p. 143.
  • 44. THE ABUSE OF THE RED CROSS INSIGNIA The rapidly increasing prominence and importance of the Red Cross will still further tend to the abuse of its insignia. Unfortunately in the United States the use of this insignia, created for the special purpose of identifying and protecting in time of war those caring for the sick and wounded, ambulances, hospitals and hospital equipments, has never been properly safeguarded as has been done in most other countries which are signatory powers of the treaty of Geneva, and which recognize the necessity for the protection of this insignia. A number of manufactured articles bear as a trademark this insignia, their manufacturers having obtained from the Patent Office, previous to the reincorporation of the Red Cross, a legal right to such use. Others using that mark claim a right to use it because they had used it previous to the granting of the charter. In a number of cases their attention being called to the clause of the charter intending to prevent as far as possible this use of the Red Cross for purposes of trade, manufacturers and others have kindly and promptly abandoned their use of it. In other cases the request to desist from its use—it might be called its abuse—was refused. In two cases that have been brought to the notice of the Executive Committee so-called training schools for nurses that provide, in one case a course of a few weeks with no hospital experience, and in another a training by correspondence only, called their nurses Red Cross nurses. As it is the object of the National Red Cross to enroll among its nurses only such as have had a regular two or three years’ course with hospital training, and whose efficiency and character have been thoroughly vouched for so that our American National Red Cross nurses will rank as highly as do the Red Cross nurses in many of the other countries, this use of the Red Cross by such institutions as those mentioned above must act as a strong
  • 45. detriment to the National Red Cross and prove especially injurious to its efforts to secure the enrollment of the highest class of trained nurses. Red Cross nurses are enrolled for service in time of war or of great calamity as provided in the charter and a false impression is conveyed when nurses not enrolled by the National Red Cross make use of this name of Red Cross nurse. There can be in each country but one Red Cross Society as recognized by the International Red Cross Committee of Geneva upon proof that the Society has received official recognition from the Government of its own country and only its nurses are really Red Cross nurses, so that all others using this name convey to the public a false impression that they are nurses of the Red Cross. Public opinion should most strongly oppose the abuse of the Red Cross insignia, and its use, save for the purposes for which it was created, earnestly discountenanced. The members of the Red Cross are requested to report to the Executive Committee all such use of the Red Cross, not connected with the National Society, that may come within their cognizance. The Society has a list of those manufacturers who obtained the Red Cross as a trademark previous to its reincorporation under the present charter in January, 1905. It should be the duty of every American to see to it that in our country this Red Cross insignia, created for so beneficient a purpose, is protected as far as possible from the degradation of becoming a mere advertisement for money making designs.
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