INSCOPE Magazine

INSCOPE

Social Innovation for Competitiveness, Organizational Performance, and Human Excellence

Themes 1

Flexible Organizational Forms

2

Dynamic Management Capabilities

3

Development of Human Capital

4

Learning Alliances and Open Innovation

5

Management of Institutional Stakeholders

6

Social Innovation

7

Productivity Measurement and Impact Assessment

Top Institute INSCOPE: Research Consortium of Erasmus University Rotterdam, TNO, University of Amsterdam and Maastricht University

INTRODUCTION

Social Innovation for Competitiveness, Organizational Performance, and Human Excellence

Innovation is considered to be the primary driving

innovations. Like technological changes require

force of progress and prosperity. Consequently,

systematic R&D, the development and diffusion

much effort is put in developing new technical

of social innovations require systematic research

knowledge, new process technologies and new

on the crucial determinants of success.

products. However, evidence from both SMEs and large firms shows that successful innovation is not

To realize this the importance of establishing

just the result of technological inventions, but is

a dedicated top research institute to study social

also heavily dependent on what has been called

innovation and its effects on competitiveness,

“social innovation”.

organizational performance, and human excellence has been widely recognized. Leading

Social innovation consists of changing a firm’s

governmental and institutional actors in the field

organisational form, its management roles and

like Innovation Platform I and II, SER, NWO,

the organization of work in a way that is new

the Ministry of Education (OCW), the Ministry

to the firm and/or the industry, and results in

of Economic Affairs and the Ministry of Social

leveraging the firm’s technological knowledge

Affairs and Employment all have emphasized

base and its performance in terms of innovation,

the necessity to rigorously investigate Social

productivity and competitiveness.

Innovation in this way.

Recent research based on the Erasmus Innovation

I N S C O P E ’s aim is to increase the fundamental

and Competition Monitor shows that social

understanding of social innovation and its

innovation explains about 50-75% of the variance

influence on technical innovation, productivity

in innovation performance of Dutch firms.

and competitiveness of firms and within

Consequently, more active stimulation of social

networks of firms.

innovation and its leverage of technological innovation will be crucial to improve the inter-

As a joint initiative of Erasmus University

national competitiveness of the Dutch economy.

Rotterdam, Maastricht University, TNO and

However, only solid research can increase our

University of Amsterdam, INSCOPE brings together

understanding of what matters in various social

an unprecedented combination of leading academic and applied researchers in all fields of social innovation. I N S C O P E ’s research will be highly innovative. Among others, field experiments will increase “evidence based” understanding of the impact of social innovation. The valorization of this research will be strengthed by I N S C O P E ’s affiliation with the Dutch Center for Social Innovation (NCSI) and relation with industrial firms and service organizations (both large firms and SMEs).

5

Institutional Stakeholders (Role Government, Social Partners) 1

This close link to unions, employers’ federations and various other relevant organisations

Knowledge level depth / breadth

facilitates the diffusion and implementation

4

Social Innovation

The conceptual framework of I N S C O P E ’s research programme (Source: Erasmus Concurrentie en Innovatie Monitor 2005)

distinguish themselves by their ability to exploit (1) flexible organizational forms; (2) dynamic rather than routine management practices, with a large absorption capacity and readiness to learn;

relations which enable firms to work “smarter”

(3) a willingness to invest in employees and

and increase human excellence and the firm’s

fully deploy internal as well as external labour

performance. Theme 4 studies how learning

flexibility. Furthermore, two enabling factors

alliances, sophisticated market sensing, interactive

seem to be of significant relevance to explain

client-based innovations, and open innovation

the innovativeness of firms: (4) their openness

networks enable the integration of internal and

to interactions with external partners and various

external knowledge and new interorganizational

knowledge institutions; and (5) their ability to

relationships. Theme 5 concentrates on the role of

mobilize institutional stakeholders, from social

educational, regulatory, and financial institutions

partners and educational institutions to financial

and institutional stakeholders as enablers of

investors. The overall performance of the firm

innovation and “win-win” solutions. These five

is heavily influenced by the combined effects

themes are integrated in Theme 6, through

from these five aspects of social innovation (6).

systematic measurement and evaluation of their

Investments in social innovation will result

effects on:

in increased productivity of firms and their

1. the firm’s performance and productivity

competitive position (7).

(with the Social Innovation Monitor) 2. the quality of labour (with the HR benchmark).

I N S C O P E ’s research is clustered in six corresponding themes: Theme 1 investigates

In addition, international innovation rankings

how various flexible organizational forms and

(on the basis of World Economic Forum data)

restructuring enable social innovation. Theme 2

and international productivity benchmarks

focuses on how innovations in management roles

are produced. The conceptual framework of

and leadership styles, managing diversity in teams

I N S C O P E ’s research programme illustrates

and entrepreneurship give rise to dynamic manage-

the relationship between the main themes.

rial capabilities that trigger social innovation.

Theme 3 concentrates on the development and maintenance of employee skills and competences, effective internal communication, and HRM/labour

Level of Competition

Enablers (Network Relations, Knowledge Alliances)

organizations in the Netherlands and abroad.

Research to date shows that innovative firms

7

6 2 Management (Dynamic Capabilities) 3 Labour (Knowledge Worker)

of the knowledge created by I N S C O P E , and the application of best and next practices in

Organization (Flexible Forms) Competitive position & Productivity

Theme 1 & 2 Flexible Organizational Forms & Dynamic Management Capabilities Increased levels of change in the environment of companies requires them to advance their ability for more rapid co-evolution and accelerate internal change. Ideally the rate of internal change exceeds what is required to sustain the position in the market place and advance to “blue ocean” opportunities for value creation, ahead of the competition.

“Flexible Organizational Forms” will investigate how various Theme 1

flexible organizational forms and restructuring enable social innovation.

In particular theme 1 will study how organisations increase the velocity of internal change, optimise self-organisation and synchronize advanced levels of efficiency and productivity (exploitation) with investment in creation of new opportunities (exploration).

Many companies tend to concentrate on only one of the two, but long term survival of firms requires a sophisticated combination of exploitation and exploration, also known as ambidexterity. The traditional hierarchical structures of “command and control” are not sustainable in the face of this requirement and increasing competitive environments.

Consequently, alternatives based on self organisation, delegation and maximum development of capabilities at all levels need to be further explored.

Coordinator: Dr. Justin Jansen

Theme 3 Development of Human Capital Not unlike traditional management approaches, the traditional perspective on labour and workers is not appropriate for the challenges in the 21st century.

Education has become much more important and a skilled workforce can add much value to the design of processes and products, by Flexibility and agility require dynamic management capabilities. The traditional top-down routines designed to manage

contributing their knowledge expertise in a participative way.

“business as usual” do not suffice to remain

Improving education and

competitive in a turbulent environment.

management of the quality of a

Theme 2 “Dynamic

firm’s labour force increasingly

Management

Capabilities” investigates the

constitutes a source of competitive

constituent parts of dynamic management,

advantage and differentiation.

especially the relative importance of: • profound domain expertise; It is far from trivial, however, how an optimal • broad management experience performance and utilization of their human regarding various managerial roles resources can be realized. A process of and leadership styles; systematic learning what works is required.

• significant knowledge absorption capacity and the ability to identify relevant clues in an early stage;

Theme 3 “Development

of Human

Capital” focuses on key questions relating to the growth of human and social capital

• an entrepreneurial attitude; within education and the firm, and the • the ability for higher order learning maintenance and development of the and tries to clarify their effect on social knowledge and skills of individual employees. innovation This includes research on the development of human capital in schools and the connection Coordinator: Prof. dr. Frans A.J. van den Bosch between initial education and the skill demands in the labour market and the best ways to address any skill gaps through formal and informal modes of lifelong learning.

Coordinator: Prof. dr. Andries de Grip

Theme 4 Learning Alliances and Open Innovation Especially where it concerns

Theme 5

innovation and recognizing and

Management of Institutional

exploiting substantial

Stakeholders

opportunities in a global market,

Whereas the Anglo-American

firms can no longer afford

management tradition tends to

a “go it alone” strategy. Instead,

emphasize that especially

the ability to collaborate in

the interests of the shareholders

alliances and in dynamically

are taken into consideration, the

changing virtual organizations

European continental tradition

with others is increasingly critical

typically takes a broader

to the firm’s performance.

perspective and also takes into

Advances in ICT have facilitated the easy exchange of rich information across organizations and enabled the “death of

account the interests and possible contribution of other powerful groups or institutions.

distance”, but of course the success of collaboration requires the strategic ability to

Maintaining a constructive dialogue with local

select the right partners and create conditions

authorities and other governmental institutions

that are beneficial to all. Theme 4

is an obvious example of a vital requirement to

“Learning Alliances and Open Innovation” investigates

protect and develop the opportunities of the

how collaboration with business partners

education in (local) universities and other

and consumers enables the integration of

schools is another which recently became

internal and external knowledge and contribute

more recognized as a possible explanation

to social innovation. It studies learning alliances

for differences in innovation performance.

and other examples of open innovation, via

Theme 5 “Management

firm. Intensive involvement in research and

corporate campuses or otherwise. It also

of Institutional Stakeholders” studies

investigates the role that the active involvement

these and other elements of stakeholder

of customers can play in triggering change and

management and tries to find general principles

exploring new directions, based on the idea of

and define best practices in this respect.

“democratizing innovation”.

Coordinator: Prof. dr. Jelle Visser Coordinator: Prof. dr. Geert Duysters

Theme 6 “Social

Innovation”

concentrates on four aspects: • Support of companies in the process of

Theme 6 Social Innovation

Open innovation and to practice producer, user and community involvement.

• Social-cultural aspects of adoption of

Effectively organizing for social

innovation and methods to forecast and

innovation needs the development of

improve adoption.

proven concepts, systematic study in

• Integration of knowledge of human

best practices, research based

aspects (brain-machine interaction,

methods and tools for implementing

cognitive- emotional functioning and

the combined knowledge on technical and social innovation.

learning) in the development of new products, services and processes.

• Methods to release the creative and innovative powers of staff.

Coordinator: Dr. Fietje Vaas

Theme 7 Productivity Measurement and Impact Assessment This theme integrates the six themes through systematic measurement and evaluation of their effects on organizational performance and productivity (Social Innovation Monitor), as well as quality of labour (HR benchmark).

In addition, international innovation rankings (on the basis of World Economic Forum data) and international productivity benchmarks will be provided.

Coordinator: Prof. dr. Henk Volberda, chair and scientific director of INSCOPE

28224. B&T Ontwerp en advies

I N S C O P E has a supervisory board consisting of: Prof. dr. E. Fischer, Chair Dutch Center for Social Innovation (NCSI) Mr. J. Oosterwijk, Chairman Executive Board Erasmus University Rotterdam (EUR) Dr. Ir. J. Ritzen, President Maastricht University (UM) Representatives Employers and Employees Associations

I N S C O P E is lead by a management team: Prof. dr. Henk Volberda (EUR), Chair and Scientific director of INSCOPE Dr. Justin Jansen (EUR), Managing Director of INSCOPE Prof. dr. Andries de Grip (UM) Prof. dr. Jelle Visser (UvA) Dr. Fietje Vaas (TNO)

The central I N S C O P E office is based at Erasmus University Rotterdam

INSCOPE Burgemeester Oudlaan 50 Room T07-25 3062 PA Rotterdam P.O. Box 1738 3000 DR NL-Rotterdam Mrs. Patricia de Wilde-Mes Tel. + 31 10 408 2984 / 2210 Fax. + 31 10 408 9013 E-mail inscope@rsm.nl Internet www.inscope.nl

Top Institute INSCOPE: Research Consortium of Erasmus University Rotterdam, TNO, University of Amsterdam and Maastricht University