Building the capacity for change: radical innovation and new product development in the multinational firm

Our study of RI looks at initiatives undertaken to provide a sustainable source of radical innovation. The RI programs we study are tied to the R&D organizations of our company participants. In this paper we report on system characteristics of these RI initiatives. An objective is to provide perspective on what options exist to foster the guided evolution of organizations and therefore sustained performance or long-term survival. Inherent to the pursuit of innovation is creation of new resources and new dynamic capabilities, both of which can be the foundation of organizational rejuvenation and change. One challenge of corporate innovation is creating variance to ensure capability to adapt in uncertain environments Another challenge, which can be interpreted as a driver of RI and a feature of corporate entrepreneurship, firm transformation where the result is that the corporation is the driver of environmental change. If organizations must, in order to be successful over the long run, be good at (a) current operations, (b) incremental innovation, and (c) developing new paths to growth through breakthrough innovation, what type of RI system is a workable model for providing this dexterity? What activities are best suited to creating new capabilities and resources? What can RI programs do to enhance the organization's growth into new areas in comparison to other means such as acquisition and international expansion? What are the challenges to effective implementation of the RI system concept? How can the various challenges be overcome, and if so, what are alternative approaches for effective implementation? In focusing on these questions our research examines how resources, knowledge and learning are employed to build a sustainable capability for RI suitable either for adaptation or transformation in global competitive environments.