A PRACTICE-CENTERED MODEL OF ORGANIZATIONAL RENEWAL THROUGH PRODUCT INNOVATION

Theories of organizational renewal and organizational design often bear little relationship to the complex, murky day-to-day realities people face. This paper develops an understanding of the renewing organization based on the practice of product innovation. The practice of product innovation is conceived of as the creation and exploitation of knowledge which links market and technological possibilities. Four clusters of market-technology knowledge are described and metaphors for their creation are developed. Then, three organizing principles which can sustain the ongoing development and exploitation of market-technology knowledge are described. The model provides a realistic understanding of the practice of product innovation and of the renewing organization. It also shows how innovation, strategy, and organizational design are inextricably linked.