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The resource-based view of an organization suggests that differences in resources among organizations affect the propensities for organizations to undertake strategic planning initiatives in response to environmental changes. Organizational resources may be used less effectively when organizations engage in “exploitation” of knowledge that they already have acquired or when they try to use their resources to improve the products and/or services they already produce or provide rather than to undertake new or radically altered activities. Kraatz and Zajac (2001) suggest that organizations relatively well endowed with resources are less likely to engage in major strategic changes to adapt to environmental changes. This, may be because the abundance of (slack) organizational resources may permit them to survive environmental changes without undertaking any strategic changes. These organizations need to respond/innovate only when the environmental change is perceived to create a significant threat to the organization's survival and/or growth. Kraatz and Zajac (2001) noted that organizations having the most success in the past are the least likely to change their goals because of their commitment to the current strategies that maximize the utilization of existing resources, even in situations that involve environmental uncertainty (p. 636). Most of the time, resources-rich large organizations are more likely to survive external threats from environmental change. Nevertheless, this does not rule out the fact that successful strategic changes are initiated/undertaken by resources-endowed firms. When resource-endowed firms do undertake a strategic innovation, their superior resources can facilitate the innovation and increase the likelihood of its success. Thus when the resource endowed organizations do undertake the changes, they are likely to be adaptive to change and to benefit from strategic changes.

Sisaye and Birnberg (2010a, 2010b) have described the extent and scope of the innovations dimensions as the degree to which learning has affected the organizational structures and processes of the organization. Within this framework, extent has been defined as the degree to which the innovation affects the organization's management accounting administrative structures, systems, and behaviors of members or units within the organization. Extent is synonymous with the two types of learning identified by Argyris and Schon (1978) discussed earlier. Thus, the learning in the extent dimension varies from a technical change within an existing system (single loop) to the adoption of an entirely new administrative system (double loop). While this continuum extends from technical changes that affect a single process or task to administrative changes that affect organization-wide systems and structures, we will treat them as though they are dichotomous. As indicated earlier (Chapter 2), extent is associated with two types of learning: single loop (technical change within an existing system, i.e., gradual-incremental) and double loop (the adoption of an entirely new system, i.e., radical-transformational) (Argyris & Schon, 1978, 1996).

The literature on organizational learning is very rich and complex. Although most research on learning suggests that it involves individual cognitive, cultural, social, and institutional changes and development, there are slight variations in terms of the number of factors various authors associate with these changes. We discuss the work of several authors as providing a contextual framework for viewing learning as involving both the adoption and diffusion of innovations.

The paper extends the organizational learning framework: Structural-Functional (SF)-single-loop or Conflictual-Radical (CR)-double-loop learning to the management accounting literature. The sociological approach of organizational learning is utilized to understand those contingent factors that can explain why management accounting innovations succeed or fail in organizations.

We view learning as enhancing an organization’s strategic competitive advantage by making it better able to adopt and diffuse innovation in respond to changes in its environment in order to manage improved performance. The success of management accounting innovations is contingent upon whether its learning process involves SF-single-loop or CR-double-loop learning to adopt and diffuse process innovation.

The paper suggests that the learning strategy that the organization chooses is the reason why some management accounting innovations are more successfully adopted than others and why some innovations are easily diffused in some organizations but not in others. We propose that the sociological approaches to learning provide an alternative framework with which to better understand the adoption and diffusion of process innovations in management accounting systems.

It has become evident that management accounting researchers need to pay particular attention to an organization’s approach to adoption and diffusion of innovation strategies, particularly when they are designing and implementing process innovation programs for an organization. According to Schulz (2001), there are two interrelated stages of the learning that can shape the outcome of the innovation process in an organization. The first stage is related to the acquisition/production (adoption) of knowledge that results in gathering information, codification, and exploration. This is followed by the second stage which is the distribution or dissemination (diffusion) processes. When these two stages – adoption and diffusion – are applied within an accounting context, they address issues that are commonly associated with the successes and/or failures of management accounting innovations.

Although innovation involves learning, the nature of the learning process does not completely describe the manner in which an innovation affects the organization. Accordingly, we suggest that the two interrelated organizational sociological dimensions of innovations processes, namely, (1) the adoption and diffusion theories of Rogers (1971 and 1995), to approach organizational learning, and (2) the SF (single loop) and CR (double loop) approaches to learning be used simultaneously to describe management accounting innovations.

When an innovation is implemented, it initially can be introduced as an incremental change, one that can be limited in both in its scope and its breadth of administrative changes. This means that situations which are most likely to benefit from its initiation can serve as the prototype for its adoption by the organization. If successful, this can be followed by systemic accounting innovations to instituting broader administrative changes within the existing accounting reporting and control systems.

The Morgan Library at Colorado State University in Fort Collins suffered catastrophic flooding as the result of a historic rain storm and flood that swept through the town on July 28, 1997. This study examines this single library's organizational disaster response and identifies the phenomena that the library's employees cited as their motivation for innovation.

Purpose – This study provides an example of a library where a pre-disaster and post-disaster organizational environment was supportive of experimentation. This influenced the employees’ capacity and motivation to create a new tool meant to solve a temporary need. Their invention, a service now called RapidILL, advanced the Morgan Library organization beyond disaster recovery and has become an effective and popular consortium of libraries.

Design/methodology/approach – This is an instrumental case study. This design was chosen to examine the issues in organizational learning that the single case of Morgan Library presents. The researcher interviewed employees who survived the 1997 flood and who worked in the library after the disaster. The interview results and a book written by staff members are the most important data that form the basis for this qualitative research.

The interviews were transcribed, and key phrases and information from both the interviews and the published book were isolated into themes for coding. The coding allowed the use of NVivo 7, a text analysis software, to search in employees’ stories for “feeling” words and themes about change, innovation, motivation, and mental models.

Three research questions for the study sought to learn how employees described their lived experience, how the disaster altered their mental models of change, and what factors in the disaster response experience promoted learning and innovation.

Findings – This study investigates how the disruptive forces of disaster can influence and promote organizational learning and foster innovation. Analysis of the data demonstrates how the library employees’ feelings of trust before and following a workplace disaster shifted their mental models of change. They felt empowered to act and assert their own ideas; they did not simply react to change acting upon them.

Emotions motivate adaptive actions, facilitating change. The library employees’ lived experiences and feelings influenced what they learned, how quickly they learned it, and how that learning contributed to their innovations after the disaster. The library's supervisory and administrative leaders encouraged staff members to try out new ideas. This approach invigorated staff members’ feelings of trust and motivated them to contribute their efforts and ideas. Feeling free to experiment, they tapped their creativity and provided adaptations and innovations.

Practical implications – A disaster imposes immediate and often unanticipated change upon people and organizations. A disaster response urgently demands that employees do things differently; it also may require that employees do different things.

Successful organizations must become adept at creating and implementing changes to remain relevant and effective in the environments in which they operate. They need to ensure that employees generate and test as many ideas as possible in order to maximize the opportunity to uncover the best new thinking. This applies to libraries as well as to any other organizations.

If library leaders understand the conditions under which employees are most motivated to let go of fear and alter the mental models they use to interpret their work world, it should be possible and desirable to re-create those conditions and improve the ability of their organizations to tap into employees’ talent, spur innovation, and generate meaningful change.

Social implications – Trust and opportunities for learning can be central to employees’ ability to embrace change as a positive state in which their creativity flourishes and contributes to the success of the organization. When leaders support experimentation, employees utilize and value their affective connections as much as their professional knowledge. Work environments that promote experimentation and trust are ones in which employees at any rank feel secure enough to propose and experiment with innovative services, products, or workflows.

Originality/value – The first of its kind to examine library organizations, this study offers direct evidence to show that organizational learning and progress flourish through a combination of positive affective experiences and experimentation. The study shows how mental models, organizational learning, and innovation may help employees create significantly effective organizational advances while under duress.

An original formula is presented in Fig. 1.

The purpose of this paper is to apply the organizational learning framework to the management accounting literature to better understand why management accounting innovations succeed or fail in organizations.

A theoretical framework integrating diffusion and organization learning theories is developed. Diffusion theory is used to describe the process whereby the innovation is implemented. Argyris' and Argyris and Schon's theory of organizational learning is used to describe the type of learning – single loop or double loop – required by the innovation. Finally, the works of Attewell, and of Schulz relating to organizational learning, and of Rogers and of Sandberg relating to adoption and diffusion theories, were utilized to identify and understand the potential pitfalls faced by managements implementing an accounting innovation.

The paper advances the notion that an organization's approach to learning and innovation should be of interest to management accounting researchers. The single‐loop (incremental/organizational development (OD)) and the double‐loop (radical/organizational transformation (OT)) learning influences the adoption (stage one) and diffusion (stage two) strategies that are appropriate for the design and implementation of management accounting innovations.

The paper makes an important contribution to the behavioral accounting literature by integrating sociological diffusion and organizational learning behavior literatures and relating them to management accounting research.

This paper aims to understand the strategic management of innovation by examining the effect that management control systems (MCS) have on innovation activities during the strategic change process.

A case study was carried out at an innovative company as they undertook a strategic change from closed innovation to open innovation. Simons’ levers of control was used to frame the ways in which MCS were designed and used by managers and the effect MCS have on the innovation activities of organization members.

The findings indicate that while managers designed and used MCS to support a drive toward open innovation, organization members did not change their innovation activities. Instead, the findings show that new MCS enabled improvements to their closed innovation strategy. This led to a decrease in the time taken to develop new products, which resulted in increased customer satisfaction, which contributed to the achievement of organizational goals.

By focusing on the relationship between MCS and innovation activities in the strategic change process, the paper sheds new light on the ability of MCS to change the innovation activities of organization members. Even though the innovation activities at our case company did not change the interactions between the MCS enabled organizational goals to be achieved as they provided the necessary information infrastructure and motivated goal congruence.

Exploiting novel measures of climate change exposure and corporate culture generated by a powerful textual analysis of earnings conference calls, this study aims to explore the effect of firm-specific climate change exposure on corporate innovation through the lens of corporate culture.

The authors apply the standard regression analysis as well as a variety of sophisticated techniques, namely, propensity score matching, entropy balancing and an instrumental-variable analysis with multiple alternative instruments.

The authors find that more exposure to climate change risk results in more innovation, as indicated by a significantly stronger culture of innovation. The findings are consistent with the notion that firms more exposed to climate change risk are pressed to be more innovative to adapt to the numerous changes caused by climate change. Finally, the authors also find that the effect of firm-level exposure on innovation is considerably less pronounced during uncertain times.

The authors are among the first studies to take advantage of a novel measure of firm-specific exposure to climate change and investigate how climate change exposure influences an innovative culture. Since climate change is a timely issue, the findings offer important implication to several stakeholders, such as shareholders, executives and investors in general.

OD refers to cell 3 of the adoption-diffusion innovation typology defined in Table 1. It has an administrative extent and an autonomous scope. OD has been used pre-dominantly in organizational change and sociology literature to describe cultural innovation programs that are directed toward a change in individual employee behavior. In accounting, the OD approach is important because accounting innovations, such as ABC, are directed toward a change in managers' behavior and the use of accounting data to evaluate performance. The OD approach is applicable in the use of ABC data at the divisional or unit level. Before explaining the application and use of OD in accounting innovations, we will define OD and summarize its innovation approaches as described in organizational sociology and behavior literature.

To provide an in-depth survey and review of innovation in library and information services (LIS) and to identify future trends in innovative research and its practical application in the field.

An in-depth review and summation of relevant literature over the last twenty years, along with an analysis and summary of the other papers in the volume.

Innovation in library and information work varies between the evolutionary and the discontinuous. A taxonomy of innovatory approaches to development and provision in the sector is provided, along with a detailed listing of the key elements of successful and not-so-successful innovative practice.

The work is dependent on existing literature rather than direct empirical work. However, because it draws together all major aspects of the topic, it has the potential to be used as a springboard for further generic studies and also specific programmes of work.

The need for innovation in LIS will be ever more pressing. The present chapter provides a necessary and rigorous overview of the necessary elements required for success in this area. It will be useful as a reference tool for intending researchers in library and information provision in a wide range of environments.

Because the chapter brings together a substantial body of information on the topic of innovation, it provides a comprehensive study of major developments and likely future trends in the field.