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This chapter establishes the conceptual and analytic framework for the book. It relates not only to much of the existing work in evolutionary and institutional economics, but also to work in cultural science and cultural semiotics domains as well as in media convergence and transmedia studies. The central concept it first deploys is ‘innovation systems’ as applied in national, regional, international and sectoral contexts. It then builds on the general theory of economic evolution by Kurt Dopfer and Jason Potts and reviews the tools this theory provides to carry out a meso-level analysis of industries co-innovating and converging. It then proposes a new concept – ‘cross-innovation’ – to refer to the emergence of new structures and ‘rules’ at the boundaries of existing industries.

Purpose – Agribusiness is crucial for the Brazilian trade balance surplus. Innovation, not only that focused on technology or productivity, is a basic condition for its development. The context of the agribusiness activities in a developing country is dynamic and requires a multilevel and multifaceted view. This suggests that these features need to be incorporated both in the theories and methods. Therefore, we propose a method, from within the perspective of Configurations Theory, of capturing this dynamic multidimensionality. The method was applied in the context of the rice-farming business in Southern Brazil.

Methodology/approach – The proposed method, which we refer to as a Case Study Method with Multiple Units of Analysis and Mixed Methods, was applied in a research organization in an attempt to identify the evolution of innovation while considering a theoretical perspective based on multilevel rules.

Findings – Six different configurations in the temporal organization of research were identified. These six configurations describe the evolution of four emphases given to innovation, the drivers associated with the evolution of these emphases, and the changes that have occurred over time.

Social implications – The results may provide support for new public policies for rice farming and lead to improvements in the organization's strategies for innovation.

Originality/value of chapter – The combination of methods used (Case Study, Qualitative Comparative Analysis, Social Network Analysis, Path Dependence, and Patterns of Decision Making) to study configurations, together with the dynamic approach to innovation based on multilevel rule, is unique.

This paper aims to clarify a paradox in an organisation: in the past, formally powerful “central” actors confronted important limitations in their relations with formally less powerful actors. However, three innovations – the financial accounting module of an enterprise resource planning (ERP) system, a corporate centre (CC) and a shared services centre (SSC) – substantially changed and re-centred network power relations. The authors adopt a critical discourse to explain this paradox, contributing to the emerging literature on SSCs and bridging the management control and power literatures.

An in-depth, processual, actor-network theory-inspired three-year case study of a large Portuguese manufacturer.

As the intertwined accounting-related innovations were (re)mobilised by actors, dynamically adjusting to unfolding repercussions, control and power effects emerged, enabling enhanced organisational steering.

Based on a single case, this paper highlights effects of managerial technologies, in particular ERPs and SSCs, on control and power relations, and refines Clegg’s model for future research.

The transactional, low value-added activities typically performed by SSCs should not lead to underestimating their potentially profound organisational consequences. However, the surrounding socio-technical network is decisive for the emerging, inter-related repercussions.

This paper explains the relative capacity of actors to influence the practices and configuration of the organisational network structurally, fixing power relations within the socio-technical network through innovations in the accounting area, in particular ERPs and SSCs. By revising Clegg’s circuits of power framework, this paper contributes to understanding possibilities and limits of accounting techniques in management control procedures.

The present study intends to foster understanding of how a traditional manufacturer can utilize the “simple rules” approach of managerial heuristics to facilitate its smart solution development (SSD) process.

The study uses an in-depth single case research strategy and 25 senior manager interviews to understand the application of simple rules in smart solution development.

The findings reveal process, boundary, preference, schedule, and stop rules as the dominant managerial heuristics in the case and identify how the manufacturer applies these rules during the innovation process phases of ideation, incubation, transformation, and industrialization for attaining project outcomes.

The study contributes to the new service development (NSD) literature by shedding light on simple rules and how managers may apply them to facilitate SSD. The main limitations stem from applying the qualitative case study approach and the interpretative nature of the study, which produces novel insights but prevents direct generalization to other empirical cases.

The resulting framework provides guidelines for managers on how to establish formal and clear simple rules that enable industrial solution providers to approach decision-making in smart solution development in a more agile manner.

The study comprises one of the first attempts to investigate managerial heuristics in the context of SSD and puts forward a plea for further NSD research applying psychological conceptualizations to enrich the simple rules perspective.

The paper aims to apply social practice theory to clarify the process of innovation design and delivery from one successful digital innovation: the building information modelling (BIM) risk library. The paper clarifies the practices surrounding construction innovation and provides a schema useful for practitioners and technology designers through a social practice analysis.

The paper applies Schatzki's “organisation of practice” concepts to a construction project innovation to clarify how the practice of innovation revolves around understandings, rules and teleoaffectivities (emotive behaviours). Sources for the study include notes from meetings, workshops with experts and the shared artefacts of innovation.

The practice of innovation design and delivery are clarified through a social practice analysis: a distinct “field of practice” and a “schema” of generalisable prescriptions and preferences for innovation delivery being presented.

The paper informs the practice and process of innovation design and delivery; the insights clarify how collective understandings and rules of use evolve over time, becoming formalised into contracts, agreements and workplans. Practically, processes whereby innovation “sayings” evolve into innovation “doings” are clarified: a schema detailing prescriptions and preferences of practitioners and developers being presented.

The social practice analysis of one successful construction innovation is an original contribution to the body of knowledge, adding a level of detail regarding innovation design and delivery often missing from reported research.

The purpose of this paper is to reveal the pattern between government innovation funding and enterprise value creation. Many factors, including government innovation funding, R&D ability, corporate governance and some company characteristics significantly affected the efficiency of firm value creation.

This paper proposed a novel methodology based on clustering-rough sets to explore the characteristics of enterprise value creation behavior, and map the relationship between government innovation funding and enterprise value creation. The agglomerative hierarchical clustering (AHC) algorithm were used to classify firm performance and get two types of value creation efficiencies and to discretize condition attributes because the rough set theory cannot deal with continuous attributes. This paper utilized the rough sets method to realize data mining and get rules of government innovation funding and enterprise value creation.

R&D ability, proportion of independent directors, remuneration of directors, operating revenue, number of employees, price-earnings ratio, quick ratio, capital intensity and ROA were important to identify firm value creation efficiency when government funded the firms. Firms of high level of government innovation funding, high lagged R&D ratio, high remuneration of directors, low price-earnings ratio, low quick ratio, moderate capital intensity and high ROA were more likely to have high efficiency of value creation.

Since China implemented the innovation-driven development strategy, facilitating enterprise innovation has become an important way to achieve high-quality economic growth. With constantly increasing of Chinese government innovation funding, studying on the effect of government innovation funding on firm’s value creation is significant to improve the efficiency of government resource allocation. It is valuable to reveal the pattern between government innovation funding and enterprise value creation based on the value added theory. The rules obtained could be used to provide decision-making support to improve the efficiency of government innovation funding and prevent waste of government resources effectively.

Inter‐organizational innovation networks provide opportunities to exploit complementary resources that reside beyond the boundary of the firm. The shifting locus of innovation and value creation away from the “sole firm as innovator” poses important questions about the nature of these resources and the capabilities needed to leverage them for competitive advantage. The purpose of this paper is to describe research into producing design‐oriented knowledge, for configuring inter‐organizational networks as a means of accessing such resources for innovation.

This exploratory investigation conflates emerging constructs and themes analytically induced from a systematic survey of 142 scholarly and practitioner articles and 45 expert interviews with senior professionals operating in the biopharmaceuticals industry.

The findings identify seven theoretically and empirically grounded technological rules associated with effective inter‐organizational networking for innovation. They embody evidence ex post of networking theory and practice. Based on van Aken's seminal work, they comprise design‐oriented knowledge to provide a solution architecture of viable action options for managers, a priori, to purposefully design innovation networks. Collectively these rules represent a tentative taxonomy, a means of classifying design principles, to assist managers in navigating their decision‐making processes.

This study demonstrates the need for explicit design‐oriented knowledge for configuring inter‐organizational networks. Finally, the implications of the findings for strategic management theory are discussed from a dynamic capabilities view. The significance of a dynamic capability which addresses the renewal of network‐specific resources is highlighted.

This paper aims to study the appearance of drills from one brand by using currently available design tools. It aims to find and discuss the relationship between appearance innovation and maintaining key design features.

The innovation process is studied on drills of a Czech power tool maker and a previously created concept of a new drill. First, the authors explore the similarities between the designed concept and previous models of the brand by calculating the degree of similarity of given shape features. Second, they capture the drills simple shape grammar and strive to generate a sketch of the concept.

Results show the use of several similar shape features from previous models in the innovated design. Shape grammar can create a principally similar concept, but some innovations cannot be achieved this way. A description of appearance innovation within brand identity in terms of shape grammar is given.

The research is limited mainly to a small group of previous products that can be analyzed. It is done only for one particular brand identity. When used with the shape grammars, design generation is limited.

Better understanding of the innovative process aids designers in working with designs for brand identity and may serve to shape grammar enhancement.

The paper describes what happens during the innovation of product appearance and implicates enhancement and meaning of design analysis done by shape grammars and exploring similarities.

The purpose of this paper is to analyze how institutions can facilitate or inhibit radical innovation. The authors argue that organizational radical innovation is necessary to maintain a competitive advantage and to evolve in the market place, and institutions are the basis of this innovation. From an innovation and service dominant (SD) logic perspective, network ties are proposed to be a determining factor for the achievement of innovation through institutionalization in the university knowledge management context.

A conceptual approach is applied to develop and propose a framework for deepening understanding of radical organizational innovation, institutions and network ties. Data were gathered from Link by UMA-ATech, which in the context of the University of Málaga (Spain) is with great success developing a strategy based on fostering innovation. In all, 22 in-depth interviews were conducted with actors in the Link context, together with additional important second-order data analyses (sector analyses, statistics and company websites). Because of the perceived desirability of innovation, public universities have established a model as a part of this strategy in order to foster and develop new businesses through technology transfer.

Changing institutional arrangements are the basis of innovation. Opening universities to the actors around them, with an interest in exchanging resources through the evolution of network ties toward a less bureaucratic and more collaborative and open university (tertius iungens) is the basis for reaching organizational radical innovation in the university context to develop the provider-driven radical innovation network structure via the “University Living Lab” theoretical model.

A conceptual understanding is used in combination with an empirical approach, in which one case study and 22 organizations are considered in the context of Link-by-UMA ATech, at the University of Málaga. A range of different contexts from other universities would also be useful to add new perspectives to the development of the theory.

Although radical innovation is occasionally seen in systems and arises naturally in markets, it is interesting to consider the possibility of designing strategies that facilitate the process from the beginning of the design of the business model. In this sense, the present findings could help organizations in general and universities in particular, to devise strategies resulting in positive relationships that could facilitate the design of business model structures. These could in turn foster the development of new institutions resulting in new network ties, which could give rise to radical innovation through the attraction of new actors interested in exchanging service-for-service resources.

The present paper develops the provider-driven radical innovation network structure of the “University Living Lab” theoretical model, which encourages the university to make decisions to devise more open models based on a change of network ties, in turn based on the design of new institutional arrangements. These concepts have not previously been put together, and build on the theories of institutions and organizational radical innovation. This theoretical contribution is framed within the SD logic perspective and specifically in the 11th fundamental premise (FP 11/5th axiom) to better understand how innovation occurs in service ecosystems, allowing the provider the possibility of developing such processes through the design of institutional arrangements.

The purpose of this paper is to explore the emergence of innovation in smart service systems to conceptualize how actor’s relationships through technology-enabled interactions can give birth to novel technologies, processes, strategies and value. The objectives of the study are: to detect the different enablers that activate innovation in smart service systems; and to explore how these can lead dynamically to the emergence of different innovation patterns.

The empirical research adopts an approach based on constructivist grounded theory, performed through observation and semi-structured interviews to investigate the development of innovation in the Italian CTNA (Italian acronym of National Cluster for Aerospace Technology).

The identification and re-elaboration of the novelties that emerged from the analysis of the Cluster allow the elaboration of a diagram that classifies five different shades of innovation, introduced through some related theoretical propositions: technological; process; business model and data-driven; social and eco-sustainable; and practice-based.

The paper embraces a synthesis view that detects the enabling structural and systems dimensions for innovation (the “what”) and the way in which these can be combined to create new technologies, resources, values and social rules (the “how” dimension). The classification of five different kinds of innovation can contribute to enrich extant research on value co-creation and innovation and can shed light on how given technologies and relational strategies can produce varied innovation outcomes according to the diverse stakeholders engaged.