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Citation: Gribbin, John, Bailey, Mark and Spencer, Nick (2018) A rapid design-led approach to innovation readiness: Advantages and challenges. In: 21st DMI: Academic Design Management Conference: Next Wave, 1-2 Aug 2018, London, UK.

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21stDMI:AcademicDesignManagementConference

NextWave

London,UK,1-2August,2018

Copyright©2018.Copyrightineachpaperonthisconferenceproceedingsisthepropertyoftheauthor(s).Permissionisgrantedtoreproducecopiesoftheseworksforpurposesrelevanttotheaboveconference,providedthattheauthor(s),sourceandcopyrightnoticeareincludedoneachcopy.Forotheruses,includingextendedquotation,pleasecontacttheauthor(s).

Arapiddesign-ledapproachtoinnovationreadiness:advantagesandchallengesJohnGRIBBINa,NickSPENCERandMarkBAILEYaNorthumbriaUniversity

Thepurposeofthispaperistoreportonanongoingsuiteofresearchthataimstodevelopadesign-ledapproachtohelpsmallandmediumsizedenterprises(SMEs)understandtheirinnovationreadiness.Atpresent,anumberoftoolsareavailabletoorganisationswhencarryingoutanaudittodeterminetheirinnovationreadiness,howevernoneofthesemethodologieshavebeenconnectedtothepracticeofdesign-ledinnovation.Thispaperbeginstoaddressthisgapbypresentingareviewofatwelve-hourinterventioncarriedoutincollaborationwithafundmanagementorganisationlocatedintheNorthEastofEnglandaspartofanEUfundedresearchandinnovationprogramme,CreativeFuse.Thepaperutilisesaqualitativeapproachguidedbycasestudyprinciples,semi-structuredinterviewsandactionresearchtoreflectontheproposeddesign-ledapproachtoassessinginnovationreadiness.AdvantagesandchallengestotheapproachareconsideredwiththeintentionofdevelopingapracticalapproachtoassessinginnovationreadinesswithinSMEs,whichbuildsondesignprinciplesinordertorapidlyoutlinetheopportunitiesandpotentialbarriersfacingorganisationswhenitcomestoidentifyingareasforfutureinnovation.Keywords:Innovationreadiness,Design-ledinnovation,SMEs

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1.0IntroductionSmallandmediumsizedenterprises(SMEs)arecriticaltothegrowthofa

numberofnationaleconomies(WolffandPett,2006),howevertheabilityoftheseenterprisestocontributetothisgrowthishighlydependentontheirinnovativeness(NowackiandStaniewski,2012).Innovationisseenasakeysourceforcompetitiveadvantage,particularlyinrelationtoensuringsurvivalindifficultmarketconditions,whereitisnecessarytocompeteagainstmuchlargerfirms(VanDeVrandeetal.,2009).InnovationisthereforeanimportantundertakingforSMEs,notleasttoensuresurvival,howeverithasalsobeendescribedasa‘difficultundertaking,especiallyforfirmswithlittleexperienceandlimitedresources’(Hadjimanolis,1999,p.561).ThisdifficultyisunderpinnedbythepresenceofcommonbarrierstoinnovationprojectswithinSMEs,whichtypicallyrevolvearoundalackoffunding,prohibitiverisksandcostsoftechnology(NowackiandStaniewski,2012).Furthermoretherearefundamentalbarrierssurroundingtheavailabilityofhumanresources,wherethereareoftennotenoughqualifiedstafforfreetimeavailabletofocusoninnovationprojects(KaufmannandTödtling,2002).

DuetotheimportanceanddifficultyofpurposefulinnovationtoSMEs,theconceptofinnovationreadinesshasemergedfromcurrentdiscussionssurroundingopeninnovation,innovationsystemsandnetworksofinnovation(Zerfass,2005),wherebyinnovationreadinessistheconceptofprovidinganevaluationoftheextenttowhichacompanycansustaintheirabilitytoinnovate(ibid.).Thistypeofevaluationisparticularlyimportantasthesuccessofmostinnovationprojectstypicallydependsonmultiplefactorssuchas:people,informationandcommunicationtechnology,knowledgemanagementprocesses,culture,organisationstructure,managementsystems,processofassetsallocationandresearchanddevelopmentexpenditure(Biloslavo,2005).Thus,anunderstandingofacomplexoperating environmentiscriticalinoutliningastrategytoachieveorsustainpurposefulinnovation;particularlywhenconditionsmovebeyonda‘steadystate’intermsofmarket,technologyorotherdimensions(Bessant,2008).

Whilstanunderstandingoffactorssurroundinginnovationreadinessexistswithintheliterature,muchofthefocusisgroundedinbusinesstheoryandneglectstoconsidertheimpactthatbeingdesign-ledcancontributetoboththeinnovationprocessandattemptstounderstandinnovationreadinessacrossfirms.Thisisunfortunateduetoincreasingprevalenceofdesigninsolvingbusinessproblemsinamultitudeoforganisations(Brown,

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2009;Martin,2009).Theaimofthispaperistoaddressthisgapbypresentingadiscussionofanongoingpieceofresearchthatcarriesoutaninnovationreadinessassessmentguidedbyadesign-ledapproach.Theinnovationreadinessassessmentwascarriedoutintheformofatwelve-hour,design-ledinterventionwithafundmanagementorganisationintheNorthEastofEngland,facilitatedbyacademicsfromNorthumbriaUniversity,aspartofanEuropeanUnion(EU)fundedresearchandinnovationprogramme,CreativeFuse.Thenextsectionwillbeginwithadiscussionofrelevantliteraturefromthedomainsofbusinessanddesigntoestablishanunderstandingofinnovationreadinessanditsassessment.

2.0UnderstandinginnovationreadinessassessmentTheconceptofinnovationreadinessiscloselyrelatedtotheconceptof

understandingreadinessforchangewithinorganisations,whichArmenakisetal. (1993)defineasinvolvingpeople’sbeliefs,attitudes,andintentionsregardingtheextenttowhichchangesareneededandtheirperceptionofindividualandorganisationalcapacitytomakethosechanges.Inthisinstance,readinessisdefinedasthestateofmindabouttheneedforinnovationandthecapacitytoundertaketechnologytransfer(Backer,1995,p.22).Organisationreadinessforchangeisamulti-facetedconstruct,involvingcollectiveactionfrommanypeopleinthefaceofvariouscontextualfactorsincludingtheculture,resources,experiencesandstructureofanorganisation(Weiner,2009).Tosuccessfullyunderstandanorganisation’sreadinesstoinnovate,methodsmustsuccessfullyunderstandthesecontextualfactorsandtheimpactthattheycanhaveonnewinnovations.

Backer(1995,p.28)notesanumberofbehaviouralscience-basedmethodsthathavebeenemployedforassessingreadinessforinnovation,specifically:surveyinstruments,focusgroups,clinicalinterviews,sitevisitsandcommunityprofiles.Surveysappeartobethemostcommonlyutilisedtoolsacrossbothacademiaandprofessionalpractice.OnesuchexampleisthatofDworkinandSpiegel(2015),whoadoptasurveyapproachtoassessinginnovationreadinesstorankexistinginnovationeffortsonascale(fromlagging,tofollowing,toleading)infourkeyareas:constantenergy,creativefriction,flexiblestructureandpurposefuldiscovery.Oncethesurveyiscompletedparticipantsreceiveadvicebasedontheirscoreinrelationtootherparticipatingorganisations,withguidanceprovidedfor

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bothleadersoforganisationalchangeandteammemberswhoarealsoinvolvedintheprocess.ThisapproachisbasedonpreviousresearchfromAshkenasandSpiegel(2015),whocontemplatenecessaryconditionsformakinginnovationteamsmoresuccessful.

AsimilarapproachisadoptedbyBiloslavo(2005),whoproposesaninnovationcapabilityauditsurveybasedonasix-stageframeworkcapableofhelpinganorganisationevaluateitscurrentinnovationprocesses,identifywhichareasoftheorganisationsupporttheinnovationcapabilityandidentifywhichareasrepresentanopportunityforanorganisationtoimprove.Thisapproachispromotedasatoolforrapidassessmentofanorganisation’sinnovationoutcomesandknowledgemanagementprocesses,howeveritissuggestedthatforadetailedaudittobecarriedoutanorganisationneedstotakepartinfollow-upinterviews,focusgroupsandotherrelatedmethodsinadditiontocarefulanalysisofthequestionnaire(ibid.,p.17).

Asurveyapproachtoresearchprovidesmultiplebenefitsthatmakeitvaluableasatoolforrapidlyidentifyingorganisationalreadinesstoinnovate,especiallywithinSMEs.Inparticular,surveysofferadministrativeconvenience(MarshallandRossman,2006),astheyarealowcostoptionthatarequickfororganisationstocarryoutandcanofferimmediateresults.ThisisparticularlyusefulwithinSMEsthatfaceconstraintssurroundingthetimeandresourcesthatareavailabletocommittobothinnovationprojectsandassessmentsoftheirowninnovationpractices.Ontheotherhand,Biloslavo(2005)pinpointedtheneedforadditionalmethodsofenquiryinordertoprovideorganisationswithadetailedaccountoftheirinnovationpractices.Alternativemethodssuchasfocusgroupsandinterviewsprovidesimilarinformationtosurveys,howevertheyrequireextratimeatthecostofparticipatingorganisations.Furthermore,whilstthesetoolsprovideorganisationswithanoverviewoftheirsituationinrelationtoreadinesstoinnovate,theyfailtoprovideaspecificroadmapforsuccessfulinnovationbasedonthefindings,outsideofhighlightingpotentialareasbasedongeneralisedfindingsfrompreviouscasesthatarenotalwaysspecifictotheorganisationtakingpartintheaudit.

3.0Howcandesigncontributetoassessinginnovationreadiness?Developinganunderstandingofinnovationreadinessisfundamentallya

strategicundertakingforanyorganisation.Whilstresearchintotheimpact

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ofdesignoninnovationhastypicallycentredonthedevelopmentanddifferentiationofnewproducts(Dell'eraandVerganti,2009),recenttrendshavedevelopedanunderstandingthatdesigncanaddsignificantvaluetothestrategiccapabilitiesoforganisations(BorjaDeMozota,2003).Inparticular,designmanagementisbeingusedtodrivecorporatestrategicgoalsthroughcreatingastrategicvisionandorchestratingcollaborationacrossdisciplinesinordertoaddvaluetostakeholders(HollandandLam,2014).Wrigley(2017)notesthatthisunionofdesignthinkingandstrategyisreferredtoasdesign-ledinnovation,whichactsasaprocessforbusinesstransformationandfacilitatingthecreationofnewcompetitiveadvantagesinafast-pacedglobalmarketplace(Bucoloetal.,2012).

Withindesignresearchoneoftheclosestareastomanagementliteraturethatseekstounderstandinnovationreadinessfallsunderthedomainofmaturityframeworks,whichseektodocumentboththestrategicvalueofdesignandthewayinwhichtheinfluenceofdesignchangesovertimewithinanorganisation.Generally,thisresearchfocusesonunderstandingthecapacityofanorganisationtointegratedesignintoinnovationprocessesratherthanidentifyingopportunitiestocarryoutinnovationwithintheexistingboundariesofafirm.ToolssuchastheDanishDesignLadder(DanishDesignCentre,2015),theDesignFunctionMaturityGrid(GardienandGilsing,2013)andInnovationCapabilityMaturityModel(EssmannandDuPreez,2009)alloffernormativestagesthroughwhichdesignoccursinmostorganisations,rangingfromnon-designtodesignasstrategy.Whilsttheseframeworkshighlightthatatransitionfromnon-designtodesignasstrategyisimportantforachievingdesign-ledinnovation,theyareoftenvagueintheirdescriptionsandfailtoofferbestpracticesthatadequatelydescribethedevelopmentofdesignpracticewithinanorganisation(BackesandWolff,2016).Onepotentialexplanationforthisisthattheapproachtocarryingoutdesign-ledinnovationdiffersforeverycompany(Bucolo,2016,p.137),howeveritisalsocompoundedbydesign-ledinnovationbeingarelativelynewfieldofknowledgethathasgrownfromaneedtorepositionandredefinethewaydesignvalueisimplementedinbusiness(Dohertyetal.,2014,p.6).

Frameworkshavebeendevisedtoexploitthisgap,byexplainingthewayinwhichdesigncanassistcompaniestoexplorethestrategicvaluethatdesigncanbringtoabusiness.Forexample,BucoloandMatthews(2011)identifytherelationshipbetweeninsights,competitivestrategy,observationsandbrandascorefeaturesinoutlininganorganisation’svalueproposition.Similarly,Acklin(2010)offersa‘designmanagementtravel

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guide’,whichaimstohelpSMEsassesstheirlevelofdesignintegrationwhilstcreatingabasicdesignstrategytoimprovemarketpositioningandcustomerfocus,withthesupportofadesignconsultant.Ultimately,thefocusoftheseframeworkshasbeenonreadinesstoadoptdesignintoorganisationalinnovationpracticesandstrategy,asopposedtoutilisingdesignpracticestounderstandreadinesstoinnovateinasimilarsensetothatofmanagementliterature.

Oneareainwhichthereiscloseralignmentwiththemanagementunderstandingofinnovationreadinessistheconceptofdesignsprints,whichwererecentlypopularisedbyGoogleVenturesandexistasamethodologyforexploringopportunitiesinashorttimespan,specificallythroughprototypingandtestingideaswithcustomers(Knapp,2016,p.9).Knapp(ibid.)describesthesprintprocessasawayofapplyingleandevelopmentordesignthinkingphilosophiesinapracticalwayoverastructuredperiodoffivedays;whichinvolvesfivedistinctphases:settingagoal,sketchcompetingsolutions,decideonthebestsolution,buildarealisticprototypeandtestwithtargetcustomers.Thesprintprocesscanbeutilisedinavarietyofways,inavarietyoftimespanswithexamplesrangingfromafewhourstoseveralweeks(Banfieldetal.,2015);yetthereisapredominantfocusonutilisingthesprintprocessinthecreationofnewproductinnovationasopposedtoinformingthedevelopmentofnewstrategy.O’donnellandBucolo(2016)begintobridgethisgapbyhighlightingaprocessthatutilisesthesprintmethodologyasameanstoraiseawarenessandcapabilityofdesign-ledinnovationwithinaglobalengineeringfirmtoidentifyopportunitiesfornewproductandserviceofferings.Thefindings,however,areagainskewedtowardsproductdevelopment,withastrategyfocusoutlinedasthenextphaseoftheirwork.

Thedesign-ledapproachdocumentedinthispaperwasinspiredbythephilosophyofdesignsprintsandinformedbypreviousresearchinthedomainsofbothmanagementanddesign.Thephilosophyattachedtothedesignsprintprocessofutilisingdesign-thinkingmethodsinarestrictedtimeframeinordertorapidlyoutlineandassesssolutionstoaproblemwascriticaltotheapproach,duetothelimitedtimeandresourcesofSMEsincarryingoutinnovationactivities(NowackiandStaniewski,2012).Managementliteraturewasalsocriticalindeterminingareasforinnovation,resourcesthatneedtobeinplaceforinnovationtobesuccessfulandidentifyingpotentialbarriersthatcouldoccur.Therestofthepaperwilloutlinetheprocessthatwasusedtocarryoutaninnovationreadiness

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assessmentwithinanSMEaspartofanongoingresearchproject,withthenextsectiondescribingthemethodologicalimplicationsofthework.

4.0ResearchmethodologyThispaperhasadoptedaresearchmethodologyconsistentwiththe

principlesofcasestudyresearch.Yin(2014)describescasestudyresearchasamethodofempiricalenquirythatinvestigatesacontemporaryphenomenonindepthandwithinitsreal-worldcontext.Thispaperutilisesasinglecasedesign,wherebythefocusisplacedontheparticularityandcomplexityofasinglecaseinordertounderstandactivitywithinparticularcircumstances(Stake,1995).Flyvbjerg(2013)advocatesthesinglecaseapproachasawayofinvestigatingaphenomenonwithsufficientdepthinordertoaccuratelyunderstandthecausesandoutcomesofparticularphenomenonaswellasunderstandingthecontextandprocessinordertofosternewhypothesesandresearchquestions.

Thefocalquestionattheheartofthestudycanbedefinedas‘howcanadesignerlyapproachbeutilisedtohelporganisationsassesstheirinnovationreadiness?’Section4.0seekstooutlinethemethodologicalimplicationsofthestudy,includingthecriteriaforcaseselection,thespecificmethodsutilisedfordatacollectionandthelayoutofthedesign-ledintervention.

4.1CaseselectionThecasestudyistheresultofacollaborationbetweenaUKbased

UniversityandafundmanagementorganisationlocatedintheNorthEastofEngland.Theorganisationspecialisesinprovidingfundingsolutionstosmallandmedium-sizedbusinessesacrosstheNorthEastofEngland,whichcontributestothegrowthofthelocaleconomythroughthefundingofbusinessplans,thecreationofjobsandtheattractionoffurtherinvestmenttotheregion.ThecollaborationoccurredasaresultofanEUfundedinnovationprogramme,CreativeFuse.Theinnovationprogrammeisamultidisciplinaryactionresearchprojectfocusedonthestrength,diversityandnuancednatureoftheNorthEast’screative,digitalandITsector.Aspartoftheprogramme,multiplestrandsofsupportareavailabletoSMEs,freelancers,culturalorganisationsandcreativepractitionersacrosstheNorthEastofEngland.Thiscasefocusesononespecifictypeofinnovationsupportofferedwithinthewiderprogrammeofwork,named‘GetReadyToInnovate’.

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TheprimaryaimoftheGetReadyToInnovateprojectistoassistorganisationsindeterminingtheirinnovationreadinessbyutilisingasuiteofdesign-ledtoolsinordertochallengecurrentthinkingwithinanorganisationaswellasgeneratingnewwaysofcreatingvalue.Inadditiontogeneratingnewideas,participantsarealsoguidedthroughareflectiveprocessthataimstoprovidearoadmapforturningthesepotentialideasintotangiblestrategy.Duetothenatureoftheprojectfunding,severalconditionsdictatethenatureofcollaborationsbetweenNorthumbriaUniversityandparticipatingorganisations.Mostprominentistheallocationoftimewithpotentialparticipants,withtwelvehoursofcontacttimebudgetedforeachorganisation.Theinnovationprogrammeandsubsequentsuiteofresearcharestillongoing,howeverthispaperreflectsonaninitialcollaborationbetweentheUniversityandaparticipatingfundmanagementorganisation.

4.2SubordinatemethodsofdatacollectionEisenhardt(1989)notesthatmultiplemethodsofdatacollectionare

oftenutilisedwithintheboundariesofcasestudyresearch,includingbothqualitativeandquantitativetechniques.Theprimarydataforthisstudywascollectedinaqualitativemannerthroughbothasemi-structuredinterviewandreflectionsderivedthroughanactionresearchbasedapproach.Semi-structuredinterviewsarecommonlyappliedinqualitativeresearch(KitchinandTate,2000)andalsofeatureprominentlywithindesignresearch(Michlewski,2008;Gray,2014;Røiseetal.,2014).Withinthisstudy,asemi-structuredinterviewwascarriedoutwiththeChiefExecutiveOfficer(CEO)ofthefundmanagementorganisation.Theinterviewwascarriedoutfollowingthefinalinterventionandlastedanhourandfifteenminutes,withquestionsseekingtocollectfeedbackontheapproachtoassessinginnovationreadinessaswellastodeterminewhethertheapproachhadanyimpactontheday-to-daypracticesoftheorganisation.Toensureanonymityandafluentreadingofthenarrativeintheremainderofthepaper,theCEOwillbeprovidedwiththepseudonym‘Claire’,basedonarandomlyselectednameusingtheinitialletteroftheirjobtitle.

Semi-structuredinterviewsaresupplementedbyanactionresearchapproachintheformoffacilitatorobservationsfromtheauthors.Actionresearchisaself-reflectiveinquirythatresearchersundertaketoimproveonthepracticesinwhichtheyparticipateandthesituationsinwhichtheyfindthemselves(Baumetal.,2006).AccordingtoReasonandBradbury(2001,p.1)actionresearchaimstocombineactionandreflection,theoryandpractice,inparticipationwithothers,inthepursuitofpracticalsolutionsto

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issuesofpressingconcernstopeopleandcommunities.Forthepurposeofthispaper,theactionresearchapproachisevidencedinreflectionsfromtheresearchersthathaveinfluencedtherefinementofthedesign-ledapproachtoassessinginnovationreadiness.

4.3LayoutoftheinterventionInfluencedbythefundingstipulationthattwelvehoursofcontacttime

mustbeallocatedtocollaborationsaspartoftheprogramme,theinterventionwassplitintofourindividualsessions.Thefirstandlastofthesessionslastedtwohourseach,whilstthemiddlepairofsessionslastedforfourhours.Figure1visualisesthelayoutoftheintervention,includingthemethodsusedineachsessionastoolsforaidingunderstandingofinnovationreadiness.

Figure1:Visualisationoftheinnovationassessmentmethod

5.0Discussion Theaimofthepaperistoreportontheongoingprogressofasuiteof

workdesignedtohelporganisationsunderstandtheirinnovationreadinesslevelsutilisingarapiddesign-ledapproach.TheprevioussectiondocumentedtheprocessusedincollaborationwithafundmanagementorganisationaspartofanEUfundedinnovationprogramme.Thissectionwilldiscussparticipantandfacilitatorreflectionsoftheprocesstodeterminethestrengthsandweaknessesofthisapproachinanefforttoidentifythe

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waysinwhicharapiddesign-ledapproachcanbeusedtocarryoutthistypeofinnovationreadinessauditinthefuture.

5.1Strengthsoftherapiddesign-ledapproachtoassessinginnovationreadiness

5.1aValueinunderstandinginnovationreadinessTheinitialgoalofcreatingarapiddesign-ledapproachtoassessing

innovationreadinesswastocreateamethodcapableofsupportingSMEsinundertakingthistypeofaudit;specificallyinrelationtounderstandingexistinginnovationcapabilities,identifyingareasforpotentialgrowthanddevelopingstrategiestorealisethispotential.Itisthereforeworthremarkingthat,toalargeextent,thetwelve-hourinterventionhasachievedthesegoalswiththefundmanagementorganisation.

Inreflectingonthepositionoftheorganisationpriortotheassessmentprocess,Clairehighlightsthatthebusinesswas‘broken’intermsofinnovationpractices,howevertherewaslittleunderstandingastowhatthespecificproblemswereandsubsequentlyhowtogoaboutcorrectingthem.Bytakingpartintheintervention,thedesign-ledapproachwascapableofexplicatingsomeoftheinternalbarriersfacingtheorganisation,specificallyinrelationtoinformationandknowledgeflowsurroundingtheexistingdecisionmakingprocesseswithinthebusiness.Clairefeltthatdevelopinganunderstandingsurroundingthesebarrierswasoneofthekeyconceptsdevelopedthroughouttheworkshop,inthatitenabledhertogobacktothecompanyandcommunicatethesebarrierstootherswithinthebusiness,creatingasharedresponsibilityforimprovingtheorganisationalparadigm.Inthissense,theinterventionhassucceededinidentifyingexistinginnovationbarrierswithintheorganisationaswellasprovidingasenseofclarityregardingstrategiesforcorrectingtheirexistingsituationintoonethatismoresupportiveofinnovation.

Furthermore,theapproachalsoidentifiedareasforimprovementwithintheorganisation’scurrentworkingpractices.Asanexample,theworkshopidentifiedthatthewayinwhichthebusinesscurrentlysharedinformationwithclientswasperhapsnotthemosteffectivewayofcommunicatingbythebusiness.Externalcommunicationswerecreatedbyaccountantsinordertoconveyfinancialinformation,thustheywereheavilyreliantonspreadsheetsandnumberstoexpressinformation.Throughtheworkshopprocess,theyrealisedthatthepeoplereadingthesecommunicationsdon’tnecessarilyliketoreceivenumericalinformation,whichcanbe

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incomprehensibletosomeonewhoisnotfamiliarwithfinancialinformation.Asaresult,astrategyfocusedongraphicalrepresentationwasdevelopedsothatnewfundscouldbeeffectivelycommunicatedtoclients.

Finally,theworkshopprovidedtheorganisationwithexposuretoprocessesthatcouldbeappliedtofutureproblemsituations.Inparticular,thenotionoffailingearlyandoftenthrougharapidprototypingapproachtoproblemsolvingmadeanimpactonthemindsetofthecompany.Clairehighlightedthatthisapproachwassomethingthatshetypicallyassociatedwithdigitaltechormanufacturingbusinessandasaresultfailedtorealiseitspotentialapplicationtoproblemswithinherownbusiness.Thisshiftinthinkingopenedupnewmethodsandapproachestoproblemsolvingthatthebusinesshadlittleawarenessoformisunderstood.

5.1bThestrengthofthemethodinrelationtoexistingassessmentmethodologies Whilsttheapproachhasmeritsinrelationtohelpingorganisationsto

understandtheirinnovationreadinesslevels,theapproachalsooffersadditionalvaluebyhelpingorganisationstodevelopstrategiesthatseektoexploitopportunitiesthatariseasaresultoftheauditprocess.Forseveralreasons,thisisasignificantadvantageoverthebusinessmethodologiesoutlinedinSection2.0.Mostnotably,theapproachisbeneficialincomparisontosurveysthatofferaninsightintoinnovationproblemswithinanorganisationthatthenrequiremanagementconsultantstooffersuggestionsastohoworganisationscanthenfixtheseproblems.

Adoptingadesign-ledapproach,wherebyproblemsandsolutionsco-evolve,toconducttheinnovationreadinessinterventionpresentsanopportunityinwhichtheorganisationcanidentifyaninnovationchallengetoaddressthroughoutthetwelvehourintervention.Indoingthis,theapproachcanthenprovidetheorganisationwithagreaterunderstandingoftheproblem,potentialsolutions,potentialinnovationsandfinallypotentialtools,approachesandmindsetsthatcanhelpthemtobemoreinnovativeasaresult.Inthisrespect,theinnovationreadinessauditadoptsaco-creativeapproachtosimultaneouslyfacilitatelearninganddoingthroughouttheprocess.

5.1cOvercominginherentbarrierstoassessinginnovationreadinesswithinSMEs SeveralauthorshaveoutlinedobstaclestoSMEsintermsofevaluating

andconductinginnovation,aswellasengagingwithdesignaspartof

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organisationalinnovationpractices.Inparticular,thereisaperceivedlackoftimeandresourcetocommittothistypeofwork,whichisoftenconsideredtobehighinrisk(NowackiandStaniewski,2012).TheCoxReport(2005)findsthatsimilarobstaclesareinplacefororganisationsthatseektoengagewithdesign,withtheadditionofalackofin-housedesignorcreativeskillsandalackofaccesstoexternaldesignersfurthercontributingtoorganisationalinnovationstruggles.Thewayinwhichthisworkwaspackagedandadvertisedtoparticipantsisvaluableinovercomingasubsectionofthesebarriers.

Therapidapproachtounderstandinginnovationreadinesswascreatedasamethodofhelpingorganisationstoassesstheirinnovationpracticesinashorttimeframe,whilstmaximisingthebusinessvalueofferedtotheparticipants.Inthisrespect,theapproachfindsamiddlegroundbetweenmanagementstudiesthatseektoauditinnovationreadinessthroughsurveysanddesignresearchthatseekstoprovidedetailedbusinessstrategyadvicethroughlongerinterventions.Timecommitmenttothistypeofworkwasacriticalfactorforthefundmanagementorganisation,withClaireexpressingthatastheCEOofasmallorganisationthereispressuretojustifyspendingtimeonprojectsoutsideoftheday-to-dayoperationofthecompany.Claireindicatedthatcarryingoutthesetypeofactivitiesneedstoproduceknowledgeforthewholecompany,otherwiseitwillbeseenasawasteoftime.Therapidapproachgenerallyhelpstomitigatethisperceivedriskincomparisontolongerinterventionsasthereislessperceivedcommitmentonbehalfoftheorganisation.

Additionally,thefundingacquiredtosupporttheworkofferedbusinessesanopportunitytoaccessexpertswithoutrestrictivecosts.Claireexpressedthattrainingandconsultantsforsmallbusinessesgenerallytendtobeparticularlyexpensiveandthereforeoutofreachforhercompanyinparticular.AccesstothisprojectthroughtheEUfundedinnovationprogrammewasultimatelycriticalinenablingClairetojustifythenecessarytimecommitmentfromherselfandmembersofherorganisation.Thishasimplicationsatapolicylevel,giventheimportanceofinnovationwithinSMEstonationaleconomies.Ifrapiddesign-ledinterventionsarecapableofstimulatinginnovationwithinSMEs,itcouldofferanareafortargetedinvestmentforpoliciestostimulateeconomicgrowth.

5.1dCreativefunctionality Anotheroutcomeoftheworkisthatithasprovidedevidencesupporting

theconceptof‘creativefunctionality’.Creativefunctionalityisdefinedasa

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valueframethatsupportsenterprisesbyfacilitatingtheadoptionofanentrepreneurialattitudetoinnovationbycapitalisingonlatentcapabilitiesandcapacitytoshiftthemindsetoftheorganisation(Baileyetal.,2018).Furthermore,creativefunctionalityaimstoestablishorganisationalstructuresandroutinesthatsupportthisentrepreneurialattitude(ibid.).Theinitialattitudetowardsinnovationwithinthefundmanagementwasrestrictive,asnotedbyClaire,whohighlightsthatemployeesofthefundmanagementcompanytypicallycomefromanaccountingorbankingbackgroundwheretrainingensuresthatskillssuchascreativityareassociatedwithnegativeconnotationsandhandledinarisk-aversemanner.Ultimately,creativityhasthepotentialtobesomethingthatpeoplelosejobsfor,whichhascreatedaninternalenvironmentinwhichthereisaconservativeattitudeandstrongpriorityonmaintainingthetraditionalwayofdoingthings.

Throughouttheintervention,design-ledmultidisciplinaryco-creativeactivitiesencouragedashiftintheinnovationmindsetoftheorganisationtowardsaculturethatwasmoresupportiveofbothcreativityandinnovation.Atthestrategiclevelofthebusiness,theboardofdirectorshadpreviouslyidentifiedthecreationofamoreinnovativemindsetasoneoftheobjectivesthroughwhichsuccesscouldbeidentified.Whilstacceptingthatitisadifficultareatoquantify,theboardfeltthattheworkdonetoassesstheinnovationreadinessofthecompanywassufficientincreatingthismindsetacrossthebusinesstotheextentthatthestrategyrequiredchangingtoreflectthatthebusinessculturehadchanged.

5.1eImpactoftheworkonorganisationalstructureandprocessesThereisalsoevidencehighlightingthattheorganisationhasattempted

tointegratedesignprinciplesintotheirday-to-dayworkingpracticesasaresultoftheworkshop.Clairetalksaboutthecreationofan‘innovationroom’,whichislocatedinoneoftheorganisation’sconferencerooms.Thespacehasbeenfurnishedwithmaterialsdesignedtoimprovetheinnovationmindsetoftheemployees;witheasyaccesstobooksoninnovation,largerollsofpaper,colourfulpensandpost-itnotesanimportantfeatureofthespace.ThespaceactsasavisualremindertoemployeesoftheinnovativecultureClaireisattemptingtofosterwithintheorganisation.ClairehasutilisedherpositionasCEOtoenforcearulewherebyallinternalmeetingsmusttakeplacewithintheinnovationroominordertofurtherreinforcethe

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importanceofcreativitytotheinternaldecisionmakingprocessofthecompany.

Furthermore,aspectsoftheworkhasalsobeenintegratedintostaffappraisals.Forexample,theworkshopidentifiedaserviceblueprintmethodologythatwasvaluableinsolvingoneoftheorganisation'sproblems.Inthisrespect,theworkshopdemonstratedthewayinwhichaserviceblueprintcouldbeusefultosolvetheparticularproblemathand,howeveritalsoledtoarealisationthattheprocesscouldbeusefultothebusinessinsolvingproblemsgoingforward.Asaresult,Claireintegratedaspectsoftheframeworkintotheappraisalofthemarketingexecutivetoensurethattheframeworkwasappropriatelyutilisedinthefuture.Thisisimportantasitprovidesstaffwithasenseofownershipovertheinnovationprocess,whilstagainreinforcingtheimportanceofinnovationtothedecisionmakingprocessofthecompanygoingforward.

5.2Areasforfurtherrefinement

5.2aRestrictionssurroundingtimecommitmentsThewayinwhichtheprojectwasfundedledtoastipulationwhereby

twelvehoursofsupportwasrequiredwithparticipatingorganisations.Thismeantthattherewasnospacetodeveloptheapproachacrossnumeroustimedomains.Itisthereforepossiblethattheoptimalmethodofutilisingadesign-ledapproachtoassessinnovationreadinessdoesnotfitpreciselywithinatwelve-hourtimespan.

Thewayinwhichthetwelvehoursweredividedalsoneedstobeconsidered.Thesessionsweresplitintoaninitialtwo-hoursession,followedbytwofourhoursessionsandafinaltwo-hoursession.FeedbackfromClairesuggestedthatthefour-hoursessionsprovedtobedifficultinkeepingparticipantsengaged,inparticularwhentheissuesathandwereconsideredtobestrategicbigpictureissues.Althoughthiswasthecase,itisthebeliefofthefacilitatorsthatafour-hourtimescaleistheminimumrequirementforthistypeofwork,inordertounderstandthechallengesfacingabusinesswiththesufficientdetailrequiredtoderivemeaningfulsolutionsforthebusiness.Nevertheless,ithashighlightedtheneedforfacilitatorstoplaceagreateremphasisoncomfortbreaks,alternativeactivitiesandmanageddown-timeduringthelongersessionswhereitcanbedifficulttosustainenergy.

Additionally,Clairefeltthatthefinalsessiontookplacetooclosetotheprevioussessions.Inthecaseofthefundmanagementorganisation,the

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final‘followup’sessiontookplaceinthesameweekasthemiddlesessions.Clairesuggestedthatitmaybemorebeneficialtohavethefinalsessionfurtherintothefuturesothatthebusinesshadtheopportunitytoimplementsomeofthetechniquesdiscussedwithintheworkshop.Thefollowupsessioncouldthenbeusedasachancetoreviewprogressandreceivefeedbackonthestrategiesadoptedsincecarryingouttheinitialwork,aswellasactingasastimulusforfurtherwork,asopposedtoactingasaconclusionfortheworkcarriedoutintheprevioussessions.Againitisthefacilitatorsreflectionthatthisproximityisnecessaryinordertoreinforcetheprogressmadethroughouttheintervention.However,inascenariounrestrictedbycostandtime,furthersessionsplacedstrategicallyinthefuturewouldbevaluableinsupplementingtheworkdoneintheinitialworkshop.

5.2bLimitedparticipationfromthebusinessThroughouttheproject,threepeoplewereengagedwiththeworkfrom

thefundmanagementorganisation:theCEO(Claire),thecompanyITManagerandthemarketingexecutive.ThiswasatthediscretionoftheClaire,whowasoftheopinionthatinadditiontoherself,theITmanagerandmarketingexecutivewerelikelytobetheonlypeopletoapproachtheprojectwithanopenmindsetandanenthusiasmfornewwaysofworking.Clairefeltthatifshehadbroughtmembersofstaffwithspecialismswithinfinancialservicestheremayhavebeenanegativereactiontothework,whichhadthepotentialtoderailtheprojectattheoutset.

Fromtheperspectiveofthefacilitators,theparticipationofpeoplewiththecreativeconfidenceandenthusiasmtofullycommittotheprojectwasbeneficialtothesuccessofthework.Ontheotherhand,thelackofinputfromothermembersoftheorganisationmeantthattheworkshopshadlimitedperspectivesontheproblemsfacingthebusiness.Thisresultedinthecreationofideasthatwerenotnecessarilyreflectiveoftheviewsofthewiderorganisation.Itispossiblethatwiderparticipationinfutureprojectscouldleadtoconflictssurroundingscepticalviewsfromcertainmembersofstaff,howeveritisnecessarytoengagethesepeopleinordertofullyunderstandtheinternaloperatingenvironmentoftheorganisation.

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5.3Otherfactorstoconsideraspartoftheresearchapproach

5.3aParticipantrecruitmentandthegeneralizabilityoftheapproach Aspartofthefundingrequirements,theinterventionwasavailableto

SMEsacrosstheNorthEastofEngland,atnoextracosttotheorganisationstakingpart.Assuch,theopportunitywaswidelyadvertisedwithSMEsencouragedtoapplyforsupporttoreceivehelpwiththeirinnovationstrategy.Participantswereadvisedthatateamofdesign-ledpractitionerswouldbefacilitatingtheworkshoputilisingavarietyoftoolstohelpchallengeexistinginnovationwithintheorganisationtocreatevalue.Subsequently,thedesign-ledapproachandanopennesstochallengeexistingorganisationalparadigmswascentraltotherecruitmentofparticipants.

Duetothewayinwhichtheservicesareadvertised,itisworthconsideringthatthepeoplewhotakepartintheworkshopsarespecificallyseekinghelpwiththeirinnovationpracticesandareenteringtheinterventionwithanopenmindset,bothofwhichareimportantprecursorsfortheworktobesuccessful.Thisraisesthequestionofwhetherthewayinwhichtheworkshopsareadvertisedactsasanaturalselectionprocess,wherebyonlyopen-mindedpeopleareapproachingtheuniversitytotakepartinthework,filteringoutpeoplewhoaremorescepticaltodesign’sabilitytoaddbusinessvalueandareignoringtheopportunityasaresult.

Thishasimplicationsintermsofthegeneralisabilityoftheapproach,particularlyapplyingthemethodologytoorganisationsthatarenotnecessarilyenteringtheworkwithinthesecircumstances.Subsequently,atthisstageoftheworkitisdifficulttosaywhetherthemethodcouldbeappliedtoanySMEandhavethesamepositiveimpact.

6.0Researchimplications,conclusionsandrecommendationsforfutureresearch Thispaperhaspresentedarapiddesign-ledapproachtounderstanding

innovationreadinesswithinSMEs,aswellasdocumentingthestrengthsandweaknessesoftheapproachaspartofanongoingpieceofresearch.Thefindingssuggestthatthedesign-ledapproachofferedvaluetothefund

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managementorganisationbyhelpingthemtoassesstheirinnovationreadinesslevels.Specifically,thisvalueincludedtheidentificationofexistingbarrierstoinnovationandareasforimprovementintheorganisation’sexistingworkingpractices,whilstsimultaneouslyco-creatingastrategydesignedtohelptheorganisationaddressthesechallengesthroughprovidingtoolsthatcouldbeappliedtofutureproblemsituations.Throughthisapproach,trainingindesign-ledinnovationhasbeendeliveredtotheparticipantsthroughpracticeandactiveparticipationintheworkshops,whichisbeneficialovertraditionalinnovationreadinessauditmethodologies.

Someofthebenefitsoftheapproachareinherenttothewayinwhichtheinnovationprojectwasfunded,whichhasimplicationsatthepolicylevelinthatithascreatedasetofconditionsthatencourageinnovationandgrowthwithinSMEs;howevertheseconditionswouldnotoccurnaturallywithouttheinterventionofanexternalgoverningbody.Similarly,someofthedrawbackstotheapproacharealsoinherentlylinkedtothewayinwhichtheinnovationprogrammewasfunded.Specificallysurroundingtimerestrictionsplacedoninteractionswithparticipants.

Intheshortterm,thereisaneedforfurtherresearchtodeterminewhetherthepositiveeffectsseenwithinthefundmanagementorganisationcanbereplicatedacrossmultiplebusinessestoimprovethegeneralizabilityofthefindings.Theinterventionhasalsoprovidedarichareaforfutureresearchfurtherinvestigatingthepotentialofadesign-ledapproachtoassessinginnovationreadinesslevels.Initially,thiscouldbedeterminingtheoptimaltimeframeforthedeliveryofthistypeofintervention.Thereisalsopotentialtoexploretheabilitytoapplythemethodologytomultipleorganisationssimultaneously,whichwouldfurtherimproveitsattractivenesstoexternalgoverningbodies.

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