Innovation Capabilities in Bureaucratic Organization: Rationalization Perspective

Abstract:

Bureaucratic organizations are very specific and complex type of organizations coming in diversity of shape. Bureaucracies are designed in order to reduce the human subjectivity and arbitrary and are characterized by the efficiency and effectiveness. Innovation is defined by the creativity, the potential to learn and by the uncertainly. Consequently the rationale behind bureaucratic organizations can’t be innovative. However, it is critical for bureaucratic organizations to innovate, to cope with the technology progress and to answer to the growing needs and divergent needs of the stakeholder. Innovation can be defined as a learning process consisting on introducing and adopting and new product, service or process that involves change and presents risks for the organization. Analyzing the innovation capabilities and process of an organization requires understanding the context of innovation. As suggested by Teece (1996), innovation is often exclusively associated with large firm.