Developing organizational innovation capability in high-technology domain using limited resource

• Main Authors: VO, Minh H., MACK, Daniel Z., HUY, Quy N.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Organizational Behavior and Theory; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7139; https://doi.org/10.5465/AMBPP.2022.13142abstract
• Institution: Singapore Management University

Much empirical research investigating how organizations innovate with limited resources has focused on knowledge work in low-technology settings. These studies have largely overlooked the struggles of financially constrained, knowledge-poor organizations in attracting and incentivizing talents to support their uncertain, costly, and prolonged pursuit of high-technology innovation. Our inductive study examines how a cash-strapped industrial equipment repair shop was able to overcome this struggle to subsequently grow and become a prominent venture in defense R&D. This venture developed its reputation as a breeding ground for R&D careers by recruiting and training low-skilled knowledge workers to prepare them for jobs at more reputable R&D companies. Despite receiving low wages, many recruits worked hard to search for knowledge in distant domains and self-directed their learning when needed. Our inductive model elucidates how an organization commits limited organizational resources to the development of its employee's external careers and creates a schema valuing innovation as personal career building process rather than a fully compensated task. This schema encourages employees in a resource-constrained environment to pursue high-technology innovation through distant-and-prolonged search paths. Our study shows how promoting the turnover of skilled human capital — rather than protecting it — fosters the continuous development of the organization’s innovation capability.