How do project-oriented organizations enhance innovation? An institutional theory perspective

doi:10.1007/s42524-023-0258-0

Front. Eng

2023, Vol. 10

Issue (3) : 427-438 https://doi.org/10.1007/s42524-023-0258-0

RESEARCH ARTICLE

How do project-oriented organizations enhance innovation? An institutional theory perspective

Shankar SANKARAN(

), Catherine P. KILLEN, Alexandra PITSIS

Faculty of Design Architecture and Building, University of Technology Sydney, Ultimo, NSW 2007, Australia

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Abstract

A project-oriented organization is a hybrid form of organization where a functional hierarchy is augmented with structures to manage projects strategically across the organization. Six project-oriented organizations from diverse industries that emphasize innovation in their strategies were selected for this study. We use the three pillars of institutional theory — regulative, normative and cultural-cognitive — and institutional entrepreneurship to analyze interview data from executive and project, program and portfolio management personnel in the project-oriented organizations to investigate how innovation is facilitated through external influences and internal responses. Our findings indicate that processes and new structures provide effective ways for innovation and, while individuals are important, processes are more effective than individuals at enabling innovation. We put forward some lessons for practice that emerge directly from the findings, including suggestions on improving allocation of resources, a need to focus on processes, reconceptualization of “failure”, and dedicated investment in market knowledge, customer knowledge, performance metrics and flexible governance structures.

Keywords project-oriented organizations innovation institutional entrepreneurship institutional theory

Corresponding Author(s): Shankar SANKARAN

About author: ^* These authors contributed equally to this work.

Just Accepted Date: 30 May 2023 Online First Date: 03 July 2023 Issue Date: 29 August 2023

Cite this article:

Shankar SANKARAN,Catherine P. KILLEN,Alexandra PITSIS. How do project-oriented organizations enhance innovation? An institutional theory perspective[J]. Front. Eng, 2023, 10(3): 427-438.

URL:

https://academic.hep.com.cn/fem/EN/10.1007/s42524-023-0258-0
https://academic.hep.com.cn/fem/EN/Y2023/V10/I3/427

Tab.1 Some examples of application of institutional theory concepts in project and construction management literature (2007–2022)

Tab.2 Source of initial nodes and sub-nodes (Javernick-Will and Scott, 2010)

Tab.3 Frequencies against nodes and sub-nodes

Project-oriented organization	Individual entrepreneur	Structures to promote innovation	Processes to promote innovation
FSP		Skunkworks to drive innovation Outsourced innovation initiative Tribes and Guilds Cross-functional teams	Forums to discuss innovation Emphasis on designing with customers using prototyping Customer journey mapping Managers asked to pitch ideas in forums
CIS	Head of Strategy and Technology Innovation	Dedicated innovation labs Setting up business unit to innovate Decentralized project structures Chief Technology Office managing an innovation portfolio Labs to test ideas	Collaboration with hi-tech companies Innovations at different levels of business managed by local operations Fast tracking gateway process to accelerate innovation Use agile projects to test innovations Innovation around customer experience
SOU	Chief Information Officer supporting innovation through Customer Experience (CX) Lab and discretionary funding	CX Lab to develop customer experience design Change governance group to approve new initiatives Innovation group to develop digital services	Cycle of exploration before funding innovation after pilot testing Hierarchical decision-making on innovation through CX Lab Internal recognition systems for new ideas Human-centered design Prioritize innovations that have an impact on customer Customer journey mapping Road map with strategy for innovation
TD	Senior Vice President Innovation Research and Development (R&D) Manager and Chief Technology Officer	Advanced innovation group in R&D (works with external stakeholders) Product innovation groups	New product development processes and roadmap Yearly R&D meeting with expo to gather ideas Allocate time for people to develop concepts Decision-making process to authorize innovation projects
TSP		Innovation hubs Innovation lab for an industry sector Innovation teams	Reward systems for ideas Hackathons Technology innovation strategy plan Alignment between business strategy and R&D programs Annual awards for innovation
PU	IT Innovation Manager (driving from bottom)	Skunkworks Development teams Guilds for knowledge sharing Strategic partnership for funding New energy group Innovation plans based on time horizons	Annual innovation maturity assessment Data-based decision making on investment Experiments by marketing team Prototyping Hackathons Crowdsourcing innovation challenges Energize awards Human-centered processes

Tab.4 Roles of individuals, structures and processes in innovation at the case organizations

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