SUSTAINING A CULTURE FOR INNOVATION WITHIN GROWING VENTURES: THE CASE OF LUNAR DESIGN INC.
Constantine
Andriopoulos, University of Aberdeen
Jonathan Levie, University of Strathclyde
Principal Topic
Given the fast pace of change in world markets, organisations need to adopt a proactive approach towards unleashing creative potential, especially within the so called “creative” industries where innovative ideas are the prime source of competitive advantage. Although the concept of culture and its management within organisational settings are well studied, there is a clear shortage of research exploring how growing entrepreneurial companies actually manage to nurture such a culture for innovation within their environments. This study aims to shed light into this gap in the literature by exploring how a clearly successful, growing new product design firm, Lunar Design Inc., manages to sustain a company-wide culture for innovation. The research investigates Lunar’s values and senior management’s thoughts and actions, as well as existing formal and informal socialisation processes that support the flow of creative ideas and innovative outcomes within the organisation.
Method
The paper presents an analysis of 35 personal in-depth interviews with senior management, product designers, engineers and administrative staff of Lunar Design. A qualitative research design was adopted, since the aim of the study was to explain the delicate and subtle indicators of innovation rather than to measure their frequency. In particular, the orthodox grounded theory research method by Glaser (1978) was used. The company employs 45 staff with offices in Palo Alto and San Francisco, with clients ranging from Fortune 500 to small, start-up companies. The company is widely praised in business and design press and has won several awards in Business Week Design Excellence Awards.
Results and Implications
The research suggests that maintaining a “family” feel as the organisation grows is an essential ingredient for sustaining a culture for innovation. This includes an open and honest approach to management and a work ethic that accommodates personal values and preferences and celebrates individuality across the organisation. Findings also emphasise the importance of sustaining an open flow of information within the company and place learning at the centre of organisational growth. The implications of this study are twofold. Firstly, the study provides managers of growing ventures with guidelines on how to sustain a culture for innovation within their organisation. Secondly, for entrepreneurship academics, the research highlights formal and informal socialisation processes that enhance creativity and innovation within work settings.
CONTACT: Constantine Andriopoulos, University of Aberdeen, Edward Wright Building, Dunbar Street, Scotland AB24 3QY; (T) ++44(0)1224-272710; (F) ++44(0)1224-273843; c.andriopoulos@abdn.ac.uk
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