The purpose of this paper is to examine why some innovative firms do not have good performance.
The cognitive learning perspective is used with the innovation literature to develop a theoretical model of organizational learning cultures. Innovation dichotomies (incremental vs radical, component vs architectural, and sustaining vs disruptive) are analyzed in the context of three learning cultures (reflexive, bounded, and critical). Model assumes innovation is the creative and commercial embodiment of organizational learning.
The type of innovation the firm uses is influenced by its learning culture and its perception of external threat (as imminent vs non‐existant/distant). Effective innovation cannot occur without higher learning abilities, and disparate learning cultures within the same organization will inhibit innovation.
Learning culture is influenced by leaders play a pivotal role in the way they allow resources and manage external threat perception. Internal problems and failures are opportunities for organizational learning since they elicit questions, contemplation, and self‐examination.
Innovation through organizational learning will require management innovation. Organizations can build on “small wins” to enable changes in mental models and attitudes. Organizations may need to budget for small failures.
This paper examines an organization's underlying cultural values, norms, and protocols and their influence on learning and innovation.
