ORGANISING FOR INNOVATION IN PROFESSIONAL SERVICES FIRMS: ECONOMETRIC EVIDENCE FROM THE UK

Abstract

Undertaking innovation involves a range of different activities from ideation to the commercialisation of innovations. Each activity may have very different resources and organisational requirements, however, most prior studies treat innovation as a single un-differentiated activity. Here, using new survey data for professional service firms (PSFs) in the UK, we are able to examine separately how a range of organisational work practices influence success in ideation and commercialisation. In particular, we use principal component analysis (PCA) to identify and compare the benefits of four groups of organisational work practices relating to strategy & information sharing, recruitment & training, work flexibility & discretion and culture & leadership. Strong contrasts emerge between those work practices that are important for success in ideation and commercialisation. Work practices linked to culture & leadership are important for ideation activities, while strategy &information sharing practices are more strongly associated with commercialisation success. The results suggest clear managerial implications depending on the priority