Creating and Implementing Standardized Management Innovation in a Large Organization

Abstract

Management innovation represents one of the most important and sustainable sources of competitive advantage due to its context-specific nature. Still, current academic literature on management innovation and standardization is slightly limited. This intensive case study explores management innovation in a large European telecommunications company with the focus on standardization in managerial practices. The research data were gathered through interviews with managers from different levels of the case company. The results show that highly standardized management innovation is effective for reaching a standard level of management in a large company; it is also a prerequisite for further systematic development. Research questions: The purpose of this study is to gain insight into how standardization emerges in management innovation in a large organization by studying the construction and conduction of a managerial toolkit in a European telecommunications company. Links to theory: The theoretical framework is based on a study of management innovations and related processes by Birkinshaw et al. (2008) and a standardization study by Wright, Wylie & Sturdy (2012) in which the tasks of an internal change agent were divided into “standardizing agendas” and “standardizing methods”. Phenomenon studied: Adoption process of a standardized management innovation in a large company. Case context: The case company is a large European telecommunications company which operates in a highly competitive market where organizational excellence is extremely beneficial. The case study focuses on the case company management innovation process for creating a “toolkit” for day-to-day management in the retail sales channel. Research findings: The research findings gathered through systematic combining approach show that standardized management innovation is an effective tool for implementing managerial best practices from management fashions into organizational standards. Through adapting these learnings systematically to managers’ individual work, the good “standard” level of managing can be achieved in a large-size company. Reaching these standards also appears as a prerequisite for a further systematic managerial development in the organization. Discussion: This study contributes to management innovation research by highlighting planning and coordination in introduction and successful adoption of standardized management innovation. Planning communications, setting achievable timeframes and choosing the right implementers are important aspects of implementation. Clear guidelines help employees understand the ideological background of management innovation, and close interaction between change agents and store managers promotes the adoption of management innovation. A standardized management toolkit is an effective tool for putting external leadership ideologies, known as management fashions, into practice in a large organization. However, practical implementation requires comprehensive communication and preferably internal recruitment of change agents.