Mapping the relationship between innovation, categories of knowledge and institutional context in an organisation

Organisations are social entities formed by individuals with knowledge in an institutional context. Innovation is a social and economic phenomenon (Schumpeter, 1935a) that positively impacts organisations and economic growth. This paper maps the relationship between innovation, categories of knowledge, and institutional context in an organisation. It reviews innovative organisations as opportunity takers in an institutional context and understands innovations as the output of a multidirectional process where articulated and unarticulated knowledge is exchanged by individuals in the organisation. Innovation becomes a decision-making (selection and variation) process based on an individual's knowledge. That process has velocity and direction due to its relationship with the institutional context and the categories of knowledge. The paper concludes by presenting a conceptual model to explain the relationship between the concepts studied. It integrates innovation theories, knowledge economy literature, and sociological perspectives.