BOLTON BUSINESS SCHOOL

MBA
MANAGERIAL CHALLENGES OF CHANGES
MBA4106.
HE7
12
Critical evaluation of Scheins Model
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20th June, 2014

1209780

In todays fast growing economies, organisations worldwide are confronting more

turbulent market and are under the pressure of internal as well as external forces to
change and innovation (Alkaya and Hepaktan, 2003). The concept innovation has come
to be widely recognised since 2006 (Chesbrough et al., 2006) and several studies have
revealed that in order to maximise competitive advantage, organizations should not only
conduct effective management for today, but also simultaneously create innovation for
sustainable development (Tushman and Nadle, 1986). By understanding its
significance, many researchers have established several concepts in relation to
innovation with different views including Change Kaleidoscope (Balogun and HopeHailey, 1999), Culture Web (Johnson and Scholes, 1998) and Force Field Analysis
(Lewin, 1951)and by taking advantage of the empirical studies, Horn and Brem (2013)
has set a foundation for a conceptual framework of innovation which describes most
appropriately the strategic directions of TH the largest automobile manufacturer with
over twenty subsidiaries and eight thousand employees in Vietnam. Acting as the role of
sales and marketing officer, the author will critically review Horn and Brems (2013)
concept of innovation and analyse how it is applied in TH.
Initially, according to Amabile (1983, 1998) and Amabile et al. (1996), innovation can be
simplified as the successful implementation of new concept into organisations while
Rogers (1998) defined innovation as an ongoing process with an aim to introduce new
ideas for the purpose of maximizing firms performance. Moreover, as innovation
management is becoming more crucial for business today, this concept has gone far
more complex when variety of researchers put more efforts in proving the validity of
their investigations, and in a broadest sense, innovation management can be described
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as various forms of organizational management activities over time where change is

unprecedented from the antecedent period (Hargrave and Van de Ven, 2006; Van de
Ven & Poole, 1995). Hence, the types of innovation are also classified in divergent ways
based on different perspectives. As mentioned by OECD (2005), the types of innovation
include product, process, marketing and organisations where product innovation occurs
when firms introduce significantly improved products or services with respect of
intended uses; process innovation refers to the introduction of the new approach of
manufacturing new products or delivery methods; marketing innovation is the states
when firms change exponentially distribution channel, prices or packaging; and
organizational innovation is the application of new structural approaches in business for
the purpose of increasing employees satisfaction, maximising work performance or
reducing operation cost(OECD, 2008, pp. 225). On agreeing with OECD (2008),
Bessan and Tidd (2007) also mentioned product and process innovation in the
categories, however marketing and organizational innovation are replaced by similar
terms, namely position and paradigm innovation.

In regard with the intensity of

innovation, Utterback and Abernathy (1975), Tushman and Anerson (1986), and
Anderson and Tushman (1990) suggest that there are three levels including incremental
innovation which creates slight changes in business models or firms technologies;
breakthrough innovation which makes exponential changes in technologies or
organisational performance; and radical innovation which combine both technology and
business models to create brand new industries with high customers needs and
significant growth.

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Reference
Tushman, M. and Nadle, D. (1986), Organising for Innovation, California Management
Review, Vol. 28, No. 3, pp. 74 92.

Tushman, M. L. and Anderson, P. (1986), Technological Discontinuities and

Organizational Environments, Administrative Science Quarterly. Vol. 31, pp. 439 465.

Utterback, J. M. and Abernathy, W. J. (1975), A Dynamic Model Of Process And

Product Innovation, the International Journal of Management Science. Vol. 3, No. 7, pp.
639 656.

Anderson, P. and Tushman, M. L. (1990), Technological Discontinuities and Dominant

Designs: a Cyclical Model of Technological Change, Administrative Science Quarterly,
Vol. 35, No. 4, pp. 604 633.

Chesbrough, H., Birkinshaw, J. and Teubal, M. (2006), Introduction to the Research

Policy 20th Anniversary Special Issue of the Publication of Proting from Innovation by
David J. Teece, Research Policy, Vol. 35, No. 8, pp. 1091-1099.

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Bessant, J and Tidd, J (2007), Innovation and entrepreneurship, Chichester: John Wiley
and Sons.

Lewin, K. (1951), Field Theory in Social Science, New York: Harper and Row.

Balogun, J. and Hope Hailey, V. (1999), Exploring Strategic Change, London: Prentice
Hall

Johnson, G. and Scholes, K. (1998), Exploring Corporate Strategy, Harlow: Pearson

Education.
Horn, C. and Brem, A. (2013), Strategic directions on innovation management a
conceptual framework, Management Research Review, Vol. 36, No. 10 pp. 939 954.

Alkaya, A. and Hepaktan, E. (2003), Organisational Change, Management and

Economics, Vol. 10, No. 1, pp. 31 58.

OECD (2008), OECD Science Technology and Industry Outlook, Paris: OECD
Publishing

Amabile, T. M. (1983), The Social Psychology of Creativity, New York: Springer-Verlag.

Amabile, T. M. (1998). How to Kill Creativity, Harvard Business Review, Vol. 76, No. 5,
pp. 77-87.

Amabile, T. M., Conti, R., Coon, H., Lazenby, J., and Herron, M. (1996). Assessing the
Work Environment for Creativity, Academy of Management Journal, Vol. 39, No. 5, pp.
1154-1184.
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Rogers, M. (1998), The Definition and Measurement of Innovation, Melbourne Institutite

Working Papers, Vol. 98, No. 10, pp. 1 27.

Hargrave, T. and Van de Ven, A. (2006), a Collective Action Model Of Institutional

Innovation, Academy of Management Review, Vol. 31, pp. 864 888.

Van de Van, A. and Poole, M. S. (1995), Explaining Development and Change in

Organizations, Academy of Management Review, Vol. 20, pp. 510 540.

OECD (2005), Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data,
3rd Ed, The Measurement of Scientific and Technological Activities, Paris: OECD
Publishing.