Abstract
1- Introduction
2- Measuring innovation: a literature background
3- Innovation measurement as an attention focusing device
4- A framework for improved measurement of innovation
5- Discussion
6- Conclusion
References
Abstract
Many firms manage the innovation process by using metrics. Yet, whether measurement supports or hinders innovation continues to be a topic of debate. To shed new light on this debate, this paper presents a conceptual framework of how measurement engages attention in firms. We draw on attention based theory and conceptualize innovation measurement as an attention-focusing device. We identify two ideal types of measurement practices. i) Directional Measurement: which is based on few and unidirectional metrics and encourages exploitative innovation efforts. ii) Conversational Measurement: which is based on multiple and ambiguous metrics and encourages exploration. We extend theory building in the technology and accounting literatures by theorizing the role of metrics and measurement for attention and by discussing the implications of such attentional engagement for innovation performance. In so doing, we engage closely with the managerial task of managing innovation while simplifying its conditions, thereby providing actionable advice.
Introduction
Many firms manage the innovation process by using metrics (Chan et al., 2008). This makes the measurement of innovation an important topic in the technology- and innovation management literature (Richtnér et al., 2017). The extent to which measurement is beneficial for innovation, however, continues to be a topic of debate (Criscuolo et al., 2017; Chiesa, 1999). Even after decades of research, results are mixed. One line of research suggests that measurement can be beneficial to innovation (e.g. Markham and Lee, 2013). Scholars in this stream have argued that measurement help managers to audit structural antecedents, processes and outcomes, thus ensuring that innovation is sufficiently supported and efficiently performed. Another line of research suggests that measurement discourage managers from pursuing more ground-breaking innovation (Criscuolo et al., 2017). Here, studies have shown that innovation measurement obstructs or hinders innovation since it pushes organizational members to focus their attention too narrowly (Abernethy and Brownell, 1997; Amabile et al., 1996; Tushman, 1997). The purpose of this paper is to shed new light on this debate by proposing a framework on how innovation can be measured. Drawing on attention based theory (Ocasio, 1997, 2011) we conceptualize innovation measurement as an attention-focusing device.