Organizing for radical innovation — A multi-level behavioral approach

Based on Self-Determination-Theory, Group-Effectiveness-Theory, and Cognitive-Network Theory a multi-level model is developed that explains two research questions. First, how can management motivate individuals to generate novel ideas? Second, how should management organize groups in order to facilitate creativity and implement radical innovations? From Self-Determination-Theory, propositions for the design of a reward system are derived. Arguments from Group-Effectiveness-Theory lead to the conclusion that permanent work groups with low social cohesion should emphasize idea generation, while cross-functional project teams with high social cohesion are best suited for radical innovation implementation. Effective group behavior modes for each kind of group and management practices for producing these modes are described based on Cognitive-Network-Theory. Implications of the model with regard to innovation management in different cultural settings and to group composition are discussed.