Innovation: a systemic perspective – developing a systemic innovation theory

Abstract

Purpose – The primary aim of the article is to create a systemic innovation theory. Design/methodology/approach – In discussing the above, the article will draw on institutional theory, Miller's theory of living systems and systemic thinking. North's “action theory” and Asplund's “motivation theory” are also used to explain aspects of institutional innovations. Findings – A systemic innovation theory, based on 14 propositions. Research limitations/implications – Further research should investigate the connection between innovation and economic crises. Practical implications – Organizations, countries or regions, such as the EU, must make institutional changes that promote economic changes. Originality/value – First, the article provides a new understanding of processes which foster innovation. Second, it attempts to provide a brief elaboration of Williamson's transaction cost theory. Third, it provides a new classification of service innovation, making it possible to make an analytical distinction between tangible and intangible service innovations. This distinction makes it possible to integrate service innovation as a natural element in all organizations. Fourth, the article provides a conceptual framework (“coin the frame”) around what the author has termed Asplund's “motivation theory” and North's “action theory”.