Innovation Management as a Dynamic Capability for a Volatile, Uncertain, Complex and Ambiguous World

Abstract

During the global pandemic, organisations across the world struggled as many of them were not able to respond effectively to the disruptive conditions. This period of economic and social standstill showed that our ingrained approach to innovation management was flawed. A mindset to innovate using a structured linear approach is premised on stable operating conditions within firms. This approach to innovation by firms fell short when subjected to extreme volatile, uncertain, complex and ambiguous operating conditions. To learn from this experience we explore approaches that helped organisations innovate during the global pandemic. Using the latest literature on innovation under volatile, uncertain, complex and ambiguous (VUCA) conditions, we explore the capabilities that have allowed organisations to continue and accelerate innovation during turbulent times. This research explores how organisations can use innovation management as a dynamic capability to help them create sustained value during times of disruption. To understand what capabilities helped leaders navigate the global pandemic we look at learnings from examples from both industry and government. These cases include snippets from supply chain logistics, workplaces and public services that demonstrated their ability to acquire unique management capabilities and qualities spanning leadership, structure and communications. Through observation of five specific case studies we propose a framework to succeed in managing innovation in the face of environmental, digital and global disruption. We learn from this research that organisations must embrace new capabilities and embed structural readiness within their organisations for combating VUCA conditions. While we hopefully have seen the end of the COVID-19 pandemic, this research presents a way forward to enable and embed improved innovation management as a dynamic capability for individuals, businesses and nations to navigate turbulent times.