Management Innovation and Its Measurement

Abstract

The aim of this paper is to explain the nature of management innovation, as well as to propose its measurement instrument. The paper offers a review of key publications on management innovation published in research journals within the last two decades. The critical analysis – primarily focused on definitions, the proposed dimensions of management innovation and the scales used for their measurement – has allowed for the development of an original tool for measuring management innovation (MI). Five dimensions of management innovation are proposed, namely, strategic dimension, structural dimension, employee motivation and development dimension, interorganisational relations and partnership dimension, and ICT dimension. Using survey data of 301 employees from different companies in Poland, the validation of the management innovation measurement instrument was conducted. Internal consistency analysis (Cronbach’s alpha) and factor analysis, used to test the statistical reliability of the tool, yielded satisfactory results. The findings of this study contribute to advancing innovation research, particularly the state of knowledge on management innovation. Implications for both research and managerial practice are also presented. The proposed five-dimension management innovation model can be used to measure the scope of management innovation in further research and develop the knowledge about links between MI and an organisation’s performance or its impact on technological innovativeness. In addition this study uncovers a wide range of information on management innovation issues for interested parties and for future research.