Organizational innovation: a systemic approach

Abstract

ABSTRACT Since, Vilfredo Pareto formulated what later became Pareto’s principle (also referred to as the 80/20 or 90/10 principle, see Koch [2008. The 80/20 Principle: The Secret to Achieving More with Less. New York: Doubleday] and Kiyosaki [2011. Rich Dad's Guide to Investing: What the Rich Invest In, That the Poor and Middle Class Do Not!. Jackson: Perseus Distribution] for example), which emphasizes the importance of empowering innovation not by improving the new just for the new’s sake but by reducing obsolescence. For example, some studies (Pitasi, A., & Ferone, E. (2008). Il tempo zero del desiderio. Milano: McGraw-Hill) have shown that a Roger’s innovation cycle (R) can improve its speed (S) by cutting Williamson’s transactional costs (W) as much as possible, i.e. S = R/W. This paper focuses on a three-level analysis of the evolution of Pareto’s principle up to its ‘less is more’ version. Micro-level: It consists of dyads and/or small groups and requires a psycho-social approach, which is more micro than micro. Meso-level: It relies on middle-range studies and encompasses mainly single, specific organizations; it requires theoretical tools such as R. Macro-level: The objects in this level are national/supranational political and economic organizational notions such as Kuznets’ ccle or Schumpeter’s cycle. The sections of this paper are structured top-down, from macro to psycho-social, according to Elias’ (2010. The Civilizing Process: Sociogenetic and Psychogenetic Investigations. Hoboken: Blackwell Publisher) concept of process. The paper is based upon the assumption that openness to change is different at each level. The aim is twofold; on one hand, the goal is to provide a better comprehension of organizational change phenomena and on the other, we aimed to develop a social practical capability to overcome the hurdles that can stop or slow down innovation processes.