Studying radical organizational innovation through grounded theory

The main aim of this article is to study the social processes occurring during the implementation of radical organizational innovation. Our aim is to understand the nature of the development of radical innovation by identifying the social processes, that are taking place. The perspective for the analysis stems from “grounded theory” as a generative and inductive analytical strategy (Glaser & Strauss, 1967). An in-depth case study was thoroughly analysed. A total of 14 indepth interviews were conducted with key informants selected according to “theoretical sampling” criteria. The systematic use of the “constant comparative method” allowed us to differentiate grounded theories leading to a “conceptual saturation” of the categories generated from the empirical data. Results show the emergence of two basic processes, “learning” and “adaptation”, during the development of radical innovation. A “grounded” theory concerning the development of radical innovation is proposed, emphasizing the organization's selfregulating capacity for learning and adapting. Our results describe innovation as an adaptable response that causes disorder in terms of “a creative tension in the system”. Finally, the methodological implications of grounded theory are discussed with regard to the study of radical innovation. The requisites and limitations observed in using grounded theory are outlined.