Organizational adaptation and innovation: The dynamics of adopting innovation types

Innovation is regarded as a focal point of an organization’s strategy and a crucial element for its long-term strength and survival (Tushman, Anderson 1997). Organizations adopt innovations to introduce changes in their outcomes, structures, and processes in order to maintain or improve their level of performance or effectiveness. These changes can be the direct result of managerial choice or can be imposed by external conditions. For instance, a performance gap perceived by top executives of an organization creates a need for change, which in turn stimulates the adoption of innovation to reduce the gap (Zaltman, Duncan, Holbek 1973). Similarly, environmental change or uncertainty creates a need for change in the strategy and/or structure of an organization. This, in turn, provides the impetus for the introduction of innovations (Damanpour, Evan 1984). Regardless of the origin of organizational change (internal or external), innovation is a means of creating change to ensure adaptive behavior.