Organizational Dynamics and Adoption of Innovations: A Study within the Context of Software Firms in Sri Lanka

Abstract

This paper examines the effect of organizational dynamics on innovation focus using the residual dominant and emergent theoretical framework (RDE) and the empirical evidence of four case studies. The findings revealed that different types of innovation coexist, but one type becomes dominant over other types at a certain time as the innovation focus is changed in line with the strategic priorities of firms. We found that innovation focus takes the form of product, process, and organizational innovation pattern over time when the firms move from an entrepreneurial organization to a more formal business corporation. More importantly, the RDE framework provides an appropriate lens for practitioners, in identifying the enablers and barriers of innovation.