Strategic Innovation and Knowledge Management: The Logic of Creativity and Development Institutionalization, Framing and Diffusion

The purpose of this paper is to generate a discussion and suggest a development of a framework for institutionalization of strategic innovation and knowledge management by analyzing various research literatures and data collection through interpretivist research conventions. Strategic innovation involves making knowledge creation and innovative action a way of life, seeking to create and expand markets rather than just reacting to customer demand, and redirecting resources from profitable but dwindling lines of business to support emerging lines that are potentially more profitable. The researcher explores conceptual links between knowledge development and management of strategic innovation and argues that strategic innovation is the purposeful orchestration of knowledge development and creativity. It is found that, while strategic innovation and knowledge management enhances organizational creativity and development, through resource-based strategy, that is, firm-specific assets and knowledge, variously referred to as competencies and distinctive capabilities, and is not a new phenomenon in developed technologies and economies, that have early adopted the management practice, the social, political and economic context of emerging technologies and economies may not readily accommodate current strategic innovation and knowledge management frameworks. Drawing on organizational decision-making research, this research argue that, both early and late adopters respond to framing and interpreting adoption decision situations as opportunities versus threats. Thus a need to rethink the classic institutional, framing and diffusion paradigm, to suggest models that emerging technologies and economies could adopt to suit their social, political and economic context.