Our era is one of increasingly pervasive digital technologies, which penetrate deeply into the very core of the products, services, and operations of many organizations and radically change the nature of product and service innovations. The fundamental properties of digital technology are reprogrammability and data homogenization. Together, they provide an environment of open and flexible affordances that are used in creating innovations characterized by convergence and generativity. An analysis of convergence and generativity observed in innovations with pervasive digital technologies reveals three traits: (1) the importance of digital technology platforms, (2) the emergence of distributed innovations, and (3) the prevalence of combinatorial innovation. Each of the six articles in this special issue relates to one or more of these three traits. In this essay, we explore the organizational research implications of these three digital innovation traits and identify research opportunities for organization science scholars. Examples from the articles in this special issue on organizing for innovation in the digitized world are used to demonstrate the kind of organizational scholarship that can faithfully reflect and inform innovation in a world of pervasive digital technologies.

Organizing for Innovation in the Digitized World

As business and technology environments change at an unprecedented rate, software development agility to respond to changing user requirements has become increasingly critical for software development performance. Agile software development approaches, which emphasize sense-and-respond, self-organization, cross-functional teams, and continuous adaptation, have been adopted by an increasing number of organizations to improve their software development agility. However, the agile development literature is largely anecdotal and prescriptive, lacking empirical evidence and theoretical foundation to support the principles and practices of agile development. Little research has empirically examined the software development agility construct in terms of its dimensions, determinants, and effects on software development performance. As a result, there is a lack of understanding about how organizations can effectively implement an agile development approach.

Using an integrated research approach that combines quantitative and qualitative data analyses, this research opens the black box of agile development by empirically examining the relationships among two dimensions of software development agility (software team response extensiveness and software team response efficiency), two antecedents that can be controlled (team autonomy and team diversity), and three aspects of software development performance (on-time completion, on-budget completion, and software functionality). Our PLS results of survey responses of 399 software project managers suggest that the relationships among these variables are more complex than what has been perceived by the literature. The results suggest a tradeoff relationship between response extensiveness and response efficiency. These two agility dimensions impact software development performance differently: response efficiency positively affects all of on-time completion, on-budget completion, and software functionality, whereas response extensiveness positively affects only software functionality. The results also suggest that team autonomy has a positive effect on response efficiency and a negative effect on response extensiveness, and that team diversity has a positive effect on response extensiveness. We conducted 10 post hoc case studies to qualitatively cross-validate our PLS results and provide rich, additional insights regarding the complex, dynamic interplays between autonomy, diversity, agility, and performance. The qualitative analysis also provides explanations for both supported and unsupported hypotheses. We discuss these qualitative analysis results and conclude with the theoretical and practical implications of our research findings for agile development approaches.

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Toward agile: an integrated analysis of quantitative and qualitative field data

With the rising use of arts-based methods in organizational development and change, scholars have started to inquire into how and why these methods work. We identify four processes that are particu...

Understanding Arts-Based Methods in Managerial Development

Organizational research has long focused on the instrumental sphere with its questions of efficiency and effectiveness and in recent decades there has been interest in the moral sphere with its questions of ethics. Within the last decade there has also emerged a field that draws on the aesthetic sphere of our existence in organizations. In this review we look at the field of organizational aesthetics in terms of content and method, suggesting four broad categories of organizational aesthetics research: intellectual analysis of instrumental issues, artistic form used to look at instrumental issues, intellectual analysis of aesthetic issues, and artistic form used to look at aesthetic issues. We then suggest how organizational scholars might pursue artistic aesthetic organizational research.

Finding Form: Looking at the Field of Organizational Aesthetics

Artful Making offers the first proven, research-based framework for engineering ingenuity and innovation. This book is the result of a multi-year collaboration between Harvard Business School professor Robert Austin and leading theatre director and playwright Lee Devin. Together, they demonstrate striking structural similarities between theatre artistry and production and today's business projects--and show how collaborative artists have mastered the art of delivering innovation "on cue," on immovable deadlines and budgets. These methods are neither mysterious nor flaky: they are rigorous, precise, and--with this book's help--absolutely learnable and reproducible. They rely on cheap and rapid iteration rather than on intensive up-front planning, and with the help of today's enabling technologies, they can be applied in virtually any environment with knowledge-based outputs. Moreover, they provide an overarching framework for leveraging the full benefits of today's leading techniques for promoting flexibility and innovation, from agile development to real options.

Artful making: what managers need to know about how artists work

Historical accounts of human achievement suggest that accidents can play an important role in innovation. In this paper, we seek to contribute to an understanding of how digital systems might support valuable unpredictability in innovation processes by examining how innovators who obtain value from accidents integrate unpredictability into their work. We describe an inductive, grounded theory project, based on 20 case studies, that looks into the conditions under which people who make things keep their work open to accident, the degree to which they rely on accidents in their work, and how they incorporate accidents into their deliberate processes and arranged surroundings. By comparing makers working in varied conditions, we identify specific factors (e.g., technologies, characteristics of technologies) that appear to support accidental innovation. We show that makers in certain specified conditions not only remain open to accident but also intentionally design their processes and surroundings to invite and exploit valuable accidents. Based on these findings, we offer advice for the design of digital systems to support innovation processes that can access valuable unpredictability.

Accidental Innovation: Supporting Valuable Unpredictability in the Creative Process

In recent years, flexibility has emerged as a divisive issue in discussions about the appropriate design of processes for making software. Partisans in both research and practice argue for and against plan-based (allegedly inflexible) and agile (allegedly too flexible) approaches. The stakes in this debate are high; questions raised about plan-based approaches undermine longstanding claims that those approaches, when realized, represent maturity of practice. In this commentary, we call for research programs that will move beyond partisan disagreement to a more nuanced discussion, one that takes into account both benefits and costs of flexibility. Key to such programs will be the development of a robust contingency framework for deciding when (in what conditions) plan-based and agile methods should be used. We develop a basic contingency framework in this paper, one that models the benefit/cost economics described in narratives about the transition from craft to industrial production of physical products. We use this framework to demonstrate the power of even a simple model to help us accomplish three objectives: (1) to refocus discussions about the appropriate design of software development processes, concentrating on when to use particular approaches and how they might be usefully combined; (2) to suggest and guide a trajectory of research that can support and enrich this discussion; and (3) to suggest a technology-based explanation for the emergence of agile development at this point in history. Although we are not the first to argue in favor of a contingency perspective, we show that there remain many opportunities for information systems (IS) research to have a major impact on practice in this area.

Research Commentary---Weighing the Benefits and Costs of Flexibility in Making Software: Toward a Contingency Theory of the Determinants of Development Process Design

Purpose – Interest in the uses and effects of art and methods of art making in businesses of all kinds is on the rise. In this paper, we show that the “arts‐in‐business movement” is no mere fad, that it is, in fact, driven by fundamental economic forces, two tectonic shifts moving the business world. Financial crises and other like disruptions not withstanding, these shifts will increasingly influence how companies, especially those based in developed economies, compete. Consequently, business success in a not‐too‐distant future will, for many companies, require a new understanding of art and art making, a sophisticated appreciation of, and a feel for, aesthetic principles.Design/methodology/approach – We develop an economics and business strategy based model using historical facts and empirical patterns to illustrate how two tectonic shifts now gathering force and momentum will change the way businesses, especially those based in developed economies, compete. The first shift, toward differentiation based...

Not just a pretty face: economic drivers behind the arts‐in‐business movement

Quality is meeting requirements - or is it? The authors challenge this familiar metaphor for requirements and introduce a new one based on their experience in an industry that seems far from software development or is it?.

Beyond requirements: software making as art

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