Purpose: The purpose of this paper is to contribute to a better understanding of the occurrence of strategic error in using key performance indicators (KPIs) in innovation
This case study was conducted at the innovation department of an organization in the process industry that operates production sites and sales organisations worldwide. Observations and interviews were made on several organizational levels (multi-level), including 28 interviews with innovation staff.
This research shows that innovation KPIs display room for error. The setting of the preliminary KPIs by participants at strategic levels seemed to be differ from the innovation KPIs reported by participants at operational levels in the organization.
To enable value creation and learning in innovation and the organization, special attention needs to be given to the interplay between the design, use of strategy and metrics in innovation at all levels of the organization.
This study assists in developing ideas for research and practice to manage the occurrence of strategic errors in the use and development of key performance metrics in innovation.
This paper, as a first in its kind, shows that consideration to organizational errors in innovation KPIs can facilitate learning and innovation performance. By focusing on strategy-by-learning instead of finding the right metric for innovation, organizational errors can be reduced as well as negative consequences both on strategical and operational levels and enhance value creation.
Keywords: strategic error; performance metrics; innovation; learning; case study
Paper type: Case study
- Produktionsteknik, arbetsvetenskap och ergonomi