Examining how organizational identity influences innovative capacity A multiple qualitative case study that examines the effect of organizational identity towards innovative capacity across different sectors

Abstract

It is increasingly becoming more important for organizations to engage in innovations in order to remain competitive in their competitive environment. Literature states that organizational identity can influence the capacity of an organization to engage in innovations. Through abductive research in the healthcare and IT-consultancy sectors, this research found that organizational identity can either work enhancing or constraining regarding the innovative capacity of organizations. The results highlight a differentiating effect of organizational identity across sectors. Organizational identity in the healthcare sector functions as an constraining factor when it comes to engaging in both radical and incremental innovations. This research argues that limited organizational flexibility is the reason for this. On the contrary, in the IT-consultancy sector organizational identity has an enhancing effect on both radical as incremental innovations. The identity of organizations in this sector create flexibility and with this facilitate the engagement in innovations.