Innovation in a complex environment

Background: As our world becomes more global and competitive yet less predictable, the focusseems to be increasingly on looking to innovation activities to remain competitive. Althoughthere is little doubt that a nation’s competitiveness is embedded in its innovativeness, thecomplex environment should not be ignored. Complexity is not accounted for in balance sheetsor reported in reports; it becomes entrenched in every activity in the organisation. Innovationtakes many forms and comes in different shapes.Objectives: The study objectives were, firstly, to establish the determinants for complexity andhow these can be addressed from a design point of view in order to ensure innovation successand, secondly, to determine how this changes innovation forms and applications.Method: Two approaches were offered to deal with a complex environment – one allowing forcomplexity for organisational innovation and the other introducing reductionism to minimisecomplexity. These approaches were examined in a qualitative study involving case studies,open-ended interviews and content analysis between seven developing economy (SouthAfrican) organisations and seven developed economy (US) organisations.Results: This study presented a proposed framework for (organisational) innovation in acomplex environment versus a framework that minimises complexity. The comparativeorganisational analysis demonstrated the importance of initiating organisational innovationto address internal and external complexity, with the focus being on the leadership actions,their selected operating models and resultant organisational innovations designs, rather thanon technological innovations.Conclusion: This study cautioned the preference for technological innovation withinorganisations and suggested alternative innovation forms (such as organisational andmanagement innovation) be used to remain competitive in a complex environment.