Embedded values in innovation practice: Toward a theory of power and participation in organizations

This study investigated values conflicts within software development project teams toward understanding the influence of personal and organizational values on product innovation. A grounded theory methodology evaluated ten cases from four product companies. A hermeneutic analysis followed to evaluate the influences of innovation process embedding organizational values within two software product organizations.;Values conflicts in innovation practice were attributed to organizational processes and culture. Conflict with personal values was found across cases, expressed as conflicts with design process, product design control, and organizational culture issues. Conflict sources were identified as design and development processes, internally focused practices that disregarded customer feedback, and constrained participation in project decisions.;Cross-case analysis identified four organizational dynamics mediating values conflict in innovation processes. One, cross-functional projects afford multiple points of conflict with personal and organizational values. Coordinating participants from diverse groups in a hierarchical organization increased opportunities for conflict between different professional and organizational groups. Two, innovation management processes afforded conflict between professional and organizational norms and values. Standard project management and product development practices enabled conflict with preferred professional practices. Three, differences between espoused and in-use innovation processes afforded conflict. Values conflicts emerged when standard innovation practices were neglected, or when alternative practices were used as management interventions. Four, process conflicts interfered with team knowledge integration, affecting the quality of product design and development.;Three analytic schemes evaluated the organizational process findings: interpretive case analysis, hermeneutic analysis, and activity theory analysis. These analyses suggested organizational values and power embed in standard roles and innovation practices, perpetuating biased decision rights and mediating power relationships within the organizational cultures.;Organizational values in-use are largely tacit, and remain embedded in standard practices as infrastructure. The findings suggest management processes embed organizational values preferences, maintaining power and constraining professional and team participation. Many situations in product organizations afford conflict with embedded values and policies, continually threatening successful product development. Organizational behavioral preferences become embedded and persist over time, resisting attempts to change culture or processes. Recommended interventions include identifying embedded influences and replacing structural process with local practices.